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Wednesday, July 30 Updated: August 3, 6:17 PM ET Indy not just about the '500' anymore By Darren Rovell ESPN.com Some car racing purists objected in April 1993 when Indianapolis Motor Speedway president Tony George announced that the track would host a second annual race to accompany the running of the Indy 500. But any idea of protest from traditionalists was quickly quieted once the speedway sent out ticket applications to the inaugural Brickyard 400. "A few days later, there were crates and crates of mail piled up at the ticket office," said Bill Donaldson, former executive vice president of IMS. "We had to sort through it for a couple days to realize we had a sellout. It was one of the biggest grand slams of all time." So too were the next eight races, which were also sold out. With approximately 300,000 fans filling the facility's seats each year, the Brickyard 400 is the second-largest drawing single sporting event in the world, behind the Indy 500. And given the rise of NASCAR combined with the fractionalization of open wheel racing, Indianapolis' second race is actually garnering more attention than the historical favorite -- at least in this country. Despite its lack of tradition, the Brickyard 400 can at least be mentioned in the same breath as the Indy 500 and the Daytona 500, as it has joined the other two in the top tier of America's car racing cash cows.
Assuming the average ticket price of $80, IMS will generate at least $23 million in gross ticket sales off this year's Brickyard 400. After merchandise, concessions, parking, television and sponsorship revenue, there's clearly enough business to pay off NASCAR's sanctioning fee, award the drivers more than $7 million and allow the track to still stay well in the green. "Early on, we didn't think it would be as successful as it was," said Roger VanDerSnick, managing director of brand and consumer marketing for NASCAR. "But you bring together the fan base in and around Indianapolis, combine it with the heritage at the track with our growth, and it makes a lot of sense." And to think the revenue for the Brickyard could even be higher. Unlike at the Indy 500 and Daytona, there is no general admission seating sold for the Brickyard. "If they sold those seats, I'm pretty sure the Brickyard could be the biggest cash cow of them all," said Zak Brown, president of Just Marketing, an Indianapolis-based motorsports marketing firm. "The rest of the business surrounding the race is stronger than the Indy 500." Ticket revenue from the Daytona 500 appropriately rivals that of the Super Bowl, as the beginning of the year race has always been compared to the NFL's championship game in terms of importance. With more than 200,000 people packing Daytona International Speedway -- and that doesn't include attendance during the SpeedWeeks preceding the actual race -- at an average of $150 apiece, International Speedway Corp. reaps in more than $30 million in ticket sales. Super Bowl XXXVII, by comparison drew 67,603 fans at a face value of $400 -- which would be worth more than $27 million in gross ticket receipts. Despite a slight drop in interest by U.S. television viewers, at-track revenues for the Indy 500 have not declined in recent years and the race is still the most recognized race in the world. "The Brickyard 400 business might be great," notes Donaldson. "But the name still doesn't mean as much as the Indy 500. You can go anywhere in the world and they will know Indianapolis because of the Indy 500, it's not the same with Brickyard." Offering sponsorships to both the Indy 500 and the Brickyard 400 remains a powerful combination for IMS officials, who most often peddle the two races as a sponsorship package. "When potential sponsors hear that we can give them an opportunity to be part of the first and second largest single-day sporting events in the world, that means something," said Joie Chitwood, senior vice president of business affairs for IMS. "When they actually come and see the mass of humanity surrounding the track, it makes it easier to sell." Checkers, which also owns the Rally's Hamburgers chain, became the official burger of the International Motor Speedway this year. The opportunity to associate its brands -- heavily focused in the Midwest and Southeast -- with the Indy 500 and the Brickyard 400, was too good to pass up, according Rich Turer, the company's vice president of marketing. It's the reason why it is the company's largest investment in sports. Not only will Checker's/Rally's have a representative with its franchisee of the year waving the green flag for the race, but the company will have six restaurants inside of IMS serving during the race and a hospitality tent with more than 300 people, including investors and potential prospects. The company aired television spots about its association with the Brickyard in 45 markets in June and July, put a Brickyard 400 combo on the menu and offered its customers Brickyard 400 collectors cups with the ultimate peel-off prize of winning a Monte Carlo SS pace car. "Not only do you have all the people at the race, but the Brickyard 400 is NBC's No. 1-rated race," Turer said. The Daytona 500, aired on FOX, naturally is NASCAR's highest-rated race of the season. More than 10 million households are tuned into that race each year, according to Nielsen. These days that's more than double the amount of households tuned into the Indy 500. The Brickyard 400 has averaged 800,000 households more than the Indy 500 for the past two seasons. IMS has used some of the money the Brickyard 400 has provided over the years to update the facility -- including the building of a new 400-seat press box, 36 Formula One garages and the renovation of a different grandstand every year. Profits from IMS' three races have also helped keep George's Indy Racing League, which reportedly has not made a profit in its 7 ½-year existence, afloat. "The revenue from the Brickyard provided IMS with the ability to really focus on adding luster back to the gem and really polish up the place," said Tim Frost, president of Frost Motorsports, a marketing firm. The Indy 500 and the Brickyard 400 have also meant a lot to the city of Indianapolis. On the weekends that both races are run, all 22,000 hotel rooms in Indianapolis' central region, including 5,700 downtown hotel rooms are booked. The Indy 500 keeps the city even busier because fans trickle in throughout the month of May. "We can't do anything but host racing fans for those weeks," said Bob Schultz, spokesman for the Indianapolis Convention and Visitors Association. "If you count the Formula One race, it's like having the Super Bowl three times a year." The Formula One race, the U.S. Grand Prix -- which is held in late September, draws the fewest fans at about 175,000. In 10 years, the Brickyard 400 has more than earned its spot in Indianapolis. And just as the race has helped the Indianapolis Motor Speedway achieve even more prominence in the car racing world, some of NASCAR's growth can be attributed to getting one of its races into the prestigious facility. "Having the Brickyard 400 at Indianapolis has undoubtedly contributed to NASCAR's growth as well," Frost said. "Before 1994, the Indianapolis Motor Speedway was hallowed grounds and NASCAR getting its race in there certainly gave the organization more credibility." Darren Rovell, who covers sports business for ESPN.com, can be reached at Darren.Rovell@espn3.com. |
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