NASCAR Death Bed

Hmmm...so the optics are all bad with the empty seats, so it's over. Its done . There will never be another fan in a seat anywhere. I'm so glad I finally got my mind right. And SOI is "threatened" by alternative thoughts? Hmmm... I say Dr. are you suggesting an underlying problem here? The only people I see that are " threatened" are the never ending chicken littles. NASCAR has lost audience, any moron with a single digit IQ could see that. In spite of the decline in viewership, NASCAR is still doing just fine. Can any of the naysayers show me a sanctioned stock car touring series that's doing any better? ASA perhaps? USAC? Exactly. The folks at Daytona know whats going on. And they're plenty smart enough to take what they have and make money with it. NASCAR needs to hire the doomsday prepper members from here to right the ship. It doesnt matter what NASCAR does, it will never satisfy the death watch crowd, cause NASCAR cant bring back 2005.
 
StandOnIt said:
They made more money this year

Fourth Quarter Comparison

Total revenues for the fourth quarter ended November 30, 2015 were approximately $219.3 million, compared to revenues of approximately $199.8 million in the fourth quarter of fiscal 2014.
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We were talking about the major drop in interest, attendance and ratings Nascar has suffered. We know that is factual but we also know that due to the profitability of ISC it doesn’t matter.

Years back the Daytona 500 had around 20 million viewers and 160k in the stands. This year there will be less than half the amount of fans tuning in and 55-65k less fans in attendance. I’m sure you will agree it doesn’t matter.
 
IanMcVittie said:
We were talking about the major drop in interest, attendance and ratings Nascar has suffered. We know that is factual but we also know that due to the profitability of ISC it doesn’t matter.

Years back the Daytona 500 had around 20 million viewers and 160k in the stands. This year there will be less than half the amount of fans tuning in and 55-65k less fans in attendance. I’m sure you will agree it doesn’t matter.
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Turning a profit with what you have to work with matters.
 
yeah that is the basics of business, profit and loss. Ya have to change with the times, can't live on 5 or 10 years ago.
 
mack said:
Hmmm...so the optics are all bad with the empty seats, so it's over. Its done . There will never be another fan in a seat anywhere. I'm so glad I finally got my mind right. And SOI is "threatened" by alternative thoughts? Hmmm... I say Dr. are you suggesting an underlying problem here? The only people I see that are " threatened" are the never ending chicken littles. NASCAR has lost audience, any moron with a single digit IQ could see that. In spite of the decline in viewership, NASCAR is still doing just fine. Can any of the naysayers show me a sanctioned stock car touring series that's doing any better? ASA perhaps? USAC? Exactly. The folks at Daytona know whats going on. And they're plenty smart enough to take what they have and make money with it. NASCAR needs to hire the doomsday prepper members from here to right the ship. It doesnt matter what NASCAR does, it will never satisfy the death watch crowd, cause NASCAR cant bring back 2005.
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I keep saying that no matter how bad Nascar performs it doesn’t matter as long as ISC is profitable. What is the issue?
 
It doesn’t matter if no one comes to races. It doesn’t matter if all the cars are unsponsored and it doesn’t matter if Nascar gets only 1 dollar for the next broadcast deal. As long as ISC makes a profit all is good. Nascar does not have to contribute a dime to ISC. Amirite?
 
something must matter right? If it bothered me that much I would figure out how come that family owned business is making so much dam money. They magicians or what.:p
 
Tis a peculiar situation. People say NASCAR started declining somewhere around 2006. What caused it? What can NASCAR do to fix it? What can anyone do to fill the stands? Is quoting the same thing over and over and over and over bringing anyone into the fan base? When a wildly successful business sees a drop in audience, what do they do? Set around and wring their hands? Whine and moan? Blame everything and everybody they can? What exactly is NASCAR supposed to do? Did any of the former "fans" watch a race last year? If they didn't, how would they know about the empty seats? "Fans" want the sport to thrive not struggle. Know-it-alls have a perverse satisfaction watching "the mighty fall" as they see it. I have my doubts if they ever were "fans" in the first place. The racing was great last year. NASCAR made some nice coin. So why dwell on empty seats and tv numbers? Does that help anything?
 
StandOnIt said:
something must matter right? If it bothered me that much I would figure out how came that family owned business is making so much dam money. They magicians or what.:p
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IDK where the bulk of ISC’s revenue comes from as I haven’t looked and at this point I don’t know. My only concern would be if a lot of it came from broadcast revenue.
 
it sure isn't coming from empty seats and TV ratings. I would think that they are a bit ahead of the curve a long time ago, but some are too busy focusing on the wrong things that aren't that significant and running around saying the sky is falling. Some of us find humor in that.
 
