Chip Ganassi reveals surprising conversation that made Alex Palou stay with CGR amid McLaren contract controversy

Four-time IndyCar champion Alex Palou signed a contract with Arrow McLaren in 2022 to join the Papaya team for 2023. However, Chip Ganassi Racing already had Palou under a contract for 2023, which led to mediation between McLaren and CGR. It was definitely a low point between Palou and Chip Ganassi. The team owner recently came out and revealed the surprising conversation that made the Spaniard stay with CGR.

Following the mediation between CGR and Arrow McLaren, it was decided that Alex Palou would race for Chip Ganassi in 2023, but would also fulfill the reserve driver role for McLaren's F1 team, and join Arrow McLaren in 2024. However, Palou came out before the 2024 season and refused to honor the McLaren contract, and decided to stay with CGR.

Alex Palou, who won the 2023 title with Chip Ganassi Racing, didn't see a future at the McLaren F1 team with Lando Norris and Oscar Piastri signing long-term contracts.

CGR’s owner, Chip Ganassi, sat down for an interview on David Lando's YouTube channel and discussed all things IndyCar, including his star driver Alex Palou. The Spaniard recently won his fourth IndyCar title with the team, as Ganassi suggested that the #10 driver is only getting better.

David stated Chip Ganassi’s tumultuous relationship with Alex Palou (referencing the Arrow McLaren transfer saga) and asked the team owner about how the relationship was healed.

“You know, I don't know what did. We sat down and had a conversation one day, and realized we didn't have a problem with each other. There were some, what I would call, outside forces, outside things going on that were just falsehoods.” (4:47 onwards)

“Once we sat down and got through that, we sort of looked at each other and I said, ‘Did I do something wrong?’, he said ‘No’. He said, ‘Did I do something wrong?’, I said ‘No’. I said, ‘What’s the problem here then’, he said, ‘I don't know’, I said, ‘I don't either’. I said, ‘Alright then, let's just talk about staying together’. It was literally that fast and he went out that after and won a race.”

Since making the decision to stay with CGR, Alex Palou has gone on to win the 2024 and, recently, the 2025 IndyCar title with Chip Ganassi while also becoming the first Spaniard earlier this year to win the Indy 500.

CGR Managing Director hails Alex Palou as the ‘past, present, and future’ of the IndyCar team

Alex Palou won the 2025 title at the Grand Prix of Portland with two races left in the season, something which isn't that common in a spec series as competitive as IndyCar. The Spaniard won 8 races on his way to the title (including the Indy 500) and has been the dominant force.

CGR Managing Director Mike Bull came out and hailed the Palou amid the 28-year-old’s latest triumph, as he said,

“Alex represents all of us. He represents the past, the present and the future of Chip Ganassi Racing. We're really proud to be part of having a driver like Alex be with us hopefully for a long period of time. Hopefully he never gets tired of what he does.”

Palou's 2025 title puts him on par with the likes of Mario Andretti, Sebastian Bourdais, and Dario Franchitti as the only four-time IndyCar champions, with only Scott Dixon and AJ Foyt having more titles.