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IndyCar driver Palou reaches agreement with Chip Ganassi Racing for 2023

INDIANAPOLIS (WISH) — The battle over IndyCar driver Alex Palou’s contract appears to have come to an end.

Palou, who was sued by his team owners at Chip Ganassi Racing earlier this summer during a contract dispute, announced Wednesday morning on Twitter that he will return to CGR next season.

“I’m excited to announce that @CGRTeams and I have come to an agreement and I’ll be back in the No. 10 car next season! Looking forward to a BIG 2023!” Palou wrote.

Controversy over Palou’s contract erupted on July 12. Several hours after CGR announced that it had exercised its option to extend Palou through the end of the 2023 season, the Spanish driver said in a tweet that the team’s announcement was false and he would be joining McLaren Racing in 2023.

“I have recently learned from the media that this afternoon, without my approval, Chip Ganassi Racing issued a press release announcing that I would be driving with CGR in 2023,” Palou wrote. “As I have recently informed CGR, for personal reasons, I do not intend to continue with the team after 2022.”

Palou’s tweet was followed by a tweet from McLaren announcing that he would join their team next season.

CGR responded several days later by filing suit against Palou in Marion County civil court. In August, Palou’s legal team petitioned the court to move the case to federal court.

With the legal battle likely nearing its end, Palou can shift his focus to the 2023 IndyCar season — and his aspirations to one day compete in Formula One.

Palou tweeted Wednesday that the new agreement will allow him to test in Formula One with McLaren, which has operations in both IndyCar and Formula One.

In July, Palou’s attorneys said the Spanish driver’s aspirations to compete in Formula One were being circumvented by CGR. In a statement, the legal team said CGR was attempting to “keep Alex from an opportunity to compete in Formula one.”

“I’m also grateful that @aleahhordgesGRTeams will allow me to pursue F1 testing with @McLarenF1 outside of my INDYCAR commitments,” Palou tweeted. “Thank you Chip, Mike and the entire team for your willingness to work together and help support both the team and my personal goals throughout this process.”

Chip Ganassi Racing provided the following statement to News 8:

“Alex Palou will remain in the No. 10 car with Chip Ganassi Racing for the 2023 INDYCAR season.  

The agreement affords him the opportunity to test cars in separate racing series, provided that it does not directly conflict with his INDYCAR commitments.  

As always, we will support Alex as he seeks a second series championship with the team.”

Specific terms of the agreement were not announced.

Palou and CGR finished the 2022 season on a high note, winning Sunday’s IndyCar season finale at WeatherTech Raceway Laguna Seca in Monterey, Calif.