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Roger Penske receives Presidential Medal of Freedom

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Staff Report NASCAR.com October 24, 2019 at 7:34 PM


NASCAR Hall of Fame team owner Roger Penske received the Presidential Medal of Freedom, the highest civilian honor, from United States President Donald Trump on Oct. 24 at The White House.

Team Penske, Penske’s motorsports team across various series, has won more than 530 races and 35 championships in its 53-year history. In NASCAR, Penske teams have won 120 Monster Energy NASCAR Cup Series races.

Penske becomes the second person in the motorsports industry to earn the honor. NASCAR Hall of Famer and seven-time champion Richard Petty received the honor from President George H.W. Bush in 1992.

RELATED: Logano, No. 22 team honored in D.C. | All of Team Penske’s Cup wins

When President Trump announced the honor in July, Penske said: “It is truly an honor to be recognized by President Trump and awarded the Presidential Medal of Freedom. I am humbled by the President’s acknowledgement of our achievements in business, in motorsports and in our community. Thank you to President Trump for this special recognition. On behalf of my wife Kathy (Penske), our family and our nearly 65,000 team members worldwide, it will be my privilege to accept this prestigious award.”

One of Team Penske’s championships was earned by Joey Logano last year in the Monster Energy NASCAR Cup Series. Logano, Penske and the No. 22 team were honored at The White House earlier this year.

“What an amazing honor for him,” Logano said earlier this year at Sonoma. “You think about what Roger has been able to accomplish as an American and as a business owner and motorsports tycoon. The guy is amazing with what he has done. Indy 500 wins, championships, all racing different types of series’ across the world. To me that is incredible.

“The selflessness that he shows, which honestly doesn’t show but he is with the way he supports charitable initiatives and does it quietly. I think that says a lot about a person. I think it is much deserved. I am excited for him. You think of some of the awards he has won lately with the Hall of Fame and now this, it is something he should be very proud of. I am honored to know the guy. It is incredible to work for him.”

The White House statement on the presentation of the award read: “Roger S. Penske is a well-known American success story. Guided by his father’s favorite phrase, ‘effort equals results,’ Mr. Penske built his one car dealership into Penske Corporation, a leader in global transportation services. On the track, Mr. Penske built and led Team Penske into the most successful motorsports team in history. Mr. Penske’s passion and unrelenting drive have established him as a business and motorsports icon.”

 

UPDATED: Hulman and Co sells IMS, IndyCar to Penske

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By: Mark Glendenning | 12 hours ago


Hulman and Co has sold the Indianapolis Motor Speedway, the IndyCar Series, IMS Productions and associated subsidiaries to Penske Entertainment Corp.; a subsidiary of Penske Corp.

The sale is expected to be finalized in January following receipt of applicable government approvals and other standard conditions.

“We recently approached Roger Penske and Penske Corporation about this opportunity and began working to put an agreement in place,” said Tony George, Chairman of Hulman & Company.

“The Indianapolis Motor Speedway has been the centerpiece and the cathedral of motorsports since 1909 and the Hulman-George family has proudly served as the steward of this great institution for more than 70 years. Now, we are honored to pass the torch to Roger Penske and Penske Corporation, as they become just the fourth owner of the iconic Speedway. There is no one more capable and qualified than Roger and his organization to lead the sport of IndyCar racing and the Indianapolis Motor Speedway into the future.”

Fifty years after making his first appearance at IMS as an entrant, Roger Penske is set to become the owner of the iconic venue – and the series that races there every May. Image by Levitt/LAT


Penske Corporation’s history of managing motorsport venues dates back to 1973, when it acquired Michigan International Speedway. Since then it has operated the Grand Prix of Cleveland, Nazareth Speedway and California Speedway, along with investments in North Carolina Motor Speedway and Homestead-Miami Speedway. Penske Corporation currently promotes and operates the Detroit Grand Prix.

As a team owner, Penske’s ties to the Speedway include an unparalleled 17 Indy 500 wins, the most recent coming this year with Simon Pagenaud on the 50th anniversary of Team Penske’s first Indy appearance.

“My passion for racing began at the Indianapolis Motor Speedway in 1951 when I attended the Indianapolis 500 with my father,” said Penske.

