It was the sixth round of the 1996 CART PPG Indy Car World Series season, and was run on the same day as the 1996 Indianapolis 500.

The race was born out of a protest of the formation of the rival IRL and specifically the reservation of starting spots in the 1996 Indianapolis 500 to IRL-based entries.

[13][14] On December 18, 1995 CART teams, convinced they were being deliberately locked out from the 1996 Indy 500, and the victims of a "power grab" by Tony George, announced their intentions to boycott that event.

The owners, along with CART president and CEO Andrew Craig, jointly announced plans for a new race, the Inaugural U.S. 500, to be held at Michigan International Speedway the same day.

[17][18] Approaching the green flag in turn four, Adrián Fernández, in the middle of the front row, clipped wheels with polesitter Jimmy Vasser.

The seeds of the IRL/CART "Split" were planted in the early 1990s, when newly-named Indianapolis Motor Speedway president Tony George began exploring options of changes in the sport of Indy car racing.

Sharply rising costs, the lack of many ovals on the schedule, and the dwindling number of American participants were among his stated concerns.

George blueprinted the new Indy Racing League as a lower-cost alternative to CART, with an emphasis on attracting more American drivers (particularly from the Sprint and Midget ranks), an all-oval schedule, and new cars with normally-aspirated, "production-based" engines.

[23] Furthermore, starting in 1997, the machines raced in IRL would be entirely different and the chassis and turbocharged engines used in CART would no longer be allowed at the Speedway.

Almost immediately, a turbulent political controversy erupted, with participants, media, fans, manufacturers, and sponsors all apprehensive of the sport's direction and pending shakeup.

[12] CART announced their 1996 schedule on June 10, 1995, which initially featured no races in May and an open date on Memorial Day weekend.

With lengthy and logistically complicated international trips bookending Phoenix, there would be no realistic way for the CART teams to participate in that event.

With additional handful of (non-CART based) one-off "Indy-only" entries expected to enter, the total number of "at-large" cars could be as high as 35–40.

The owners, along with CART president and CEO Andrew Craig, jointly announced plans for a new race, the Inaugural U.S. 500, to be held at Michigan International Speedway the same day.

The official reaction from IMS/IRL was one of disappointment and dismay, suggesting that CART was preparing to do considerable damage to Indy car racing.

[34][35][36] Numerous CART drivers, including Emerson Fittipaldi, Michael Andretti, Al Unser Jr., Bobby Rahal, Robby Gordon, among others, went on record stating they wished they were racing at Indianapolis, but would not do so.

[59][60] Teo Fabi, who fractured his foot in a bicycle accident the previous weekend, did not make an attempt, and was expected to withdraw.

[67] The field of 27 cars lined up in nine rows of three, mimicking the traditional starting grid at Indy, as well as Michigan 500 races of years past.

The pace car dropped off and the front row, consisting of Jimmy Vasser (inside), Adrián Fernández (middle), and Bryan Herta (outside) led the field into turn four.

Parker Johnstone claimed he narrowly avoided a flying suspension piece, and Andretti said a tire flew over his head.

Involved in the crash were: Vasser, Fernández, Herta, André Ribeiro, Emerson Fittipaldi, Gil de Ferran, Maurício Gugelmin, Parker Johnstone, Eddie Lawson, Fredrik Ekblom, Jeff Krosnoff, and Juan Manuel Fangio II.

The grid was reassembled in pit lane, and drivers climbed into their cockpits, with some crew members still performing last-minute fixes and adjustments.

They claimed that their car was the last to be towed back to the pits, which offered them insufficient time to inspect the damage much less make repairs.

Only three laps later, however, the yellow was out again, this time for a blown engine by Fredrik Ekblom (incidentally, the first of the back-up cars to suffer mechanical problems).

Penske teammates Al Unser Jr. and Paul Tracy began suffering from handling problems, as was Emerson Fittipaldi in the Hogan-Penske entry.

Vasser's team dropped the jacks before the left rear tire was attached, while Zanardi slid past his marks.

CART shopped around the television rights for the U.S. 500 to several major networks including CBS, FOX, TBS, and ESPN.

[79][80] With regular anchor Paul Page at Indy, ESPN's Formula One commentator Bob Varsha took the role of host and play-by-play announcer.

[92] Motorsports writer for the Los Angeles Times, Shav Glick, noted that the 1996 U.S. 500 was promoted "as if it were the Super Bowl", but in 1997 it was "being conducted with no more vigor than any other race at say, Milwaukee, Mid-Ohio or Vancouver.

"[93] CART CEO Andrew Craig then attempted to shift the series attitude towards promoting the season championship as the ultimate prize rather than a single major race.