See Correction/Clarification at the end of this article.
IndyCar executives, including series owner Roger Penske, traveled to Nashville on Aug. 27 to meet with Music City Grand Prix organizers, drawing closer to cementing a deal for a downtown street race.
Some of the business executives supporting the effort include country music artist Kix Brooks, owner of Arrington Vineyards; Scott Borchetta, founder of Nashville's Big Machine Label Group; and Kevin Clayton, CEO of East Tennessee-based Clayton Homes (which owns Gallatin-based Goodall Homes).
IndyCar driver Ryan Phinny disclosed that lineup in an interview with the Nashville Business Journal. Phinny, who lives in Nashville, said he is working to attract event sponsorship for the potential Music City Grand Prix and hopes to race in the event — targeted for Aug. 6-8 next year, Phinny said.
Phinny said a street race can have an economic impact in the range of $100 million to $120 million. IndyCar currently has street races in Toronto; Long Beach, California; and St. Petersburg, Florida.
"Plain and simple, if you look at the spend per person, the IndyCar spend is just higher (than NASCAR). It's similar to Formula One. It's a lot of white-collar workers, a lot of business executives. They'll probably stay Thursday through Sunday in hotels, go out to eat, buy hospitality passes," Phinny said.
Phinny said Nashville has become easier than ever to reach, with Nashville International Airport's growth and $1.4 billion expansion, and also offers a number of new hotels and plenty of bars and restaurants.
"Nashville is such a great destination. The town has built itself to a point where it makes sense from a financial standpoint to hold the race here, as well as an infrastructure standpoint," Phinny said.
Hosting the event could be a desperately needed boost to the city's hotels, bars and restaurants, which have suffered steep losses during the pandemic and will still be trying to rebound when the potential race might happen.
Phinny said he was 90% certain the event would happen, adding: "I don't foresee this not happening next year. … As a local driver, I'm doing everything I can to make it happen."
Event organizers struck a similar tone in a statement shared first with Sports Business Journal and the Nashville Business Journal:
“We are pleased to confirm that plans to bring an annual NTT IndyCar Series urban street race to Nashville progressed this week bringing us one step closer to establishing the inaugural Music City Grand Prix. Event promoters and organizers from Music City Grand Prix hosted Roger Penske and members of the IndyCar team at Nissan Stadium alongside key staff from the Tennessee Titans and other key stakeholders. We collectively agreed to work toward finalizing an agreement to bring an urban racing festival to Nashville with a presence at Nissan Stadium. While we are all excited by the Music City Grand Prix plans, to be clear this process is not finalized.”
In addition to Penske, who is founder of Penske Automotive Group (NYSE: PAG), the CEO of the IndyCar series Mark Miles also came to Nashville for Thursday's meeting. Music City Grand Prix’s group is COO Jason Rittenberry, former Nashville Predators executive Chris Parker, and FullCircle Ventures President Matt Crews.
Penske told Racer.com this week that the street circuit will be 2.1 miles and include stretches along the Cumberland River, with the Titans’ Nissan Stadium also involved.
"I'm sworn to secrecy on it," Phinny said of the potential course route. "It's got the tight corners and also has the high speeds. It's the best of both worlds. It's definitely a driver-centric track. It's capable of putting on a good show."
Notably, two-time IndyCar Series champion Josef Newgarden is a Hendersonville native.
Event organizers have been working to bring a race to Nashville for years. A similar effort failed in 2017, though the group has since changed some of its leadership. Racing officials and the event's organizers agreed to have meetings in Nashville this week to go over the logistics of the venue layout, among other aspects of a prospective deal.
Street races are typically complex, pricey ventures that cost millions of dollars to set up and require close governmental cooperation. It’s not yet clear how Music City Grand Prix plans to finance the event, but like all races, it will work with sponsors to defray the costs. IndyCar also charges an annual hosting fee, and it typically costs low seven figures for street races annually.
Phinny contended that the costs to local taxpayers are minimal. "One of the biggest differences between this event and any other event is … that you don't need to build a stadium or a field or whatever it may be. It's a temporary street circuit, so it doesn't require any of that."
In its statement, Music City Grand Prix said it has "been very deliberate in our planning, particularly in light of the evolving challenges that Covid-19 has presented. [We] will continue to be thoughtful and thorough in our preparation and communications in order to create an event that meets our vision, delivers for IndyCar and reflects the high standards Nashville has set for major annual events. We look forward to sharing more information once agreements are fully completed."
While the sides are not yet saying the deal is finalized, they do appear to be cautiously optimistic a deal will get done for 2021. Nashville Convention and Visitors Corp. President & CEO Butch Spyridon told NewsChannel 5 WTVF this week: “I think we are really close. If you asked me to bet on it, I would bet we land it."
With reporting from Adam Stern at sister outlet Sports Business Journal.
Correction/Clarification
This story has been updated to more accurately reflect examples of business executives supporting the group working to bring IndyCar to Nashville.
