Palou in January was ordered by London’s High Court to pay McLaren more than $12 million after a five-week trial in which the F1 team proved he backed out of two different deals with the racing team.
The team was initially seeking closer to $30 million and said after the ruling it would still pursue legal fees from Palou.
Ahead of the first practice in the IndyCar season, Ganassi said the case had been settled.
“I’m happy to confirm that we have reached a final settlement with McLaren Racing following a UK judge ruling in January,” Ganassi said in a statement.
“I cannot condone what happened and I’m glad the matter is over. With the benefit of hindsight, I hope Alex has learned it’s important to keep good people around him, which he now does, so the events of 2023 are never repeated.”
It is not clear if Ganassi was on the hook for any of Palou's financial penalties from the fight that began in 2023 when he signed a contract to move to McLaren.
Ganassi said it held the contractual rights on Palou for 2024 and he remained with CGR that year while he was also a reserve driver for McLaren's Formula 1 team.
Palou was expected to move to McLaren's IndyCar team in 2025 but did an about-face and decided to stay at Ganassi, where he has won three consecutive championships and four of the last five.
Palou acknowledged in his own statement that he followed poor management advice at the time and said McLaren boss Zak Brown did nothing wrong.
Palou had previously maintained he was misled into thinking he had a chance at one of McLaren's F1 seats and reversed his decision to leave Ganassi when McLaren signed Oscar Piastri to its team.
“I found myself pulled in various directions and had the wrong people around me back then who I believe did not have my best interests at heart,” Palou said. "I believe back then that I was provided with the wrong advice or no advice at all. In hindsight, had I reached out to Zak directly, perhaps things may have played out differently.
“McLaren and Zak supported me in many ways, they fulfilled every obligation, went above and beyond and delivered on everything they said in their contracts. I was never misled by McLaren and very much respect their organization.”
McLaren has won the last two constructors' championships in F1 and Lando Norris added the drivers' title last season. But, in IndyCar, Ganassi has had the superior team and Palou did not want to leave for what he perceived as a lesser ride in that series once he felt he had no opening into F1.
Brown thanked his legal team for the work it has done since Palou's attorneys informed him in the middle of 2025 that Palou was staying with Ganassi. Palou refused to personally speak to Brown — on the advice of his management — and the unprofessionalism partly drove Brown to doggedly fight the breach of contract.
“Pleased we can now return to battling things out on track," Brown said, "and focus on what’s set to be an exciting IndyCar season.”
AP auto racing: https://apnews.com/hub/auto-racing
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)
WASHINGTON (AP) — Scouting America will alter several policies at the urging of the Pentagon, including a requirement that members use “biological sex at birth and not gender identity,” Defense Secretary Pete Hegseth announced Friday.
Some of the changes mirror what the organization suggested to the Defense Department in January, which included discontinuing its Citizenship in Society merit badge and introducing a Military Service merit badge as well as waiving registration fees for the children of military personnel.
Under Hegseth, the Pentagon has taken aim at the military’s partnership with Scouting America, decrying its historic rebrand in 2024 from the Boy Scouts and other changes in recent years that he sees as part of “woke culture” efforts that he wants to root out.
Hegseth said in a video posted on X that the Pentagon will “vigorously review” the changes the organization has made in six months and will cease its support of Scouting America if it fails to comply.
“We hope that doesn’t happen, but it could,” Hegseth said. “Ideally I believe the Boy Scouts should go back to being the Boy Scouts as originally founded, a group that develops boys into men. Maybe someday.”
Scouting America, which is based in Irving, Texas, didn’t immediately comment.
The organization began allowing gay youth in 2013, ended a blanket ban on gay adult leaders in 2015 and announced in 2017 that it would accept transgender students. It began accepting girls as Cub Scouts as of 2018 and into the flagship Boy Scout program — renamed Scouts BSA — in 2019. As of May 2024, more than 6,000 girls had earned the coveted Eagle Scout rank.
