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Inside IndyCar: The Balance Between Perceived Value & Reality

“Pato, who?” 

That was the question, jokingly offered by Hy-Vee Milwaukee 250 Race 1 winner Pato O’Ward during his post-race press conference. The comment wasn’t a reference to any ongoing struggle with memory loss, but rather a remark made in response to the quotes from INDYCAR and Penske Entertainment CEO Mark Miles, who referenced the Mexican driver in a story on NASCAR beating the open-wheel organization to Mexico City. 

This had been a recent, popular topic from the paddock, as O’Ward and Scott Dixon, to name a few, voiced well-meaning frustration that their series couldn’t crack the Enigma Code to get an event in Pato-O’Ward-opolis. Racing in Mexico, in any location there, has been on the table to make happen for years. But very little signs of progress have been documented, let alone disseminated. 

No fault to O’Ward, who sets the standard on promotion and fan engagement well beyond any other driver – and at times – the entirety of IndyCar.

When Miles spoke in a story about what IndyCar has faced in getting a race in O’Ward’s backyard, the president explained that the track promoters weren’t willing to partner with the series. Instead, much like IndyCar does at NASCAR’s Iowa Speedway, the only means to run the event was if IndyCar leased it and promoted on its own. So at least the latest information was shared, right?

Unfortunately, the messaging was a bit skewed. In that same story, as part of the reasons given that IndyCar wasn’t deemed as partner-worthy, Miles included O’Ward in his comments. I will say that every reader should take a look at what he said, to ensure the context is understood. While many took it to mean that O’Ward wasn’t popular, that’s not how I interpreted it, as he clearly stated that his following was growing. That doesn’t happen if you aren’t popular, and Miles knows the impact his driver has on their series, otherwise O’Ward wouldn’t be front and center on their website or in the “100 Days to Indy” show.

See also
Pato O'Ward Wins Milwaukee, Will Power Stays in Title Fight

But that doesn’t get Miles out of the woods, as how I interpreted the comments wasn’t about O’Ward’s popularity, but that the series was seen as not partner-worthy because of O’Ward, and his growing, but not quite there, superstardom. Specifically, Miles mentioned that IndyCar didn’t have the “market penetration” with the series or O’Ward’s brand, and therefore they couldn’t get the venture with Mexico City to work out.  

Where I’m befuddled by this is the following question: is it not the series’ job to increase the brand identity of O’Ward to make a market like Mexico City work? Not the other way around. By suggesting it, the series president was making the case that it was on O’Ward to get to a level of popularity that would then equate to the Mexico City track operator wanting to partner with IndyCar.

And there lies the problem with the series as it continues its march into the future. There is a disconnect between what the series management and owners’ perceived value of IndyCar is versus reality. This situation in Mexico City is a clear example. 

Why is NASCAR getting the sign from the dugout to come out of the bullpen by Mexico City? Because there is value in hosting the race. The organizers see it, perceive it, and it exists. That’s not the case with IndyCar, and some of that has to do with their marketing, which my colleague Christopher DeHarde will cover in exquisite detail in his column Upon Further Review

Frankly, IndyCar has failed O’Ward, not the other way around. A round of applause should be given to the Mexican star, who has shown exactly the type of effort, dedication and, honestly, creativity that it takes to grow a fanbase. His teammate Alexander Rossi, after social media ignited with Miles’ quotes, came to his aid by posting an in-depth list of what makes O’Ward a fan favorite. 

What didn’t happen was more damning, as no one came to the defense of the series and its efforts to make Mexico City happen. That’s something the management might want to address moving forward. But, it’s hard for the leaders to do that when they continue to focus on this idea of creating value in IndyCar with a charter system rather than increasing real, tangible value by making the series worthy of places like Mexico City or any international market, for that matter. 

Miles has been adamant about putting together an international series for years, in a way that offers money to the series and teams, but is disappointedly run outside the season; please look at how the exhibition at Thermal was received in its first year. Well, that started several years after he was hired in 2012. He will be finishing his 13th year on the job, and there have been a grand total of… zero international races added. Wonder why? Cost for teams could be it. Relevance to the series’ direction, sure. COVID threw a curveball into that as well with multiple years of restricted travel.

My assumption? It comes down to value. Other locations don’t see the value in either partnering or sticking to a previous deal – if you want to learn more, talk to IndyCar Content Director Alex Gintz about the failed China race, he loves that topic. 

