Brown livid over Palou refusing to honour 2024 McLaren contract

Another legal dispute appears to be looming for McLaren Racing boss Zak Brown as the team's relationship with its F1 reserve driver Alex Palou takes a new twist.

Brown has revealed that Palou - IndyCar's current championship leader - has "no intention" of honouring the contract that allegedly binds him to Arrow McLaren SP for 2024.

The unexpected turn of events follows a dispute that erupted last year between McLaren and Chip Ganassi Racing when Palou announced his transfer to the Woking-based outfit's IndyCar squad for 2023 despite being contracted to CGR.

Ultimately, the involved parties reached a settlement by which Palou remained with CGR for 2023 but was allowed to test with McLaren in F1 ahead of the Spaniard's expected move to Arrow McLaren SP for 2024.

Court documents that were made public last year revealed that Palou had an exclusivity clause with Ganassi until September 1, 2023.

Palou has stated that he would divulge his plans for next season after IndyCar's finale at Laguna Seca on September 10.

• Read also: McLaren impressed with Palou but puts F1 tests on hold

Ahead of this weekend's round of racing on the road course of the Indianapolis Motor Speedway, Brown fired off a letter to his team's employees clarifying Palou's current status for 2024.

A copy of the letter was obtained by the Associated Press which disseminated on Friday part of its contents.

It states that Palou had given Brown multiple assurances that he would be racing for McLaren in 2024, adding that the Spaniard had already received an advance on his salary.

“This is incredibly disappointing considering the commitment he [Palou] has made to us both directly and publicly and our significant investment in him based on that commitment," Brown wrote.

"We have paid him a significant first payment toward his 2024 season in addition to the millions of dollars toward developing him in our Formula 1 testing program and in his reserve driver role with a potential drive in F1 in the future.

"Unfortunately, it now appears our belief, commitment, investment and trust in Alex was misplaced as it is not being reciprocated."

In a statement issued to The-Race.com, Brown added: "I’m extremely disappointed that Alex Palou does not intend to honour his contractual obligations to ace with us in IndyCar in 2024 and beyond.

"That is all I have to say on the topic for the time being."

There's likely more drama to unfold on the legal front for all parties, but the bottom line could be that a seat may soon become available at Arrow McLaren SP for next season as Palou commits to extending his stay with Ganassi.

Currently, the team fields Pato O’Ward, Felix Rosenqvist and Alexander Rossi. O'Ward is the best-placed of McLaren's drivers in the NTT IndyCar standings, with the Mexican sitting sixth in the championship although 160 points adrift from leader Palou.

Update:

On Saturday, Palou's management company, Monaco Increase Management, that has represented his interest in his negotiations with McLaren issued a statement saying it was "bitterly disappointed" with the Spaniard's decision and in which it suggested that it had severed ties with the driver.

"Monaco Increase Management is bitterly disappointed to learn about Alex Palou’s decision to break an existing agreement with McLaren for 2024 and beyond," stated MIM.

"Together, we had built a relationship that we thought went beyond any contractual obligation and culminated in winning the 2021 Indycar crown and tracing a path to F1 opportunities.

"Life goes on and we wish Alex all the best for his future achievements."

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