TIME FOR CHANGE AT NASCAR ?

The gathering of the NASCAR clans in Daytona, for the start of the new season, has added to the rumours circulating that NASCAR made be on the market, perhaps with the International Speedway Corporation (ISC) also included in the deal. In recent months the two companies have started to appoint executives with joint roles covering the two entities, something that was always strenuously avoided in the past because of fears of competition problems.

The company has also begun an international expansion programme, which would no doubt add value to the business. There has even been speculation that Speedway Motorsports, Inc. (SMI), the rival company headed by O Bruton Smith might even be included in a deal. NASCAR is privately-owned but ISC and SMI. are listed companies.

There is no doubt that there are plans to consolidate the sport, NASCAR chairman Brian France has said as much, and there is also no doubt that NASCAR leaders will have been closely watching the recent Liberty Media purchase of Formula 1 for $8 billion.

One name that has been mentioned in Daytona is that of Comcast, the Liberty rival that is the owner of NBC Sports, which owns some of the NASCAR television rights and Xfinity, the sponsor of the second string NASCAR championship. There is currently a trend amongst such companies to try to buy control of content.

NASCAR owns its own digital media network, negotiates all the major media deals and administers the charter system. Although it does not own any speedways, ISC controls 19 of the 36 Cup races,
with SMI organising 12 and the remaining five being run by smaller operations.

The France family could stay involved but such a transaction could unlock value and allow the company (or perhaps only the family) to diversify into other sports. This might explain the rumours that Brian France and Bruton Smith are both interested in buying control of the Carolina Panthers NFL franchise, a deal which might also involve NASCAR team owner Felix Sabates. NASCAR has denied the story, but if it was a family move, there is no reason to suggest that the sanctioning body would be involved.

NASCAR has been struggling with its popularity in recent seasons and new blood might help turn that around, with savings and possible expansion, investors might see the potential to make money.

Source: JSNL