INDYCAR resolves Roger Penske's conflict of interest with independent arbitration

The series announced this Thursday that sports officiating will operate independently starting in 2026, eliminating the structural conflict of interest that has existed since 2020: Roger Penske owns INDYCAR (through Penske Entertainment) and simultaneously owns Team Penske, one of the teams competing in the series.

The new system will operate through a non-profit organization called INDYCAR Officiating Inc., governed by a three-member board of directors who will hire a Director of Officiating. This director will report solely to that board, with no reporting to any officials at INDYCAR or Penske Entertainment.

The team owners elected Ray Evernham and Raj Nair as two of the members. The FIA appointed Ronan Morgan as the third member. The three of them will select the Director of Officiating, who will lead race control, oversee technical inspections, and enforce the rules written by INDYCAR.

Photo By Penske Entertainment

The conflict of interest that pushed for the change

Roger Penske bought INDYCAR and the Indianapolis Motor Speedway in January 2020 through Penske Entertainment Corp. Since then, his company has owned the series: it writes the rules, organizes the races, hires the track officials, and conducts technical inspections.

But Roger Penske also owns Team Penske, founded in 1966. The team competes in INDYCAR with three cars driven by Josef Newgarden, Will Power, and Scott McLaughlin.

This structure generated concern among other teams: Penske Entertainment employees controlled officiating in races where Team Penske participated. Although penalties were applied when there were infractions, the perception of bias was inevitable due to the corporate relationship between the sanctioning body and one of the sanctioned teams.

The 2025 scandals

In March, INDYCAR disqualified Josef Newgarden and Scott McLaughlin from the St. Petersburg Grand Prix. Team Penske had modified the software of the Push to Pass system to use it at times prohibited by the regulations. Pato O'Ward was declared the winner after the disqualification.

Two months later, during qualifying for the Indianapolis 500, inspectors found modified rear attenuators on the cars of Newgarden and Will Power. These safety components cannot be altered according to rule 14.7.8.16. INDYCAR relegated both cars to the last grid positions, applied fines of $100,000 per car, and suspended Team Penske's strategists for the race.

J. Douglas Boles, president of INDYCAR, stated then: "The integrity of the Indianapolis 500 is paramount, and this violation of the rule is clear."

Photo By Penske Entertainment

The penalties were severe. But the problem persisted: Penske Entertainment had sanctioned Team Penske. Although the penalties demonstrated rigor, the corporate structure continued to raise doubts about impartiality.

Days after Indianapolis, Roger Penske fired Tim Cindric (president of Team Penske), Ron Ruzewski (managing director), and Kyle Moyer (general manager). In his statement, Penske acknowledged: "We have had organizational failures over the last two years, and we had to make necessary changes. I apologize to our fans, our partners, and our organization."

Penske's actions against his own team were forceful, but they did not solve the structural problem: as long as Penske Entertainment controlled officiating, questions about conflict of interest would continue.

Who makes up the board of directors

Evernham won three NASCAR Cup Series championships as Jeff Gordon's crew chief in the 90s. He later founded Evernham Motorsports during Dodge's return to NASCAR. Afterwards, he worked as a television analyst and consultant.

Nair spent three decades in the automotive industry. At Ford Motor Company, he oversaw all of the manufacturer's racing programs between 2012 and 2017, including NASCAR, IMSA, and WEC. He was also president of Ford North America. He currently operates at Singer Group and Multimatic.

Morgan has over 50 years in international motorsport. He has presided over stewards' committees at more than 100 FIA-sanctioned events and was the sporting director of the Abu Dhabi Formula 1 Grand Prix for 12 years. He chairs the FIA Drivers' Commission and is a member of the World Motor Sport Council.

Photo By Penske Entertainment

How the independent system will work

The Director of Officiating will have complete authority over race control and technical inspections. They will hire the necessary staff and enforce the rules written by INDYCAR. They will report only to the three-member board of directors, not to executives of Penske Entertainment or INDYCAR.

The FIA will not control the series' operations. Its involvement is limited to appointing one of the three board members. The international federation will not write rules, not run races, nor apply sanctions. INDYCAR retains full authority over its rulebooks.

Chip Ganassi expressed confidence in the selection process executed by the team owners. Mark Miles, CEO of Penske Entertainment, said the board "will work independently to hire the right person."

The board will announce the Director of Officiating in early 2026, before the season starts on March 1st in St. Petersburg.