November 4, 2019 will be remembered as the day the motorsports story of the 21st century broke.
Nobody saw the announcement that Roger Penske's Penske Corporation would purchase Hulman & Co., most notably its assets the Indianapolis Motor Speedway and the NTT IndyCar Series, coming.
Nobody.
For decades we have heard the rumors about potential buyers for Indianapolis Motor Speedway but those became like Olympic Games, popping up every two or four years but the masses would quickly move on. We had heard it all before and in the 74th-year of Hulman George family ownership it seemed the Speedway and IndyCar would remain in the family forever.
Mari Hulman George passed away on November 3, 2018 but Tony George, who created the Indy Racing League and turning American open-wheel racing upside down in the final days of the 20th century, was ready to ascend to the throne just shy of his 60th birthday.
The Speedway was ready to start its next chapter but no one saw the plot twist that occurred in the first paragraph.
The third generation of Hulman George family rule has abdicated and handed the palace over to the leading subject; the man that exhibited the greatest level of honor and integrity in the kingdom, Roger Penske.
The sale did not come after months of speculation. There were not constant rumors about a potential owner and denials of these changes. There was not the breaking news report from Robin Miller saying it was all but done with confirmation later in the week.
The Hulman George family did it on its terms and in complete secrecy. It didn't tease an announcement for a few days and slowly lead people to realize what was happening. It broke the news when the deal was done and when few were ready for it, 8:00 a.m. on a Monday morning. It was the first order of business for the week.
It is the storybook transfer of power. The house remains in the family if you will but it is a change. For nearly three-quarters of a century the same family ran Indianapolis Motor Speedway and dictated the direction of IndyCar. We were familiar with the decisions and how things would play out. We knew what lengths the Hulman George family would go. There were few surprises then came the day few any saw coming.
Many do not know how to feel about the news. It is familiar but uncomfortable. It isn't a stranger that is taking over but, for a fan base that survived two decades of turmoil because of The Split, the most seismic changes are met with uncertainty.
That is fine and in times of uncertainty it is best to go over the pros and the cons to figure out whether you should relax or if your trepidation is rightly placed.
We are going to look at 14 items, seven pros and seven cons, into Roger Penske taking over Indianapolis Motor Speedway and the NTT IndyCar Series.
Pro: There is No Better Fit to Purchase Indianapolis Motor Speedway
Roger Penske is IndyCar.
No one has carried the water as far for as long as Roger Penske. The man entered in 1969. He has won 18 of 51 Indianapolis 500 runs since then. His team has won 16 championships. It has over 200 IndyCar victories.
The man was a leader of CART, bought a few speedways, built another and promoted many IndyCar races. He made famous moves such as bringing Mercedes-Benz back in 1994 and Chevrolet back in 2012.
As a man who has grown a global business empire and has expanded to many different racing series his first choice was always IndyCar, taking the role of strategist for one of his cars. If he missed an IndyCar race that one of his car was participating in it was for a damn good reason.
If there was anyone set up to take over Indianapolis Motor Speedway from the Hulman George family it is Roger Penske.
This day was bound to come. Nothing lasts forever. However, I think we all worried what would be next. The best buyer might not have been someone with this much love and interest as Penske. The Indianapolis Motor Speedway is a business venture after all, a place where a wealthy man would look to get richer. It would be another chance to diversify an account. There were going to be many possible suitors, some of which had no previous experience with motorsports.
In the 21st century, a time of increasing globalization, there was a chance the Indianapolis Motor Speedway could have been purchased by a wealthy sheik or Chinese billionaire. It could have been a massive shock to the series. It could have been an infusion of cash the series has never seen but it could have been a clash between the new owners and the fan base.
In the soccer world, for every Manchester City and Paris Saint-Germain that were taken over by oil money from the Middle East, there is a Portsmouth and Cardiff City, clubs that saw rich men take over, soured the fan base and, in the case of Portsmouth, ran it into the ground.
