Fox acquires one-third interest in IndyCar, Indianapolis Motor Speedway
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Fox Corporation, the broadcast giant, has acquired one-third interest in Penske Entertainment, the owner of the IndyCar racing series and the Indianapolis Motor Speedway.
Why it matters: It's unclear what the deal means for the iconic speedway that's part of the fabric of our city and a major economic driver for the region.
Driving the news: The deal was announced in an exclusive interview with The Wall Street Journal, which estimated the price to be between $125 million and $135 million.
- In addition to the stake in the series track, the deal includes a multi-year extension of IndyCar's media rights with Fox Sports that was set to run through 2027.
Flashback: Tony Hulman famously brought the track back from the brink of closure when he bought it in 1945 after it had fallen into disrepair during World War II, and his family stewarded it until 2019 when Roger Penske bought it.
- Penske has invested millions over the last few years to upgrade the fan experience at IMS, paving large swaths of the grounds, adding more viewing mounds and video boards and updating the scoring pylon.
The intrigue: The track itself was hardly mentioned in the media release sent from IndyCar and IMS' joint public relations team or the WSJ article Thursday. The last line of the article mentions that Fox Sports chief executive Eric Shanks said "Fox will now look beyond television production and work with Penske on new events, more sponsorship opportunities and boosting attendance at the track."
- When we asked a representative at IMS what this meant for IMS, which hosts dozens of events throughout the year in addition to the Indy 500 and other races, they declined an interview and pointed us back to the WSJ article.
What we're watching: Even when Penske bought the track and pledged it would "run like a business now," it was being run by someone who grew up loving racing and the 500.
- It's not dissimilar to Shanks' backstory, but he's got Fox Corporation to answer to. Could that influence mean more changes at IMS and, if so, what kind?