DAYTONA BEACH, Fla. (AP) — Four-time IndyCar champion Alex Palou on Friday was ordered to pay McLaren Racing more than $12 million in the breach of contract suit the team filed when the Spaniard backed out of two different deals with the racing team.
The Friday ruling from London's High Court came after a five-week trial last year. McLaren initially sought almost $30 million in damages, but that number was reduced to $20.7 million as the racing juggernaut sought to reclaim money allegedly lost in sponsorship, driver salaries and performance earnings.
“I never wanted to end up in court. It’s not really how we do things at McLaren Racing and we tried hard to find a solution at the time,” McLaren Racing boss Zak Brown told The Associated Press at Daytona International Speedway.
"In the end Alex — supported by a large legal team — sadly left us no option, and they now have a very significant legal bill to show for it. I happen to believe that treating others with respect and staying true to your word matters a great deal both in life and in our sport, but as we have seen as this case evolved, that view wasn’t shared by all involved.”
McLaren added it is still seeking interest and reimbursement of its legal expenses — a judgement in favor of the team could push Palou's total owed to more than $20 million. It is not clear if Chip Ganassi, the team owner Palou drives for in IndyCar, is covering any of the losses.
Palou was not ordered to pay anything related to Formula 1 losses McLaren said it suffered when Palou decided to remain with Chip Ganassi Racing rather than move to McLaren's IndyCar team in 2024. All the damages awarded to McLaren were tied to losses the IndyCar team suffered by Palou's change of mind.
“The court has dismissed in their entirety McLaren’s Formula 1 claims against me which once stood at almost $15 million," Palou said in a statement. "The court’s decision shows the claims against me were completely overblown. It’s disappointing that so much time and cost was spent fighting these claims, some of which the Court found had no value, simply because I chose not to drive for McLaren after I learned they wouldn’t be able to give me an F1 drive.
“I’m disappointed that any damages have been awarded to McLaren. They have not suffered any loss because of what they have gained from the driver who replaced me. I am considering my options with my advisors and have no further comments to make at this stage.”
Palou has won three consecutive IndyCar titles and the Indianapolis 500 since this saga began midway through the 2022 season. He has four IndyCar titles in the last five seasons. Palou and Brown are both at Daytona International Speedway for this weekend's Rolex 24 sports car endurance race: the Meyer Shank Racing team Palou is driving for will start from the pole Saturday, while Brown is competing in a support race earlier in the day.
The bulk of the damages awarded to McLaren were tied to loss of sponsorship. Palou was ordered to pay $5.3 million to cover the losses in the team's agreement with NTT Data, $2.5 million in “other IndyCar sponsorship revenue” and $2 million in performance-based revenue.
IndyCar team owner Ganassi said Palou has his backing.
“Alex has our full support, now and always. We know the character of our driver and the strength of our team, and nothing changes that," Ganassi said. "While we respect the legal process, our focus is exactly where it should be: on racing, on winning, and on doing what this organization has always done best, competing at the highest level.
"We’re locked in on chasing another championship and defending our 2025 Indianapolis 500 victory. That’s where our energy is, and that’s where Alex’s focus is, on the track, doing what he does best: winning.”
McLaren has won the last two constructor championships in F1 and Lando Norris last season won the driver championship.
Palou first signed with McLaren in 2022 to drive for its IndyCar team in 2023, but Ganassi pushed back and exercised an option on Palou for the 2023 season. The matter was decided through mediation, with McLaren covering Palou’s legal costs. Palou could not join McLaren until 2024 but was permitted to be the reserve and test driver for the F1 team in 2023.
When McLaren signed Oscar Piastri for its F1 team, and Palou’s performance with Ganassi in IndyCar was so dominant, the driver decided he did not want to move to McLaren’s IndyCar team and reneged on his contract.
Palou argued his contracts with McLaren were “based on lies,” and he’d never have a chance to race in F1. His counsel also accused Brown of destroying evidence by deleting WhatsApp messages related to the case.
McLaren contended it lost revenue when Palou backed out ahead of the 2024 season and the team had to scramble to find another driver. McLaren wanted Indianapolis 500 winner Marcus Ericsson, who had already committed to Andretti Global, so it instead used four different drivers that season.
Because none were as accomplished as Palou, McLaren argued both NTT Data and General Motors reduced their payouts to the team because McLaren did not field a driver of the caliber it had promised.
AP auto racing: https://apnews.com/hub/auto-racing
FILE - McLaren chief Zak Brown listens to radio during a first practice for the he Abu Dhabi Formula One Grand Prix in Abu Dhabi, United Arab Emirates, Friday, Dec. 5, 2025. (AP Photo/Darko Bandic, file)
FILE - Alex Palou celebrates after winning the IndyCar championship Sunday, Aug. 31, 2025, at Nashville Superspeedway in Lebanon, Tenn. (AP Photo/George Walker IV, file)
DUBAI, United Arab Emirates (AP) — Iran targeted the world’s busiest international airport Wednesday and attacked commercial ships as U.S. and Israeli strikes rocked Tehran, while the United Nations' most powerful body demanded a halt to the Islamic Republic’s strikes on its Gulf neighbors that threaten global oil supplies.
