Palou and McLaren: Accusations of Deception

In a bombshell courtroom testimony, two-time IndyCar champion Alex Palou (pictured) has accused McLaren CEO Zak Brown of luring him into a contract with false promises of a Formula 1 seat while admitting he lacks the funds to cover the $20.7 million in damages McLaren is seeking for his breach.

–by Mark Cipolloni–

The ongoing London High Court trial has unearthed fresh drama, including surprise references to Fernando Alonso and Oscar Piastri’s infamous 2022 tweet rejecting Alpine—revelations that paint a picture of duplicity and shattered dreams.

The Deal That Never Was

The saga began in 2022 when McLaren announced the signing of the rising Spanish talent, fresh off his 2021 IndyCar title with Chip Ganassi Racing (CGR). But Ganassi swiftly countered with a press release, claiming Palou remained under contract after they exercised an option on the driver. Behind the scenes, a compromise emerged: Palou would stay with CGR for the full 2023 IndyCar season while serving as a reserve driver for McLaren’s F1 team.

The plan called for Palou to transition to McLaren’s IndyCar squad in 2024, with the long-term goal of a full-time F1 promotion. Instead, Palou abruptly withdrew, igniting the lawsuit. Brown publicly blasted the decision, stating Palou had “no intention of honoring his contract with us in IndyCar or Formula 1.” Now, as the trial unfolds, Palou’s defense hinges on claims of outright deception.

Alonso Enters the Fray: Doubts About McLaren’s IndyCar Prowess

Testifying under oath, Palou didn’t mince words about his reluctance to join McLaren’s IndyCar program. He invoked double F1 world champion Fernando Alonso—widely regarded as one of the greatest drivers of the modern era—as Exhibit A for why the team couldn’t deliver victories.

Alonso’s Indy 500 forays with McLaren-affiliated efforts had been disastrous: a late engine failure in 2017 with McLaren-Honda-Andretti (where he nearly won); a humiliating failure to qualify in 2019 against rookie Kyle Kaiser; and a 21st-place finish in 2020 with Arrow McLaren SP.

“If a driver does not have the machinery and the best team around, then that driver cannot win races,” Palou said. He argued that even a talent like Alonso couldn’t overcome McLaren’s shortcomings in a full season, let alone one-off events.

“There are many examples of big names in motorsport who were unable to perform because of the machinery they were given.”

Palou emphasized that a single aggressive race might yield results, but sustaining success over “a full year or four or five years” required reliable equipment—something he believed McLaren lacked. This skepticism, he claimed, made the IndyCar commitment a non-starter unless it paved a clear path to F1.

Financial Strain and a Hidden Contract Clause

Palou’s testimony also laid bare the personal toll. “The big numbers that have been claimed in this matter is something that I do not have as a person, as a driver,” he said. Despite an indemnity clause in his contract, Palou stressed he’s not among IndyCar’s top earners and couldn’t afford the legal battle.

“There is no way I would have had the amount of money and expenses just to be here today… I am not in the top three of the highest-paid drivers, and I am not going to be for the foreseeable future.”

Complicating matters was Palou’s existing CGR contract, which included an exit clause allowing him to leave for F1. Yet, as he discovered later, his lawyers—whose fees were covered by Brown—knew about the clause but failed to flag it.

“Mr. Brown knew I could not sign that contract,” Palou alleged, forcing him into a stark choice: battle the team that had launched his championship career or renege on a deal with a boss he now views as misleading.

The F1 Promise and Piastri’s Shock Tweet

At the heart of Palou’s grievance was Brown’s pitch: McLaren, the only IndyCar outfit with F1 infrastructure, would fast-track him to the top tier, echoing Mario Andretti’s historic jump decades earlier. Palou was “more than happy” to sacrifice his full-time IndyCar seat for F1 reserve duties, testing, and development. The contract explicitly referenced this trajectory, with salary terms for an initial F1-focused “season” of testing and reserves, followed by contingencies if the “F1 option was not done.”

“That would be the goal,” Palou said—the “primary idea” behind the deal.

But in 2022, McLaren signed rookie Oscar Piastri, derailing everything. When Palou’s management queried Brown, the CEO reportedly blamed then-team principal Andreas Seidl, assuring it wouldn’t impact Palou’s prospects. Palou now questions that narrative: “From what I have heard in the last days, apparently he [Brown] makes all the choices. That was not what he told me.” Why, Palou wondered, had Piastri’s name never surfaced in discussions? And why another unproven rookie over an experienced hand?

The plot thickened with Piastri’s viral August 2, 2022, tweet: a blunt denial of Alpine’s claim that he’d replace Alonso in their 2023 lineup.

“I understand that, without my agreement, Alpine F1 have put out a press release late this afternoon that I am driving for them next year. This is wrong and I have not signed a contract with Alpine for 2023. I will not be driving for Alpine next year.” It was a seismic moment in a chaotic driver market, as Piastri pivoted to McLaren—replacing the underperforming Daniel Ricciardo.

Palou saw parallels to his own situation. “In 2022, I saw Oscar Piastri posting tweets that were similar to mine,” he testified. Just a month later, McLaren confirmed Piastri for their 2023 F1 seat.

“That was the first time things changed… They did not tell us the truth,” said Palou.

Zak Brown, CEO, McLaren Racing, with Oscar Piastri, McLaren F1 Team in 2024

A Stark Contrast in Fortunes

Since bailing on the deal, Palou has dominated IndyCar, securing titles in 2023, 2024, and now 2025 with Ganassi. McLaren, meanwhile, has soared in F1, clinching the Constructors’ Championship in Singapore while its drivers vie for the Drivers’ title.

The trial continues, with Palou’s accusations threatening to tarnish McLaren’s reputation amid their golden era. As he put it, he chose loyalty to the team that built him over a path paved with what he calls broken promises.