Indy Racing League - Newsletter Vol 1 Num 2 - September 1, 1995


IRL Q & A

Q: How do teams join the Indy Racing League?

A: Simply by entering a car that has been tested to meet IRL specifications with a qualified driver. Since a League goal is to establish open competition, no franchise fees are required. Participation and performance are the criteria for reward (See Purse Distribution below).

Q: Are teams competing in the IRL series restricted from belonging to or racing with other organizations or sanctioning bodies?

A: Absolutely not.


$12 MILLION AND COUNTING

Million-dollar offerings mean big paydays

Among the many innovations of the new Indy Racing League will be a significant restructuring of the traditional system for prize money distribution for races other than the Indianapolis 500. The benefits for competitors will be $1 million purse minimums, special qualifying incentives for IRL participants and, when the first year's races are combined with the Indy 500, total purse distributions for the IRL in 1996 are expected to exceed $12 million.

"If the IRL is appealing enough financially to all car entrants, they will choose to be ongoing participants in the league," said Jack Long, executive director of IRL. "After all, that is what league competition is all about - - consistent team participation." Long pinpointed the following incentives in the IRL plan:

  • A minimum $1 million purse will be guaranteed for each race in the oval-track series, starting with the inaugural event, the Indy 200 at Walt Disney World in Orlando, Fla., on Saturday, Jan. 27, 1996. That does not include additional contingency and sponsor awards.

  • IRL will offer the only current $100,000 first-place payoff in Indianapolis car racing for events other than the Indy 500, based on combining the winner's share of the purse and the qualifying incentive.

  • The top 20 point leaders in the series will be guaranteed $22,000 in prize money upon qualifying for the next race, regardless of starting position.

  • Prize money will be distributed throughout the entire field of starting teams in every race, ranging from the winner to the last-place car, which would be guaranteed a minimum of $10,000.

  • No changes will be made in the pay-out structure for the Indianapolis 500, which is the richest racing event in the world, paying more than $8 million in prize money in 1995 (including $1.3 million to winner Jacques Villeneuve).

  • No membership or fee will be required to run in the IRL.

    In addition to the Indy 200 at Orlando and the Indianapolis 500 on May 26, 1996, the IRL has scheduled 200-mile races at Phoenix International Raceway on March 24, New Hampshire International Speedway on Aug. 18 and Las Vegas Motor Speedway on Sept. 15.

    Each of those will offer a minimum $1 million purse. Long explained the $22,000 qualifying prize for the opening race at Walt Disney World will be paid to each of the top 20 qualifiers. In subsequent races, the $22,000 will go to the top 20 teams in points standings who enter and qualify at each race, regardless of their starting positions in the field.

    "Under this structure," commented Long, "it is possible for a top-20 point leader to finish in last place and still collect as much as $32,000 - $10,000 for the finishing position and a $22,000 qualifying incentive."

    First place in races under 500 miles will pay $78,000, making the $100,000 prize possible with the $22,000 qualifying award. Second place will pay $60,000 for a possible $82,000 payout. Long added: "These monies apply only to purse awards guaranteed by the IRL. They do not include lucrative contingency dollars or improved sponsorship opportunities provided by the IRL".

    Long offered the following breakdown example of the IRL purse system:

    IRL Prize Money Distribution Plan - Sample
    
    Qualifying     Finish     Race      Total
    Prize*        Position    Prize      Prize
    
    $22,000           1      $78,000   $100,000
    $22,000           2      $60,000    $82,000
    $22,000           3      $47,000    $69,000
    $22,000           4      $35,000    $57,000
    $22,000           5      $30,000    $52,000
    $22,000           6      $25,000    $47,000
    $22,000           7      $24,000    $46,000
    $22,000           8      $23,000    $45,000
    $22,000           9      $22,000    $44,000
    $22,000          10      $21,000    $43,000
    $22,000          11      $20,000    $42,000
    $22,000          12      $19,000    $41,000
    $22,000          13      $18,000    $40,000
    $22,000          14      $17,000    $39,000
    $22,000          15      $16,000    $38,000
    $22,000          16      $15,000    $37,000
    $22,000          17      $14,000    $36,000
    $22,000          18      $13,000    $35,000
    $22,000          19      $12,000    $34,000
    $22,000          20      $11,000    $33,000
    		 21      $10,000    $10,000
    		 22      $10,000    $10,000
    		 23      $10,000    $10,000
    		 24      $10,000    $10,000
    Totals:--------------------------------------
    $440,000                $560,000 $1,000,000
    
