In March 1994, George announced his resignation from the IndyCar board. That year, Team Penske introduced a Mercedes-Benz engine specifically designed for the 1994 Indianapolis 500 that exploited a rule difference between the USAC and IndyCar, dominating the race and prompting fears that costs would continue to grow out of control. In July, IMS announced the founding of the Indy Racing League, which would be cost controlled and race solely on American ovals and be sanctioned by USAC.