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Though the tight-lipped Hulman-George clan has never divulged financial information, motorsports business experts have estimated the IRL has lost more than $400 million since its inception in 1996.
Sources close to the IRL said the series lost $22 million in 2009 and is headed for another eight-figure loss this year. IRL officials have cut $2 million in overhead in the last year, have raised $3 million in cash annually with a new title sponsorship deal with Izod, and tallied $2 million in profits from the series’ popular Brazil race, said motorsports business experts. That still leaves a $15 million hole to close.
Motorsports business experts estimate the profitability of the race for the IMS is still around $10 million to $13 million. But less than five years ago, it was more than double that.
Ticket revenue has declined more than $10 million and the loss of All-State as title sponsor cost the IMS another $2 million annually, motorsports business experts said. Factor in revenue declines in concessions, parking and other ancillary revenue and the drop is approaching $20 million.
NASCAR officials could be using Kentucky as a threat to leverage a better deal in Indianapolis, but Brown said IMS officials should be concerned, nonetheless.
“Even if [NASCAR] decides to schedule Kentucky on another weekend, that would have a big impact on the Brickyard 400’s profits,” Brown said. “I’m sure the race here gets a big draw from Kentucky, and NASCAR is risking oversaturating the market."