    *"Qualifying prize" may be to finishers out of top 20
    Notes:
    
    1. The Indy 500 pays in excess of these monies and therefore no change is required to meet these standards.

    2. Plus contingency prizes.

    3. Minus 10% hold back for season points fund.


    IRL on IMS Radio Network

    The IMS Radio Network, for more than 40 years the worldwide radio broadcast home of the Indianapolis 500, will air all five 1996 Indy Racing League events.

    The radio broadcast tradition of the "500" traces its lineage, in various forms, all the way back to a crackling, intermittent local series of race day updates at the dawn of the radio age in 1922. The modest beginning grew and solidified into the IMS Radio Network in 1952. In 1996 the tradition will extend itself with live raceday originations and support programming from Walt Disney World in Florida, Phoenix, Indy, New Hampshire and Las Vegas for IRL's opening season schedule.

    Generally regarded as the world's largest sports radio network, the "500" broadcast each year boasts 600 stations in the United States and a worldwide audience through the Armed Forces Radio Network and LeSea Broadcasting.

    "This is one more example of the opportunities the Indy Racing League brings with it," commented Jack Long, IRL executive director. "The promotional bonus presented by a powerhouse communications outlet like the IMS Radio Network helps everyone in the sport."


    VIEWPOINT by Jack Long

    IRL remains true to Indy roots. The IRL was created to restore the prominence of oval track competition.

    Why is a second Indianapolis car series necessary?

    "It shouldn't be" is my answer to that oft-asked question. Then, of course, "Why?"

    It's a matter of roots. In recent years the sport of open wheel racing at this level in America has taken a dramatic turn away from its heritage.

    There has become a weakening of "permanence" in the foundation of Indy car competition, most obvious by its shift from its oval track base to an imbalance of road and street racing. And that is our concern. The road course trend for Indianapolis type racing has led to may temporary circuits that are very costly to set up and just as costly, within a few days, to tear down--investments that fail to build equity in racing.

    This is fleeting economics that has hardly produced a picture of stability or long-term growth. Hence, the emergence of the Indy Racing League, which blends heritage and a fresh concept for establishing roots in new markets under a realistic cost formula that doesn't have to be renewed each year.

    Circuits that are recreated each year must be considered vulnerable...or transient. They can go away at any time. The IRL will be launched in 1996 on a brand new track that is cost efficient, permanent and located within America's most famous recreation destination - - Walt Disney World in Orlando, Fla. The only temporary aspects of this new raceway will be the portable grandstands and support facilities.

    The one-mile track surface, pit lane, the surrounding retaining structures and walls, all of which will be completed in October and ready for testing by November, are the components of a racing complex that will remain available year-round for testing or multiple usage without closing city streets or airport runways. The art of erecting temporary grandstands, luxury suites and other support structures has reached a point of sophistication that is major league in quality.

    These facilities can be tailored to specific events, are quickly assembled and are cost efficient.

    Importantly, it is the track that is the permanent fixture. The Orlando track is the first tangible illustration of a concept that can bring Indianapolis car racing to major marketplaces at an initial capital investment of $5-6 million. With that expansion formula for the future, the IRL can sink lasting roots for Indianapolis car racing in many important venues throughout the country -- building upon the 1996 foundation of Orlando, Phoenix International Raceway, the Indianapolis Motor Speedway, New Hampshire International Speedway and Las Vegas Motor Speedway.

    The IRL was created to restore the prominence of oval track competition and to assure there is a balanced opportunity in the future for drivers and teams to compete in the league's premiere event, the Indianapolis 500. The IRL is not, as some have charged, a power move to gain sole control of the sport at the exclusion of road course racing.

    To accomplish the real motive behind the IRL -- preserving at the very highest level the century-old American tradition of oval track racing and the true heritage of the Indy 500 -- a second series became necessary.

    From this perspective then, there is room for both.