Even when the land is not valuable, operating a racetrack is not financially beneficial.
Some of these racetracks are losing over $200,000 a year.
Racers think the tracks make a ton of money on them and they really don't. Yeah, they might make about $40 per tire, but you can't even think of that as profit because it goes right back out the door with another tire order. Same with fuel, any money you make goes right back out because you get more.
Then there are all the expenses that go into operating the track: Purse (which usually takes up almost everything a track brings in), power (it costs $750 to flip the switch to turn a Musco lighting system on), Insurance (the prices you'll find on Google are way low compared to actual costs). Bringing in a tour race usually costs around $30,000. You've got to pay your race director, flagman, announcer, clean up crew, tire changer, pit steward, ticket office, etc.
The purse demands are also getting much greater. For instance, Late Model Stock Car races
should pay a minimum of $1,000 to start and $5,000 to win - but racetracks can't afford to do that on a weekly basis. Nor is there any incentive to do so when these guys elect to run at a track that pays $750 to win and $75 to start on a weekly basis. Like, if a track with that kind of purse is getting 16-20 cars, and a track paying $5,000 to win and $1,000 to start is only getting 6 cars, why would the latter continue to do so?
If you go on Facebook and read comments, you'll find the only solution to all the problems tracks face is to increase the purse and create a touring series (which is a seperate, but not unrelated, issue).
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