Anticipation high among teams ahead of IndyCar's FOX debut
Yesterday at 11:07 AM
Of all the achievements by Roger Penske and his Penske Entertainment company since it bought IndyCar and the Indianapolis Motor Speedway in 2020, it's the inking of a new broadcast deal with FOX that holds the highest level of anticipation among the teams who put on the show.
Series-wide growth is expected, and by the time FOX Sports executives awake next Monday morning, the initial numbers from Sunday's Firestone Grand Prix of St. Petersburg will be in and a long offseason of wondering how well it newest racing series performed will be answered.
Penske's deal with NBC concluded in 2024 with a Total Audience Delivery average of 1.30 million viewers for every race (TAD spans network/cable and streaming audiences combined for each event). The 1.3 million average also reflects the significant influence of the Indianapolis 500's TAD of 5.3 million viewers to drive up the season-long average. Those 17 races were moved across NBC, its USA Network and CNBC cable properties, and two were exclusively streamed on Peacock.
In the new partnership with FOX, IndyCar races will be aired exclusively on the big network – a first for the series in generations — while practice and qualifying sessions will be shown on the FOX Sports 1 and FOX Sports 2 cable channels. Live streaming for all on-track activity is also available on the FOX Sports app for those with cable, and a variety of streaming subscriptions.
It's the 1.3 million TAD from NBC where the paddock has set its sights with FOX. On NBC, poor ratings on NBC's cable outlets were blended with solid ratings on its network, and together, the yearlong results were seen as compromised. With the all-network plan on FOX, fluctuations between cable, network, and exclusive streaming will no longer exist, and the TAD average of 17 network races plus streaming should drive the TAD upwards.
And with audience size often used to by teams set the value of sponsorship programs, an appreciable TAD increase and wider exposure with IndyCar's new TV host should result in the ability to seek more money from sponsors.
RACER asked a few team owners to share their best guesses on what FOX might do for the series and their businesses, and here's what they had to say.
PROJECTED INCREASE
MIKE SHANK, Co-Owner, Meyer Shank Racing: "I just had this conversation with my commercial guy, Tim Meyer, and we think it’s going to be up to 30 percent. Between 20 and 30 percent up, and it could be 30, based on some of the signs we’re seeing and what FOX is doing to promote this series.
"That also comes from talking to (FOX Sports' CEO Eric) Shanks quite a bit. He's pretty confident, and so if we get that, we are selling with knowing we've got something good to sell. Our marketing and our pitch decks that we’re doing now, we tell people we’re expecting a 30 percent bump."
ZAK BROWN, CEO of McLaren Racing, Arrow McLaren: "Being up 20-25 percent, I think that is doable. FOX has a huge reach. Clearly, they’re fully behind it. So I’m looking for double-digit growth. Stronger television media outreach is definitely going to help with sponsors, for sure."
HOW WOULD IT HELP YOUR TEAM, AND HOW QUICKLY?
While pitching sponsors on a projected increase isn't new, teams will need a few IndyCar on FOX races to be run and the ratings to be tallied before selling on specifics can be done.
LARRY FOYT, Team President, AJ Foyt Racing: "It would be super beneficial because, as you can imagine, we measure everything, right? We’re measuring all the different media measurables that we can, because companies and their marketing departments want to know, and they want to see it, and they want the proof of what they're spending is doing well for them.
"It's something that probably we were more old school, especially through our long tenure with ABC Supply as our primary. ABC was not a sponsor that was as concerned with all of that as they were doing a lot of entertaining of guests at the racetrack for their people. Different sponsors have different needs and different areas of importance, so as we try to hit all of those, including growing our social and growing all these other forms of media that that are out there for consumption, the FOX relationship has been great. I love the approach they’ve been taking, and so it all feels great right now. We just hope it comes out as great measurables for us on the other side.
"I think '25 budgets will all mostly be set, but a lot of times, especially on a primary sponsorship deal, they can take at least a year to cultivate and get going. Now, sometimes you may get lucky and you catch one that moves rather quickly, but a lot of times it takes a little while.
