Alex Palou won’t honor 2024 IndyCar contract, McLaren CEO tells team: Source

Alex Palou “has no intention of honoring his contract” with McLaren Racing’s IndyCar team in 2024 and beyond, McLaren CEO Zak Brown said in a letter to Arrow McLaren Racing employees Friday. A source familiar with the situation confirmed the contents of the letter to The Athletic. The Associated Press first reported the news and contents of the letter. Here’s what you need to know:

• The Spanish driver and McLaren announced in July 2022 that he would join the team in 2023, hours after Chip Ganassi Racing announced it picked up its option on Palou’s contract for the season.
• Palou ultimately remained driving for CGR this season, while participating in tests as a reserve driver for McLaren.
• “This is incredibly disappointing considering the commitment he has made to us both directly and publicly and our significant investment in him based on that commitment,” Brown wrote in his letter obtained by the AP.
• McLaren racing director Gavin Ward called a team huddle Friday at Indianapolis Motor Speedway shortly after Brown sent the letter, the source said.

What else Brown wrote

“We dedicated a lot of time, money and resources preparing to welcome Alex into our team because we believed in him and were looking forward to IndyCar wins with him,” Brown’s memo obtained by the AP said. “Coming out of his team dispute last fall, we were assured by Alex of his commitment to Arrow McLaren reflected in the contract he entered into with us.”

Per the AP, Brown also noted the team “paid (Palou) a significant first payment toward his 2024 season in addition to the millions of dollars toward developing him in our Formula 1 testing program and in his reserve driver role with a potential drive in F1 in the future.”

McLaren “expects (Palou) to honor” his contract but will pursue other driver lineup options for 2024 amid the dispute, Brown wrote.

Backstory

In one of the more bizarre developments, Palou tweeted at the time of the Ganassi news release that the announcement was issued without his knowledge or permission — and the quote attributed to him in the release did not actually come from him.

Moments later, McLaren issued its own news release saying it had signed Palou to drive for the organization in 2023 (though it did not specify what series). McLaren also said Palou would become part of its Formula One testing program.

“I’m extremely excited to join the driver roster for such an iconic team as McLaren,” Palou said in the McLaren release. “I’m excited to be able to show what I can do behind the wheel of a Formula 1 car and looking at what doors that may open. I want to thank everyone at Chip Ganassi Racing for everything they have done for me.”

The 26-year-old won the 2021 IndyCar Series championship with Ganassi and sits first in championship points this season with four races remaining.

Required reading

(Photo: Chris Graythen / Getty Images)