McLaren CEO Zak Brown during the Chinese Grand Prix - Photo: Race Pictures

Brown testifies as McLaren sues driver over $21M contract dispute

18:17, 07 Oct

Updated: 19:08, 07 Oct

bySamson Ero

Zak Brown took to the witness stand to testify against Alex Palou after the McLaren team hit the Spanish driver with a $21 million lawsuit over contract disputes.

The McLaren CEO labelled the act of the IndyCar driver as a shock, detailing how Palou caused significant financial and reputational consequences for McLaren.

Brown explained how NTT entered negotiations with the team’s IndyCar outfit after they received the news of Palou signing for the team. The 53-year-old further revealed how the contract wth the IT firm had to be renegotiated after the IndyCar series champion backed out of the deal, leaving McLaren without a driver of similar calibre to replace him.

McLaren are seeking more than $7.2 million arising from that renegotiation, as well as more than $6.8 million, which it claims was lost in other sponsorship revenue.

IndyCar driver Alex Palou is currently locked in a legal dispute with McLaren - Photo: Race Pictures

“NTT entered into negotiations in the first place because they knew Alex was coming to McLaren, and the amount they were willing to pay was based on Alex driving for us,” Brown said to the court in London.

“Had there been a less experienced driver, or a driver that was not as good, the price we agreed with NTT would not have been as high as it eventually was, or they may have decided not to partner with us at all.”

“We should have been focusing on track performance and finding new sponsors, but you cannot focus on that when you do not know who will be in your car.”

Palou had previously agreed in 2022 to join the McLaren IndyCar outfit for the 2023 season. However, his current team, Chip Ganassi Racing, would opt against the move, exercising a right for an extension which was then present in Palou’s contract.

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The four-time IndyCar champion would, however, reach an agreement to join McLaren a year later. However, during the course of the campaign, he told the McLaren team he would not be honouring his pre-agreed contract – a decision which has since triggered the ongoing feud between Palou and the Papaya-coloured outfit.

Palou’s lawyer's reaction to McLaren’s case

Earlier, the representative of Alex Palou insisted the payment requested by McLaren was vastly inflated and an attempt to take the driver to the cleaners. His lawyers also insisted that the team has since recouped more than it had lost since the saga with the 28-year-old.

Palou, on his part, earlier stated it was about time to end the legal battle involving the McLaren outfit. Stating it was going to be his maiden appearance in court, he hoped to put the matter to rest before the commencement of the 2026 IndyCar season.

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