Discussion in 'NASCAR chat' started by kkfan91, Nov 9, 2018.
I mean we all know it's just one big thing anyway, but I guess they want it official.
Increasing the value of Nascar for its potential sale.
An exit strategy for the France Family.
My first thought was this deal would be rubber-stamped and close before qualifying is over today. Then I wondered if SMI might room to squawk about a monopoly.
Wait... didn't they get the Deathbed memo? NASCAR is going broke and the tracks are worthless anyway... I saw it on Twitter.
My first thought is, this gives NASCAR more authority to move dates around or take them away from those tracks and give them to Nashville, Rockingham, etc.
But, it could also just be to look more attractive to buyers.
It's the same people pulling both sets of strings. NASCAR isn't going to take races away from tracks it will now officially own.
You're probably right, but I bet this is one case you wouldn't mind being wrong.
I have considered buying Nascar but I didn't want to share with ISC.
This development changes everything, so many implications.
If this deal goes through NASCAR just has to act in the best interest of NASCAR. If that means if they can reach a deal with some non ISC track that will get them more money than running at an ISC track they’ll gladly give that date up
That was my first thought when I saw this thread, good point.
Didn't ISC just agree to acquire Racing Electronics too? Nice little portfolio the France Family is putting together to help their ability to offload this whole thing.
Taking ISC public was a bad move for the sport in the first place, and this should correct that error. I see it as a good thing and it will allow NASCAR to be more flexible with race tracks and schedules. Whether they the choose to and how they choose to do that I can't say, but now there is at least the ability to make moves that might be good for NASCAR, if not necessarily for ISC.
kinda funny, they are doing it to themselves pretty much. I guess that is a big deal to some. But thanks to Jim France however it turns out.
If the buy out occurs then any decision made will benefit the new company. This was done to grease the sale of NASCAR in the future.
Roger Penske supports NASCAR's bid to buy into ISM Raceway's owner
Motorsports’ most successful team owner and entrepreneur supports NASCAR’s proposal to buy International Speedway Corp., the parent company of ISM Raceway, site of Sunday’s Can-Am 500.
“I think it’s a very smart move by the France family (NASCAR and ISC founders and majority owners),” Roger Penske told The Republic in an exclusive interview Saturday. “In today’s world, having a public company and not being able grow it at the level that shareholders have expectations (for) ... I think it de-complicates the relationship between NASCAR and the public (company) ISC. Overall, I applaud them for making the move.”
“Fans are looking for more action and sponsors want more for what they’ve paying,” said Penske, who has Brad Keselowski’s No. 2 Miller Lite Ford, Ryan Blaney’s No. 12 PPG Ford and Joey Logano’s No. 22 Shell-Pennzoil Ford in Sunday’s 312-mile (500 kilometer) race. “We’ve got to build value and be sure our television partners and the media understands where we’re going as an industry.”
. While I wouldn't be shocked to see the France family sell a percentage of NASCAR, I for one do Not forsee them selling a majority stake in the business any time soon.
Yet they hired Goldman Sachs to explore a sale. By a strange coincidence, Goldman just happens to be involved in the ISC bid.
Public records show that the France family has been buying shares of ISC while Goldman has been selling the shares that it holds. This indicates that the France Family believes the shares are/have been undervalued. Thus they believe it is good for them to buy the shares. Their holdings now account for about 1/3 of the total in ISC. By making the offer, that means the company they control (NASCAR) would take ISC making it private if the sale goes through. Thus, it doesn't impact the France family and their desire to be involve in ISC and NASCAR - they'd owe both companies in one private entity, i.e., NASCAR. A sale of anything less than a controlling interest in NASCAR leaves them in control of its future. Also, what one seeks today can change tomorrow if they believe it is in their best interest to make the sale and get out of NASCAR.
Nothing strange about that. If you have a vendor or supplier that's already handling a type of business for you, you go back to them when you want more of that service. That doesn't mean the two transactions are related. You can go to Wal-Mart for toilet paper and sandpaper, but there's no 'strange coincidence' at work.
If for no other reason than they apparently can't find a buyer.
If you say so. It interesting that Goldman is getting out of ISC while the people they represent are buying more of it.
