Two-time and defending NTT INDYCAR SERIES champion Alex Palou has admitted that he breached his McLaren contract after the Spaniard lost trust in McLaren helping him to achieve his ambition of racing in Formula One.

Paddock Eye understands that by admitting he breached his contract with McLaren, Palou and his legal team are attempting to mitigate any damages that he will have to pay McLaren for his contract breach.

Among the money McLaren is looking to recoup from Palou is a $400,000 advance on his 2024 salary paid to him in good faith. Palou had been due to drive for McLaren in Formula One at the Singapore Grand Prix with the team having booked him a hotel room that was never used.

Palou went on to sign a multi-year contract extension with Chip Ganassi Racing and won the 2023 NTT INDYCAR SERIES championship.

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