IndyCar could have gotten a complete unknown and been stuck with it for an unknown length of time.
Con: Roger Penske is 82 Years Old
Mari Hulman George died one year and two days ago at 83 years old.
Roger Penske is not going to be around to run the Speedway and IndyCar for the next 74 years.
You have to be a little concerned that in five years we could be facing another circumstance of unknown direction for the Speedway and the series. Penske Corporation is not the Hulman George family. When Penske passes it is not necessarily going to Jay Penske, owner of Dragon Racing that competes in Formula E and once competed in IndyCar. Jay Penske has his own interests.
There are plenty of people in Penske Corporation that are motorsports savvy but do they want to run Indianapolis Motor Speedway and IndyCar? Do they only want one or the other? Do they see both as deadweight and want to offload it quickly?
All that seems crazy to say but the regime that follows Roger Penske might have a different valuation of Indianapolis Motor Speedway and IndyCar. Do we really want to be going through a period of turmoil in 2025 or 2030 as Penske Corporation looks for a buyer?
Tony George turns 60 years old on December 30. I think most of us would have been happy with Tony George running the Speedway and Hulman & Co. for the next 15-20 years. We would have known what we are dealing with. Indianapolis Motor Speedway was the Hulman George family business. George was not going anywhere nor would other business interest distract him. The Speedway was the baby.
After George, there were his three sisters and another generation of Hulman George family members, one of which is former NASCAR Grand National Series driver Kyle Krisiloff, grandson to Mari Hulman George.
We knew the line of succession in the Hulman George family. A lot of people think Tim Cindric is next in line to run the Penske organization but are we really sure of that?
Pro: Roger Penske Can Take the Speedway to a Higher Level
For the longest time we have wondered if Indianapolis Motor Speedway was getting the most out of the facility, the series and the Indianapolis 500. Roger Penske takes everything to a higher level.
Penske has all the connections. He is plugged in all over the world, from the boardrooms in New York, London and Sydney. He is in the know with a countless number of billionaires. If the series is ever in need of a sponsor or a partner Penske is going to get a deal done.
When Gainbridge was announced as the presenting sponsor for the Indianapolis 500 I wondered if Indianapolis Motor Speedway was shooting too low. The Indianapolis 500 did not have a presenting sponsor until the 100th edition and the two it has had are PennGrade Motor Oil and Gainbridge, two Indiana-based companies.
Working with two Indiana-based companies is on brand for the Hulman George family but was PennGrade and Gainbridge really the best the family could have done for the Indianapolis 500?
It is the Indianapolis 500! A couple million people watch on television and even more people listen on the radio alone in the United States. It has a fair share of international viewers. There has to be a recognizable global brand interested in putting its name as presenting sponsor for the Indianapolis 500. There has to be a presenting sponsor that could provide a platform to promote the race and draw more viewers.
Penske is going to do better than PennGrade and Gainbridge. Penske is going to make sure he is getting every possible dollar he can when it comes to the Indianapolis 500 and the NTT IndyCar Series.
Con: The Speedway Could Become More Corporate
I am not saying in 2021 it will be the Miller Lite Indianapolis 500 but I think that is more likely than ever in the Penske Corporation-era at 16th and Georgetown.
If Roger Penske can get $10 million a year for ten years for title sponsorship of the race I think he will take it. Remember how people were flustered when Fuzzy's Ultra Premium Vodka branding was painted on the walls and in the grass? You don't think Penske will try and sell premium ad space on the walls and surrounding areas of the racetrack?
I am all for maximizing profits and even said Indianapolis Motor Speedway should sell every square inch of barrier to a sponsor but there are a lot of sticks in the mud and will shake their fists at any change at Indianapolis Motor Speedway because heaven forbid the track looks any different then it did in 1948!
Remember when the Speedway changed the pork tenderloin provider and people got upset? You don't think Penske will do the same if it made him more money?
Penske is gunning to make a profit.
