The Racers' demise came under the stewardship of Nelson Skalbania, a flamboyant Canadian real estate businessman. Skalbania, who regularly flipped real estate property and sports franchises for a profit, was repeatedly accused of mismanaging the promising Indianapolis hockey market and plotting to move the franchise to Canada, where it would presumably have had a much better chance of being included in an eventual merger the WHA was negotiating with the NHL. Having taken the firm position that no surviving Canadian WHA teams would be excluded from a merger, and knowing the NHL was only willing to even consider taking in a small number of WHA teams, the WHA was not willing to risk upsetting delicate merger negotiations and rebuffed all proposals to add more teams in Canada. Unable to move his team, Skalbania looked elsewhere to gain leverage in the ongoing merger discussions. He turned to underage players - the NHL had stringent rules regarding the age of players they could sign while the WHA regularly signed underage players. Skalbania's best-known signing was that of 17-year-old future super-star Wayne Gretzky, who signed a personal services contract worth between 1.125 and 1.75 million dollars over 4 to 7 years - at the time, one of the largest contracts ever offered a hockey player. The move did not improve the team's desperate financial situation, and just eight games into the 1978-1979 season Skalbania liquidated his greatest asset to his old friend and former business partner, Peter Pocklington, owner of the Edmonton Oilers. Pocklington purchased Gretzky and two other Indianapolis players, goaltender Eddie Mio and forward Peter Driscoll, paying a reported $700,000 for the contracts of the three players, although the announced price was $850,000. The Racers folded 17 games later on December 15, 1978 and major league hockey has not returned to Indianapolis. The other six WHA teams finished the season, and before the Winnipeg Jets won the 1979 Avco World Trophy, the league accepted the terms of a merger with the NHL whereby Edmonton, Winnipeg, Quebec and New England would enter the NHL as "expansion teams" the following season, and the WHA itself would cease operations. Cincinnati and Birmingham, the other surviving WHA teams, were paid to disband.
Legacy
also began his career with the Racers in the 1978–79 season, playing five games but failing to register a point before finishing his tryout contract. He was picked up later by Cincinnati for the remainder of the season, before being selected by the Oilers in the 1979 NHL Entry Draft. Messier retired in 2005 as the last active player to have played in the WHA, and thus the last active player to have played for the Racers. Skalbania himself would ultimately become an NHL owner a year after the merger when he fronted a Calgary-based ownership group that purchased the Atlanta Flames and moved them north, where they became the Calgary Flames.
