All About NASCAR

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To tidy up the statistics, NASCAR teams make five per cent more than Major League Baseball teams: the DeWalt team, driven by Matt Kenseth, is worth more than $315 million. The brand-loyalty of NASCAR fanatics drives a $3 billion licensed merchandise market, with additional millions tied up in television rights. The cost of an advertisement during the more famous races, particularly during the Chase For the Cup, starts around half a million dollars. The huge and loyal fan-base presents great capital gain opportunities typically associated with other large professional sports organizations.

The Players

All professional sports encourage responsibility but motorsports are unique; individualism is part of the game. Even though cars have immense support teams, the sport is largely driven by the charisma of the driver. The larger-than-life personalities that NASCAR racing attracts promote the sport and give the public figureheads that are unavoidably interesting. Good drivers, bad drivers, aggressive drivers and villains. The mansions and sports cars, girlfriends and families, the drivers have become true American celebrities. Money for drivers, however, doesn't always flow steadily. Currently, NASCAR has no pension plan, and the subject is a point of contention. Drivers can suffer a collision and fall on dire financial rocks since there is no disability program within NASCAR. Even though most drivers carry expensive insurance plans, the issue remains in discussion. Some camps believe that liability is not a concern to NASCAR. Unlike other professional sports organizations like the NBA, NFL and MLB, there is also no player union among NASCAR drivers, meaning no collective bargaining and currently no pensions or disability claims.

The Teams

Drivers have an immense support team behind them. These race teams are highly professional, independent companies contracted by drivers and sponsors. Every aspect of the cars is thoroughly researched and tuned to peak performance standards. A lot of money is invested in cars and drivers, and any time the car is on the track, instruments record everything. Technicians consider every possible advantage that can be had by adjusting tire nitrogen pressure and temperature, driver hydration, lubrication, and (of course) pit stop spring time. For instance, Joe Gibbs Racing (who run Kyle Busch's mechanical operations) has spent $10 million on motor oil research and development to gain an additional 10 horsepower from the strictly regulated engines.

The Future

NASCAR faces an uncharted future. A great decrease in interest has been coupled by falling attendance and merchandise sales. There is little question that the current economic situation will affect the franchise, but there are other factors that will change NASCAR in the future. The owners of NASCAR, the France family, will eventually have to decide whether to keep it a family business. Interestingly, the France family also owns the International Speedway Corp, which owns many of NASCAR's most famous venues. They have incredible control over policy and the many race series that NASCAR regulates. This includes control over corporate sponsorship, a longtime cornerstone of NASCAR revenue, which has seen a 20 percent increased in major sponsorship in the past two years. New ideas and strategies are being unveiled in an attempt to recapture old fans and draw in new ones. Whether or not it will work is for time to tell.

 

 

 

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