Pro: Roger Penske is a Successful Businessman
There is not a lot Penske has failed at.
He has many successful car dealerships, he has his trucking company and we haven't ever heard of Penske being in financial trouble or having something be fledgling. If anything, the worst business Penske has ever had was Team Penske from like late 1997 through early 2000.
Penske gets the job done and IndyCar needs a successful businessman. The series isn't at its worst point but it could definitely use a good kick in the pants. The series needs to grow. It needs more fans, more television viewers and more reasons for sponsors to invest and manufactures to enter.
I am not going to sit here and say in four years IndyCar will have an average of two-million viewers per race, five engine manufactures and multi-million dollar television deals in 50 countries but I think Penske is going to have the series in a better place than it is today.
We have to be realistic. Penske is not a miracle worker but I think he is going to do the smart thing and be thorough in the decision-making process. I think he is going to make sure the series is not getting swindled.
Con: Ticket Prices Increases
The Indianapolis 500 is one of the most underpriced events in the world of sports.
It costs $35 to get in. The most expensive ticket is $250 to get in the E Stand Penthouse.
On the secondary market, those $250 E Stand Penthouse tickets are going for $800 to $2,100.
Now, if people were willing to spend $800 on the secondary market, why wouldn't Penske Corporation start charging $800 out of the gate? If people are willing to spend $2,000, why not start charging $2,000?
The Speedway is leaving money on the table. Roger Penske isn't going to leave money on the table. Think about it this way... if there are 250,000 attendees for the Indianapolis 500 and Roger Penske can increase the average ticket price by $100 per attendee that is an extra $25 million in revenue.
You might not like it but, as I said before, Roger Penske is a successful businessman. How does one make money but from the pockets of other people?
Pro: Roger Penske Could Push the IndyCar Series Forward
I think many are hopeful that Roger Penske can be the man that leads to an increase in engine manufactures in the IndyCar Series.
Penske is a man who has been in business with nearly all of them. His current operations are the lead Chevrolet team in IndyCar, the lead Ford teams in NASCAR and Supercars and he runs the Acura Daytona Prototype international program in IMSA.
Penske has previously run Porsche, Ferrari, Mercedes-Benz, Dodge and Toyota to name a few.
There are plenty of connections. IndyCar only needs one or two to lead to something.
This could be Penske's final hurrah and it could be bringing IndyCar back to some level of technological advancement. I don't think Penske will venture away from the DW12 chassis but I think he could open IndyCar a bit especially with the upcoming hybrid-era. We are probably not going to see the series push the envelope but it could be a more open place to different ideas.
I am not sure how much Penske can do versus how much Penske wants to do but if there is one man who could open the series to multiple new engine partners and draw them in it is Roger Penske.
Con: There Are Limitations For IndyCar
It is a series that gets about 400,000 viewers per race, has somewhere between 20,000 to 40,000 people at each race and has committed to hybrid technology at a time when manufactures are looking to full electric technology and sees Formula E as the place for that development.
Add to it an American market place where IndyCar might not be the best avenue for promoting a manufacture.
Ford and Toyota seem set in NASCAR with no interest in IndyCar.
Mercedes-Benz is focused on Formula One and Formula E.
Mazda is focused on its IMSA program.
Porsche was flirting with IndyCar but IndyCar blew that last April when it wasn't ready to commit to hybrid technology. Way to go IndyCar!
We have been talking about Fiat being interested in IndyCar for sometime and that has led nowhere.
Chrysler is too broke for an IndyCar program.
Just because Roger Penske is running IndyCar doesn't mean it is going to draw flies like honey. He can only do so much. He will do things that are great for the series but do not get down just because IndyCar is still only 24-26 full-time entries with Honda, Chevrolet and a third engine manufacture in four or five years. We are going to have to be able to accept little victories along the way.
Pro: Roger Penske Knows What it is Like to be a Car Owner
Roger Penske is not going to do anything that the current crop of car owners cannot handle, i.e. afford.
