Foyt in limbo as IndyCar's new licensing requirements cast doubt over Pierson signing

Larry Foyt was ready to run Indy NXT veteran Josh Pierson alongside Santino Ferrucci in 2027.

His AJ Foyt Racing IndyCar program is rumored to have signed Pierson, who earned pole position at Milwaukee, then added another pole and won his first NXT race earlier this month at WeatherTech Raceway Laguna Seca. But between the Milwaukee and Monterey events, Penske Entertainment outlined newly restrictive licensing criteria that would make Pierson’s graduation to IndyCar much harder to complete in light of his limited NXT success and unremarkable championship finishing position.

The tall new licensing hurdle, which is believed to have been published after Pierson is said to have signed with Foyt, has placed IndyCar’s oldest and most legendary team in a tough situation that is out of its control.

“We were certainly headed down a big path with Josh, and he's still a young kid and showing a lot of potential,” Foyt told RACER. “And I think he showed that at Laguna. I mean, he just dominated that race, drove away from everybody. So this is a weird one. I probably can't say much about it just because we'll see what happens here.”

If Penske Entertainment, the owners of the IndyCar Series, elect to deny Pierson’s participation in a Foyt entry, the team will have a sizable financial hole to fill, as Pierson is understood to have $12.5 million in sponsorship to offer. And as is often the case with a well-paying driver, their budget can extend beyond the car they’ll drive and assist the team with other financial needs like signing Ferrucci to an extension and underwriting some of the sister car’s budget.

It’s unclear whether Pierson, who led more NXT laps this season than any other driver, and the rumored two-year, $25 million deal would be utilized beyond his entry. But with an expensive season to recover from where rookie Caio Collet destroyed multiple cars, and the need to buy new Dallara IR28 models at some point in 2027, few IndyCar teams face the same significant financial needs as the Foyt program.

“All of us would love it if we had enough sponsorship so that we could just decide who we're going to hire because money's not an issue, but it's just not the reality of our sport,” Foyt said. “But what I would say is everything IndyCar is doing, and with the help of FOX and the promotion they've been doing, we're on the right track and it's going well.”

If Foyt can’t have Pierson, he’ll need to try and find a different driver with a budget that IndyCar will approve, and even then, he’ll likely have a budget shortfall to resolve. Finding businesses to sponsor the team has been an ongoing pursuit, but with six months until the next season starts, not to mention the fact that most companies lock the following year’s budget in place by September, the timing of the licensing policy is far from optimal.

“I tried using many of the conventional companies to help me with finding sponsors, and finally last year we just started our own division," Foyt continued. "Basically, it’s our own new company that completely just concentrates on the marketing side, working on finding sponsors, and we have a lot of traction, and it's going well, but it just takes time.

“And so we just have to wait and see what the series comes back with (on Pierson). There are those instances out there where you find a driver that's got great potential, but also has some backing, and it's a win-win, right? So, to say those guys aren't deserving of being in IndyCar, especially if they're a (NXT) race winner and a pole winner and whatnot, is tough.”