Fox-IndyCar Deal Marks Yet Another Media Stake in Sports League

Fox is buying a 33% stake in the parent company of the IndyCar Series and the two are extending their media-rights agreement, marking the latest in a growing trend of media partners taking equity stakes in the leagues they televise and cover.

The deal between Fox and Penske Entertainment Corp., which owns IndyCar and the Indianapolis Motor Speedway, where the Indianapolis 500 takes place, was announced Thursday. Financial terms were not disclosed, although The Wall Street Journal reported the stake is valued at between $125 million and $135 million.

In addition to the acquisition of a one-third stake in Penske Entertainment, the deal includes a “multi-year extension” for the duo’s media-rights agreement between. The number of years the media-rights agreement is being extended by was not disclosed. 

Penske Entertainment is a subsidiary of Penske Corporation, which is the parent to several businesses, including Penske Automotive Group, Penske Truck Rental, and Team Penske, which has seen success in an array of races over its 59-year history, including 20 Indy 500 wins, three Daytona 500 championships, and one Formula One victory.

Fox first acquired IndyCar’s media rights earlier this year, taking over from NBC Sports, and got off to a hot start with 1.4 million viewers for its season opener, the Grand Prix of St. Petersburg, according to Nielsen. In Thursday’s statement, Fox boasts that this year’s Indianapolis 500—held in May and won by Álex Palou for team Chip Ganassi Racing—averaged 7.01 million viewers, a 41% increase over last year and a 17-year high.

Under the original media-rights deal between Fox and IndyCar, it was believed the former was paying roughly $25 million annually for the latter’s rights.

Fox Sports CEO Eric Shanks said in Thursday’s statement that IndyCar represents “everything we value in live sports — passionate fans, iconic venues, elite competition, and year-round storytelling potential.”

It is becoming more common for media companies to buy equity stakes in the companies they televise and cover. Last month, Disney-owned ESPN and the Premier Lacrosse League announced a five-year extension of their current rights deal starting with the 2026 season, and under the agreement, ESPN is making a “minority equity investment” in the PLL.

Last October, Warner Bros. Discovery’s TNT reached a deal that included both an undisclosed equity stake in, and media rights for, upstart 3-on-3 women’s basketball league Unrivaled. Elsewhere, Fox both broadcasts games for and owns a major stake in the UFL.

Meanwhile, in what could be the most significant of all network-to-league equity deals, Disney is closing in on a deal to acquire NFL Media from the NFL in exchange for the league taking an equity stake in ESPN. Less than two weeks ago, Front Office Sports reported NFL owners had been informally told to be ready for a potential vote in August on that deal.

Representatives for Fox and Penske did not immediately respond to requests for comment.