Mayor and council should begin work on revised NASCAR contract
The race will be a drain on city coffers
One thing the City of Chicago can’t afford right now is to give money to a $100 million operation. Unfortunately, with the highly secretive contract former Mayor Lori Lightfoot negotiated with NASCAR will do just that. The face of North American racing will gain more than it gives when the first-ever Chicago street race comes July 4th weekend.
Of course, NASCAR officials floated the notion that the race around Grant Park would have a $100 million “economic impact.” This is a phrase used instead of guess. It is not unusal when an entity wants to use a venue that includes many city services that entity hides behind the economic impact curtain. The result is that city’s officials focus on that incredibly large number and settle for what amounts to pittance in terms of direct payment. NASCAR will get away with paying Chicago about $500,000 plus $2 per ticket sold. Does that sound like negotiations even took place when the least expensive ticket is more than $260? If estimates for ticket sales hold up, that will be about $200,000.
Only the naive won’t see this race as a overtime gravytrain for Chicago police. Providing security, directing traffic at scores, if not hundreds of intersections before, during and after the races will keep the overtime clock churning. In recent years, CPD officers have had days off canceled for special events. That practice is liely to be in place for NASCAR as well. That equates to double time for many of the cops working. It is easy to see how most of that $500,000 will be gobbled up by CPD alone.
NASCAR just like Lalapalooza, RiotFest, and other major spectacles will require days of post-event cleanup. That will be another prima facie overtime feast for city workers. Is it becoming apparent why NASCAR in Grant Park is such a great deal for race organizers but not so much for the city?
Revenues generated from hotel stays, restaurants and tourist activites won’t come close to the $100 million boon NASCAR predicts. It must be factored in that many will avoid the downtown area because of no interest in the race and no willingness to deal with rowdy race fans.
This is why it is critical that Mayor Brandon Johnson and the Chicago City Council immediately start finding ways to alter the contract Lightfoot signed. The city will not receive more than $500,000 direct payment until 2025-then it will rise to $605,000. At the very least, city hall should demand NASCAR foot half of the police overtime tab, and share at least $5 per ticket with the city. There also should be a six-figure contibution to a fund to provide grants for struggling community organizations.
If the city goes along withthe current sweetheart deal, not only will it put Chicago deeper in debt; it will make it practically impossible to negotiate larger and appropriate deals with other major event promoters.