“We have so much respect and appreciation for the history and tradition of the Speedway and the sport of IndyCar racing. I want to thank Hulman & Company for the opportunity to build on this legacy and it will be an honor for Penske Corporation to help lead these great institutions forward into a new era.”

Mark Miles, President and CEO of Hulman and Company, said that Penske is perfectly positioned to lead an acceleration of IndyCar’s recent growth.

“The Indianapolis Motor Speedway, the Indianapolis 500 Mile Race and the NTT IndyCar Series have enjoyed considerable growth over the past decade, with significant increases in television, digital and social media audiences combined with record attendance at many of our race venues,” he said.

“With their track record of business success, their venue, operation and event experience and their passion for motorsports, Roger Penske and Penske Corporation will help us take the IndyCar Series, the Indianapolis Motor Speedway and all of our properties to new heights. Everyone on our team looks forward to working with them to capitalize on the momentum that the Series and the Speedway have achieved.”


IMS Productions, Indianapolis Motor Speedway, NTT IndyCar Series, IndyCar

 

Penske aiming to elevate IMS, IndyCar

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By: Mark Glendenning 5 hours ago


Roger Penske’s first order of business as the incoming owner of Indianapolis Motor Speedway and the NTT IndyCar Series will simply be to listen.

Penske will become just the fourth owner in the 110-year-old Speedway’s history when the sale of Hulman and Company’s motorsport assets is completed in the coming months. The transition will be eased by his intention to keep the existing management in place – reinforced by a newly-installed board of “a diverse group of people… that know the business and can support the business” – and he said that his immediate priority will be to get their input on where investment is most needed.

“What I plan to do tomorrow is to walk the entire [IMS] facility, and strategically sit down with the existing team and get their top 10,” Penske said following the announcement of the deal on Monday.

“I always like to work from a top 10 and see the things that we can do to make it fan-friendly. Certainly from a competitive perspective, I’m planning to really step down from being a strategist on the pit box. You won’t see me there on race day. I think I’ve got a bigger job to do now; to try to see how we can build the series to the next level. It will be nice to bring another car manufacturer in. I know [IndyCar President] Jay Frye is working on that; can we have someone else come in to join the series.

More IndyCar!

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Penske downplays conflict of interest concerns

"We had taken it as far as we can" – George

“We look at the Speedway itself, the investment with the 100 million dollars that was put in a few years ago before the 100th [running, of the Indy 500, in 2016], I think you’ve seen a tremendous change. We want to add capability: can we run a 24-hour race here, can we run a Formula 1 race here. What are the things we can do? This is a great asset. Once the tradition had been broken in adding the NASCAR race – which obviously we’re going to get behind in a big way because for 27 years they’ve run here… I look at all of these across the board to see what can we do.

“This business is not broken. This is a great business, and the leadership team that’s been here has done an outstanding job, and what we want to do is be a support tool.

“This is in our DNA, and I think with input from the media, input from our sponsor partners and all the teams – I had a chance to talk to most of the teams today, the principals – and we’re looking forward to getting together with the car owners and seeing what we can do to make IndyCar even stronger, and that’s something that would be a priority for me.”

Penske said that the opportunity to acquire the Speedway and the IndyCar Series was attractive because it hit the sweet spot where his personal passion overlaps with his organization’s broad expertise – and an opportunity for growth.

“We invest in [businesses] where we have domain knowledge,” he said. “We’ve been coming to this track for almost 50 years, and seeing the growth of the series and understand the technology.

“And it’s also a great business opportunity for us to grow it to the next level. We look around this 1000 acres and we say, can this be the entertainment capital, not only the racing capital of the world, but entertainment capital of the world, in Indiana, and be able to support the state, the governor, the region, the city, the town of Speedway, and continue to grow it.

“We’re going to invest capital. We know the economic benefit today that this race brings to the region is amazing, and we want to grow that. It’s important to us.

“I want to be sure that we’re as good as we’ve been, and I’m going to count on this [existing] team here. Remember, I’m going to be the new guy in town, so we’re going to take those plans and see if we can add anything to it that makes it better. But I don’t think you build a business overnight. This didn’t get to 300,000 in three or four years, so we have to be rational on our investment.”


IMS, IndyCar, Roger Penske, IndyCar

 

"We had taken it as far as we can" – George

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By: Mark Glendenning 5 hours ago


Hulman and Company Chairman Tony George believes that the sale of the firm’s motorsport assets to Penske Corporation represents the best opportunity for IMS and IndyCar to find a higher gear – but that didn’t make the decision any easier.

