Written by Archie O’Reilly
Graham Rahal, driver for family-owned team Rahal Letterman Lanigan Racing (RLL), has described IndyCar’s possible incoming charter system as a “must do” to help to protect the series’ long-standing teams.
“While the charter is a must do, it’s a shame it hasn’t happened yet,” Rahal told DIVEBOMB on a media call ahead of IndyCar’s doubleheader weekend at the Milwaukee Mile. “If you look at the owners that are in this sport already, they’ve invested tens of millions of dollars to be there.
“To be clear, I don’t even know what the charter agreement says - it’s not been discussed, with me at least. I’m not privy to any of that. But I’m a businessman too. And I sit there and I look at the investment that’s been made - I’m not talking about just the assets like buying a race car, but buildings, infrastructure, employment, individuals.
“There’s been a long, long, long dedication to this sport by people like us, by my family, Mike Lanigan, like the Foyts, obviously Penske, Ganassi, Andretti. The list goes on. And they deserve the security of that asset.”
Much like franchise systems in place in sports across the United States, IndyCar’s charter system would ensure greater security - financial and beyond - for its longest-standing teams. By being offered ownership of a charter, these teams will maintain their assets if they depart the series as the charter can then be purchased by another team.
Put into simple terms by Rahal, he could not decide to start a team alongside Dave Furst, IndyCar press conference moderator and vice president of communications, and immediately go racing against established outfits.
“They deserve the security from the series that Dave and I can’t start a team tomorrow and go compete,” he said.
According to reports from RACER and Forbes, the latest presentation of the charter system will be 25 charters on offer at a maximum of three per team. Each race is likely to be capped at 27 starters, aside from the Indianapolis 500 with 33 guaranteed spots; those with charters would be guaranteed entry into every race aside from the Indy 500.
Essentially, if 28 or more cars wanted to qualify for non-Indy 500 races, they would have to battle against other non-chartered entries for the two non-chartered spots in the field.
As a new team confirmed to be bringing two cars to the field for 2025, PREMA will not be able to own a charter unless purchased from another team. If they buy a charter from an existing outfit, that team will no longer be at risk of losing all of its assets.
Limiting the introduction of fresh organisations appears counterproductive in the eyes of many. On the face of things, having new teams interested in IndyCar - and there have been a number - would appear a good thing.
But Rahal, close to the heart of the charter situation as son of RLL team co-owner, former Indy 500 winner and three-time CART champion Bobby, has a different perspective.
“While that sounds good, the reality is that undermines the value of being a team owner in the sport and that undermines the value of the investment that they have made over all of these years,” Rahal said.
“And so I look at it very simply: my family and [co-owner Mike] Lanigan have made a massive investment in the building that we have in Indianapolis to provide a workspace and an environment that is unmatched and unparalleled in IndyCar racing.”
Rahal was keen to express the value of protection of non-monetary assets - borne out of hard work over a number of years - as a crucial part of what the charter will offer.
“If Dave and I can start a team tomorrow and just go race and we can race out of a shed at the back of his house, it clearly devalues everything that we [RLL] have done,” Rahal said.
“And you can’t sit and go: ‘Yeah, well, you have property investment and real estate value.’ Because that shop is specifically built to be a race shop. It is not a warehouse. It is nothing other than a top-tier, top-level racing facility.
“And so we need the security of our investment, in my opinion.”
Rahal insisted he has “never seen the charter” but has “heard pieces” from his father Bobby, with whom he has discussed a few details.
“I probably presented him with questions that he hadn’t even thought of yet,” he said. “But I think it’s really important. And it does affect me on a personal level, because maybe today I’m not making those decisions and in that position, but some day I will be.
“Some day that pressure will be on my shoulders and not my father. It’ll be on Pat Lanigan’s shoulders and not Mike’s. So I’ve got to look at this with the long runway of: ‘Where is it going to be?’
“I think it’s very important that the charter system is in place. And I think if you want to play in this series, which is a great thing - we want a lot of people to play - you’ve got to buy somebody out or you’ve got to make some sort of tangible effort financially to make it worth everybody else’s time.”
Comments