Penske is planning to keep NASCAR's annual 400-mile Cup Series race at IMS for the foreseeable futureGETTY IMAGES
Roger Penske "did not rule anything out to draw more events" to Indianapolis Motor Speedway after agreeing to buy the track and IndyCar from Hulman & Co., according to Dave Caldwell of the N.Y. TIMES. Some options could include persuading F1 to return and, "perhaps, attracting a 24-hour race," while Penske also "intends to keep the annual 400-mile NASCAR race" at the track. He said that he was "open to examining an IndyCar-NASCAR weekend doubleheader at the speedway." Before the first NASCAR Brickyard 400 in '94, IMS "hosted only one event -- the Indy 500 and its practice sessions and qualifying events." The track then added the F1 U.S. Grand Prix in '00, but the "race left" in '07 after an '05 "controversy involving Michelin tires." IMS also "hosted the MotoGP world championship" from '08-15. The IndyCar Series added a roadcourse event in '14, and has "held it each May before the Indy 500 since then." A short dirt track was "built in the infield last year, and the speedway has had several music concerts in association with races" (N.Y. TIMES, 11/5). Penske said, "People want to use this speedway for other things, so we want to make this an entertainment venue for the state of Indiana.” He said he was unsure the track could “get a second NASCAR race," but an IndyCar/NASCAR doubleheader "could be a possibility.” Penske: “These are things that we can talk about" ("Closing Bell," CNBC, 11/4).
DREAM COME TRUE: Hulman & Co. Chair Tony George said that the sale of both IndyCar and IMS "came together in a matter of six weeks." In Indianapolis, Nathan Brown in a front-page piece notes George "waited" until the '19 NTT IndyCar season finale at Laguna Seca to "reach out to Penske." Penske said that he had "never dreamed of the prospect until that exchange of emails." Penske: "There's been discussions over many decades ... but I've been so head-down in the racing part of it that I never through of being a track owner. ... When I was called to sit down with Tony and [IndyCar CEO Mark Miles], and when they brought that idea to me, my stomach was going 100 mph, thinking, 'Is this really an opportunity? Am I dreaming?'" Brown notes for over a decade, George and his family had "occasionally considered partnerships with additional media companies or more financial backers," but Hulman & Co. was "never really on the auction block." Penske has "made clear he has offered" the group's shareholders an "opportunity to hold onto a minority stake after the sale has been completed." George said that he "plans to jump on" that chance (INDIANAPOLIS STAR, 11/5).
EMOTIONAL DEPARTURE: George at the sale announcement yesterday said, "It's obviously emotionally difficult. But we all love it, and we all care deeply for it. I think we all realize that as a family and as an organization, we probably had taken it as far as we can" (RACER.com, 11/4). Miles said of the Hulman-George family, "They see (IMS) as their baby, their family's heritage. And they understand that better than anybody we can imagine, Roger Penske and his family will take it to greater places for a very long period of time" ("Closing Bell," CNBC, 11/4). ESPN.com's Ryan McGee writes since his mother's passing (one year ago Monday), George had been "contemplating the next steps to ensure that the 500 and IndyCar racing in general could keep up its current momentum." His mind "kept coming back to his old foe" in Penske (ESPN.com, 11/5).
NEW OWNER, SAME LEADERS: Penske said that he "plans to keep the current decision makers in place," with IndyCar President Jay Frye, IMS President Doug Boles and Miles in his current role (INDIANAPOLIS STAR, 11/5). Penkse added that Miles' input would be "crucial to the future of the sport and organization" (INDIANAPOLIS STAR, 11/5). In Indianapolis, Nat Newell noted a board "will be created that knows the business and can take it to the next step" (INDIANAPOLIS STAR, 11/5).
FINANCIAL REVIEW: In Indianapolis, Burris, Rough & Stark note one thing "up for discussion" is IMS' current agreement with the state of Indiana on a roughly $90M "financial aid package that paid for better seating, video boards" and other track improvements. Under the '13 deal, the state provides $5M per year for 20 years to "assist with payments on bonds handled by the Indiana Finance Authority." IMS is then "responsible for making lease payments to the state" of $2M a year for those 20 years. A new "motorsports investment district was created to collect the growth in sales and income taxes at the track and at concessionaires that surround it, as well as through a new ticket tax, to repay the state." The Indiana Motorsports Commission is "required to approve the transfer of the obligations outlined in the agreement to Penske." IFA Public Finance Dir Dan Huge said that a vote would take place "once both companies complete their due diligence on the sale." Penske said that he "looks forward to working with the state" on future improvements. However it is "unclear whether Penske would want to assume control of the agreement as is or try to renegotiate them." Penske indicated that he "intends to look at all IMS contracts" (INDIANAPOLIS STAR, 11/5).