IanMcVittie said:
IDK where the bulk of ISC’s revenue comes from as I haven’t looked and at this point I don’t know. My only concern would be if a lot of it came from broadcast revenue.
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Of course a lot of it comes from broadcast revenue. The tracks are reported to receive 65% of the media rights money
 
mack said:
Tis a peculiar situation. People say NASCAR started declining somewhere around 2006. What caused it? What can NASCAR do to fix it? What can anyone do to fill the stands? Is quoting the same thing over and over and over and over bringing anyone into the fan base? When a wildly successful business sees a drop in audience, what do they do? Set around and wring their hands? Whine and moan? Blame everything and everybody they can? What exactly is NASCAR supposed to do? Did any of the former "fans" watch a race last year? If they didn't, how would they know about the empty seats? "Fans" want the sport to thrive not struggle. Know-it-alls have a perverse satisfaction watching "the mighty fall" as they see it. I have my doubts if they ever were "fans" in the first place. The racing was great last year. NASCAR made some nice coin. So why dwell on empty seats and tv numbers? Does that help anything? Nope.
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There are a lot of people that were loyal Nascar fans that left series for a variety of reasons. There were a lot of fad fans that left and there are a lot of people that leave each year.

Who cares what other people think or say about the series? If you like it that is all that matters.
 
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StandOnIt said:
it sure isn't coming from empty seats and TV ratings. I would think that they are a bit ahead of the curve a long time ago, but some are too busy focusing on the wrong things that aren't that significant and running around saying the sky is falling. Some of us find humor in that.
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IDK who is saying the sky is falling but if people are and if you get enjoyment from I think it is great.
 
StandOnIt said:
hmm and where would that 65% go back to. :D
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Having 65% of your revenue come from 1 source is not ideal as a higher degree of diversification would be better. Another concern would be that if that revenue was not duplicated each year it could cause problems.

If a person is comfortable that Nascar will receive similar revenue in the next broadcast deal it will cover a multitude of ills.
 
IanMcVittie said:
Having 65% of your revenue come from 1 source is not ideal as a higher degree of diversification would be better.
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No, you're misunderstanding. 65% of the broadcast rights money goes to the tracks that stage the events. That doesn't mean that 65% of ISC's revenue comes from broadcast money. That number could be lower or higher, I'm not familiar with that. Regarding diversification, I'm not aware of a major sports property whose revenue isn't primarily derived from television rights money. The surest path to diversification for a league being paid hundreds of millions of dollars by TV networks would be to lose all the TV money. Then it'd be much easier to have a higher percentage of revenue come from say selling t-shirts.
 
gnomesayin said:
No, you're misunderstanding. 65% of the broadcast rights money goes to the tracks that stage the events. That doesn't mean that 65% of ISC's revenue comes from broadcast money. That number could be lower or higher, I'm not familiar with that. Regarding diversification, I'm not aware of a major sports property whose revenue isn't primarily derived from television rights money. The surest path to diversification for a league being paid hundreds of millions of dollars by TV networks would be to lose all the TV money. Then it'd be much easier to have a higher percentage of revenue come from say selling t-shirts.
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Would you agree that TV pays the majority of players salaries and ticket sales cover
stadium or building costs?
 
Some seem confused a bit. The failure rate for new business is as high as 60% the first year and the success rate is around 33% or one in three make it 10 years. Nascar's independent teams survival rate is much higher than that.
 
StandOnIt said:
They made more money this year

Fourth Quarter Comparison

Total revenues for the fourth quarter ended November 30, 2015 were approximately $219.3 million, compared to revenues of approximately $199.8 million in the fourth quarter of fiscal 2014.
Click to expand...

Revenue isn't profit. Revenue is the money brought in for the product that you sold. Yes, NASCAR is making money. Did anyone dispute that? Nope. In looking at the annual report they have a small operating cost compared to the money brought in (revenue). It is interesting that the total net income of 2018 jumped to $225.3 million vs 2017 at $110.8 million. It appears that that they got to end the spending associated with Daytona, Richmond, and Phoenix.

I find it interesting that the conversation went to the only place that the NASCAR party liners can show as a positive. The ratings are down, the seats aren't filled in places that they have continued to pull seats out of. That isn't a trend that a healthy business wants. But hey if you sell one seat for $ 700 million dollars and your cost are $ 100 million then you have a healthy business as long as that one seat gets sold for a profit.
 
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gnomesayin said:
No, you're misunderstanding. 65% of the broadcast rights money goes to the tracks that stage the events. That doesn't mean that 65% of ISC's revenue comes from broadcast money. That number could be lower or higher, I'm not familiar with that. Regarding diversification, I'm not aware of a major sports property whose revenue isn't primarily derived from television rights money. The surest path to diversification for a league being paid hundreds of millions of dollars by TV networks would be to lose all the TV money. Then it'd be much easier to have a higher percentage of revenue come from say selling t-shirts.
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Thanks for pointing out my error and I completely agree with you about sports properties and revenue.
 