Roger Penske is not going to change the rulebook and turn it into CART circa 1994. He is not going to put Dale Coyne and Ed Carpenter out of business and scare off Mike Shank and DragonSpeed.
Jay Frye has been a great president for IndyCar and Frye had ownership experience in NASCAR. He has worked well with the IndyCar team owners, everyone seems to be on the same page and I don't see why Penske would not keep Frye around. I don't think Penske is going to rock the boat enough where it forces Frye out the door. Penske has probably talked to Frye and knows his value. He is hopefully going to keep him around.
We don't have to worry about someone coming in and talking about big plans only for it to be unrealistic for the current state of the series. Penske knows what he is working with.
Con: Potential Guaranteed Indianapolis 500 Positions
Be careful of what you wish for boys and girls. Roger Penske might be the ideal man to purchase Indianapolis Motor Speedway and the IndyCar Series but that doesn't mean you are going to agree with everything he does.
Remember when I said Roger Penske is a successful businessman and knows what it is like to be a car owner? He is still going to be a car owner and own the series and own the Speedway. Penske has been a proponent of guaranteed Indianapolis 500 starting spots. He is a businessman. He wants to protect his partners. He wants to protect his business interest and the value of his race team.
Penske sees the value in guaranteed Indianapolis 500 positions and not just for him but for every team owner.
A significant portion of the fan base is not going to like that but that could be something that comes in the next few years. I don't think it will happen in 2020 or 2021 but 2022 or 2023 we could have full-time teams locked in.
Do not be surprised if in four or five years you start seeing headlines along the lines of "How Roger Penske Ruined the Indianapolis 500."
Pro: Roger Penske Knows What is Best
Penske has been around the block a couple thousand times.
He has gone through the highest of highs and the lowest of lows in IndyCar. He has seen it all in all forms of motorsports. I think he is going to steer the ship in the right direction. Penske does a great job making sure the right people are in position to get a job done. He is not going to neglect IndyCar.
When it comes to promotions, finding sponsors, working with team owners, drivers, track owners, etc., Penske is going to find the right people to get it done.
Con: You Might Not Agree With Roger Penske
Like I said with guaranteed Indianapolis 500 starting spots, you might not agree with everything Roger Penske does.
The Indianapolis 500 might look different in the next few years. The command to start engines might no longer be a member of the Hulman George family and it might not be Roger Penske himself doing it. It could be a celebrity, someone who does not call Indiana home and this is the first time the person has ever heard of the Indianapolis 500. You know, the people that Indianapolis 500 fans despise.
When it comes to the IndyCar Series, the schedule could be condensed even more to save teams money. We could see all ovals go away expect for the Indianapolis 500. We could see an influx of street races.
You might be happy that Roger Penske is in charge but don't think this is going be all roses now.
Pro: We Know Roger Penske
Roger Penske was pretty clear how much this purchase meant to him.
He first went to the Indianapolis Motor Speedway at 14 years old in 1951. As I said before, if Roger Penske missed an IndyCar race it was for a damn good reason. The Indianapolis 500 means the world to him. Indianapolis 500 victory is on top of the checklist every year for Team Penske. If the team wins the race it is mission accomplished before we get to June. If the team doesn't win the race I am not sure winning every other race on the calendar and the championship will make up for that defeat.
Penske is not going to shake it up to a point where we will no longer be able to identify the Indianapolis 500 or the IndyCar Series. He is not apart of the Hulman George family but he holds the same appreciation for the race, the place and the series.
Con: We Have No Clue What Will Happen Next
We think we know what we are getting ourselves into and we are happy it is a devil we know in Penske taking over rather than a devil we do not know. However, the devil we have only ever known is the Hulman George family. We have no clue what we are getting ourselves into.
Things are going to stay the same but things are going to change. What exactly changes is not clear but it is coming. It is going to throw people off. It is going to be tough for some people to swallow.
We got what we wanted. We will soon find out if we wanted the right thing.
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