UPDATE: The contract saga surrounding IndyCar driver Alex Palou takes a new twist: The Spaniard is opting out of his McLaren contract and is expected to renew with Ganassi
IndyCar dominator Alex Palou is opting out of his contract with McLaren and is expected to sign a new deal with Chip Ganassi Racing. This latest contract saga follows a lengthy legal battle over his 2023 services, with Ganassi suing its own driver after he signed a deal with McLaren in the summer of 2022.
A court-ordered arbitration resulted in him staying with Ganassi this season, when he is clearly on track for his second championship, but being allowed to drive McLaren Formula One cars and act as a reserve driver in Formula 1.
Until now, all indications were that Palou would move to IndyCar team Arrow McLaren for the 2024 season. But that will not happen, as McLaren managing director Zak Brown announced on Friday evening in a letter to the company’s employees, from which the news agency ‘Associated Press’ quotes.
McLaren reacts with disappointment
“I am very disappointed that Alex Palou has no intention of fulfilling his contractual obligations and racing with us in IndyCar in 2024 and beyond,” Brown said. “That’s incredibly disappointing considering the commitment he made to us directly and publicly and how much we’ve invested in him because of that commitment.”
Brown is alluding to Palou’s role in Formula One team McLaren’s junior programme. In 2022 in Austin and 2023 in Miami, the Spaniard had contested the first free practice session for McLaren. He also took part in tests for the team on several occasions.
However, Palou has not only fallen out with McLaren, but has also parted ways with his management company Monaco Increase Management (MIM). The latter says in a statement: “Monaco Increase Management is bitterly disappointed with Alex Palou’s decision to renege on an existing agreement with McLaren for 2024 and beyond.”
“Together we built a relationship that we believe transcended any contractual obligation and culminated in Alex winning the 2021 Indycar crown and moving on to Formula 1. Life goes on and we wish Alex all the best for his future. “
Ganassi responds with own statement
Everything now points to a long-term contract extension with Ganassi. With a rumoured seven-figure salary, Palou would arguably be the highest-paid driver in the IndyCar Series. Chip Ganassi responded on Saturday on behalf of Chip Ganassi Racing (CGR) with a statement of his own.
“Anyone who knows me knows that I don’t make a habit of commenting on contract situations. So I’ve been holding back since day one of this story, but now I feel compelled to respond. I grew up respecting the McLaren team and its success. But the new management does not get the same respect from me,” Ganassi said.
“Alex Palou is a part of our team” continued Ganassi. “He has been under contract since the 2021 season. It is McLaren’s interference in that contract that triggered this process in the first place. Ironically, they are now playing the victim. Simply put, McLaren’s IndyCar team’s position on our driver is inaccurate and wrong. He remains under contract with CGR. “