$100 Million Deal Between NASCAR and Govt. Comes Under Scanner After Increased Public Outcry

The city of Chicago recently found itself unpleasantly surprised. NASCAR has looked keen on charting newer territories, and of late, Chicago has been its primary point of interest. However, there weren’t too many happy faces among the City Council members when an ambitious deal was announced. Let us take a look at what NASCAR envisions, what the deal entails for concerned parties, and why it is facing opposition. 

Mayor Lori Lightfoot and NASCAR CEO Jim France recently announced a deal between the City and the organization. According to the announcement, come July 2023, Chicago’s Grant Park and adjoining areas would be turned into a street course for a NASCAR weekend event.

While that might seem an exciting enough proposition, it has kicked up quite a storm. The Chicago Sun Times reported that interviews with members of the City Council and analysis of the deal point towards a lack of transparency and limited scope of financial benefits.

The Mayor’s Office, on the other hand, has likened the event and its benefits to those of other headlining events like Lollapalooza and the NBA All-Star Game. A spokesperson has also estimated benefits of up to $100 million to the city as a result of the event being held in Chicago.

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Contradicting the Mayor’s Office, Ald. Gilbert Villegas was reported as saying, “I’m all for economic development, but the issue I have with it is lack of communication and transparency around how this project came to fruition.” He has also alleged that the office has denied his requests for an in-depth discussion about the deal. Villegas’s ward stretches to the west along Fullerton Avenue and will be affected by the event. He contends that he should ideally have been taken in confidence.

This isn’t the way NASCAR would’ve liked their foray into street racing to start. Firefighting will be the priority for all parties.

What does the deal entail for NASCAR?

Strong allegations against the deal have come from multiple directions. Bob Pockrass of FOX Sports said by “keeping things between as few parties as possible to get the deal done,” the Mayor’s Office wanted to help NASCAR “navigate the politics of it.” A Freedom of Information Request from WBEZ has revealed, “NASCAR must pay the city a $500,000 permit fee per year, a guarantee of 15% of net commissions on concession and merchandise, $2 per admission ticket and a $50,000 security deposit for damages to Grant Park.”

While the permit fee rises every year by 10%, and there’s an option for a 2-year extension at the end of 3 years (in 2025), the main bone of contention has been security. NASCAR has been “guaranteed total broadcast, sponsorship, and signage rights” but the contract makes no specifications on how NASCAR will deal with security requirements.

The WEBZ analysis read, “The contract does not specify security costs by either the city or NASCAR, nor does it indicate how much the organization must pay the Chicago Park District to restore the park beyond the $50,000 security deposit.

“Instead, the contract says a third-party landscape contractor will survey the site before and after the race and provide ‘a damage assessment and restoration estimate’ for all parties ‘to review and agree upon.’ NASCAR, the contract says, is ultimately on the hook for that.”

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It is a big step for the sport to be making inroads into Chicago—that too, with a street racing event. But things must be brought to order and transparency ensured if they want to come out as winners.