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Indianapolis Motor Speedway Snubs Formula 1: A Strategic Masterstroke or Missed Opportunity?

David Castro by David Castro
January 10, 2025
in Motorsports
Reading Time: 4 mins read
0
Indianapolis Motor Speedway Snubs Formula 1: A Strategic Masterstroke or Missed Opportunity?

Fans fill the stands during the 108th running of the Indianapolis 500 at the Indianapolis Motor Speedway on Sunday, May 26, 2024. With approximately 345,000 spectators in attendance, this 500-mile car race is the largest single-day sporting event in the world.

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The Indianapolis Motor Speedway (IMS), a cathedral of motorsport revered across the globe, has decided to keep its gates closed to Formula 1, at least for now. While F1 continues its meteoric rise in the U.S., hosting dazzling events in Miami and Las Vegas, IMS remains steadfast in its commitment to iconic American staples like the Indy 500 and Brickyard 400. But is this a calculated move, or is IMS missing out on a golden opportunity to reclaim global F1 glory?


F1’s Glory Days at Indianapolis

For a brief but memorable stretch between 2000 and 2007, IMS was the home of the United States Grand Prix, hosting thrilling F1 action on its historic grounds. Legends like Michael Schumacher cemented their legacies here, with the German ace clinching five wins, including a landmark victory in 2000 that also marked his first championship with Ferrari.

However, after 2007, the F1 circus moved on, eventually finding a new home at the Circuit of the Americas (COTA) in Austin. Since then, F1’s presence in the U.S. has ballooned, with three races now on the calendar and American fans embracing the sport like never before. Yet, despite this surge, the gates of IMS remain closed to Formula 1.

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The Economics Behind the Decision

IMS President Doug Boles and owner Roger Penske have a clear stance on the matter: it’s not about the love for F1; it’s about the numbers.

“We are set. If F1 ever wanted to come back, we would be happy to host them,” said Boles in a candid interview. “But the challenge with the F1 business model is that the state of Texas, for example, paid F1 almost $45 million to get them to show up. For us, it just doesn’t make financial sense.”

Unlike other circuits that rely heavily on government subsidies to afford F1’s exorbitant hosting fees, IMS operates on a model that prioritizes sustainability and profitability. With blockbuster events like the Indy 500, which consistently draws millions of viewers and record-breaking live crowds, the Speedway has little to gain from taking on the financial risks of an F1 deal.

Boles elaborated, “Roger would love to have them back. But he’s a businessman. It’s not about making money necessarily, but you can’t lose millions and millions of dollars.”


Indy 500: The Crown Jewel That Outshines F1

The numbers tell the story. The 2024 Indy 500, despite being delayed due to weather, still managed to draw 5.34 million TV viewers, an 8% increase over 2023. Peak viewership hit a staggering 6.46 million, reinforcing the race’s unmatched status in American motorsport.

Looking ahead, the IndyCar series’ new TV deal with FOX starting in 2025 is expected to push these numbers even higher, ensuring IMS’s financial and cultural dominance in American racing.


Global Fame vs. Homegrown Legacy

The question remains: is IMS missing out on global fame by keeping F1 at bay? Perhaps. An F1 race at the Speedway could bring international attention, a new generation of fans, and a chance to reconnect with a global audience that once cheered Schumacher’s heroics on its track.

However, IMS doesn’t need F1 to solidify its place in motorsport history. The track’s legacy is built on over a century of iconic races, not fleeting alliances. By focusing on IndyCar and its marquee events, IMS is doubling down on what it does best: celebrating the soul of American motorsport.


Conclusion: A Strategic Holdout

In an era where F1’s glitz and glamour are reshaping motorsport’s global appeal, IMS’s decision to snub F1 might seem bold—or even shortsighted. But for an institution that thrives on tradition, homegrown racing glory, and smart business, the decision is rooted in pragmatism.

With IndyCar’s growing audience, the Indy 500’s enduring allure, and a financially sustainable model, IMS doesn’t need F1 to remain iconic. The question is whether F1 needs IMS more than IMS needs F1.

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