Editorial: Streets close and wallets open for NASCAR next month

Chicago, the streets are closing as the city prepares to welcome NASCAR on July 5 and 6. But you probably already noticed that on your way about town.

The race will return for its third year to a 12-turn, 2.2-mile course winding through Grant Park, along DuSable Lake Shore Drive and up Michigan Avenue — all of which will be closed off and lined with fences, grandstands and hospitality suites.

What has been less observed is the tidy little subsidy the state approved for NASCAR in this year’s budget in exchange for its Chicago spectacle: a $5 million check.

This news comes on the heels of the exciting announcement that the Chicago Fire, led by owner and Chicago philanthropist Joe Mansueto, is building a $650 million privately funded stadium at The 78, the 62 long-fallow acres of former railroad-owned land bordered by Roosevelt Road to the north, Clark Street to the east, 16th Street to the south and the South Branch of the Chicago River to the west.

That plan was met with enthusiasm by all — it’s a boon for Chicago not only because it brings a world-class facility to our MLS team and the city’s many soccer fans, but also because it showed us all that people are willing to make big investments here without incentives from the government. That the news came out as other teams, including the Chicago Bears and the Chicago White Sox, are seeking taxpayer funding made it all the more significant.

And so the NASCAR check rubs us the wrong way, to put it bluntly, even though this payment does mark a decline in state funding support for the race. As we’ve written before, the jury remains out on whether NASCAR ought to become a fixture of downtown Chicago summers going forward.

There are virtues to NASCAR that go beyond tax revenues, hotel stays and cash registers ringing at restaurants and bars. The gorgeous views of downtown Chicago are no small part of what makes the race so distinctive. Viewers from around the country are treated to an hourslong advertisement for a city that these days can use all the good PR it can get, especially in the red states where our city often plays the role of punching bag.

But should taxpayers the state over be required to subsidize an event that primarily benefits Chicago?

Before this budget passed, the state doled out $7 million to NASCAR. A $2 million cut is good, but it’s still hard to justify given the state’s massive public debt and the rapid acceleration of state spending since just prior to COVID.

Asked about the funding at a June 16 news conference, Gov. JB Pritzker said he couldn’t speak for the specific reason for it, but he was proud of the increased investment during his tenure as governor. 

“Very importantly, it has brought enormous benefit to the state. Specifically, the investment in tourism yields revenue for the state that is vastly more than the investment that gets made by our tourism office,” he said.

That’s a fine political pivot, but let’s not forget that NASCAR’s economic impact hasn’t always been what was promised, despite the significant disruptions city residents face so the show can go on. In 2023, the economic impact was $109 million — less than the $113.8 million NASCAR projected. That shortfall may not seem dramatic, but it casts doubt on the optimistic assumptions used to justify ongoing subsidies.

We support NASCAR in Chicago, but the reality of the state’s fiscal situation means the downwards trajectory of those millions in state money should continue.

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