IMS seeks tax money for improvements

SPEEDWAY, Ind. (WISH) - For the first time in its 104 year history, the Indianapolis Motor Speedway wants some of your tax dollars to help pay for improvements at the two and a half mile oval. When it comes to sports franchises asking for public dollars, the request is not unusual. 

Lucas Oil Stadium cost more than $700 million to build, and taxpayers put up the bulk of the bucks. Bankers Life Fieldhouse had a price tag of just over $180 million, and nearly half of it was paid for with your taxes. 

"It was just a matter of time before the IMS said hey it's our turn, we'd like some public money as well," says economist, Matthew Will, an associate professor of finance at the University of Indianapolis.

Will says he's not surprised the Speedway is asking for tax dollars now, after 104 years of avoiding it. 

"They probably sat around the table and said 'how can we increase the bottom line.' And one of the ways is to get tax dollars into your income statement," he says. 

The IMS wants to spend between $70 and $100 million fixing up the Speedway. It wants to get as much as $5 million a year from state sales, income and corporate taxes to help pay for those improvements. Is it just a handout, or is it needed?  Will says no one really knows.

"The IMS does not release their financial statements. It's a private entity.  A private corporation.  So it's very unusual that they would be asking for public financing," he says.

Will says, not only is IMS private, a company that won't even tell the public yearly attendance at its races, but unlike the Colts and Pacers, moving is not an option. 

"I mean it's the Indianapolis Motor Speedway.  It's not like they are going to move to St. Louis. It's the site itself that is the attraction, it's not necessarily the team, " he says.

Will says until IMS shares its financial numbers, you should think twice about sharing your tax dollars.

Aside from the tax dollars, the Speedway would kick in $2 million of its own money to pay for the cost of making the improvements.