Penske Entertainment, the company owned by Roger Penske that holds Indianapolis Motor Speedway and IndyCar, announced Thursday that it has sold a one-third interest in the business to Fox.
The company described the deal as a strategic investment and partnership intended to spur new growth for IndyCar. It also includes a multi-year extension of the media rights agreement between Fox Sports and the open-wheel series. Fox Sports is in its first season as IndyCar's broadcaster.
Penske Entertainment said it expects the investment to drive innovative racing and entertainment events, a stronger digital strategy, a greater focus on immersive content, and better promotion and star-building opportunities for IndyCar drivers.
"This partnership is built on long-standing trust and a shared vision for the future," Penske said in a statement. He said Fox sees the potential across the sport and wants an active role in building its growth. Penske also named Lachlan Murdoch and his team, beginning with Eric Shanks, as committed to the series' success.
Shanks, the CEO and executive producer of Fox Sports, said the network was "thrilled to join the IndyCar ownership group at such a pivotal time for the sport." He said IndyCar offers passionate fans, iconic venues, elite competition and year-round storytelling potential, and that the investment shows Fox's commitment to motorsports.
Shanks is an Indiana native who grew up attending the Indianapolis 500 and has a fondness for IndyCar. He was eager to add the series to the Fox Sports lineup and won the television rights away from NBC Sports ahead of this season.
Every IndyCar race airs on Fox, making it the only series in the United States that shows none of its events on cable. This year's Indianapolis 500 on Fox averaged 7.01 million viewers, a 41% increase over last year and a 17-year high. Across the season, IndyCar viewership is averaging a 31% increase over the previous year.
The sale also brings some clarity to Penske's succession planning. He bought IndyCar and the speedway ahead of the 2020 season and has long declined to discuss who will eventually lead his businesses, though his sons Roger Jr. and Greg are involved in the racing entities of Penske Entertainment.
Penske, who is 88, still runs day-to-day operations across his companies. They include racing teams in NASCAR, IndyCar, and IMSA and WEC sports car racing, as well as the billion-dollar transportation business Penske Corp. Penske Automotive also owns multiple car dealerships, and Penske is among the largest BMW dealers in the country. His race teams, the transportation business and the dealerships are not part of the Fox transaction.
