What will McLaren do with Alex Palou for 2023 -- if anything at all?

Situations have changed significantly since Palou said in July he was leaving for McLaren next season, despite having an option year with Ganassi left on his contract.

Nearly two months ago, Alex Palou made an announcement via Twitter that threw IndyCar’s silly season into full swing, and just a month later Oscar Piastri followed suit with a similar announcement in Formula 1.

With the IndyCar season down to two races, and the Formula 1 competition firmly in Max Verstappen and Red Bull’s hands, it’s a good time to check in on how the chaos that McLaren unleashed on the racing world is progressing.

The Palou situation seems as cloudy as it did when Chip Ganassi Racing originally insisted that their potentially departing driver was contractually bound to stay with the team for one more season (through 2023).

Currently the parties are attempting mediation, but if no agreement can be reached the dispute will head for United States Federal Court, which would seem to be unlikely to reach any decision in time for next season, leaving Palou in limbo.

Team boss Chip Ganassi seems to be treating this more as a strictly business matter than a personal affront, and the most sensible resolution would appear to be a financial settlement with McLaren, but that could set a precedent Ganassi might want to avoid.

In addition, McLaren may have less incentive than in July to make the Palou deal happen. While they certainly still would love to have the 25-year-old 2021 IndyCar champion driving for them in the American series, the signing of René Rast to their Formula E team might convince them that keeping Felix Rosenqvist in the Indy seat and simply stepping away from the controversy could have its appeal.

Rosenqvist has been putting up consistently strong results this season, and McLaren's increasing need to focus on preparing its 2023 Formula 1 season makes the IndyCar situation a lower priority.

If McLaren disappears as a viable option for Palou due to either the legal situation or the team’s own wishes, the question then becomes what exactly his options are for 2023?

While the stated purpose of Ganassi’s lawsuit is to force the Spanish driver to return to the team, the reality of actually bringing back Palou after his attempted defection and their subsequent legal battle might not be what Chip sees as an optimal situation.

Ganassi has two other drivers, Scott Dixon and Marcus Ericsson -- who enter this weekend's penultimate race of the season at Portland --  currently third and fourth in the championship and within striking distance of leader Will Power, meaning if Palou is not in the long-term plans for the team, evaluating another young driver might be a priority.

Should Ganassi find another driver for the No. 10 car, that doesn’t mean he’ll necessarily drop the lawsuit related to Palou’s contract. He’ll have to consider how the prescient Palou’s attempted departure sits, as well as his own attitude regarding coming out the top dog in the fight.

Ongoing legal action would almost certainly shut Palou out of IndyCar until it’s decided, and Ganassi could well try and get the FIA involved to keep the driver blocked from participating in other international competitions.

If Palou does manage to find himself free and clear from both McLaren and Ganassi, his F1 aspirations could potentially lead him to one of the available back-of-the-grid seats, or to consider a reserve role with a stronger team in 2023 with an eye on the following year.

In comparison to its IndyCar situation, McLaren’s Formula 1 outlook for next year seems practically straightforward. With the details of Daniel Ricciardo’s exit from the team successfully ironed out, and Friday's ruling by the F1 Contract Renewal Board that prized newcomer Oscar Piastri's contract with McLaren is indeed valid, Piastri can now leave Alpine at the end of this season and be on the grid for McLaren in 2023 alongside Lando Norris.

Rumors are swirling regarding Pierre Gasly being released from his Alpha Tauri contract to join Esteban Ocon in an all-French driver pairing for Alpine, bringing an end to the Piastri saga, although at the same time adding more questions to the bottom third of the grid.

The newest name to enter the discussion is IndyCar star Colton Herta, who is being considered to take Gasly’s former job, although it would first require the FIA to grant Herta the superlicense required to compete in F1, a decision they are currently considering.

This would give the Andretti driver a chance to get used to the series in advance of possibly rejoining the team should they manage to achieve their goal of becoming the series' 11th team.

And who might replace Herta in IndyCar? Well, that Palou kid might be looking for a job, if someone could convince Chip Ganassi to let him out of his legal limbo.