“It’s obviously emotionally difficult,” said George, who was visibly fighting to keep some of that emotion in check when speaking at IMS on Monday. “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.

More IndyCar!

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Penske aiming to elevate IMS, IndyCar

“I think that Roger, his structure, his resources, his capabilities that he demonstrates, are only going to take this to another level, so that’s what we’re all about. We’re supporting elevating this asset and staking a new claim on its future. We, with emotion, are happy to be here today.”

George said that the deal for the transfer of ownership of America’s most famous racing venue, as well as the IndyCar series itself, came together extraordinarily quickly given the complexity of what was under negotiation. He made his initial approach to Penske on the grid at Laguna Seca in September, and things moved quickly in the days that followed.

“It was a pretty easy,” George said. “Not easy by any means, but this isn’t their first rodeo. So they were able to execute around diligence very quickly, and it led to an announcement that miraculously… not many things are kept under wraps around here, but this was fairly well-contained, and we were able to present this to the world this morning.”

George also recognized that the sale represents a fundamental shift for the almost-170-year-old Hulman and Co, which sold its other prize asset – the Clabber Girl baking power brand – in May.

“It is somewhat bittersweet, because the 170-year-old company as we know it is coming to an end,” he said.

“But we’re very, very proud. We feel like we’re going to continue to be a part of it. Everybody who comes here has their own story, and there are memories and the accomplishments that make it special for them.

“We’re just fortunate that our family and our family business has had a 73-year run being part of it and being a steward, and we continue to be grateful for the opportunity that we may have going forward, and I for one intend to take advantage of it. We’ll be here supporting the events with teams. Maybe our little team to expand to do other things, which we’re going to need to do. So if Roger has a 24-hour race, by George I think we’re going to try and be here. We may have to look at getting into NASCAR, too.”


IMS, Roger Penske, Tony George, IndyCar

 

MILLER: The biggest – and best – story in 50 years

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By: Robin Miller 2 hours ago


One of Dan Gurney’s favorite phrases when discussing the present or future fortunes of his beloved IndyCar racing was: “Nobody is going to make any difference unless he’s got some skin in the game.” The Big Eagle knew from where he spoke, because it was his famous White Paper that was the impetus for CART taking over from USAC in the late 1970s to bring American open-wheel racing into the 20th century.

And it was Roger Penske, with financial support from Pat Patrick, that took the lead and secured CART a TV contract, tracks to race on and put together a staff and a plan. Like Gurney, he knew IndyCar racing was floundering outside of the Indianapolis 500, so he put his money where he mouth was and where his passion always bubbled over.

Kinda like right now.

The fact Penske purchased IMS and IndyCar isn’t just the biggest news of the 50 years I’ve covered this sport, it’s also the best news. Because if anyone can make IndyCar more relevant 11 months of the year, increase the purses for the Indy 500 and the series, secure another engine manufacturer, and put the right people in the right places with a master plan for success, it’s The Captain.

It wasn’t sold to NASCAR, or ISC, or Disney, or Comcast – someone with no connection to the blood, sweat and tears of 16th & Georgetown. It was sold to a billionaire that is a titan of business who treasures his Indy 500 Oldtimer’s hat just as much as one of his private jets.

“I’ve been giddy all day because this is such great news,” said Mario Andretti. “A lot of us knew the Speedway has been for sale for over a year, and can you imagine this falling into the wrong hands? Some rich guy with no ties to racing buys it and is going to reinvent the wheel? I always look at the big picture, and the timing for this is as good as it could be.

“I don’t know anybody who loves the Speedway or the sport more than Roger, and no-one has more skin the game. He knows the big picture, he’s got the respect of all other competitors and this is going to be the jewel of his accomplishments. It’s the oldest top-level series on the planet and now he’s the head of it. He’s got control and this time there is going to be a vision – not just a word.”

Without rehashing the past 25 years, the Hulman/George family had taken Indy and IndyCar about as far as it could. After Tony George merged Champ Car with his Indy Racing League in 2008, he was removed from power by his family and the free flow of money to teams, tracks, drivers and purses was cut off. They weren’t investing any more money and The Leader’s Circle usurped all the purse money, so today a victory anywhere but Indianapolis barely pays the weekend tire bill, and the Indy 500 payout has been stagnant and paltry for a decade.

