By 2013, the Indianapolis Motor Speedway, once the crown jewel of auto racing, was showing its age. It badly needed a facelift, particularly in comparison to the new Circuit of the Americas track in Austin, Texas, and the planned $400 million to the Daytona International Speedway. In July 2013, Derek Daly, a former auto racer and a sports commentator for Indianapolis station WISH-TV, said of the facility, “The luster is gone from the Indianapolis Motor Speedway. It creates an unattractive sports platform for commercial sponsors to get involved. The problems will take years to fix. The sooner they get started, the better.”
In November 2012, Mark Miles was named the CEO of Hulman & Company, the parent of the Indianapolis Motor Speedway. Miles graduated from Wabash College. He spent several years working for some of Indiana’s most successful politicians including former Indianapolis mayor and U.S. Senator Richard Lugar, Indianapolis mayor Willliam Hudnut, and U.S. vice president Dan Quayle. He then went to work for Eli Lilly & Company in the government relations department. While at Eli Lilly, he led the effort to bring the 1987 Pan American Games to Indianapolis. In August 1990 through 2005, he was the CEO of the Association of Tennis Professionals. Under his leadership, the prize money grew from $47 million to $85 million. In 2006, he was named the President and CEO of the Central Indiana Corporate Partnership, a nonprofit regional alliance of corporate CEOs and university presidents focused on long-term growth and economic development. In 2008, he led the successful effort to bring the 2012 Super Bowl to Indianapolis.
Understanding that the Indianapolis Motor Speedway was not keeping pace with other racetracks, Miles instituted a full review of the facilities. The master plan reflected needs of $120 million which included lighting ($20 million), grandstand upgrades ($15 million), video boards around the track ($15 million), and measures to address the Americans with Disabilities Act ($10 million).Other industry experts pegged the costs closer to $200 million. The question was how to finance these improvements.
Referring to the Indiana University Public Policy Institute’s 2013 study reflecting the $510 million economic impact of the Indianapolis Motor Speedway on the state of Indiana, Miles commented, “This study shows that the Indianapolis Motor Speedway and its associated industries form a powerful engine that helps drive the Indiana economy. The Super Bowl brought a tremendous economic impact to Indianapolis and Indiana in 2012, and this state is very fortunate that IMS, its events and associated industries deliver an even greater economic impact every single year.”
With his experience in the political affairs arena at Eli Lilly & Company, Miles worked behind the scenes with the Indiana General Assembly to provide monies for some of the much-needed upgrades to the Speedway. The legislation crafted would have the Indianapolis Motor Speedway receive up to $5 million for the next twenty years for upgrades to the Speedway. The funding would be through the Indiana Motorsports Funding District. The loan, guaranteed by Hulman & Company, would be repaid through an increase in sales and income taxes paid by the Indianapolis Motor Speedway. Recognizing the importance of motorsports to Indiana’s economy, which employs an estimated 23,000 Hoosiers at an average salary of $63,000, the state also created a fund of up to $5 million per year for use by other motorsports related companies. This fund would be administered by the Indiana Economic Development Corporation.
Improvements made to the Indianapolis Motor Speedway were accelerated after Roger Penske purchased the Speedway from the Hulman-George family. Penske’s organization has spent over $50 million on improvements.
The Indiana University Public Policy Institute updated its study of the impact of the Indianapolis Motor Speedway between June 2022 and May 2023. The economic impact increased to $1.06 billion, however, it also included a one-time impact of $393 million related to the construction of a new headquarters for IndyCar.