Towmater said:
Revenue isn't profit. Revenue is the money brought in for the product that you sold. Yes, NASCAR is making money. Did anyone dispute that? Nope. In looking at the annual report they have a small operating cost compared to the money brought in (revenue). It is interesting that the total net income of 2018 jumped to $225.3 million vs 2017 at $110.8 million. It appears that that they got to end the spending associated with Daytona, Richmond, and Phoenix.

I find it interesting that the conversation went to the only place that the NASCAR party liners can show as a positive. The ratings are down, the seats aren't filled in places that they have continued to pull seats out of. That isn't a trend that a healthy business wants. But hey if you sell one seat for $ 700 million dollars and your cost are $ 100 million then you have a healthy business as long as that one seat gets sold for a profit.
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IMO the net profit ISC turns and the fortunes of Nascar are separate things. What goes on at ISC doesn’t necessarily correlate to what is going on at SMI or RCR for that matter.
 
StandOnIt said:
Some seem confused a bit. The failure rate for new business is as high as 60% the first year and the success rate is around 33% or one in three make it 10 years. Nascar's independent teams survival rate is much higher than that.
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Actually given the charter system (guaranteed income) I have been surprised how many teams have come and gone since inception. Probably the most surprising are the 2 Visser teams and then you have teams like the 43 and others struggling. Even SHR can’t find enough outside sponsorship for its teams.
 
IanMcVittie said:
Actually given the charter system (guaranteed income) I have been surprised how many teams have come and gone since inception. Probably the most surprising are the 2 Visser teams and then you have teams like the 43 and others struggling. Even SHR can’t find enough outside sponsorship for its teams.
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Huh?

That in bold is untrue. Monster, State Water Heater, and Outback left.

Arris, Blue DEF, Delkab, Cummings, and IT Savvy are all fairly new partners. Blue DEF is actually stepped up for sponsorship for both the NASCAR and Haas F1 teams. Valley Tech Academy is new as well, Haas lost some in terms of sponsorship, but has gained a lot as well.

Remember at one point Clint primarily has Haas branding for his races, now most of his races are covered. Mobil 1, Busch, and Hunt Brothers have stepped up for Harvick. Not to mention Haas poached Cummings and Delkab in the middle of last season. That's difficult in itself and show that marketing team is pretty good. Hell Gene is basically paying himself with advertising his CNC machines.
 
Kiante said:
Huh?

That in bold is untrue. Monster, State Water Heater, and Outback left.

Arris, Blue DEF, Delkab, Cummings, and IT Savvy are all fairly new partners. Blue DEF is actually stepped up for sponsorship for both the NASCAR and Haas F1 teams. Valley Tech Academy is new as well, Haas lost some in terms of sponsorship, but has gained a lot as well.

Remember at one point Clint primarily has Haas branding for his races, now most of his races are covered. Mobil 1, Busch, and Hunt Brothers have stepped up for Harvick. Not to mention Haas poached Cummings and Delkab in the middle of last season. That's difficult in itself and show that marketing team is pretty good. Hell Gene is basically paying himself with advertising his CNC machines.
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Everytime Haas CNC sponsors a SHR car it means that sponsorship could not be obtained or obtained at the desirable price.

IDK how many times SHR will self sponsor in 2019. Maybe it will be less than 2018.
 
IanMcVittie said:
Everytime Haas CNC sponsors a SHR car it means that sponsorship could not be obtained or obtained at the desirable price.

IDK how many times SHR will self sponsor in 2019. Maybe it will be less than 2018.
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I get that, but Gene is paying himself. Its not like Gene is hurting for money and sponsorship. All of the advertising for his CNC machines is doing nothing but helping his business at the end of the day. Gene has said that himself. As of right now with Saurez in the 41 will only have Haas on for about nine races as of right now.
 
For 2018, Monster Energy Cup Series was the Number 2 sports property on television with over 4 million average viewers tuned in per minute per event and over 41 million total unique viewers tuned in throughout the year.
NASCAR also ranked as the Number 1 or Number 2 most watched sport of the weekend 14 times during the 2018 season. It is important to look at NASCAR or any sports properties by cross platform consumption as TV viewership in general has been experiencing a decline. Our web and mobile apps have seen strong demand for consumption of written and video content. Social media is an important and growing channel for content distribution. In 2018, NASCAR's social and digital platforms continued to experience increased usage within approximately -- average of approximately 19 million per race day social impressions and approximately 326 million video views for the year. ISC continues to support NASCAR and our broadcast partner strategy to remain competitive, relevant and compelling, with content generation.

