Yahoo Autos Why the New IndyCar Charter System Matters
The charters guarantee a starting position in every IndyCar race with the exception of the Indianapolis 500.
Charter holders can sell them, and teams looking to enter the series probably will have an interest in buying.
The 25 charter members know they have an asset they can sell.
IndyCar Series team owners now have an extra coin in their pockets, thanks to Monday’s announcement that the series will operate under a charter system beginning next season.
Ten IndyCar teams have been granted a total of 25 charters, some owning two, the others three. The charters guarantee a starting position in every IndyCar race with the exception of the Indianapolis 500, which will retain its traditional grid size and qualifying procedures.
But what is this new thing worth? Charter holders can sell them, and teams looking to enter the series probably will have an interest in buying. Beyond the guaranteed starting spots (which all 25 charter-owning cars basically already had), what are you buying and what’s the price?
“It’s hard to say,” said Larry Foyt, president of A.J. Foyt Enterprises. “All we can really go off of is how some NASCAR charters have sold and then look at the value of that series versus where IndyCar is. When I was approached to sell part of our team, I had to look at the assets and what you feel everything is worth. Looking at everything A.J. Foyt has done and all his accomplishments, how do you put a number on that? It’s probably a lot more than you want to pay for it. We won’t really know until someone pays.”
There is no indication that any of the 10 teams who have been granted charters have a current interest in selling, and there is not a line of prospective team owners eager to jump into IndyCar racing. Prema Racing is scheduled to join the paddock next year with two cars and appears to be the only newcomer for 2025.
“My understanding is that so far none of the original 25 teams are looking to sell,” said IndyCar CEO Mark Miles. “That could change, but at least at the outset you’ll see Prema compete with open cars and not charter cars. I know the Prema team has been aware of the creation of these charters coming, so they’ve already had conversations with whatever teams that have charters that they might want to speak with.
“I think there will be a market for them (charters), but it will be limited.”
Beginning with the start of the 2025 season, teams owning charters: A.J. Foyt Enterprises (2), Andretti Global (3), Arrow McLaren (3), Chip Ganassi Racing (3), Dale Coyne Racing (2), Ed Carpenter Racing (2), Juncos Hollinger Racing (2), Meyer Shank Racing (2), Rahal Letterman Lanigan Racing (3), Team Penske (3).
The impact of the charter system relates largely to stability, both Miles and Foyt said.
“With the current field size, it’s not a big impact,” Foyt said. “But we’re set up for really good protection to get in races if more than 27 entries show up. With Chip Ganassi Racing going down to three teams, and even with Prema coming in, we’re still not over that threshold. But, at the end of the day, it’s a great step. If you look at any sports organization in the United States, they all have some kind of charter or franchise system. For a lot of us who’ve been around for a long time, it’s just nice to have some sort of system in place that gives us a little bit more.”
Miles said the charter system “positions team owners for confidence and shows their importance and role within IndyCar. Those 25 charter members know they have an asset they can sell if they at some point choose to exit from IndyCar. I don’t think there is a line of teams looking to exit at the moment. The charters also mean they have kind of a privileged opportunity to be in the Leaders Circle program (for the top 22 teams) to be paid awards in the following year. So all those things are unifying and aligning and positive for the teams, and that’s positive for the series.”
No Impact on the Indy 500
Miles said fans should see little impact from the arrival of charters.
“Some fans were concerned it might affect the rules for qualifying and competing in the [Indianapolis] 500,” he said. “It doesn’t at all. Period. So we could take that off the list of anything fans might be concerned about. I think they will see that it will affect the strength of our teams and stability inside IndyCar, and that’s a good thing.”
Foyt called the charters “a nice benefit for all of us” and said the system acknowledges “the investment a lot of us have put in for many years.” He said team owner and racing icon A.J. Foyt has endorsed the concept. “He’s got so much respect for Roger (IndyCar Series owner and competitor Roger Penske). They go so far back. He knows what a great businessman Roger is, and he really trusts Roger’s leadership.”
