Argentina visit by Mark Miles

IndyCar News: Series will have to deep-six race idea in Argentina (3rd Update)

As we predicted would happen back in January, IndyCar was forced to deep-six the idea of holding a non-points race in Argentina.

–by Mark Cipolloni–

It made no sense financially then, and it never will.

Penske Entertainment president and CEO Mark Miles told the Indy Star on Wednesday he no longer sees the schedule addition “as a viable option for this year.”

Miles told Motorsport.com in mid-November that the event’s prospects were “in good shape”, noting the need to get through the election before being able to formally wrap things up with local and national officials, as well as the various parties making up the race promoter.

Although Miles had long pledged that the country’s recent presidential election, completed in mid-November with the election of libertarian economist Javier Milei, wouldn’t impact the execution of IndyCar’s October 2024 race plans, we predicted below it would and our prediction is now ‘fact.’


January 16, 2024 

The announcement for an IndyCar race in Argentina at the Autodromo Termas de Rio Hondo road course did not happen back in August as expected, and the chances of it materializing are dwindling.

–by Mark Cipolloni–

Some are prepared to say, “stick a fork in this race, it’s done.”

Why?

When in doubt, follow the money.

In December, the government said it would slash the value of its currency, the peso, by more than 50 percent against the US dollar, thereby making the race now twice as expensive for the Argentinians.

With the election of Argentine President Javier Milei, the chances of getting government money to pay for the race has taken a hit.

Latin America’s third-biggest economy is facing dire economic challenges after decades of debt and financial mismanagement, with inflation surpassing 160 percent year-on-year and 40 percent of Argentinians living in poverty.

Argentina, which ushered in a new government in December, is battling likely stagflation on the horizon, a toxic mix of triple-digit inflation and recession that will likely squeeze people and push up the poverty rate, already at over 40%.

The economic picture also likely darkened further at the end of the year, analysts said, with the political uncertainty that surrounded the October-November elections and recent sharp devaluations of the peso currency.

Libertarian Milei has taken several steps to cut public spending and overhaul the economy. He recently presented a legislative package to Congress, seeking to privatize more than 40 public companies and impose restrictions on the right to assembly and demonstration.

Argentine President Javier Milei is taking a chainsaw to government spending
Argentine President Javier Milei is taking a chainsaw to government spending

In December, the government said it would slash the value of its currency, the peso, by more than 50 percent against the US dollar and announced a raft of other austerity measures, including sweeping subsidy cuts, cancellation of tenders for public works projects, and plans to axe nine government ministries.

“The new administration is already implementing an ambitious stabilization plan, anchored on a large upfront fiscal consolidation, along with actions to rebuild reserves, correct relative price misalignment, strengthen the central bank’s balance sheet, and create a simpler, rules-based, and market-oriented economy,” the IMF said.

Economy Minister Luis Caputo announced a raft of other austerity measures, including sweeping subsidy cuts, the cancellation of tenders for public works projects, and plans to axe nine government ministries.

Jimena Blanco, chief analyst with risk consulting firm Verisk Maplecroft, said Milei’s government was trying to temper an otherwise guaranteed economic crash landing.

“He promised a very tough pill to swallow and he’s delivering that pill,” she said. “The question is how long will popular patience last in terms of waiting for the economic situation to change.”

The only thing likely to save this race now is a ‘rich sugar daddy’ willing to lose millions of dollars a year.


July 27, 2023 

According to sources in Argentina, a deal has been reached in principle with IndyCar to hold a race there for 3 years starting in 2024.

A deal could be signed within days, with an announcement coming between the upcoming Nashville and Indianapolis road course races according to ESPN in Argentine.

The fee to bring the race to Argentina is reported to be $8.5 million, which pales in comparison to F1, which gets a minimum of $50 million with every new contract.

Some equipment will be shipped to Argentina by boat and some by air, to save money. Even F1 does this.

The money will come from three coffers and in equal parts: National State, Provincial State of Santiago del Estero and the local race promoter.

The 40-page contract could be signed, but there will be a new president as of December 10th (Alberto Fernández, current president, is not running for re-election) and one has to wonder what out, if any, the next President will have if they do not like the deal.


March 21, 2023 

The President of Penske Entertainment, Mark Miles, toured the 2.753-mile 10-turn Termas road course in Argentina today to evaluate a possible IndyCar race in that country.

Argentina Autodromo Termas de Rio Hondo aerial
Argentina Autodromo Termas de Rio Hondo aerial
Ricardo Juncos, far-right, (co-owner of Juncos Hollander Racing) was instrumental in helping to further the negotiations

This visit by IndyCar officials is another step towards making Argentina the venue for a championship race, possibly in 2024, for the first time since 1971 in Rafaela