And for the daily deathbed who continue to think that armageddon will arrive at the next TV deal:

ISC maintains strong visibility of future cash flow with over half of its revenue secured through the industry's 10-year broadcast agreement and multi-year partnership agreements. We will continue our strategic focus on our consumer marketing initiatives to deliver growth through our core business. We will seek opportunities for increased utilization of our facilities through ancillary events and investments in qualified developments like the Casino and ONE DAYTONA will provide further growth and shareholder value.

https://www.fool.com/earnings/call-...onal-speedway-corp-isca-q4-2018-earnings.aspx
 
Kiante said:
I get that, but Gene is paying himself. Its not like Gene is hurting for money and sponsorship. All of the advertising for his CNC machines is doing nothing but helping his business at the end of the day. Gene has said that himself. As of right now with Saurez in the 41 will only have Haas on for about nine races as of right now.
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IDK how advertising for Haas CNC helps business but I will take Gene’s word for it. Normally a team owner wants a company he has no financial stake in doing the sponsoring. It sounds like as of right now Gene will be on the hook for 25% of the 41’s races
 
StandOnIt said:
For 2018, Monster Energy Cup Series was the Number 2 sports property on television with over 4 million average viewers tuned in per minute per event and over 41 million total unique viewers tuned in throughout the year.
NASCAR also ranked as the Number 1 or Number 2 most watched sport of the weekend 14 times during the 2018 season. It is important to look at NASCAR or any sports properties by cross platform consumption as TV viewership in general has been experiencing a decline. Our web and mobile apps have seen strong demand for consumption of written and video content. Social media is an important and growing channel for content distribution. In 2018, NASCAR's social and digital platforms continued to experience increased usage within approximately -- average of approximately 19 million per race day social impressions and approximately 326 million video views for the year. ISC continues to support NASCAR and our broadcast partner strategy to remain competitive, relevant and compelling, with content generation.

And for the daily deathbed who continue to think that armageddon will arrive at the next TV deal:

ISC maintains strong visibility of future cash flow with over half of its revenue secured through the industry's 10-year broadcast agreement and multi-year partnership agreements. We will continue our strategic focus on our consumer marketing initiatives to deliver growth through our core business. We will seek opportunities for increased utilization of our facilities through ancillary events and investments in qualified developments like the Casino and ONE DAYTONA will provide further growth and shareholder value.

https://www.fool.com/earnings/call-...onal-speedway-corp-isca-q4-2018-earnings.aspx
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I didn’t even need to read the post because as long as ISC turns in yearly profits Nascar will be fine. Attendance, attendance revenue and future broadcast revenue have nothing to do with NASCAR’s long term viability. Teams won’t need lucrative sponsorships to ensure viability as in the grand scheme those sorts of things are not necessary. The caveat is ISC turning a profit.
 
Again I ask the death watchers, what can NASCAR do to pack the stands? increase the tv audience? How can NASCAR fix a changing demographic in America? How can NASCAR reach millennials , who seem to have little interest in most traditional sports? How can NASCAR revitalize a once healthy car culture? In spite of these challenges, NASCAR is still making money. That's the bottom line. NASCAR put on some fantastic races last year. They're doing all they can in that aspect. I don't feel it helps the sport of stock car racing for supposed "fans" to constantly find fault with the sport they supposedly love. Someone show me the light please.
 
The culture is what it is. I think a healthy leadership at NASCAR (seems better now) can help direct their marketing and programs to reach targeted demographics. That can help some. The best solution is for existing fans to bring their kids and their kid’s friends to a race in person. Get them excited about racing and it may stick.

Car culture is fading. Heck cars are being discontinued for SUV’s and trucks. Thankfully there is still production of sports cars. Hard to figure out why kids don’t dream of getting their license ASAP like we did.
 
mack said:
Again I ask the death watchers, what can NASCAR do to pack the stands? increase the tv audience? How can NASCAR fix a changing demographic in America? How can NASCAR reach millennials , who seem to have little interest in most traditional sports? How can NASCAR revitalize a once healthy car culture? In spite of these challenges, NASCAR is still making money. That's the bottom line. NASCAR put on some fantastic races last year. They're doing all they can in that aspect. I don't feel it helps the sport of stock car racing for supposed "fans" to constantly find fault with the sport they supposedly love. Someone show me the light please.
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I think the best answer I can provide is what goes on in Nascar from a popularity standpoint doesn’t matter. As long as ISC is turning a profit the sponsorship situation will remain good and things like attendance and TV ratings don’t really matter. It is all good and there is nothing to be worried about it.
 
StandOnIt said:
Yeah Haas is on the hook..ridiculous.
Haas On Track For $100 Million Annual Boost From Formula One

If Haas remains fifth in the standings it is in line for around $70 million in prize money which shows how important it is for races to go to plan.


https://www.forbes.com/sites/csylt/...n-annual-boost-from-formula-one/#57df83061aab
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I would be surprised if we don’t see more and more team owners self sponsor. Why use someone else’s money when you can use your own?
 
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