Two different parts of the same operation, in legal theory. The side that holds stock and makes investment decisions for its shareholders and clients operates independently (supposedly) from the side that arranges mergers, acquisitions, EPOs, advises boards, etc.
NASCAR and ISC aren't worth Goldman Sachs risking insider trading charges; too small.
Well, at a price they would accept anyway. That may play some part in it, but I really think that the sale rumors probably only represented selling a solid stake in the company, not majority control or the whole company, and I think a post -Brian NASCAR might have changed the game a little. I think we will know more as all of the puzzle pieces start to fall into place in the next couple years and I think it will be telling what kind of role Ben Kennedy plays going forward. As long as NASCAR/ISC remains solidly profitable, (which it appears it is) I don't see a mad rush to sell off the company.
Timing is everything in the investment world. The smart time to sell NASCAR was 10-12 years ago. Only one of the owners was smart enough to do that, while the other two were the buyers. Yikes, what does that imply?
Maybe the other two owners were more interested in staying in the racing business and continuing their family legacy than making a quick buck.......
Or that the seller was apparently capable of making only one good decision about the family business, because he never made another one.
In theory, the meltdown shouldn't have happened. It did. I think GS sold around 80000 shares of ISC in May. Not saying it means anything. Just reporting it happened.
Yep. That's how I see it.
Well if they own all the tracks, makes it impossible to start a new series! I’ve heard a lot of chatter that a lot of owners and drivers want to do away with nascar, and start their own !
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NASCAR won't own all the tracks. This deal doesn't involve SMI, the other major track owner. They own at least eight tracks and host at least 12 points races and the All-Star.
This is easily resolved by NASCAR not renewing contracts at SMI tracks, or buying SMI all together.
It all depends on what the Smith family wants in this case. It depends if Michael, Bruton's son, would be interested in selling SMI off to NASCAR.
Is Bruton still involved in day-to-day activities with SMI?
I don't think buying SMI would be that easy. I doubt NASCAR could scrounge up the cash. Since SMI owns some of the more popular / profitable tracks (Bristol, Texas, Vegas), there's little motivation for them to sell.
As to not renewing contracts, that goes back to my original concern regarding potential monopoly issues.
Goldman could have been buying for a future sale to Nascar which is done quite often so that
no future intent by Nascar is disclosed.
Goldman sold 80000+ shares. They still hold a ton of them according to public records.
NASCAR makes bid for track operator ISC
Could this help remove obstacles that have prevented the sport from making major changes?
I really can’t figure what the end game is in all this. Is it to buy ISC, then SMI and then Dover/Pocono to sell it all off as one Or is it to have as many options as possible when it comes time to allegedly rework that schedule in 2020.
Do any other sanctioning bodies own the tracks their series race on?
If (big if) the combined NASCAR / ISC also brings SMI into the fold, I could see Dover and Pocono being told they can either sell to the UberConglomerate or wind up with no race dates.
No, for the most part. I mean, IMS and IndyCar are under common ownership, but that's just one track. There may be other isolated exceptions, but basically the answer is... No.
Me too... wondering about the end game. If shaking up the schedule is an economic (earnings) problem for the ISC shareholders, then why shell out $1.9 billion to make that your own problem more than it already is?
I wonder if it's all part of a grand design for a France Family exit strategy. If I controlled ISC, I would want to also control NASCAR because that is where ISC revenues come from... race dates and TV money percentage splits. If I wanted to sell NASCAR, I'd also want to be out of ISC because my race dates and TV % are no longer "within the family." So I believe the tender offer for ISC shares is part of a plan to sell the combined company.
I've also been puzzled by the huge amounts ISC is spending to remodel its racetracks. I can't understand the economics, so I wonder if the ISC strategy is to spiff up the company to make it easier to sell both parts?
Daytona: $400 million; 101,000 seats. Phoenix: $187 million; 45,000 seats. Etc. I mean, each seat has to earn a return on ~$4,000 capital investment over and above what it was earning before. Holy Expensive Tickets, Batman!
Me too, I do not know what they are doing, but it drove the ISC stock up pretty nicely. If a person wanted to unload, it is a good time to do so. I went with Rogers Penske's reasoning
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