One week ago came the stunning announcement that the Hulman George Family was selling Indianapolis Motor Speedway, INDYCAR and IMS Productions to famed team owner and successful businessman Roger Penske.
Thursday marks the 74th anniversary of Terre Haute, Indiana businessman Tony Hulman purchasing a decaying IMS from Eddie Rickenbacker, which led to the reviving of the Indianapolis 500.
Hulman did more than restore the “500-Mile Race” to its Memorial Day tradition after it had been halted for four years because of World War II; He built the modern-day Indianapolis 500 into one of the premier sporting events in the world.
Hulman’s grandson and Hulman & Company CEO Tony George believed the family had taken the facility, the 500 and INDYCAR as far as could take it and sought out the next “steward” of one of sports’ greatest events.
That was Penske, the winningest team owner in Indianapolis 500 history with 18 wins, including Simon Pagenaud’s win on May 26.
One day after the announcement of the sale, Penske along with INDYCAR CEO Mark Miles, IMS President Doug Boles, Greg Penske, Jonathan Gibson and other key members of both staffs did a site survey of the Speedway and its properties.
The sale must first pass government review by the Department of Justice, which is standard operating procedure for any transaction this large.
It will be after the first of the year in 2020 that the sale is official, but Penske and Miles are already moving full speed ahead with plans for the future.
“I’m sure there will be some things apparent fairly quickly,” Miles said. “Generally, the M.O. is for Roger and his team to deeply insert themselves and learn everything they can about what we are doing. That includes the facilities at IMS, around IMS and how we do what we are doing now. What the priorities are, etc.
“As they go through that, my expectation at a high level is if they see something that shouldn’t be a priority we are working on, they will let us know that. Also, most of the focus will be on are their ways to operate more efficiently and what are the priorities for growth in all aspects of the business.
“My guess is, Roger is not big on writing down plans but agreeing and getting things done. I think we will be pretty far along in the process of onboarding by the time we close at the end of the year and that will be an ongoing process.”
Miles indicated that it’s early in the process in terms of considering capital improvements to the facility, but Penske talked about creating fan zones and increasing Wi-Fi capacity at the track to give fans at the Speedway an enhanced experience.
“We have thought for years and continue to think about areas that add more value for fans and the economics for the company all the way around the track and outside the track,” Miles said. “We have a list of six or 10 areas that could be invested in. And, the general condition and appearance of the place could be more ‘Penske like.’ You know what I mean by that.
“But we never sat down and analyzed all of that to the point of knowing the investment, time and timeline of the construction, the cost and the ROI (return on investment). What we are doing already is, here are things to look at, let’s go over and look.
“Roger looks at things in great detail. He looks at paint and trim and graffiti and closets and then the bigger picture. What if we could add more high-quality seating and hospitality here? Just everything.
“It’s going to take a while to go through and get him immersed in everything and then sort out the priorities.”
There remains much work to do before the 2020 NTT IndyCar Series hits the track on March 15 for the Firestone Grand Prix of St. Petersburg. By then, some of the changes will be apparent, while others will take time to develop.
But it is Penske’s desire to move INDYCAR, IMS, the Indianapolis 500 and IMS Productions to an even higher level.