themed amusement activities conducted at our facilities, and (iii) catering, concession and merchandising services during or as a result of these events and amusement activities.
Motorsports themed amusement enterprise? Motorsports themed entertainment? Folks, I’m not making this up. This is from the quarterly filings with the Securities and Exchange Commission (SEC). Congratulations my fellow race fans, we’ve all been attending Disneyland on wheels.
And second folks, it only gets better. Remember how folks were wondering how the “pie” got cut up on the distribution of funds from the TV contracts? Take a gander at this:
NASCAR contracts directly with certain network providers for television rights to the entire NASCAR Sprint Cup, Nationwide and Craftsman Truck series schedules. Event promoters share in the television rights fees in accordance with the provision of the sanction agreement for each NASCAR Sprint Cup, Nationwide and Craftsman Truck series event. Under the terms of this arrangement, NASCAR retains 10.0 percent of the gross broadcast rights fees allocated to each NASCAR Sprint Cup, Nationwide and Craftsman Truck series event as a component of its sanction fees and remits the remaining 90.0 percent to the event promoter. The event promoter pays 25.0 percent of the gross broadcast rights fees allocated to the event as part of awards to the competitors.
The promoters get 90%? So does that mean if I “promote” any of the races in my rants, I’m entitled to 90%? Does that mean that Humpy, who was billed as one of the best promoters in the business, got 90%? No, it’s actually the track, or whomever or whatever entity owns the track and promotes the races gets 90%.
Now think about this one. 12 tracks on the schedule are owned by the conjoined twin of I$C/NA$CAR. They are the promoter. They pay themselves 90% as the promoters and pocket the other 10% as NA$CAR. All they have to lay out is 25% for the purse and they get the race sponsor to cover a good part of that. So at Daytona, if the purse is $10 million, the overall take for NA$CAR and it’s conjoined twin is $40 million. Now multiply that times the number of tracks that NA$CAR/I$C own. 12 tracks. Now here’s where it gets tricky. 8 of the tracks have two dates. So 8 times the $40 million. Now add both figures together. Granted, it’s not entirely accurate as I’m sure not all races pay out the same from the networks, but it gives you an idea of just how much the networks are laying out and how much goes right into the Royal Vault of the Emperor of All Things NA$CAR. Plus don’t forget the 10% they get off of every race that isn’t at an I$C/NA$CAR track. We’re talking some pretty hefty figures here folks. Now can you understand why the teams want a piece of that pie too? And why or ticket prices should be lowered?
Then there’s the normal marketing aspects. Every time one of the logos for either Cup, Busch, or the Truck series is slapped on something, there’s a royalty fee paid for it. But that’s trivial compared to what they’re making off the TV deal, sanctioning, and promoting.
Plus, here’s a little thing I just found out about. You know all the vendors, like Crane Cams, who is also a contingency sponsor? Well, each of those vendors who show up at the track are paying $3,000 a pop for one person to have their seasonal hard card. There’s more than likely 2 or more people from these companies so they can canvas the garage area. There’s no discount for more than one person getting a hard card either. While it’s not in the same revenue generating range as what they get from TV, it’s still a moneymaker.
Then there’s the hard cards for the drivers, owners, crews and team sponsors. You’re looking at different amounts depending on their position, but it’s easy to say that each team is laying out at least $20,000 for hard cards. Times 43 crews in the Cup series and it’s not exactly chump change. Then add in the hard cards for Busch and Truck Series.
And, of course, there’s the media hard cards. Think about every person from the network who has to be there to make the race coverage work. They don’t get them for free. Every newspaper writer who’s there. Every photographer. You add up the money from all the hard cards and it’s not exactly chump change to the average fan.
Your local short track is paying out somewhere in the area of $40-$50,000 a year to be a NA$CAR sanctioned track. Think about how many sanctioned tracks are out there. Once again, it’s not chump change for the average fan. Then there’s the sanctioning fees for each track that runs a Cup, Busch, or Truck Series race. The Truck Series sanctioning fee is about $400,000 a year as of 3 years ago. A Busch Series sanctioning fee is about $700,000, but a Cup sanctioning fee is well over a million from what I’ve heard. That’s not even chump change to rich folks. Well, except maybe Bill Gates. I heard he plays Monopoly with real houses. But that’s just a rumor.
You can see why I say that they can discount their tickets and help the fans get to the races. There’s plenty of money in the Royal Vault. Faux King Brian could easily afford to cut the ticket prices back by 50% and still make a killing. Even if Brian’s Big Top and Racing Sideshow has to lay out the $255 million to pay damages in the lawsuit, don’t worry, he’ll still have plenty of shiny new pennies to play with I can assure you.
And here’s a kicker for you. While NA$CAR
won’t reduce the price of their tickets, they’re
asking hotels and motels to reduce their room
rates for the fans. Now is that some Chutzpah
or what? While I can appreciate the lower room
rates, how about some lower ticket prices to go
with it? Maybe then I could afford to eat one of
those $8 hamburgers or a prune, guacamole and
anchovy taco from Rolfgag Puke. They’re all the
rage with the LaLaLand crowd. Or so I’ve been
told.
Since this is July 4th weekend, we should all
remember what the 4th is about. It’s not about
fireworks, picnics, or a day off from work although that’s how we celebrate it. It’s a day to remember when some wise and learned men signed a document declaring our freedom from tyranny. They established a foundation for our country which was the Constitution. Rights to speak, gather, own firearms, and worship any religion we want to. Inalienable rights. And also to remember all those who sacrificed their lives in helping to establish our freedom. So while you celebrate, take a few moments to remember all those who made it possible.
Motherhood, Apple Pie, and John Wayne
Mad Mikie
Curmudgeon at Large
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