Welcome to the RACER Mailbag. Questions for any of RACER’s writers can be sent to mailbag@racer.com. We can’t guarantee that every letter will be published, but we’ll answer as many as we can. Published questions may be edited for length and clarity. Questions received after 3pm ET each Monday will appear the following week.
Q: I am new to IndyCar and am curious about the financial standing of A.J. Foyt Racing.
With one of the most recognized names in all of racing, I would think that getting financial backing, big money sponsors and capital would not be a big problem. But it seems like it would be classified as a small market team (using a baseball analogy), with quite a bit less money than other teams. I know they are trying to raise enough funds to keep Santino Ferrucci as a full-time driver, and really hope they do. This is probably not a simple answer, but any input or explanation would be greatly appreciated.
Steve Pizzute
MARSHALL PRUETT: The Foyt name is indeed legendary, but only to a highly specific, older demographic. To someone who graduated college or formed a small business in 2000, found and loves IndyCar, and has gone on to achieve great success as a CEO or seen their company grow to great heights, they’ve only known the Foyt team to be a midfield contender, at best, and a tailender at worst. That’s not what motivates most businesses to send loads of cash.
Now, if we’re talking about a successful businessperson who grew up idolizing A.J. from his achievements from the 1950s-1970s, and has the ability to spend big with the team, which is what they had with ABC Supply from 2005-19, it’s a different story.
The team’s current primary sponsor, Sexton Properties, falls into the latter category and the amazing Marlene Sexton, whose late husband idolized the four-time Indy 500 winner, stepped into the breach to keep the team afloat when ROKiT, the team’s replacement for ABC Supply, was allegedly late on payments in 2020 and 2021, and allegedly failed to pay a sizable portion of what it owed in 2022, which led to the company being taken off its cars at the halfway point of the season.
If you look back at Foyt’s cars, you’ll see smaller Sexton logos installed as associate-level support that maintained the great link between the two families. After ROKiT’s swift exit, Marlene Sexton did something rather amazing by elevating Sexton Properties to primary sponsor of the No. 14 Chevy to keep it — and the team — on the grid. It used its second seat, taken by Charlie Kimball and Dalton Kellett, as a for-pay entry, and in the case of Kellett, who raced for the team through 2022, his family-owned K-Line company was a rock-solid financial contributor, which also helped. Kellett’s family always paid their bills.
Moving to 2023, the Foyt team wanted to try something new by going with a new and likely faster driver in the second car. Kellett got better every year, and brought a good budget, but the team wanted to be more competitive with both cars and wanted to find a better driver who could also bring funding.
They went with Indy NXT race winner Benjamin Pedersen, which wasn’t a bad idea. Where things go sideways, according to what I’ve heard from multiple sources, is that Pedersen’s multi-year deal is said to be worth approximately half of what it takes to run a car per season. I’ve also heard the Pedersen family does not have to pay for crash damage which, in light of the numerous crashes — including the chassis that was destroyed on the first lap of the season — means the solid second-car budget it had with Kellett has been replaced by one that would place the No. 55 Chevy on precarious financial grounds.
Throw in the fact that Sexton Properties was only meant to be a stop-gap solution while the team went and found a new primary sponsor, and the Nos. 14 and 55 could use those big dollars you’d like them to have. Ferrucci placing 19th in the championship was a positive for the team, and the new link with Penske is certainly of great value and potential. If the team invests in the right business development people who can draw sponsors to the team, I’m sure some companies would find good value in getting involved. It’s been a bumpy ride since ABC left as Foyt’s full-season sponsor, but now the team has something it can sell due to its affiliation with Penske.
Q: I was just reading about Graham Rahal signing a multi-year contract with RLL. I have been a fan of his for years, but given the past three or four years, I can’t understand him getting renewed, especially given some of the talent available. Other than the family connection, why is this a good thing for the team?
John Furnis
MP: He’s an excellent race day performer. He’s a passionate leader. He’s still young. He has and can continue to teach his younger teammates a bunch of things they would otherwise need many more years to learn on their own. His chassis and tire feedback is excellent. He’s a role model to the rest of the drivers with the multiple charities he supports and funds through racing. He finds/has found a huge amount of sponsors and sponsorship for the team. He’s capable of winning more poles and more races. How’s that?
Q: What is Andretti or others planning to help Colton Herta qualify for an F1 Super License so he can race in F1? What other racing options would help meet the qualification requirements that would not interfere with his IndyCar commitments?
Scott Thompson
MP: I’m happy to report Herta won’t be joining the Formula Regional Americas series to try and gain points towards an F1 license while also racing in IndyCar and IMSA. The best way for him to get that license is to do well in IndyCar, so his sights are set on winning the IndyCar title and opening the door to F1 with Andretti Global.