An article for IBJ in 2003 about the Brickyard 400 ‘¦ was ‘Drafting off NASCAR.’ The story detailed the financial prowess of the Indianapolis Motor Speedway’s Brickyard 400, which debuted in 1994, and how then-Speedway boss Tony George used the money from the NASCAR race to prop up the Indy Racing League-now the IndyCar Series. The story noted that the NASCAR race brought in about $35 million in annual revenue in those days and $25 million or more in profit-yes, profit-for the Speedway. Back then, motorsports business experts said the race brought in more than $20 million in ticket revenue alone and that over the first decade of the race, it netted the Speedway about $300 million in profit. The Brickyard, according to IMS officials, is still profitable and is still a solid use of a fixed asset. But it’s not as profitable as it used to be. Not even close.
And now the Speedway is hoping to use momentum from its IndyCar crown jewel-the Indianapolis 500-to somehow bolster the flagging Brickyard 400. The 100th running of the Indy 500 this May drew a huge crowd, and Speedway officials have been trying to convince spectators who saw that race at the Speedway that they should return to the track this weekend.
Attendance at the Brickyard 400 has plummeted from more than about 270,000 during its halcyon days to 75,000 in recent years. Not even the final NASCAR race here for Hoosier native Tony Stewart has drummed up much excitement this year. And 90-plus degree temperatures forecasted for the race this Sunday aren’t going to help walk-up ticket sales. Semi-retired fan favorite Jeff Gordon will replace injured Dale Earnhardt Jr. on Sunday, the series announced this morning, so we’ll see if that moves the needle.
In the meantime, business research firm WalletHub estimates ticket sales for this year’s race will be $8.5 million. That might be optimistic. Either way, it’s about one-third what it was at the Brickyard’s high point. While the Speedway does get money from a variety of sources-TV, sponsorship, parking and concessions-sports business experts estimate two-thirds of the Speedway’s Brickyard 400 revenue comes from ticket sales. Costs for the race were estimated at $5 million to $10 million a decade ago-and you can assume they’ve been hit by inflation like everyone else. So you can see the IMS’ revenue and expenses are getting perilously close on this event. If the weather scares away another 20 percent of so of the crowd, it could be trouble.
Speedway President Doug Boles told IBJ earlier this month that, despite the attendance declines, the Brickyard still ‘draws more people than most NFL stadiums.’ He said it’s the third-biggest annual sporting event in the state, behind the Indianapolis 500 and Carb Day. NASCAR does not release attendance figures, but Boles said the Brickyard 400 ranks between fourth and eighth out of NASCAR’s 36 races each year.(Indianapolis Business Journal)(7-21-2016)
