“The team was not able to achieve full payment as I expected”, — write: sport.ua
McLaren sued for nearly $20 million after Palu breached a contract in 2023 that would have seen him join the team in IndyCar and become McLaren’s F1 test and reserve driver. The driver himself admitted the violation of the agreement, explaining that he took this step because of unfulfilled promises. Palu believed that he was being prepared for a fighting place in F1 already from 2024, however, realizing that this would not happen, he refused to cooperate and signed a new contract with Chip Ganassi Racing.
The hearing at the High Court in London took place in October 2025. Palu himself and McLaren CEO Zach Brown were among the witnesses.
Judge Picken dismissed McLaren’s F1 claim, so Palu is not required to pay any compensation for the F1 program. At the same time, in the IndyCar part, the court found McLaren’s demands justified: Palu and his management company ALPA Racing must compensate the driver’s salary, payments for the 2024-2027 seasons, a bonus from General Motors for attracting a high-level driver, as well as lost income from commercial agreements.
The total compensation amount currently stands at $10.19 million, and a final decision on another sponsorship lawsuit could increase it to $12.6 million, significantly less than the amount McLaren originally sought.