Photo: teampenske.com
Every cloud has a silver lining, and IndyCar is working to provide that silver lining for teams during the COVID-19 shutdown. Through various measures taken, the series is actively trying to help teams stricken with financial difficulties due to race cancellations.
Mark Miles, CEO of IndyCar, told racer.com that series owner Roger Penske has been talking to teams and partners, looking for ways to ensure financial stability in these troubling times.
"Roger has already communicated with owners on what he’s planning to do and working on that will be beneficial," Miles said. "Some of it may have to do with protecting revenue, or reducing costs, or deferring costs. And there’s some of that going on with race promoters as well."
IndyCar races through the end of April will not take place as scheduled, but teams will still have money come through from the Leaders Circle program. Under current agreements, all teams which are full-time entrants receive a monthly installment on their Leaders Circle contracts and their first installment due for this season will be paid regardless of these April cancellations and postponements. That will be the first layer of support offered by IndyCar.
Secondly, teams need to pay around $1 million per entry per season for the annual lease of racing tires from Firestone. The company has been involved with Indy car racing for over 80 years and has been the exclusive supplier to IndyCar in the past 19 seasons. Given this long-standing partnership, Firestone has postponed payments due from teams this year.
And lastly, Penske has worked out an agreement with engine suppliers Chevrolet and Honda. They're due to get payed around $1.2 million per car per year, but, like Firestone, have delayed lease payments.
So far, the season opener at St. Petersburg has been cancelled, as well as all April racers. Long Beach Grand Prix CEO Jim Michaelian is negotiating with local authorities to have the race held later in the year, possibly in September. Mark Miles has said that nothing has been discussed regarding the other cancelled April events (at Barber and Circuit of the Americas) but that Indycar "will be prepared to run the GMR Grand Prix [on May 9] and Indy 500 [on May 24] as the COVID-19 situation permits."
"Roger has already communicated with owners on what he’s planning to do and working on that will be beneficial," Miles said. "Some of it may have to do with protecting revenue, or reducing costs, or deferring costs. And there’s some of that going on with race promoters as well."
IndyCar races through the end of April will not take place as scheduled, but teams will still have money come through from the Leaders Circle program. Under current agreements, all teams which are full-time entrants receive a monthly installment on their Leaders Circle contracts and their first installment due for this season will be paid regardless of these April cancellations and postponements. That will be the first layer of support offered by IndyCar.
Secondly, teams need to pay around $1 million per entry per season for the annual lease of racing tires from Firestone. The company has been involved with Indy car racing for over 80 years and has been the exclusive supplier to IndyCar in the past 19 seasons. Given this long-standing partnership, Firestone has postponed payments due from teams this year.
And lastly, Penske has worked out an agreement with engine suppliers Chevrolet and Honda. They're due to get payed around $1.2 million per car per year, but, like Firestone, have delayed lease payments.
So far, the season opener at St. Petersburg has been cancelled, as well as all April racers. Long Beach Grand Prix CEO Jim Michaelian is negotiating with local authorities to have the race held later in the year, possibly in September. Mark Miles has said that nothing has been discussed regarding the other cancelled April events (at Barber and Circuit of the Americas) but that Indycar "will be prepared to run the GMR Grand Prix [on May 9] and Indy 500 [on May 24] as the COVID-19 situation permits."
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