Penske’s stewardship of the Speedway and IndyCar could be the catalyst for a healthier economic picture right through the paddock. Image by Abbott/LAT


Mark Miles and Jay Frye understand the economics aren’t where they need to be, but they can’t write a check and make things better. And as positive as things have been under their reign, they can’t walk into a boardroom of a major corporation and dazzle shareholders or CEOs like The Captain can. His fingers reach deep into American and international business, and you can bet he’ll find a marketing magician that can give the iconic race a big-time title sponsor or find a way to give the series an infusion of cash to help the car owners. And help Frye find that third engine manufacturer.

“I’d rather see Roger buy it than anyone else, because he cares and he knows everything about our business,” said Indy’s icon A.J. Foyt.

And it’s not that Tony and his sisters didn’t care or have passion. They just didn’t have the wherewithal or expertise to grow it. But this was anything but a hostile takeover.

“I talked to Tony and Nancy (George) and they’re pretty emotional, but they feel very much at peace this happened in the right direction,” continued Andretti. “They know R.P. will respect the legacy of the track, and you’ve got to have a strong series to benefit Indy, and I think this is the best news we could ever have regarding that.”

Miles added: “It was an unanimous vote among the board.”

Of course I’ve always said that if R.P. followed Bernie Ecclestone’s path, he would have sold his racing teams and just run IndyCar. As big as CART became by the ‘90s, it would have dusted NASCAR and The Split might never have happened. But he was a racer and had no desire to just be the boss. Yet when he owned Michigan, Nazareth and Fontana, there was always a rumor he was going to purchase IMS.

“No. Not true,” responded Penske late Monday. “I had too much on my plate, and I couldn’t have afford it anyhow. This came out of the blue and we got it all done in six weeks. It was the fast-track, and this a great day in my life.”

Everyone is guessing at the price tag ($2 billion was the popular number Monday) but nobody has a clue except Penske, Miles, Mitch Daniels and the board of directors, and they ain’t talkin’. But like his impressive makeovers at Detroit Diesel and Hertz Truck Leasing, you can count on The Captain to upgrade the facility, the experience for the fans, and hopefully, the bottom line.

“In the big picture, Indy and IndyCar are going to benefit from it, and team ownership could also benefit, and the wealth totally lost from The Split could be brought back,” said Andretti. “He needs success because that’s what he’s all about.”

Then the 1969 Indy winner then framed the past with the future.

“When moribund USAC was dying on the vine, Roger formed CART with a vision. He brought IndyCar to the glory days until it was fractured. He’s got a beautiful history of having been successful. And that’s why I’m so giddy about today’s news.”


IndyCar, Insights & Analysis

 

PFANNER: Seven weeks that changed racing

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By: Paul Pfanner | 1 hour ago


One cannot underestimate the profound impact of Monday’s blockbuster announcement of Penske Entertainment purchasing the Indianapolis Motor Speedway, the NTT IndyCar Series and IMS Productions from the Hulman George family. This seismic event has been thoroughly covered by our RACER.com team of Mark Glendenning, Robin Miller and Marshall Pruett but I am still unpacking and processing what happened this week within those hallowed four corners that have defined American racing to the world since the dawn of the age of speed. A decade from now we may look back at the past seven weeks as the beginning of the pivotal period that reshaped auto racing and created new hope for the future of our sport.

This unprecedented sea change in the landscape of motorsports began with the September 19 announcement of IMSA President and COO Scott Atherton stepping down after a long and successful career that saw him first work with Don Panoz and then Jim France to revive North American sports car racing while overseeing some of the most iconic road racing racetracks in the country. His long and deeply impactful career also saw Atherton serve as central player in the publicly-run company racetrack boom in the 1990s with stints at Penske Motorsports and International Speedway Corporation before his game-changing leadership of IMSA through an era of unprecedented turbulence and challenges.

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On Sunday, September 22 we could not have known that a few well-chosen words spoken by Tony George to Roger Penske would soon change the sport forever. This came on the same day The Captain celebrated Josef Newgarden’s second NTT IndyCar Series title and Team Penske’s record 16th championship in the series.

