Fox corporation purchases one-third of IndyCar company Penske Entertainment: What it means – The New York Times

By Jeff Gluck, Jordan Bianchi and Andrew Marchand
Fox Corporation has purchased one-third of IndyCar parent company Penske Entertainment, giving Fox Sports a greater financial stake in the open-wheel racing series it already broadcasts exclusively.
Terms of the deal were not disclosed, but The Wall Street Journal reported the purchase was between $125 million and $135 million. Penske Entertainment also owns Indianapolis Motor Speedway, home of the Indy 500, which means Fox is now a minority owner in one of the world’s most famous racetracks.
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As part of the arrangement, Fox Sports also extended its media rights deal with IndyCar for several years. This is the first year Fox has televised IndyCar races, and has seen a 31 percent viewership increase — largely from the 41 percent increase it had for the Indy 500 (7.01 million viewers, the highest in 17 years).
“We’re thrilled to join the IndyCar ownership group at such a pivotal time for the sport,” said Fox Sports CEO Eric Shanks, an Indiana native who regularly attended the Indy 500 as a kid. “IndyCar represents everything we value in live sports — passionate fans, iconic venues, elite competition, and year-round storytelling potential.
“This investment underscores our commitment to motorsports and our belief in IndyCar’s continued growth on and off the track. We’re excited to help elevate the sport to new heights across all platforms.”
Shanks has been extremely bullish on IndyCar’s future and has said he believes Fox can return the series to the elite levels of American motorsports viewership.
Aside from the Indy 500, IndyCar has struggled to find an audience. IndyCar regularly draws numbers significantly lower than the NASCAR Cup Series, the second-tier NASCAR Xfinity Series and Formula One.
IndyCar fans have grumbled about a lack of marketing investment from Penske Entertainment. But Fox may be able to help in that area, as evidenced by its preseason promotional push for IndyCar, which included glossy Super Bowl ads.
“This partnership is built on long-standing trust and a shared vision for the future,” said Roger Penske, the Penske Entertainment owner who also has 20 Indy 500 wins as a race team owner. “Fox sees the incredible potential across our sport and wants to play an active role in building our growth trajectory. Lachlan Murdoch and his team, starting with Eric Shanks, are committed to our success and will bring incredible energy and innovation to IndyCar.”
Within IndyCar are many great facets that should give the open-wheel series much more relevance in the U.S. sports landscape, beyond just having the Indianapolis 500 on its schedule. However, for a multitude of reasons, IndyCar’s past and present leadership have been unable to put all the pieces together to further fuel its sustained growth.
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One of the big areas IndyCar has struggled with is on the marketing and promotion side. Many races, particularly ovals, are scarcely attended. The schedule has been poorly constructed — especially early in the season, which features too many gaps that prevent momentum from building — and drivers are largely unrecognizable outside of the motorsports bubble.
Bringing in Fox Sports this year as a media partner helped on many of these fronts, though considerable work still needs to be done. Now that Fox Sports has a more invested interest in growing IndyCar, its expertise in marketing and promotion should help the series, shoring up its biggest weaknesses and better positioning IndyCar for increased exposure to one of the most competitive forms of motorsports globally.
Already, Fox Sports’ influence is being felt. The Indy 500 generated dynamic ratings, while next year’s schedule will include a new event in Arlington, Texas, a possible expansion into Mexico and a schedule expected to have better balance. — Jordan Bianchi, motorsports writer
By taking partial ownership in Penske Entertainment, Fox is continuing to create a closer long-term partnership that could be beneficial for both parties. Fox has done this before, most successfully with the Big Ten, where it has a partial stake in its network, allowing Fox to guarantee itself the best college football games from that conference and also determining who partners with the league. The network also has a big share in the UFL and Flutter Entertainment/FanDuel.
IndyCar is not college football. It is near and dear to Shanks’ heart, but this isn’t just a sentimental play.
Fox learned a lesson with UFC, which it helped create into a multibillion-dollar business, only to see it leave for ESPN. Fox doesn’t want to make that mistake again. It will try to grow IndyCar with an investment in its production.
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The Indy 500, which was on Fox for the first time this year, had seven million viewers. It was up 41 percent compared to NBC’s broadcast the previous May. With this deal, Fox hopes to continue the growth of all IndyCar’s events, and now cements a long-term relationship. — Andrew Marchand, senior sports media writer
(Photo: James Gilbert / Getty Images)

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