New details show that NASCAR will have access to the site longer than expected and that racing could be extended beyond the three years announced by Lightfoot in July.
Under the contract, obtained through a Freedom of Information Act request, NASCAR will pay the Chicago Park District $550,000 in 2023 and 2024 for exclusive use of much of Grant Park and $605,000 in 2025.
The option to hold the race in 2026 and 2027 is included if both parties agree to one-year extensions. Permit fees for those years would be negotiated at a later date, but would be “in a manner consistent with the fee structure” of previous years.
As Crain previously reported, the Park District will receive $2 for every ticket sold, excluding VIP and corporate suites, and an increasing percentage – 15% in 2023, 20% in 2024 and 25% in 2025. – sales of concessions and merchandise sold at the event, which will include two races each weekend and a fan festival which will likely include concerts. The contract grants NASCAR access to the Petrillo Band Shell from Wednesday through Sunday of race week.
Contrary to the Park District’s agreement with Lollapalooza organizers C3 Presents, the city does not receive any share of sponsorships related to the NASCAR event or a broadcast deal.
“NASCAR will have the exclusive rights to sell. . . sponsorship of the event, which will include the sale of signs on race barriers, fences and other locations as determined and constructed by NASCAR within Grant Park,” the contract states. “NASCAR shall have the right to sell and retain 100% of the proceeds generated from sponsorship sales of the event.”
In a summary sheet of the terms of the new 10-year contract between Lolla organizer C3 Presents and the Park District, also obtained by Crain’s on Monday, the district will get varying percentages of the full revenue stream provided by Lollapalooza, including l admission, concessions and merchandise, licensing revenue, “sponsorship revenue and replay or streaming revenue”.
C3 Presents will provide a minimum of $2 million if the full 4-day event takes place, under the terms of the agreement.
And while C3 Presents didn’t have to commit to a full renovation and maintenance of the festival grounds, it will be mandated to pay $100,000 to renovate the tennis courts it uses for parking.
The NASCAR contract does not specify what repairs NASCAR will have to pay for at the end of the event, but the company will pay a $50,000 security deposit and officials from both parties will visit the site before and after the event with a third party. . the contractor, who “will submit a damage estimate and a restoration estimate”.
And while the Park District previously said NASCAR would have access to the venue nine days before and three days after the event, the company will have a “staging window” of 21 days before and 10 days after the event. in two areas of the event. map marked as “Pit Road Paddock”.
NASCAR promotes this area as “our most luxurious weekend experience.” Access to the club which will be “raised above the tree line”, includes tickets for both races and “two top concerts”.
The contract includes pages of instructions on the maintenance of the paving stones surrounding the Buckingham Fountain. In images used by NASCAR to market premium tickets for the event, a Fountain Club grandstand is featured next to the fountain where the race will start and end.
Mayor Lori Lightfoot recently defended the terms of the NASCAR deal over the more lucrative Lollapalooza, saying the music festival was a “phenomenon in itself” as street racing is in its infancy.
“The scale is obviously going to be more modest than Lolla’s 20 years later,” she said. “Similarly with Lolla, as ticket sales improve and reach certain thresholds, we benefit more.”
Several opt-out clauses are included in the contract, including “automatic” termination if the park district or city council passes legislation that renders the race “unenforceable.” Both parties can also opt out of the agreement 180 days before the next event, with NASCAR having to pay a termination fee of $250,000 if they opt out less than 180 days before the event.
The Lollapalooza document, meanwhile, says the new city’s new deal further limits competing music festivals to Grant Park for the next decade.
Here are the documents released by the city in response to Crain’s freedom of information requests. First, the Lollapalooza termsheet: