WILMETTE, Ill. — The sports business is comprehensive with events happening anytime and anywhere.
The offseason, however, allows entities opportunity to evaluate performance metrics from championships to profitability. This month, we will look at how the industry makes its mark on the state of Indiana.
Long the home to open-wheel racing, Indiana continues to attract those involved at all levels of motorsports. The ecosystem of a cottage industry results in total integration, and the wide variety of companies that support racing is deep.
The Indiana Motorsports Commission was formed in 2013 to promote the motorsports industry. It was initially designed to finance construction of improvements at Indianapolis Motor Speedway and race tracks throughout the state. A Motorsports Improvement District was formed to include the track and a portion of the town of Speedway.
Indianapolis Motor Speedway recently released a report on the value of its activities. This includes the related business of the track, museum, golf course and media.
The estimated economic contribution derived from operations, events, employee wages and visitor spending exceeded $1 billion. The amount was divided into three event periods — May, Indy 500 (48 percent); August, Brickyard 400 (38 percent); and other (14 percent).
Operations and events at IMS annually generate an estimated 8,400 jobs with an average income of $42,500.
This is a significant contribution to the Indiana economy. The impact supports local business when out-of-town visitors spend money at area establishments, including lodging and food. The resulting tax revenue from employee wages benefits localities and the state itself.
Racing has been a driving force behind the growth of Brownsburg, Ind., the home of NHRA’s U.S. Nationals at Lucas Oil Indianapolis Raceway Park. From parts to teams, along with related companies, they work together to support the segment. Many businesses chose central Indiana because of the centralized location, with proximity to transportation.
Around Indianapolis, motorsports-related development continues. In the past, many businesses were located at Gasoline Alley or close to the speedway, but over time the needs of these companies changed.
Lured by financial and tax incentives, several of the largest IndyCar teams have embarked on massive projects.
Rahal Letterman Lanigan Racing recently completed its new facility in Zionsville. Housed in a $20 million, 115,000-square-foot building, the company will employ approximately 100 people on 13 acres.
Arrow McLaren SP is building in Whitestown. The facility will house the race shop, training center and office. Estimated cost is $25 million at nearly 100,000 square feet.
The biggest development is the Andretti Global complex in Fishers. This project will have a $200 million price tag and occupy 575,000 square feet while housing up to 575 employees.
As the industry gathers for the Dec. 7-9 PRI Trade Show at the Indiana Convention Center in Indianapolis, many attendees will have only a short drive because the title “Racing Capital of the World” is well deserved.
This story appeared in the Nov 1, 2023 edition of the SPEED SPORT Insider.