"And so you’re looking at '26, '27, knowing also a new car is probably coming. What’s that going to do with the budgets? With the FOX package, hopefully we can turn that into some good numbers and it will certainly help going forward as we try to try to get new sponsorship."
SHANK: "I think the real meat of the gain won’t be realized for 12 to 18 months. Even if it is 30 percent, we’re not going to benefit anything from it right away. The next sales evolution is getting the number way up. Hopefully we can compete with some other sports that have consistently over two million people watching. Certain companies who sell direct to the consumer, like Tide and Pepsi and Busch, that's what they're looking for before getting involved. Once you can break two million, it opens up a whole different world for sponsors.
"So anything we can do to prove we get more eyeballs is good for value, right? But we’re not going to know that right away. And even if it's 30 percent, I don’t how to equate it in actual dollars or percentages on raising money, but at least we’ll be able to compete in the next sales cycle with the facts.
"We're obviously hopeful it's going to have a positive response in the markets, because the other knock-on effect is our annual budgets haven’t gone down for 2025. That's why you’re seeing more pay drivers become relevant. And that's why we're all so hopeful that it's a big audience increase, because at least that gives us a better shot at trying to get these budgets covered. And trust me, it ain't easy.
"Financially, IndyCar is a loser right now. So we’ll give it a couple years and see what the FOX deal does, see how the charter system goes, see where we stand and if it's gotten better with the finances."
BROWN: "I think you can sell the dream a little bit. You can pre-sell the excitement and the momentum that you believe the sport has around broadcast and the new race schedule. That’s what I did. Obviously, what I get today is a lot different than people that buy during the dream, so they actually see a benefit for being an early mover. But they'll want to see the proof pretty soon.
"Where we need to focus is on the growth. Of course, cost management is critically important, but there’s two ways to tackle tough economics. You can go small, or you can invest and grow. I’m in growth mode, because I think the sport has so much potential. I like what Eric Shanks and FOX have done to promote IndyCar through football. That was great exposure. FOX is going to be a home run.
"I’ll raise some money in '25 in IndyCar, but I’m not planning on it, and I don’t need it so much now. I know I will, because you always have some sort of surprise or someone wants to start in the middle of the year, but for the most part, all my sponsorship activities now are for '26 and beyond."
BOBBY RAHAL, Co-Owner, Rahal Letterman Lanigan Racing: "Thank God for FOX. And you know, if the ratings get to where we certainly hope, now you’re talking different monies. Now, you’re not talking B2B, necessarily. You’re talking conventional commercial sponsors like NASCAR has, and maybe the fundraising generates some real returns.
"The commitment I’ve seen from FOX so far, I’ve got nothing but positive vibes on that because there's continuing to be a lot of pressure on the teams from a financial standpoint. You get FOX in there to promote the hell out of the series, which they’re already doing, and that only gives you hope."
There's also a question as to whether a larger base of viewers will actually have a direct effect on sponsorship valuations.
TV ratings and audience size has been the primary tool used in negotiations — the more people watching usually equates to greater reach for a sponsor, which allows a team to ask for more money — but with the ongoing growth of streaming, digital promotions, and business-to-business deals in the IndyCar paddock, a higher Nielsen rating number might not have the same impact as it did years ago.
CHIP GANASSI, Owner, Chip Ganassi Racing: "Everything that FOX is doing so far is just fantastic with the ads and with the awareness that they’re bringing. For God’s sake, more people saw the IndyCar ads at the Super Bowl than watched IndyCar racing all last year, combined. So that’s the kind of power they have, and we’re fortunate to have them as a partner. But I don't know if it's that direct with ratings.
"Do you sit there and say, 'Well, the rating went from a 2.0 to 2.2…' I don’t know that that sells sponsors. I mean, it doesn’t hurt, that’s for sure. Let’s face it, more eyes are a positive thing for sure. But I don't know if you can draw the direct line there from A to B equals C. Theoretically, it should help in the longer term. Anytime you bring awareness to a sport, people want to be involved in it when there's more people and more action. And we’ll see if it happens."
