McLaren CEO Zak Brown took the witness stand this week in London as the Formula 1 and IndyCar powerhouse pursues a $21 million lawsuit against Spanish driver Alex Palou, claiming breach of contract and financial damages after the driver withdrew from a signed deal.
Court Case Reveals McLaren Boss Zak Brown Allegedly ‘Never Wanted’ Oscar Piastri
Palou, the reigning IndyCar champion, had agreed in 2022 to join McLaren’s IndyCar program for the 2023 season, with potential opportunities in Formula 1 down the road. However, his existing team, Chip Ganassi Racing, exercised a contract extension, blocking the move. Palou then reached a new agreement to join McLaren in 2024 — before ultimately backing out again during the 2023 campaign.
Brown told the court that Palou’s reversal caused “significant financial and reputational damage” to McLaren, which had already begun restructuring its IndyCar lineup around the four-time race winner. The team claims it lost millions in sponsorship revenue after Palou’s withdrawal, including $7.2 million linked to a renegotiated deal with technology partner NTT and another $6.8 million in other commercial losses.
“NTT entered negotiations because they knew Alex was coming to McLaren,” Brown testified. “Had it been a lesser driver, the value of that partnership would have been lower — or not happened at all.”
Brown denied claims that McLaren used “false F1 promises” to lure Palou away from Ganassi, saying the Spaniard was aware that any Formula 1 opportunity depended on future performance and roster changes.
The 53-year-old executive described Palou’s abrupt exit as a betrayal. “Alex effectively rolled a grenade into the room and let it go off, leaving me to deal with the consequences,” he said.
Palou’s legal team has called McLaren’s $21 million claim “vastly inflated” and argued that the team has already recovered much of its financial loss. Palou, 28, has said he hopes to resolve the case before the 2026 IndyCar season begins.
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