INDIANAPOLIS, Wednesday, Sept. 6, 2000 - The three motorsports events at the Indianapolis Motor Speedway add $727 million to the Central Indiana economy each year, according to the first economic impact study of the facility, released...
INDIANAPOLIS, Wednesday, Sept. 6, 2000 - The three motorsports events at the Indianapolis Motor Speedway add $727 million to the Central Indiana economy each year, according to the first economic impact study of the facility, released today.
"From an economic impact standpoint, having the Indianapolis 500, the Brickyard 400 and the Formula One races are like having multiple Super Bowls every year, an impact larger than any city in the United States enjoys from a sports venue by far," said Mark Rosentraub, who conducted the study. Rosentraub is professor and associate dean at the school of public and environmental affairs, Indiana University, Indianapolis.
The report was presented at a breakfast for community leaders hosted by Tony George, president and CEO of IMS, at the Speedway's Media Center. The report was released just days before the inaugural SAP United States Grand Prix Formula One race, Sept. 24 at the Speedway.
According to Rosentraub's study, the Indianapolis 500 generates $336.6 million each year, the Brickyard 400 generates $219.5 million, and the SAP United States Grand Prix will generate $170.8 million. They are the three largest attended single-day sporting events in the world. In addition, the capital construction undertaken by IMS during the last two years to both prepare for the Formula One event and to generally upgrade the track's facilities added $80.9 million to the regional economy. This is a one-time, non-recurring investment.
State and local governments receive significant revenues from the three races. The State of Indiana receives more than $25 million and local governments almost $10 million annually. Of those amounts, the Formula One race will be responsible for adding $6 million to state coffers and $2.6 million to units of government in Marion County, according to the study. "These gains for the local economy and for governments in Indiana from the Formula One race, the Indianapolis 500 and the Brickyard 400 are even more significant since none of the costs for the building of new facilities at the Speedway requires public investments," Rosentraub said. "As a result, all of the economic benefits identified in this analysis are real increments, resulting in no opportunity costs or other costs for the state of Indiana, local governments or taxpayers."
In the study, Rosentraub adjusted figures to remove the spending by residents of the region who would attend other recreational events in the region if the races were not held.
Rosentraub is a nationally recognized expert on the economics and politics of professional sports teams and their relationships with cities, the financing of sports facilities, the financing, organization and delivery of urban services, and economic development issues.