October 15 dawned with the news that Mazda Motorsports Director John Doonan had been named as the worthy successor to Scott Atherton as IMSA President and COO. Doonan shares Atherton’s deserved reputation for improving the sport as whole not just what was under his direct control. From IMSA to IndyCar to SCCA and NASA, Mazda Motorsport has been the engine of opportunity and fulfillment of the dreams of so many young racers who have changed the face of American racing.

The global racing landscape shifted again on October 18 when the long-anticipated merger of NASCAR and the International Speedway Corporation was completed and announced. This alone would be considered a defining moment for American racing as Jim and Lesa France began a major pivot for their category-leading business holdings. This long-overdue privatization allows for much-needed consolidation, repositioning and refocusing of their business. We will no doubt see the 71-year-old company move quickly to address shortcomings that have been laid bare during the past decade of decline and a cultural shift away from its original badass outlaw racer mindset. This also frees the new combined entity from a quarter-to-quarter management mentality to focus forward to a long-term strategic vision that can embrace the emergence of legalized sports betting and the looming shift of direct paid distribution of live racing events along with a diversification of entertainment offerings at their stadiums and international expansion into lucrative new markets.

When this country’s greatest racing team owner and esteemed business leader was deservedly awarded the Medal of Freedom by President Trump on October 24, little could we have all known what would come next for the man who has come to represent American excellence to the world. On Monday November 4, Roger S. Penske fulfilled his destiny by acquiring the Indianapolis Motor Speedway, the NTT IndyCar Series and IMS Productions.

Many will view this momentous Monday as the turning point when racing’s future was assured. I am among those and I am grateful to Roger and his family along with his great team of people at Penske Corporation for all they have done for racing during my 46 years of working professionally in the sport. One of the highlights of my career was the period when Pfanner Communications served as the agency of record for Penske Motorsports during the late 1990s. I saw firsthand how Roger and his son Greg worked with their team of exceptional people to create competitive magic while also relentlessly focusing on customers and stakeholders needs.

During this time I came to appreciate how much Roger loves our sport and how much he respects the good people whom have devoted their lives to nurturing and preserving racing. I saw this same passion, compassion and attention to racing’s fans and stakeholders from Roger’s son Greg Penske, with whom we also worked closely during this period. It is understatement to say that I grew as person and as a businessman during this time. The lasting lesson was that quality attracts opportunity and that results are the true measure of commitment. In this light, it is telling that the great team at Hulman Motorsports that has been ably led by Mark Miles, Jay Frye and Doug Boles will be going forward with Penske Entertainment and that the Hulman George family has been offered the opportunity to become shareholders of the new company.

With these profound changes in our sport during these past seven weeks, we now have a new beginning and fresh optimism as we prepare to enter a decade that will see massive disruptions in the mobility and media sectors as well as the business models that have driven and shaped our sport. Many who work in motorsports have worried about how auto racing will remain relevant, vibrant and viable in the face of such sweeping changes to society during the decade ahead. But I take heart in the fact that racing is about learning and evolving faster than the competition. No one does this better than Roger S. Penske and few have such a complete grasp of the entire ecosystem surrounding the sport.

With so much change in racing’s landscape, anything is now possible. Never before has the racing community had such a golden opportunity to align strategies and resources for the common good. Roger Penske has the character, relationship skills and determination to make this possible and the Indianapolis Motor Speedway can continue to define racing for generations to come. From my personal experience, I know that Roger Penske lives his life knowing that the future is now. It will be fascinating and exciting to see if the rest of us can stay on the lead lap in the race to a better tomorrow for our sport.


IMS, Roger Penske, IndyCar, Insights & Analysis

 

VIDEO: Robin Miller with Roger Penske

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By: Robin Miller | 23 hours ago


RACER’s Robin Miller catches up with Roger Penske, to explore his purchase of the Indianapolis Motor Speedway and the NTT IndyCar Series.

 

PRUETT: The perfect buyer at the perfect time

Image by Levitt/LAT


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By: Marshall Pruett November 5, 2019 9:25 AM


In searching for the perfect steward to take the reins at Indianapolis Motor Speedway and the NTT IndyCar Series, the Hulman George family came up with one name that stood above the rest.

An envoy of board members, including Tony George, requested a meeting with Roger Penske, the 82-year-old business and racing tycoon, at the season finale in Monterey where the opening pitch was made. Six weeks later, the grandest change to American open-wheel racing since the CART/IRL war was solidified.

