IndyCar is set to overhaul its broadcast strategy in a calculated gamble that seeks to prioritize increased visibility over immediate financial reward. Starting next year, the American single-seater chain will transfer its media rights from NBC Sports to Fox Sports.
In this context, IndyCar’s decision comes despite the possibility of obtaining a more profitable deal elsewhere.
“We didn’t do the deal that would have given us the largest rights fee,” IndyCar CEO Mark Miles said, via Sports Business Journal. “This is the deal that made the most economic sense but was the greatest ever, and that – you can think of it as our willingness to invest by taking less in order to grow the sport through greater reach.”
IndyCar moving away from NBC Sports, its broadcast partner for 16 years, represents a big moment for the sport. After all, NBC was instrumental in stabilizing IndyCar after its tumultuous split with CART in 1994 and the subsequent formation of the Indy Racing League. Despite this history, stagnant viewership numbers outside of the Indianapolis 500 prompted a search for a new deal with broader viewing potential.
Romain Grosjean of France drives a Honda for Team Andretti Autosport during the first day of open testing for the NTT IndyCar Series at The Thermal Club on February 2, 2023 in Thermal, California. IndyCar is moving… Romain Grosjean of France drives a Honda for Andretti Autosport during the first day of open testing for the NTT IndyCar Series at The Thermal Club on February 2, 2023 in Thermal, California. IndyCar is moving its broadcast partnership from NBC Sports to Fox Sports. More from Matthew Ashton – AMA/Getty Images
NBC Sports promoted a range of coverage options through NBC, USA Network and streaming service Peacock. However, Fox Sports can consolidate and centralize its broadcasts, providing greater consistency by broadcasting all 17 racing events, including the famous Indianapolis 500, on one main channel.
Financially, details of the Fox Sports deal have not been revealed. However, internal reports indicate the contract is valued at $25 million per year, reflecting a 25% increase over the $20 million IndyCar received from NBC. The new figure remains modest compared to the local media earnings of other motorsport giants, with Formula 1 and NASCAR generating between $75-90 million and $820 million (set to rise to $1.1 billion next year) respectively. However, Miles supported this decision.
IndyCar sees its partnership with Fox Sports as a suitable investment.
“I couldn’t be more excited and confident in the decision and the relationships we will develop – Fox Sports will help grow the sport,” Miles affirmed. That enthusiasm is shared by Fox Sports CEO Eric Shanks, who sees the Indianapolis 500 and IndyCar Series as fitting into Fox’s lineup of high-profile sporting events.
Under the new deal, Fox will use its radio performance to enhance IndyCar exposure and reach a broader audience. Moving away from traditional coverage, Fox aims to do this through enhanced visual presentation and improved graphics, likely including familiar broadcast faces such as James Hinchcliffe. In addition, arrangements are being made for exclusive Spanish-language coverage through Fox Deportes, to cater to the growing Mexican fan base that supports drivers like Pato Award.
The upcoming season also promises cross-promotion possibilities. As part of its plans for the Arlington Grand Prix, Fox is looking to incorporate IndyCar promotions during major networks like the Super Bowl in New Orleans. “There are significant plans being developed for how they can create their own broadcast opportunities for the Super Bowl in New Orleans for us to integrate into some of those promotions,” Miles noted.
The move to Fox Sports has implications beyond viewership numbers. It puts IndyCar in line with Fox’s other motorsports properties, strengthening its position in the U.S. motorsports broadcasting landscape. Fox Sports, which has broadcast NASCAR since 2001 and has a $7.7 billion media rights deal through 2024, is set to cement its legacy as a leader in motorsports broadcasting.
Despite the overall increase in viewership last season, consistency of race exposure remains a concern for IndyCar. The move is seen as a step towards improved audience engagement, attendance and brand partnerships. As IndyCar embarks on this new chapter, the broader implications of the expanded vision have yet to fully unfold. It remains to be seen whether this revitalizes interest or lays the foundation for long-term growth.
