In 1996 the open wheel racing world was rocked by "the split" and Pagan elected to stay with the Indy 500 and race in the Indy Racing League. Jack and his son, Allan, used the family's oil industry connections to obtain Pennzoil sponsorship to race in the 1996 Indianapolis 500 with Guerrero. Guerrero was one of the few veterans in the race and was one of the favorites to win on raceday and while he did not win he registered a respectable 5th-place finish. The team also participated in the other two IRL races of the season and Guerrero finished tied for fourth in the short 1996 championship. The team launched a full-season attack on the championship for the 1996–1997 season and the team selected the Infiniti engine to power their cars when the new cars came at the beginning of 1997. However, the Infiniti motors produced significantly less power than the Oldsmobile engines and the team switched engine manufacturers mid-season after poor results and an Indy 500 where Guerrero was unable to maintain a fast pace. By virtue of being one of only a handful of drivers to compete in all the races, Guerrero and the Pagan team finished 7th in the 1996-1997 championship.