See also
Scott McLaughlin Wins Milwaukee as Championship Race Tightens Up

If IndyCar was highly valued, there would be events and venues looking to host it. But that hasn’t been the case. 

Domestically, the picture isn’t as rosy either. There is one NASCAR-owned venue on the circuit, and it’s Iowa Speedway. Which, IndyCar, due to what could be preconceived as an indictment on value, has to promote itself via its extraordinary partner Hy-Vee. NASCAR plays no part. Across the country, that is the case at multiple NASCARowned facilities as well as with Speedway Motorsports, who own the second most tracks in the nation. 

Are tracks like Michigan International Speedway or even long-time stalwarts like Texas Motor Speedway clamoring publicly to get a date on IndyCar’s schedule like other venues are for NASCAR? No. How about Richmond Raceway? After the 2020 date was wiped out by COVID, and the impending loss of a Cup date, there’s still no word on interest in jumping back in with the open-wheel series.

What about the tracks that do see value in IndyCar? If we’re looking at the 2024 season, there are 18 separate events, counting the Thermal Club exhibition. But with doubleheaders and the Month of May, the series only visits 15 different venues. Five of those events Penske Entertainment promotes one way or the other, with their hand in two more (Milwaukee), and four others are handled by Green Savoree Promotions (St. Petersburg, Mid-Ohio, Toronto and Portland).

The list of track operators and promoters that seem to make IndyCar work is not expansive. Also, let’s take into account that the series is holding a race next year at a privately owned club track, with million-dollar homes so that the facility can use the event as a marketing opportunity to sell more lots.

Meanwhile, the series is spending hundreds of manhours on a charter system intended to create value for the biggest stakeholders, the owners. If there really is value in the series, why is the Leaders Circle program only covering 22 of the 25 charter teams? Shouldn’t it pay out to all 25? And similarly, why have the payouts not increased over time? Since the program was instituted in 2002, it hasn’t grown beyond its average of $1 million while costs to compete have only gone up, at least due to inflation and labor increases. 

I’m not a businessman. In fact, I married into a family that is business-oriented and entrepreneurial, and hats off to them, but it’s something I couldn’t do. But in the case of IndyCar, I can look at that system and easily say, besides getting a massive amount of joy in competing and the passion to race at the Indianapolis 500, why would I invest in a charter for a series in which the actual value pays only 22 of the 25 charter teams?

All the while, O’Ward is wondering when IndyCar gets to run at Mexico. And fans of Dixon, Will Power and now Scott McLaughlin dream of a Surfers Paradise return or any event in the Oceania part of the world. There hasn’t been much said one way or another if that is even a target market, but it makes sense considering the nationalities of the field. And do you know who is probably is going to be able to pull penetration into that market? NASCAR, with Shane van Gisbergen. Won’t that be a tell-all situation? 

Sure, it was a great joke from O’Ward at his press conference, feasting on the confidence he has knowing he’s doing his part to grow the series’ value. Even as he laments the missed opportunity to make Mexico happen after years of patiently waiting.

But in reality, this situation isn’t really about O’Ward. Instead, it’s about the ongoing problem in which IndyCar does not have the necessary value to sink millions of dollars into expansion. 

It’s not “Pato, who?” it’s really “IndyCar, who?”

About the author

Tom Blackburn

Tom is an IndyCar writer at Frontstretch, joining in March 2023. Besides writing the IndyCar Previews and the occasional Inside Indycar, he will hop on as a fill-in guest on the Open Wheel podcast The Pit Straight. His full-time job is with the Department of Veterans Affairs History Office and is a lieutenant colonel in the Army National Guard. After graduating from Purdue University with a Creative Writing degree, he was commissioned in the Army and served a 15-month deployment as a tank platoon leader with the 3d ACR in Mosul, Iraq. A native Hoosier, he calls Fort Wayne home. Follow Tom on Twitter @TomBlackburn42.

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TiminPayson

If only Indy Cars would stay running. Anywhere.
Why haul all the way to another country when you can’t keep them running in Milwaukee?

Jeremy

Right? And two no-starts for CGR cars? Hate to see electronic failures impact races like this – regardless who the driver is. At least my simpleton mind understands mechanical failures. Computer glitches just seem like unnecessarily frustrating nonsense to me.