IndyCar Leaders Circle Program Expands Funding

In a major boost for team finances, head of Penske Entertainment, Roger Penske, has committed an additional $11 million to the IndyCar Leaders Circle program over the 2026, 2027, and 2028 seasons. This increase effectively adds $500,000 per qualifying contract annually, providing critical support as teams prepare for the significant costs of introducing the all-new ‘spec’ Dallara IR-28 chassis in 2028.

–by Mark Cipolloni–

The Leaders Circle program, established in the early 2000s, delivers guaranteed prize money to the top 22 finishers in the annual entrants’ championship. These payouts reward full-season participation and help offset the high costs of competing in the NTT IndyCar Series. The program is exclusive to the series’ 25 charter entries, which compete for the 22 available contracts.

In 2025, Penske Entertainment allocated $31.9 million for the Leaders Circle, with each contract valued at approximately $1.145 million. Starting in 2026, the per-contract amount rises to $1.645 million — an increase of $500,000 per team. This marks the largest single-year jump in the program’s history since its inception in 2002 and will apply through 2028.

IndyCar President Doug Boles highlighted the significance of the move, stating: “Roger [Penske] made a pretty big commitment to the charter teams and the Leaders Circle by increasing the Leaders Circle by $11 million in ’26, ’27, and 28 from where it was in ’25. That was just Roger doing the right thing to help IndyCar teams, his partner teams, be more successful and have a little more cash to move forward.”

Roger Penske - IMS Museum Celebrates Grand Reopening - Photo By Chris Owens/Penske Entertainment — Roger Penske – IMS Museum Celebrates Grand Reopening – Photo By Chris Owens/Penske Entertainment

The timing of this financial enhancement is particularly strategic. Teams currently face annual operating budgets ranging from $8-10 million (and up to $11-12 million for top programs) per entry, driven by factors like engine leases, hybrid technology (introduced in 2024), and general inflation in racing costs. The $500,000 boost represents roughly 17-20% of a typical team’s budget, offering meaningful relief.

More crucially, the increase aligns with preparations for the 2028 chassis transition. The current Dallara DW12 chassis, in service since 2012 (with updates like the aeroscreen and hybrid integration), will be replaced by the new IR-28. Teams are expected to budget upwards of $1 million per car for the switch to the updated Dallara model. The IR-28 promises a lighter overall weight (targeting an 85-100 lb reduction, including a 25-lb lighter gearbox), a more powerful 2.4-liter twin-turbo V6 engine (up from the current 2.2-liter), and continued hybrid evolution — all aimed at enhancing performance, safety, and fan appeal.

On-track testing for the new chassis is slated to begin in early 2026, with prototypes potentially ready by late 2025 and manufacturer testing targeted for mid-2026. The full rollout in 2028 will mark the first clean-sheet chassis redesign in over 16 years, addressing accumulated modifications and setting the stage for future competition.

This Leaders Circle enhancement follows smaller adjustments in recent years, including a $100,000 increase for 2025 (bringing contracts to $1.2 million) and prior fluctuations tied to hybrid upgrades and economic factors. With the series benefiting from a recent 33% stake sale to Fox Corporation and ongoing growth efforts, the commitment underscores Penske Entertainment’s focus on team stability and long-term competitiveness.

As IndyCar continues its upward trajectory—highlighted by competitive ‘spec series’ racing, the iconic Indianapolis 500, and expanding visibility — this financial support positions charter teams to invest more effectively in development, talent, and operations ahead of the exciting 2028 era. Stay tuned to AutoRacing1.com for further updates on the IR-28 rollout, engine developments, and the 2026 season.