Freedom 250 Grand Prix: Who’s footing the multimillion-dollar bill?

This weekend, about two dozen drivers are set to complete in D.C. streets for the Freedom 250 Grand Prix trophy – the first and maybe only one ever. It’s a complicated race to pull off, and it will cost millions.

4 More Context on who’s paying and how big your Grand Prix bill will be, the News4 I-Team walked the course with the man behind the race, who’s writing checks to make it happen.

“When Mr. Trump signed the executive order, yeah, it became more partisan. But I go back to the fact – nonprofit, everything’s free. What’s so bad about that?” said Bud Denker, president of Penske Corporation and chairman of the D.C. race.

News4 asked if the race is Penske’s way to get time with the president for another priority.

“We’ve been with the president for years. We were with previous administrations for years. We got a big business,” Denker replied. “We got a $46 billion enterprise, right? We’re a transportation company. So, from the folks that we have to deal with on Capitol Hill to get the things that are important to us legislative-wise, it’s all important. But that’s certainly not what we’re here for. It’s really not what we’re here for, and you go back to the point of costs. Big question people have, of course, when they watch this is, am I footing the bill? Yeah! They’re not.”

A free IndyCar race through the heart of Washington, D.C. sounds almost impossible. Until a few months ago, it nearly was. Penske Corporation President Bud Denker tells NBC Washington’s Ted Oberg how the Freedom 250 went from a stalled plan on Capitol Hill to a race backed by President Trump and an executive order — and why Penske is willing to spend millions to make it happen and how it almost didn’t. Denker says Penske is covering the vast majority of the cost and has received no money from the Freedom 250 Commission. But taxpayers are helping cover police, fire and security for an event that could draw roughly 150,000 people a day and some of the country’s most protected political leaders. We also look at what it takes to transform Pennsylvania Avenue and surrounding streets into an IndyCar circuit in just months, the concerns about roads and nearby museums, and the organizers’ claim that the race could generate $100 million to $200 million in economic activity for Washington. 4 More Context goes behind the preparations for one of the most unusual sporting events ever attempted on the streets of the nation’s capital.

Freedom 250 Grand Prix budget ‘far exceeds’ $21M budget of Detroit race

News4 asked about the cost of the race.

“Well, we’re in Detroit, and Detroit’s a $21, $22 million budget. This far exceeds that,” Denker said.

“2x? 3x?” News4 asked.

“I won’t get into the numbers. Far exceeds this,” he said.

“And who’s paying the bill?” News4 asked.

“We are,” Denker said.

News4 pressed for details, and Denker said Penske is paying “the vast majority of this bill.”

“When I say vast, the only part we’re not paying is, we’re raising some revenue by having sponsors with the suites I’m building on 3rd Street and 7th Street,” Denker said. “So, I’ll raise some good revenue from those pieces, but it’s certainly not enough to pay for the entire thing.”

“This isn’t a break-even operation, and we didn’t intend it to be,” he added.

News4 asked about Penske’s relationship with Freedom 250, the Trump-established public-private partnership fueling many of this year’s 250th anniversary events.

“We’ve received nothing, and we’re never offered anything from the Freedom 250 Committee, ever,” Denker said.

“You didn’t ask? They didn’t offer?” News4 asked.

No, Denker said.

“[If] we take federal money, it becomes a big story,” he said.

What do DC residents get out of it? ‘We’re showcasing their city big-time’

There’s one piece of the race Penske isn’t funding, News4 learned: public safety.

“No, it’s the one piece of it, the funding for the security, like it was for the UFC, is being funded by federal and city funds,” Denker said, referring to the mixed martial arts match held at the White House in June.

The money comes from a federal allotment D.C. gets every year to provide police and fire for large events. This year, it got $90 million. But D.C. officials couldn’t tell us how much is left after the UFC fight and July 4th celebrations.

Penske is betting on the race bringing in millions in economic benefits to D.C.

“The fact is, we’re going to bring in between $100 and $200 million of revenue to this city, economic benefit to the city, and [it’s] usually a time of the year when it’s quiet,” Denker said.

Vendors near the National Mall said they hope the Freedom 250 Grand Prix will be a prime business opportunity. News4’s Megan McGrath reports.

News4 asked, what do D.C. residents get out of the race?

“Well, I think what they’re getting out of it is the fact that we’re showcasing their city big-time, around the world. We’re showcasing this city in ways you’ll never see again. You’re never going to see a race on the city streets.”