Penske Entertainment has increased Leaders Circle (LC) contracts by $100,000 for the 2025 IndyCar season, bringing the total value to $1.2 million per contract. This $2.2 million overall increase affects 22 teams who finished in the top positions of last year's entrants' championship.

The Leaders Circle program, established in the mid-2000s, ensures fair prize money distribution by pooling season-long funds and dividing them equally among participating teams who commit to running every race.

This increase comes at a crucial time as teams face rising operational costs:

• Current annual operating budgets: $8-10 million per entry
• Previous budgets (2023): $6-8 million per entry
• Engine lease costs: Increased by $150,000 to $1.6 million
• Expected ERS (Energy Recovery System) costs: $225,000-$250,000 annually

The additional funding helps offset rising costs, particularly as teams await final lease agreements for the spec energy recovery system. While teams paid $90,000 per entry for eight races in 2024, the full 17-race season in 2025 is expected to increase ERS costs by $135,000-$160,000 per entry.

Of the 27 full-time entries, 22 teams will receive the enhanced Leaders Circle contracts, helping maintain competitive balance across the series despite rising operational expenses.

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