Seemingly overnight, IMS and IndyCar has become part of a world-class organization led by The Captain where vast knowledge in sports, marketing, sales, and entertainment will alter every aspect of the business. Penske’s track record – the good and the bad – is the greatest gift in the transaction.

Over the last 50 years, his story is IndyCar’s story. Penske arrived as an entrant at IMS in 1969, helped with the CART IndyCar Series’ formation in 1979, watched the series become the country’s dominant form of motor racing in the 1980s, and rode CART’s wave until it peaked.

By 2001, Penske Racing was splitting its strategies in CART and the Hulman George family’s Indy Racing League. The full-time move came in 2003. Where Roger goes, success tends to follow, and it wasn’t long before Penske’s top CART rivals sided with the Captain and joined the all-oval series.

After bearing witness to CART’s eventual collapse under the Champ Car brand in the latter stages of the 2000s, and the slow, ongoing recovery for open-wheel racing since unification in 2008, the smartest plays and silliest missteps are well known to Penske.

Consider the historical context found not only with the man whose name is atop the corporation, but all of the leaders and winners beneath its founder who’ve delivered a record number of victories inside and out of the boardroom. The best organization for the job comes with Penske.

As often as Penske’s achievements are celebrated, his memory is surprisingly short in that regard. It’s the sting of bad days and poor decisions that linger within the Ohio native.

Factor in his team’s embarrassment at missing the 1995 Indy 500, plus years of underwhelming Penske IndyCar models that led to the shutting down of his custom chassis manufacturing program in favor of buying off-the-shelf cars, and it becomes clear that Penske’s willingness to adapt in the face of failure is a critical part of his approach.

By 2001, Penske was playing on both sides of the Split. Image by LAT


Fueled by the frustration of whatever’s gone awry, Penske’s hardened reactions, driven by intense problem-solving and resource allocation, have resulted in major turnarounds. IndyCar, and IMS, to a lesser degree, will benefit from the same formula.

The sale comes at the perfect time. Amid a decade-long recovery process, IndyCar’s incremental gains – capturing inches, rather than yards – has the series on a painfully slow path towards finding its former glory. Using Penske’s aggressive business practices as a guide, he won’t be satisfied with modest annual gains. Expect the restoration process to accelerate under Penske’s guidance.

Moving forward, everything Penske will need to improve revolves around a trinity of money, reach, and participation.

At its core, all Penske has achieved with his corporation involves identifying the services or items people might want to buy, finding ways to sell them to the masses, and delivering profits. Strip away the encouraging growth of late with IndyCar, and the series is in need of the very same Penske methodology. Identify, sell, and prosper.

Few would question the quality of IndyCar’s on-track product, but its attendance figures, television ratings, and the volume of income pouring into paddock are ripe for improvement.

Below the surface, most IndyCar teams spend their off-seasons mired in frantic searches for corporate support. In too many instances, the handouts from the series, its various partners, or wonky business-to-business dealings are needed to complete their budgets.

As one of the few people who touches all aspects of the automotive and media marketplace, Penske is uniquely positioned to bring his reputation and contacts to bear in ways that can uplift the series. It won’t manifest in playing the role of motor racing Santa Claus; doling out sponsorship contracts isn’t a sustainable answer.

In R.P., Fortune 100 brands will have new reasons to consider IndyCar for investment due to the name and standing of its new owner. Spanning a 25-year timeline, the IRL, and even its modern iteration as the IndyCar Series, has given prospective sponsors and auto manufacturers more than a few reasons to worry about its decision-making prowess. Plenty have taken meetings, taken a look around, and left. With Penske installed, this is yet another area where change should occur.

Moored by a business that generates more than $20 billion in annual revenue, Penske embodies the stability and credibility IndyCar and IMS has lacked at the negotiating table. Of all the metrics to use to gauge Penske’s impact, contracts and income rank first.

Penske’s presence could open new doors to potential income streams, and increase IndyCar’s economic viability across the entire grid. Image by Abbott/LAT


Improving IndyCar’s reach will come as a knock-on effect from new corporate partnerships and sponsorships. In understanding the periods where CART was a raging success, the series’ position as America’s top racing series came from the brand names associated with the series. CART’s marketing budget, like today’s NTT IndyCar Series, was minuscule by comparison to the companies that played in the sport.

It was the combined advertising power brought to bear by the sponsors involved with CART that blanketed the country with TV ads and print campaigns. Those ambitious sponsors also purchased thousands upon thousands of tickets as giveaways that brought new fans to the series. As one of CART’s most prominent team owners, Penske was central to both initiatives.

For IndyCar and IMS to reach beyond its regional appeal and reconnect with both coasts, Corporate America’s involvement will be required. Trade tobacco money for tech sector dollars, and the playbook still works.

The third pillar of Penske’s turnaround challenge is found in the paddock. A surprising number of new teams have entered the series in recent years, and most face worrying shortfalls in funding. One could argue that on merit alone, some of the incoming teams have failed to justify high levels of corporate support, or the interest of cash-wielding drivers.

While true, the bigger issue is the extreme price to participate in IndyCar. Based on the current state of limited engagement by major companies, Penske would have a hard time making a case for new owners to join the series. Millions are needed to acquire a single car, engine, and tires before a wheel is turned. And with that chassis sitting primed and ready to race, millions more are required to hit the championship trail from March through September.

Teams with all the cars and personnel strive to hit the $6 million mark for each entry, and while that number is relatively tiny positioned next to a NASCAR budget, the problem is unchanged. Whether it’s bringing in more money to the series, delivering sponsorship leads for teams to pursue, or driving costs down to a more attainable sum, a heavy revision to IndyCar’s economics sits at the center of this issue.

The series has 10 full-time teams. Seven of its primary owners range in age from 57 to 84. In most cases, IndyCar’s ageing ownership base began fielding entries in their 20s or 30s, and have remained faithful to the series as time has passed. This dynamic has not continued as their next-generation counterparts, barring 23-year-old George Steinbrenner IV, are missing from the grid. As long as IndyCar operates as a sport reserved for wealthy older men, doubt about its future will remain.

Penske didn’t agree to buy IMS and IndyCar with limited expectations for improvement. It isn’t his style.

Everything the IndyCar Series needs is contained within the Penske Corporation. To succeed, all of the skills and savvy that have served the man while building his empire will be called upon in this venture. It’s thrilling and frightening at the same time.

IndyCar’s greatest winner is in charge of restoring the series where he made his name in competition, and led the charge in blending business and sport.

Imagine the possibilities.


Roger Penske, IndyCar, Insights & Analysis

 

MILLER: Filling in the gaps on the IMS sale

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By: Robin Miller | 12 hours ago


Way back in the early 1980s there was a rumor that the Indianapolis Motor Speedway was for sale. Tony Hulman, the man who rescued what became the most famous race track in the world, had died in 1977 and his only offspring, daughter Mari, wasn’t interested in running the day-to-day business so it seemed feasible.

My pal David Cassidy, who did a little bit of everything for Mr. Hulman during his employment, had told me once that Mari Hulman-George was the majority shareholder and only person that could sell the track. Now, Mari was a kind, thoughtful lady, but she detested the limelight and never gave interviews, so I had to resort to ambush one day as she left the Speedway Motel after lunch. After I posed my question, she replied: “The Speedway isn’t for sale now, and it will never be. It’s for my children and grandchildren.”

And I must admit that after decades of that rumor surfacing but never materializing, most of us never thought IMS would never be sold. With Mari’s four children on the board of directors, plus all the grandkids waiting in the on-deck circle and their children coming along, it appeared as though as the Hulman-George family would continue to run IMS forever.

But that all changed last week when Roger Penske purchased his beloved Speedway, plus the IndyCar Series and IMS Productions.

Besides the widespread relief that IndyCar’s most successful competitor and one of the country’s most savvy businessmen is now at the controls instead of someone with no passion for 16th and Georgetown, there were almost as many questions as positive posts on the internet:

Was it a family decision to sell, or the board of directors?

How much did it sell for?

Were there other prospective buyers in addition to The Captain?

What did R.P. get for his purchase?

Did the family sell because they needed the money?

Is it just a coincidence the sale came one year after Mari’s death?

What happens to the current staff?

Is Hulman & Company gone forever?

Can we bring the Apron back?

