Alex Palou, a four-time and reigning IndyCar champion, recently addressed the longstanding debate over driver earnings between IndyCar and Formula 1 during an interview. His views add the perspective of a top competitor, providing insight into how Alex Palou IndyCar F1 salaries compare behind the scenes in global motorsport.
F1 Salaries Surpass IndyCar, But the Gap Is Complex
Formula 1’s status as a worldwide phenomenon, boosted by its surge in global viewers through Netflix’s “Drive to Survive” and blockbuster productions like “F1: The Movie,” gives it a significant edge over IndyCar in terms of commercial reach and financial rewards. While F1 drivers are often associated with massive paychecks, this fame and fortune comes despite IndyCar frequently being praised for fostering closer wheel-to-wheel racing for the fans.
Growing up in Spain, Alex Palou once dreamed of joining the F1 grid as many young European racers do. His journey, however, evolved from Europe’s junior single-seater circuits to battling in Japan’s Super Formula, until finally finding his stride and earning titles in IndyCar, primarily competing with Chip Ganassi Racing.
During his interview with Ara, Palou directly addressed the notion that IndyCar drivers are disadvantaged in terms of salary when compared to their F1 peers. He shared:
“Don’t overthink it. If you’re talking about Verstappen, Alonso, Hamilton… maybe there are six or seven drivers with stratospheric salaries. But only them. The rest are far below that. In fact, I think the top four in IndyCar have salaries that would be in the middle range of F1, so we can’t complain about anything. Besides, we can go for a coffee anywhere without worrying.”
This comment highlights the extreme disparity even among F1 competitors, where star names such as Max Verstappen, Fernando Alonso, and Lewis Hamilton command multi-million dollar deals, but most of their colleagues earn substantially less. In 2025, according to Forbes, Verstappen reportedly led the list with $76 million, comprising $65 million from salary and another $11 million in bonuses. Lewis Hamilton followed, reportedly making $70 million in base pay and half a million in bonuses. Lando Norris, who was recently crowned champion, rounded out the top earners with $18 million in salary and $29.5 million in bonuses.
IndyCar’s Earnings: Lower Profile, But Competitive for Some
Unlike Formula 1, the majority of IndyCar driver salary details are not made public. Still, some information can be gleaned from recent moves and performance bonuses. Colton Herta, who departed IndyCar for a seat with Cadillac in Formula 1 and F2 after the 2025 season, was reportedly the highest-paid IndyCar driver with a $7 million contract.
Palou himself enjoyed a major financial windfall in 2025 by capturing victory at the prestigious 109th running of the Indy 500. As a result, he secured $3.8 million from a total event purse of $20.283 million, underlining that success in iconic races can deliver substantial rewards for top competitors on the American circuit.
Palou’s Journey from Karting Dreams to IndyCar Success
As a young karting talent in Spain, F1 loomed large in Palou’s aspirations, naturally influenced by the sport’s prominence in Europe. Yet, as he progressed through his teenage years and encountered the financial and political barriers that define a racing career in F1, his ambitions began to shift. Reflecting on this transition, Palou told Ara:
“It (F1) was the only thing I had in mind when I was between 5 and 10 years old, and karting. It was what I saw on TV and what I wanted. But as I got older, around 13 or 14, I started to understand how this world worked. That there are only 20 seats in F1 and that it’s for the privileged.”
“It doesn’t just depend on you. You also need who knows how many millions behind you. I understood that it wasn’t feasible, so my goal was no longer F1. It was to be a driver, I don’t care if it’s cars, trucks, tractors, or Formula 1 cars,” the Spaniard added.
After completing his European single-seater career in 2018, Palou left for Japan’s Super Formula in 2019. Support from team executives there proved pivotal, helping him open the door to IndyCar by facilitating discussions with Dale Coyne Racing for the 2020 season. This move set the stage for his later championships with Chip Ganassi Racing and his becoming a major figure in American open-wheel racing.
Impact and Wider Significance in Motorsport Careers
The contrast between Alex Palou IndyCar F1 salaries exemplifies not only the economic gulf between the two premier open-wheel series, but also the structural factors shaping a driver’s journey in motorsport. For many, star-level F1 pay is out of reach, limited to a select handful each season. As Palou’s experiences and comments show, the broader driver pool in both series often competes less for salaries and more for opportunities, recognition, and enduring careers.
Palou’s story, and the divergent paths of drivers like Colton Herta, also highlight the influence of sponsorship, team support, and major race victories in building a sustainable and rewarding career—even outside the narrow circle of Formula 1’s highest earners. With new generations continually finding their way through changing landscapes in both F1 and IndyCar, how driver salaries evolve will remain a central topic for fans and athletes alike.
