Alex Palou was set to join McLaren after the 2022 IndyCar season. However, Chip Ganassi Racing exercised a contractual clause to retain Palou for the 2023 season, preventing his move to McLaren.
When CGR initially blocked the move to McLaren in 2022, a lawsuit ensued. It was ultimately decided that the IndyCar champion would join McLaren in 2024 and assume the role of a reserve driver for the F1 team.
Alex Palou detailed the dispute with the CGR contract in a Fox59 News video from July 2022 uploaded on YouTube. The Spaniard said:
“It didn't really change much from Toronto. Yeah, now there's a lawsuit involved, but to be honest, I think that was already, like, written since that day or that weekend. I wish it was obviously better and I didn't have 15 cameras pointing at me now. But, yeah, I cannot change it now.” (0:05 onwards)
Palou was then questioned about the team's internal dynamics and whether he was being treated as part of the team. He replied:
“It's all the same as how we work and stuff. At least it's been like that the past two weekends. And the preparation as well. I think I was yesterday at the simulator. We did the prep as normal, obviously, we didn't talk too much about what we were doing, but I was doing stuff and just trying to get the car as better as possible for this weekend, for not only me, but for everybody.”
Palou went on to become the 2023 IndyCar series champion. As per the settlement, Palou was supposed to join Arrow McLaren for the 2024 IndyCar season. However, in August of 2023, the Spaniard refused to fulfill his commitment of joining McLaren and decided to continue with Chip Ganassi Racing.
This led to a subsequent lawsuit filed by McLaren against Palou. McLaren is seeking $30M in losses from the Spaniard due to his decision not to honor the contract.
Alex Palou reveals why he didn't accept the McLaren IndyCar deal
A clause in Alex Palou's IndyCar contract included the option to become the F1 Reserve Driver and, potentially, a full-time F1 driver. However, with Oscar Piastri and Lando Norris holding long-term contracts, Palou didn't a future at the McLaren F1 team.
Palou said: (via AP)
“There were no signs that anything was going to open for me in F1. I am too old to wait and see if someone get hurt and that is how I can get my chance. Pato can wait for someone to get hurt.”
McLaren shifted Pato O'Ward into the role originally intended for Palou. O'Ward now races full-time in the IndyCar Series for Arrow McLaren while also serving as the team's F1 test driver.