Hulman George matriarch Mari, who died last November, maintained that the Speedway would remain under the family’s ownership. Image by LAT


Mark Miles, the president and CEO of Hulman & Company, has been giving interviews 24/7 for a week, and as much as Mark loves to talk, even he’s got to be a little weary. But he was kind enough to spend 30 minutes with RACER.com in the parking lot of Channel 20 last Thursday after taping a segment for Inside Indiana.

RACER: Was it a family decision to sell, or the board of directors?

MILES: “Both. The board of directors voted to recommend the transaction to the shareholders, who are all family members. And the shareholders voted unanimously.”

RACER: We’ve heard everything from $250 million to $2 billion as the price tag.

MILES: “I’ve heard everything from quite low to ridiculously high, but I’m not going to give you a hint or say anything about the price. How’s this? Federal law says anything over $90 million has to be approved by the U.S. Justice Department, so there’s a number for you. At the end of the day it was worth what somebody was willing to pay for it.”

RACER: Three days before it became official, I heard that Liberty Media was one of the main players. Is that true, and was anyone else interested?

MILES: “We had an investment banker involved, Allen & Co, of New York City one of the best in sports and media, and we started out looking at who is interested in what. Late in process we were still talking to one or more groups that could have been a limited investor or a partner for purpose of big time real estate development. And I will tell you before we talked to R.P., there two firms very capable of transacting and they were very much in progress. But Tony (George) wanted to reach out to Roger because we always cared about stewardship. R.P. said instantly he was very interested and that really determined the outcome. Roger and I negotiated the price. The value the family could take was always going to be an important issue for sure, and the fact we had and unanimous vote of shareholders in my mind is entirely because we had Roger Penske.”

RACER: What’s included in the purchase?

MILES: “IMS, IndyCar, IMS Productions, the museum and the Coke lot, but not the building. And it’s the museum building, but not the collection or operation of the museum.”

RACER: A lot of people think after selling Clabber Girl last May and now IMS, the Hulman-George family was in desperate need of money. Is that the case?

MILES: “No.”

RACER: The sale came almost a year to the day that Mari passed away so was that by design or simply symbolic?

MILES: “Really the timing was only a coincidence.”

RACER: Will there be sweeping changes internally on both sides of 16th Street, or is more of Penske’s style to observe for six months to a year before making any personnel moves?

MILES: “What Roger has said time and time again is that they’ve got a great team, and we just inherited a great senior team, and their No.1 job is to figure out how to help you. I can’t tell you the number of sponsors they have in all their series, but it’s more than the total sponsorship of IMS and IndyCar combined so they know how to sell, and that’s exciting from my viewpoint.”

RACER: What about you?

MILES: “Roger tells me I’m CEO of the new company – Penske Entertainment.”

RACER: Does this reinvigorate you?

MILES: “Hell yes, it’s like push-to-pass because Roger brings so much energy, work ethic and enthusiasm. It’s sensational.”

RACER: What about Jay Frye and the racing side? Has Roger talked to you about them and is he happy with their work?

MILES: “Roger has been publicly, privately and consistently very positive in his assessment of IndyCar under Jay’s leadership. He’s said the expectation is that Jay will continue in his current role. “

RACER: Is Hulman & Company done?

MILES: “Hulman & Co. owns buildings in Terre Haute and things that aren’t racing, so we’ll spin them out into a new company. What’s left is Hulman & Co.”

RACER: Danny Sullivan called and requested one thing from you and his former boss: “Bring back the Apron to make the racing better, especially NASCAR.”

MILES: “I’ll take that up with Roger but not right away.”

RACER: Tony George was understandably emotional at the press conference and in his staff meeting but I think he deserves credit for seeking out The Captain.

MILES: “I thought he said it perfectly – that his family had taken it was far as they could – and it was Tony that said we must ask Roger before we agree to sell to anyone else. That turned out to be the best suggestion possible.”


IMS, Roger Penske, IndyCar, Insights & Analysis

 

If anyone is interested, when all spectators can see is the tops of helmets going by,
that needs improvement.

Why buy tickets when TV has better coverage?

Or is more money made from TV and sponsors, than from ticket sales and sponsors?
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If part of the infield INDY 500 was a road course, spectators could actually SEE drivers and driver skills.

And everybody starts out even when the road course is created.
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Whatcha think, Roger?

You still reading the humble Tampa Racing?
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