IndyCar’s Optimistic Path to Mexico: Challenges and Opportunities Ahead
The excitement surrounding the potential return of IndyCar racing to Mexico has been palpable, especially in the wake of announcements from officials at Penske Entertainment. Just two months ago, there was a strong sentiment that a race in Mexico City in 2026 was not just a possibility but an impending reality. Mark Miles, the president of Penske Entertainment, expressed high hopes in a podcast titled "Off Track with Hinch and Rossi," asserting that the event could become a foundational highlight for the racing series. An executive from IndyCar reiterated this optimism to the IndyStar, stating, “We are very confident that we will race in Mexico in 2026.”
The vibrant city of Mexico City, which hosts the annual Formula 1 event at the Autódromo Hermanos Rodríguez, represents a logical step for IndyCar’s international expansion. This is particularly relevant given the strong fanbase of local racing star Pato O’Ward. Alongside Mexico, another addition to the 2026 calendar is confirmed: the Grand Prix of Arlington in Texas.
However, the seemingly straightforward journey towards a Mexican race is hampered by three significant hurdles:
Financial Demands
Initially, OCESA, the organization managing the Autódromo Hermanos Rodríguez, sought between $1 million to $1.5 million for the rental of the racetrack, without any revenue share from ticket sales. Recently, they have doubled their asking price and are now demanding over $3 million along with 12% of ticket revenue. This steep increase in financial requirements poses a substantial challenge for IndyCar in securing the venue.
Changes in Control at OCESA
The situation has become more complex with Live Nation, a company controlled by Liberty Media—which also holds the marketing rights for Formula 1—raising its stake in OCESA to 75%. This shift means that Live Nation now exercises greater control over the Autódromo, introducing potential conflicts of interest. Given that Formula 1 has seen unprecedented success in Mexico, there may be reluctance on the part of Live Nation to support a rival series like IndyCar within its territory.
Internal Challenges Facing IndyCar
Another challenge lies within IndyCar itself. The series has struggled to establish a solid foothold in the Mexican market. As noted by the IndyStar, the slow pace of promoting races, including those at tracks in the United States, raises questions about whether Penske Entertainment is adequately prepared to execute events effectively in Mexico.
At this juncture, the off-track dynamics of motorsport are proving to be just as strategic as on-track competitions. Relying solely on the belief that “everything is on track” for a Mexican race could lead to a miscalculation. Liberty Media has its own interests to protect, and with F1’s record-breaking performance in Mexico, they may not be inclined to facilitate the entry of a competitor.
Moreover, the history of IndyCar taking cautious steps when boldness is required raises concerns. It wouldn’t be surprising if the Mexican race were to vanish from the 2026 lineup—or at least face significant delays. Nevertheless, the public stance of “full confidence” appears to be a strategic move to maintain a presence in the market.
Timeline and Key Points of Negotiation
Initial Context (2024 – 2025)
The push for an IndyCar race in Mexico stems from the desire for international expansion, spurred by the popularity of local hero Pato O’Ward. Ricardo Escotto, a Mexican entrepreneur, has taken the lead as the local promoter aiming to host the race at the Autódromo Hermanos Rodríguez.
Negotiation Timeline
August 2024: IndyCar begins evaluating Mexico as a potential addition to the 2026 calendar.
September 2024 – July 2025: Escotto navigates negotiations with OCESA, while Penske Entertainment provides strategic support.
June 2025: NASCAR is scheduled to hold a “one-off” race at the Autódromo, which could cause scheduling conflicts.
July 2025: Discussions regarding the financial structure take place, focusing on the racetrack rental and revenue sharing.
August 2025: Fox Corp. becomes a minority partner in Penske Entertainment (33%), enhancing financial power and influence.
- Near Future: A race is planned for the summer of 2026, following the FIFA World Cup; however, the contract remains unsigned.
Key Stakeholders
Penske Entertainment: The owner of IndyCar and the Indianapolis Motor Speedway, actively seeking international expansion.
Fox Corp.: A new minority partner with influence in media and marketing.
OCESA: The operator of the Autódromo, which is now 75% controlled by Live Nation.
Liberty Media: Owner of F1 and Live Nation, which could create a conflict of interest.
- Ricardo Escotto: The local promoter negotiating the rental, sponsorships, and fees.
Points of Friction
Rental Costs for the Autódromo
The initial rental fee was set at $1 million to $1.5 million, with no share in ticket revenue; however, the costs have now surpassed $3 million plus 12% of ticket sales.
Control of the Autódromo
Live Nation, owning 75% of OCESA, raises concerns about potential conflicts, as their interests in F1 could hinder support for IndyCar.
Marketing Experience
IndyCar’s limited experience with international events poses a risk of weak execution, which could affect the event’s success.
Competitive Scheduling
Post-FIFA World Cup adjustments will need to be made to coordinate dates with other events and avoid conflicts with NASCAR events.
Expectations versus Reality
Publicly optimistic announcements may not accurately reflect the status of contract negotiations.
Final Observations
Currently, the race remains a proposal under negotiation. The prospects of its realization are subject to financial adjustments, agreements with OCESA and Live Nation, as well as effective marketing strategies. The involvement of Fox Corp. and Roger Penske’s track record in the industry enhances the likelihood of finalizing the agreement, but significant risks continue to loom.
In conclusion, while the potential for an IndyCar race in Mexico City in 2026 is filled with promise, the road ahead is fraught with challenges that need to be navigated carefully. The negotiations will require strategic planning and collaboration among all stakeholders to ensure that IndyCar can successfully break into the Mexican market and capitalize on the enthusiasm surrounding this exciting opportunity.