The latest attacks marked an escalation in Iran's campaign aimed at generating enough global economic pain to pressure the United States and Israel to end the war that started 12 days ago. But there were no signs that the conflict was subsiding.
On Thursday, an Iranian attack sparked a major fire on Bahrain’s Muharraq Island, home to the island kingdom’s international airport. Authorities urged people to stay indoors and close windows to avoid smoke. The airport has jet fuel tanks, and other tanks in the area serve the kingdom’s oil industry.
Also, an attack on Iraq’s Basra port killed at least one person and forced a halt to operations at all the country’s oil terminals. Farhan al-Fartousi, the director-general of the General Company for Ports of Iraq, said the attack targeted a vessel in a ship-to-ship transfer area at the port on the Persian Gulf. Iraq’s commercial ports remained open, though the oil terminals had been shut, according to his statement carried by the state-run Iraqi News Agency.
The first week of war with Iran cost the United States $11.3 billion, according to the Pentagon, which provided the estimate to Congress in a briefing earlier this week, according to a person familiar with the situation who spoke on condition of anonymity to discuss the private meeting. The military reported spending $5 billion on munitions alone in the war's first weekend.
Both sides have dug in, hoping to outlast the other as the conflict upends trade routes, chokes supplies of fuel and fertilizer coming out of the Gulf and threatens air traffic through one of the world’s most-traveled regions.
Iran has targeted oil fields and refineries in Gulf Arab nations and effectively stopped cargo traffic through the narrow Strait of Hormuz, through which a fifth of all traded oil passes.
In response, the International Energy Agency agreed to release 400 million barrels of oil, the largest volume of emergency oil reserves in its history, in a bid to counter the war's effects on energy markets. The U.S. planned to release 172 million barrels of oil next week from its Strategic Petroleum Reserve to combat steep prices.
The U.N. Security Council voted Wednesday to approve a resolution demanding a halt to Iran’s “egregious attacks” on its Gulf neighbors.
Among the most recent attacks, four people were wounded after two Iranian drones hit near Dubai International Airport in the United Arab Emirates, though flights continued, the Dubai Media Office said. Firefighters extinguished a blaze early Thursday at a luxury apartment tower in Dubai Creek Harbor after an Iranian drone strike.
At Oman’s Port of Salalah, crews battled a blaze at fuel storage tanks there, according to the Oman News Agency.
“The international community is resolute in rejecting these Iranian attacks against sovereign countries that are threatening the stability of the peoples, especially in a region of strategic importance to global economy, energy, security and security of global trade,” said Bahrain’s U.N. ambassador, Jamal Alrowaiei.
The 13-0 vote in the U.N.’s most powerful body reflects Iran’s isolated position as it has aggressively responded to Israeli and U.S. strikes. China and Russia — two Iranian allies — abstained from the vote.
Their U.N. ambassadors called the proposal “extremely unbalanced” in not mentioning the strikes against Tehran that began the war.
Russia’s U.N. ambassador, Vassily Nebenzia, said it might leave the impression that Iran, “on its own volition and out of malice, conducted an unprovoked attack on Arab states.” Iranian U.N. Ambassador Amir Saeid Iravani said the resolution “deliberately ignores the root causes of the current crisis.”
Meanwhile, more attacks in Gulf countries were reported.
Drones were launched toward the cities of Irbil and Sulaymaniyah in Iraq’s Kurdistan region, while in the southern part of the country, an oil vessel flying the Australian flag was struck near Khor Al-Zubair Port, according to two Iraqi navy officials who also spoke on condition of anonymity because they were not authorized to comment publicly.
The official said 25 members of the crew were rescued. It was not immediately clear whether any others were missing.
On Thursday, sirens wailed and loud explosions were heard shortly after midnight in Jerusalem and other parts of Israel. The Israeli military said it was responding with another “wide-scale wave of strikes” in Tehran.
The fallout across the Middle East widened as Israel also struck what it said were targets connected to Iran-backed Hezbollah militants in Lebanon.
An Israeli strike hit a car Thursday in Ramlet al-Bayda, a major seaside tourist area on the eastern side of Beirut where dozens of displaced people have been sheltering. Seven people were killed and 21 others were wounded, the Lebanese Health Ministry said. The Israeli military press office told The Associated Press it was “not aware” of a strike at that location.
Blasts shook Beirut’s southern suburbs Wednesday, producing fires and plumes of smoke. Israel's military said the strikes were in response to Hezbollah firing dozens of rockets fired simultaneously across northern Israel. It marked some of the heaviest fighting between the two since the war began.
