Q: Thanks for finally putting some realistic numbers together in your Cost of Doing Business article. I am one of the guys annually bugging you about the cost of participation in IndyCar. Interestingly, if you Google “1994 dollars in 2021” the answer is a factor of 1.77. Taking 1994’s $3.25 million and factoring it up by 1.77 you get $6.2 million; not far off of today’s $6.5 million. While the focus of the spending has changed, the total outlay isn’t that much different.

Two items jumped out at me as I compared the costs. The $500,000 Cosworth vs the $1.5 -$2.0 million cost of today’s engine leases. Applying the 1.77 factor to the $500,000 gives $885,000. Assuming you needed two or three Cosworths in ’94, today’s leases seem almost a bargain. The other item is the cost of tires, going from $12,000 to $500,000. Can I assume that in ’94 most teams essentially got free tires, effectively a sponsorship, as opposed to today’s situation? I guess we have to conclude that while the cost side of the equation hasn’t really changed a lot in total, the revenue side (i.e., sponsorship dollars) is proving to be a challenge.

Bill Carsey, North Olmsted, OH

RM: I think the tires were free for Indianapolis, and obviously not a big part of the season budget like today. Goodyear was the lone supplier until 1995, but I can’t remember if prices went up or down when Firestone joined. Considering how much technical help is provided by Honda and Chevy, and how reliable the engines are, it does seem like it’s a bargain.

Q: Just wanted to say I loved the article on the running costs of an IndyCar. I think seeing how stuff like that works is fascinating. Something I thought was interesting as well was when I ran the $3.5 million figure from 1994 through the federal government’s official inflation calculator. Basically, $3.5 million in January ’94 is worth just under $6.3 million today. So the costs of running an IndyCar hasn’t changed much. It’s the lack of revenue that has changed.

Kirk Riley

RM: Good point, Kirk. A $7-10 million sponsor was the norm back then, and today a lot of teams need to piecemeal different companies to reach $5-6 million. The Miller, Budweiser, Texaco, Kmart, Target, KOOL and Player’s millions just don’t exist anymore.

Whether it’s 1990s or 2021 dollars, you need a lot of them to go racing properly. Michael Levitt/Motorsport Images

Q: I enjoyed reading the “Cost of Doing Business.” It brought a real smile to my face when you mentioned my dad’s old crew: Finley, Barnes and the boys from NY. They were a civil servant, bartender, and bulldozer operator. But they were friends and die-hard race fans. They may have worked for nothing, but they were a well-oiled, if underfunded, team. Long after my dad (Tassi Vatis) folded the team in 1978 due to rising costs, all the guys would still get together in White Plains, NY to knock back a few, and attend Indy from the first-turn seats I still have today. Anyway, keep doing what you’re doing and thanks for all the years of service to us race fans.

Chris Vatis

RM: Thanks for writing Chris, your dad was such a laid back and delightful man, and represented the sportsmen that owned Indy cars in the ’60s and ’70s. I remember the first time I met him and he was helping sweep the floor and I asked who he was: “That’s the owner,” said Bill Finley. “But we let him help around the shop.” The Greek, as we knew him, also flew me to New York City once after I wrote a sponsorship proposal for the team, and we presented it to First National Traveler’s Checks at lunch on the 50th floor of some swanky place. I didn’t have a coat or a tie so your dad bought me one and then we got the sponsor. I treasure those days and the New Yorkers.

Q: I just finished your article on the cost of doing business. I was wondering if the 1994 numbers were inflation-adjusted? A driver making $5 or $6 million in 1994 was probably making the equivalent of $10-15 million adjusted.

Brian Henris, Fort Mill, SC

RM: Well, let’s just say that not many drivers were paid like Mario, Michael and Little Al, but between great sponsors and engine manufacturers there was a lot of money to be had, and the ’90s was a good time to be an Indy driver. I suppose if $3.5 million in 1994 translated to $6.5 today, then those salaries were over $10 million.

Q: Just saw an interview with Randy Bernard where he said the IndyCar series was losing $30 million a year, every year, for years before he got there. How close was Indy going the way of CART and being bankrupt? I can see why they both merged to survive and why it’s as popular as bowling on TV if that is true.

Tony G.

RM: I don’t know about bankruptcy, but Tony’s sisters were concerned about all the money he had spent keeping the Indy Racing League afloat and that’s why they took the checkbook away. In a normal year, the Indy 500 makes big money (as does the Brickyard 400 with its TV contract) but I think IndyCar’s losses aren’t as much as they use to be. Wait, is this Tony George asking the question?

Q: The negativity due to a lack of IndyCar seems to be overwhelming, so I thought a little more positivity should be in order. We can’t control the future, or the big business of racing, but as long as two cars show up, we’ll always have a race somewhere. I grew up on the road racing side of open-wheel, but have been fascinated by, and a huge fan of, wingless sprint cars ever since I first saw them. The raw physicality is something everyone else says racing can’t have anymore, and I cannot understand why sprint cars don’t have a much wider audience. Is there any one thing you think they could do that would help? And is there anything especially under-appreciated about sprint cars in your view? Thanks again for your writing.

Duncan in Ottawa

RM: The lack of IndyCar? Not sure what you’re referring to, but I don’t hear a lot of negativity except from the old-school fans that want USAC drivers in Indy cars. As long as they’ve been putting on a great show, USAC sprints have always been looked at as stepladder to the Indy 500 (1940-80) and then NASCAR in the ’90s. The fan base has always been passionate and loyal, but 5,000 people at Indiana Sprint Week is a good crowd and short-track racing is an acquired taste that doesn’t seem to interest young people like it did when I was growing up. But Kyle Larson and Christopher Bell are two great examples of the education it can provide — taming 800-900 horsepower and adapting to whatever is thrown at them.