The Pentagon said in a statement earlier this month that it was reviewing its relationship with Scouting America, claiming it had “lost its way” in many ways and calling the organization’s diversity, equity and inclusion efforts “unacceptable.”
“Scouting America’s leadership has made decisions that run counter to the values of this administration,” the Feb. 6 statement said, ”including an embrace of DEl and other social justice, gender-fluid ideological stances.”
The Pentagon previously said it and Scouting America were nearing an agreement to continue their partnership if the organization “rapidly implements the common-sense, core value reforms.”
“Scouting America remains far from perfect, but they have firmly committed to a return to core principles,” the statement said. “Back to God and country—immediately!"
The U.S. military and the Boy Scouts have had longtime ties, including the military providing logistical support for the National Boy Scout Jamboree since its inception in 1937.
The military also has a long history of sponsoring Scout troops and activities on U.S. military bases and has maintained a strong relationship with the Eagle Scouts, whose members often enlist in the armed forces.
In a statement last year, Scouting America raised concerns following a report from NPR that the Pentagon planned to cut support for Scouting programs on military bases as well as for the National Jamboree and would eliminate increases in pay grade for Eagle Scouts who enlist.
The Scouts told Hegseth in January that after hearing his suggestions, they had come up with a plan for him to review, which included discontinuing their Citizenship in Society merit badge and introducing a Military Service merit badge, waiving registration fees for military personnel and holding a ceremony to rededicate themselves to leadership, duty to God, duty to country and service, besides dissolving their DEI board committee.
Founded in 1910, the Boy Scouts of America achieved a vaunted status in the U.S. over the decades, with pinewood derbies, the Scout Oath and Eagle Scouts becoming part of the lexicon.
Lore has it that American businessman William Boyce was inspired to start the organization after he became lost in the fog in London and was guided to his destination by a youth who turned down a tip, telling Boyce that because he was a scout (they were formed in Britain in 1907) he couldn’t accept money for a good deed.
Since then, the organization has faced controversies and undergone significant changes.
In 1990, the organization expelled an Eagle Scout who had become an assistant scoutmaster after discovering he was co-president of his university’s gay and lesbian organization. He sued in 1992 alleging discrimination and lost at the U.S. Supreme Court, which ruled that the Scouts could maintain membership and leadership criteria that excluded gay people.
Conservative groups rallied around the Boy Scouts, but scores of institutions curtailed support as the ban continued. The ban ended in 2013. In 2015, the organization ended its blanket ban on gay adult leaders while allowing church-sponsored Scout units to maintain the exclusion for religious reasons.
In 2017, the Boy Scouts announced that they would allow transgender children who identify as boys to enroll in their boys-only programs. That came after an 8-year-old was asked to leave his Scout troop in New Jersey after parents and leaders found out he was transgender.
The Boy Scouts also faced a flood of sexual abuse claims and sought bankruptcy protection in 2020, when it had been named in about 275 lawsuits and had told insurers it was aware of another 1,400 claims.
In 2023, a judge upheld the $2.4 billion bankruptcy plan allowing the organization to keep operating while compensating more than 80,000 men who filed claims saying they were sexually abused while in scouting.
Last year, Scouting America’s President and CEO Roger Krone acknowledged some backlash to the rebrand but described the overall response as a positive one that generated wider interest.
“The fact that we were going with a more kind of gender-neutral name, a lot of people kind of wanted to know more about it,” Krone said.
The organization said it saw a gain in membership of about 16,000 new scouts, less than 2% from the prior year. The organization said at the time that it had just over 1 million members.
Stengle reported from Dallas. Associated Press writer Konstantin Toropin contributed to this report.
Secretary of Defense Pete Hegseth enters the House Chamber before President Donald Trump delivers the State of the Union address to a joint session of Congress in the House chamber at the U.S. Capitol in Washington, Tuesday, Feb. 24, 2026. (Kenny Holston/The New York Times via AP, Pool)
