Alex Palou and Chip Ganassi Racing slammed with a lawsuit by Arrow McLaren and McLaren racing in UK

2021 IndyCar champion Alex Palou is being sued by Arrow McLaren and McLaren Racing in UK Commercial Court after he revealed that he will continue racing for Chip Ganassi Racing in the 2024 IndyCar season.

Palou recently provided an update on his controversial contract situation and claimed that he would continue with Chip Ganassi next season and terminate his contract with Arrow McLaren.

In a statement, McLaren CEO Zak Brown expressed his disappointment over Alex Palou's decision and said:

“I’m extremely disappointed that Alex Palou does not intend to honor his contractual obligations to race with us in IndyCar in 2024 and beyond. 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.”

The statement continued:

“We made a significant investment in Alex Palou, looking forward to racing with him in 2024. We’re placing our trust in the legal system to resolve this matter and will keep our comments at that. As a team, we’re turning our focus on the final races this season and on our plans for 2024, which we’ll announce once we’re ready.”

Chip Ganassi defends Alex Palou over McLaren contract saga

Amidst the contract saga, Ganassi defended Palou in a statement released on August 12 and claimed that he had a lot of respect for McLaren as a team and their contribution to the sport. However, he made it clear that he had no respect for McLaren's new management.

As per RacingNews365, he said:

"Anyone that knows me knows that I don't make a habit of commenting about contract situations. Subsequently, I have been quiet since day one of this story but now I feel I must respond. I grew up respecting the McLaren Team and their success. The new management does not get my same respect."

"Alex Palou has been a part of our team and under contract since the 2021 season. It is the interference of that contract from McLaren that began this process and ironically, they are now playing the victim. Simply stated, the position of McLaren IndyCar regarding our driver is inaccurate and wrong; he remains under contract with CGR."

Chip Ganassi had legally stopped the IndyCar driver from racing for Arrow McLaren in the 2022 season. There is a possibility of this saga taking more twists and turns in the 2024 season.