One rocket hit a house near the Israeli town of Karmiel, lightly injuring two people, according to Israeli rescue services.
At least 634 people have been killed in Lebanon since the latest fighting began, the Lebanese Health Ministry said Wednesday.
The U.N. refugee agency said at least 759,000 people have been internally displaced in Lebanon.
Iranian authorities say more than 1,300 people have been killed there, and Israel has reported 12 people dead. The U.S. has lost seven soldiers while another eight have suffered severe injuries.
This story has been corrected to fix a misspelling of the first name of Bahrain's U.N. ambassador.
Abou AlJoud reported from Beirut. Mascaro reported from Washington. Associated Press writer Sam Mednick in Tel Aviv, Israel, also contributed to this report, along with AP journalists around the world.
Israel Ambassador to the United Nations Danny Danon speaks during a meeting of the Security Council at U.N. headquarters, Wednesday, March 11, 2026. (AP Photo/Seth Wenig)
A family enjoys the sunset with the view of the city skyline and Burj Khalifa, at Dubai Creek Harbour in Dubai, United Arab Emirates, Wednesday, March 11, 2026. (AP Photo/Fatima Shbair)
Oil tankers and cargo ships line up in the Strait of Hormuz as seen from Khor Fakkan, United Arab Emirates, Wednesday, March 11, 2026. (AP Photo/Altaf Qadri)
Smoke rises after an explosion at the airport in Irbil, Iraq, late Wednesday, March 11, 2026. (AP Photo/Leo Correa)
A man inspects a car damaged in an Israeli airstrike at the Ramlet al-Baida public beach in Beirut, Lebanon, early Thursday, March 12, 2026. (AP Photo/Bilal Hussein)
A man, left, carries the body of his son, Kassem Younis, who was killed in an Israeli airstrike, during his funeral procession in the southern village of Chehabiyeh, Lebanon, Wednesday, March 11, 2026. (AP Photo/Mohammed Zaatari)
Flames rise from an Israeli airstrike in Dahiyeh, Beirut's southern suburbs, Wednesday, March 11, 2026. (AP Photo/Hassan Ammar)
Children and adults play on swings on the beach as oil tankers and cargo ships line up in the Strait of Hormuz near Khor Fakkan, United Arab Emirates, Wednesday, March 11, 2026. (AP Photo/Altaf Qadri)
A man holds a picture of late Defense Minister Aziz Nasirzadeh beside his coffin as mourners attend the funeral procession for senior Iranian military officials and civilians killed during the U.S.-Israel campaign in Tehran, Iran, Wednesday, March 11, 2026. (AP Photo/Vahid Salemi)
A mourner holds a poster depicting Ayatollah Mojtaba Khamenei, right, the successor to his late father Ayatollah Ali Khamenei, left, as supreme leader, during the funeral procession for senior Iranian military officials and civilians killed during the U.S.-Israel campaign in Tehran, Iran, Wednesday, March 11, 2026. (AP Photo/Vahid Salemi)
Smoke rises from a building following an Israeli airstrike in Dahiyeh, Beirut's southern suburb, Wednesday, March 11, 2026. (AP Photo/Hassan Ammar)
Mourners attend the funeral procession for senior Iranian military officials and some civilians killed during the U.S.-Israel campaign, in Tehran, Iran, Wednesday, March 11, 2026. (AP Photo/Vahid Salemi)
FILE - A plume of smoke rises after a strike in Tehran, Iran, Monday, March 2, 2026. (AP Photo/Mohsen Ganji, File)
Rescue workers gather at the site where Israeli airstrikes hit apartments in Beirut, Lebanon, Wednesday, March 11, 2026. (AP Photo/Hussein Malla)
People take shelter in an underground metro station as air raid sirens warn of incoming Iranian missile strike, in Ramat Gan, Israel, Tuesday, March 10, 2026. (AP Photo/Oded Balilty)
A man passes in front of a destroyed building that housed a branch of Al-Qard Al-Hassan, a non-bank financial institution run by Hezbollah, which was hit by an Israeli airstrike in Dahiyeh, Beirut's southern suburbs, Lebanon, Tuesday, March 10, 2026. (AP Photo/Hussein Malla)
People walk past closed shops at the nearly empty traditional main bazaar in Tehran, Iran, Tuesday, March 10, 2026. (AP Photo/Vahid Salemi)
Motorbikes drive past a billboard depicting Iran’s late Supreme Leader Ayatollah Ali Khamenei, center, handing the country’s flag to his son and successor Ayatollah Mojtaba Khamenei, right, as the late revolutionary founder Ayatollah Ruhollah Khomeini stands at left, in a square in downtown Tehran, Iran, Tuesday, March 10, 2026. (AP Photo/Vahid Salemi)
Smoke rises from an Israeli airstrike in Dahiyeh, Beirut's southern suburbs, Lebanon, Tuesday, March 10, 2026. (AP Photo/Bilal Hussein)
