INDIANAPOLIS — The long, strange saga of Alex Palou has taken yet another interesting and sudden turn as the NTT IndyCar Series championship leader informed McLaren CEO Zak Brown that he has “no intention of honoring his contract” in 2024.
Palou’s current team owner, Chip Ganassi, spoke publicly on the situation for the first time Saturday at 12 noon.
He fired a direct hit at McLaren.
“Anyone that knows me knows that I don’t make a habit of commenting about contract situations,” Ganassi said. “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 management regarding our driver is inaccurate and wrong; he remains under contract with CGR.”
Palou, the 2021 NTT IndyCar Series champion, was taken to arbitration last year by current team owner Chip Ganassi last year after Palou announced he had a deal to join McLaren in 2023. He recently sent a letter to Brown. The McLaren CEO sent the letter to team members at the Arrow McLaren IndyCar team and a copy of that letter was obtained by The Associated Press.
“I’m extremely disappointed that Alex Palou does not intend to honor his contractual obligation to race with us in IndyCar in 2024 and beyond,” Brown said late Friday. “That’s all I have to say on the topic for the time being.”
Brown contends Palou had reassured him numerous times he would be racing for that team next season and according to the report, had drawn an advance on his salary.
“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,” Brown wrote in the letter sent to Arrow McLaren.
According to the report, the letter was sent to McLaren employees after Friday’s final practice session at the Indianapolis Motor Speedway.
Palou enters Saturday’s Gallagher Grand Prix at the Indianapolis Motor Speedway with an 84-point lead over Josef Newgarden with four races remaining. It was just one year ago in July when Palou announced he was leaving Chip Ganassi Racing to join McLaren in 2023.
Later that same day, Chip Ganassi Racing issued a statement that said Palou was under contract with the team in 2023 and that Ganassi was invoking the option clause of the contract.
Ganassi took the driver to a mediator, who ruled in favor of the team.
Palou returned to Chip Ganassi Racing and has been the dominant driver in this year’s NTT IndyCar Series championship. He has a points lead equal to 1.5 races with only four races remaining and could clinch the championship well before the final race of the season at Monterey, California.
SPEED SPORT directly asked Palou on Thursday if he had gotten a counteroffer from Ganassi.
At first, Palou looked stunned by the question and after a long pause said, “No comment.
“If I say yes, you’re going to write a story, and if I say no, you’re going to write another story, so no comment,” Palou said. “I am sorry.”
He was then asked if he could be back at the Indianapolis Motor Speedway next year.
“At Indianapolis? I will be back in Indianapolis,” Palou said.
Palou was also asked if he is going to be racing in Europe next year?
“As of today, no,” Palou said. “It might change tomorrow. But as of today, no.”
Palou also said he has not received any offers to compete in Formula One.
On Thursday night, both Ganassi and Chip Ganassi Racing managing director were spotted at Oceanaire, a high-end seafood restaurant in Indianapolis where they were having dinner with a small group of people. Hull told a table that included SPEED SPORT and Nate Ryan of NBC Sports and said he had, “a long day of real meetings.”
Although it has not been announced, it can be highly presumed that Palou is closing in on a new contract to remain with Chip Ganassi Racing. He is a generational talent and could be earmarked to lead the team well into the future, even after the legendary six-time NTT IndyCar Series champion Scott Dixon retires from racing someday.
“We don’t comment on driver contracts. You know that,” Ganassi then told AP. “We as a team work on wins and championships.”
In the letter to Arrow McLaren, Brown said, “We dedicated a lot of time, money and resources preparing to welcome Alex into our team because we believed in him and were looking forward to IndyCar wins with him,” Brown wrote. “Coming out of his team dispute last fall, we were assured by Alex of his commitment to Arrow McLaren reflected in the contract he entered into with us.
“Unfortunately, it now appears our belief, commitment, investment, and trust in Alex was misplaced as it is not being reciprocated.
“We have made clear to Alex that we expect him to honor and perform under his contract with us. However, the leadership team and I are focused on addressing our 2024 driver lineup in order to be prepared if Alex does not do so.”