For professional athletes, true financial success goes beyond signing big contracts or landing endorsements. It’s about making smart decisions that transform short-term earnings into lasting wealth.
In this series, I interview athletes and entertainers to explore how they’ve navigated the financial highs and lows of their careers—learning from big paydays, unexpected challenges and strategies that set them up for lasting success.
This time, I sat down with racing legend Bobby Rahal, a three-time IndyCar Champion, Indianapolis 500 winner and Motorsports Hall of Famer. Today, Rahal is co-owner of Letterman Lanigan Racing, a successful team in IndyCar and IMSA. He also heads a multi-brand automotive dealership group in the Mid-Atlantic. Rahal spoke to me about his approach to diversification, financial discipline and estate planning, which has helped him build an empire beyond his days as a driver.
Evan Vladem: Bobby, I have to start with a hard-hitting question: How much do you budget per year for speeding tickets?
Bobby Rahal: [Laughter] I can’t even remember the last time I had a speeding ticket, so I don’t budget anything. I live in Florida now, and they’re cracking down on speeders these days, so maybe I should. So far, I’ve managed to stay on the right side of the law.
EV: You came up in the 80s, when drivers didn’t always have full teams of financial professionals around them. Back then, you were winning championships and the 1986 Indy 500. How did you approach money?
BR: I had a lawyer and an accountant, but it was pretty humble. My financial approach was based on how I grew up—my family was conservative financially. I bought stocks through a brokerage in Chicago and saved. I wasn’t extravagant. I even started a defined benefit pension plan very early, which ended up being quickly overfunded.
I never felt like money was guaranteed. I always ran a little scared in my career, always feeling like I had to prove myself and couldn’t just take it for granted. That influenced how I approached investments, too.
The money was there when we opened our first dealership in 1989 because I’d saved. From there, the revenue from that dealership funded others. Most of my investments were in a business we understood, which paid off over the 36 years we’ve been in the auto business.
EV: In 1992, you became one of the last owner-drivers to win a championship. How did managing both roles affect your financial decisions?
BR: I never imagined I’d own a team, even while I was still driving. Miller Brewing Company, my sponsor at the time, approached me and said if I’d take over a team, they’d sponsor it for three to five years and help fund the acquisition. [Renowned racing team owner] Carl Hogan, whom I’d known well, partnered with me, and we moved forward with the deal.
It wasn’t an easy financial decision, but I wanted to control my destiny. I knew I wouldn’t drive forever. Becoming an owner gave me a platform to transition from driver to team owner, and eventually full-time owner when I retired six years later. Surrounding myself with great people was key—whether that’s Carl in racing or Ron Farris, who started with me nearly 40 years ago and is now CEO of our dealerships. That’s what’s allowed me to do what I’ve done these last 30 years.
EV: Today, your portfolio spans racing, dealerships and real estate like the $20 million RLL headquarters. How has your approach to diversification evolved? Do you look at risk and opportunity differently now than you did as a driver?
BR: There are different types of risk—physical risk driving a racecar and financial risk. Like in any sport, there’s a period when you’re trying to make a name for yourself, competing, not making much money. You’re trying to earn opportunities that move you up.
For me, it took about five years from when I started racing in 1973 to my first Formula One Grand Prix in 1978 at Watkins Glen. At the time, it felt long, but looking back, that rise happened pretty quickly. By the 1980s, I was starting to make some money. Then, in 1982, when I got into IndyCar racing, we were doing well financially. But even when I started making money, I remained conservative. When I bought my first house, I could have afforded a bigger one, but I didn’t feel comfortable doing that because of the nature of a racing career. There was always a conservative approach. That mindset continued into business.
Our first Honda dealership was a $500,000 investment—a lot at the time. That was a big investment for me. It was risky, but an educated risk, and it set the stage for the future. Today, I still invest mainly in what I know. Probably 60% to 70% of my estate is tied to the automobile industry and our dealerships. I also have real estate, commercial properties, vintage cars that have appreciated in value, and stocks and bonds.
That dealership became the next step in life after racing, and it paid off. It was an informed risk—and one that worked out very well.
EV: Because of the nature of the racing business, and the costs associated with it, there have been times when team owners need to personally jump in to cover sponsorship gaps. Have you had to do that?
BR: If you’re in racing long enough, it happens. People commit and don’t follow through. You either step in and fill the gap or scale back, which is hard when you’ve got 130 employees depending on you. These are lives, families—you just don’t turn the lights off and say, “See you next year.” You have to be willing to fill that gap when needed. We’ve been racing for 34 years now. We take a lot of pride in that. Our success in the business has definitely helped us weather storms over the years.
EV: You’ve worked with your son, Graham, since he started driving for your team in 2013. How do you approach the family-business dynamic and long-term succession?
BR: There’s no question that a family business presents unique challenges. Early on, Graham and I agreed that he had to treat me like the team owner, and I had to treat him like the driver, not my son. That’s easier said than done, and I think that’s true in a lot of family businesses. There’s emotion involved; it’s not cut and dry. And there are good and bad things about that, I think ultimately, more good than bad, but it’s a big challenge.
Early on, I was on the radio with him during races. I thought it would help, given my experience, but we quickly realized it was difficult to divorce the family dynamic. After two years, I stepped back. I got off the stand and let someone else take over radio communication. He needed an impartial voice, not a partial voice. Almost immediately, his success improved. I realized I might’ve been unintentionally impeding his progress. Even with the best intentions, emotion was getting in the way. That decision of mine to step back really helped him.
Twelve years later, that’s still the setup. I have to say, I wish I had the energy he has. He’s 36 now. I was 35 when we started the auto dealerships. What he’s built is amazing—he owns multiple Ducati dealerships, a high-end exotic car dealership and he sells vehicles all over the world. And, he’s still driving. He manages both the business and his racing career.
Whether he wants to take over the racing team someday, I don’t know. It seems logical, but with everything he’s got going on, it’s a big commitment. That’s a decision only he can make. If he races until 45, like I did, he still has nine years ahead. It’s a long runway.
EV: And on the estate planning side?
BR: We have trusts in place and do everything we can to minimize the federal government’s share, and still live well. We rely on great advice from strong people. I’ve always had the mindset that my kids should build their own careers and successes. They don’t just see me as the bank—and so far, that’s been the case.
It’s about protecting assets, preserving value and taking care of my family, based on performance and their own successes. I’m not an accountant or tax lawyer, so I rely on great professionals. At the end of the day, you have to make the final decisions—whether that’s allocating to charity or family. We give a fair amount to charity each year, and that’s going to continue whether I’m alive or not. The goal is to make sure all the hard work over 72 years is protected as best as possible.
EV: Racing is a high-risk business for drivers, owners and teams. How do you protect yourself financially?
BR: You can insure for the basics—health, employees—but you can’t insure against a crash the way people might think. If one of your cars crashes at Indianapolis, that’s a $250,000 to $500,000 accident. You can lose all three cars in one race.
As a company, you’re assuming a significant level of financial risk. You’re not taking a personal risk like the driver faces, but the financial impact is real. That’s why it’s essential to have enough sponsorship and to set aside funds in crash budgets so you can withstand those challenges when they come. There’s no such thing as a cheap accident in racing.
Fortunately, most of our races now are on road courses, which are considerably safer. I’m happy about that. I’m not exactly happy about racing with concrete walls on both sides anymore.
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