Sorry if already discussed but

Spotter22

Spotter22

Team Owner
Joined
Aug 17, 2017
Messages
12,776
Points
883
what the hell?! McLeod Racing got $40 Million for their Charter??? It may have been discussed here and I didn't see it but this should he Headline News! That's a hell of a Payday for Brian and his Organization, wow unbelievable.


 
It has.

racing-forums.com

Silly Season 2024

Daniel Hemric hasn't done much since winning the championship. Figure he'd be on the level of Justin Allgaier but he drives like Ty Dillon.
racing-forums.com racing-forums.com
 
Thanks, didn't think of looking in silly season but yeah, 40 million is silly
 
At least the owners can recoup some of their investment if they close up shop now. Back in the day, you lost your ass and then went out of business. In theory, this should encourage more investment in the sport.
 
Live Fast is a one car Cup team separate from McLeod’s Xfinity operation.

Live Fast and it’s charter belong to McLeod, Matt Tifft (mom’s money) and Joe Falk.
 
The Nature Boy said:
At least the owners can recoup some of their investment if they close up shop now. Back in the day, you lost your ass and then went out of business. In theory, this should encourage more investment in the sport.
Click to expand...
That's right. That was the whole point of the charter system - to give value of owning a team aside from the equipment which would be sold for pennies on the dollar.
 
I am not disputing the 40 million dollar sale, seems good for all willing parties.

But I wonder if that is sustainable over time. Just how many people are there that want to a own a cup team, that also have 40 million on hand to make such a purchase.

I can see them continuing to be sold at a high price but I wouldn’t be surprised to see the price drop a little.
 
Greg said:
I am not disputing the 40 million dollar sale, seems good for all willing parties.

But I wonder if that is sustainable over time. Just how many people are there that want to a own a cup team, that also have 40 million on hand to make such a purchase.

I can see them continuing to be sold at a high price but I wouldn’t be surprised to see the price drop a little.
Click to expand...

If RCR, RFK, or 23XI want to expand, they have to enter this market and that will keep prices high. I know 23XI wants to get to four teams eventually. There's still plenty of demand and that will keep prices sky high.

I don't see prices coming down unless teams start contracting and off-loading charters.
 
The Nature Boy said:
If RCR, RFK, or 23XI want to expand, they have to enter this market and that will keep prices high. I know 23XI wants to get to four teams eventually. There's still plenty of demand and that will keep prices sky high.

I don't see prices coming down unless teams start contracting and off-loading charters.
Click to expand...
True and the market is set by what they will pay. But 40 million just sounds insane or something beyond the imagination.
 
StandOnIt said:
In comparison, it's nothing compared to F-1 and what they have to invest and when they go broke or quit it's fire sale prices.
Click to expand...
The last two teams that got sold went for $180M and $450M. It’s the same situation where the grid won’t expand so the only way in is by taking over an existing team.
 
Greg said:
The RTA deserves the respect. An owner should no longer have to ever worry about walking away empty handed.
Brilliant stuff.
Click to expand...
I agree 100%, but I think 40 Million doesn't encourage many to invest and that's why I surprised it made it to that mark. That's a lot of money to recoup
 
StandOnIt said:
In comparison, it's nothing compared to F-1 and what they have to invest and when they go broke or quit it's fire sale prices.
Click to expand...

The entry costs for NASCAR are INCREDIBLY low for a major sport (and this includes F1). $40 million wouldn't even get you in the door with most sporting sanctioning bodies.

The RTA has done a lot to make owning a NASCAR team a worthwhile investment. In every other sport, you can sell your team and get your money back. Even dumpster fires like the Oakland Athletics or Cleveland Browns are worth multiple billions of dollars. NASCAR team owners deserve to have some level of equity in their teams that goes beyond the nuts and bolts that make up the car.
 
Spotter22 said:
I agree 100%, but I think 40 Million doesn't encourage many to invest and that's why I surprised it made it to that mark. That's a lot of money to recoup
Click to expand...
It’s a capitalized investment, not an operating expense. It can be depreciated annually on the books to reduce taxes payable.

You recoup your cash when you or your inheritors sell … for multiples of the original sale price.
 
aunty dive said:
It’s a capitalized investment, not an operating expense. It can be depreciated annually on the books to reduce taxes payable.

You recoup your cash when you or your inheritors sell … for multiples of the original sale price.
Click to expand...
I understand,to the people who put up the money ROI is the end game. That's all I was saying. Even Jr is balking on Ownership because he is afraid that these Charter prices are a bubble that cant be sustained under the current business model.
 
He was afraid when the buy-in was 5 million.

Gainbridge / Group 1001 are Andretti Autosports’ new partners. Spire’s acquisition of its 3rd charter is a direct result of that relationship. These people operate very successfully in the financial services and insurance industries.

Respectfully, Junior’s experience outside of the day to day business of racing cars consists of time spent operating the lube rack at one of his father’s Chevrolet dealerships in North Carolina.
 
aunty dive said:
He was afraid when the buy-in was 5 million.

Gainbridge / Group 1001 are Andretti Autosports’ new partners. Spire’s acquisition of its 3rd charter is a direct result of that relationship. These people operate very successfully in the financial services and insurance industries.

Respectfully, Junior’s experience outside of the day to day business of racing cars consists of time spent operating the lube rack at one of his father’s Chevrolet dealerships in North Carolina.
Click to expand...
I'm gonna venture a guess he has Financial advisors and by the looks of it he also has been very successful in his business dealings. Good luck to all of the investors associated with that deal, I hope they are wildly successful because it means the sport is healthy and moving in the right direction.
 
Charlie Spencer said:
I hope that people who use Jr's name in connection with JRM's business decisions realize Kelley's the one calling most of the shots, not Little E, including the big money ones.
Click to expand...
Them thar wimmen aren't supposed to be makin them kind of business decisions. she;s the brains behind that outfit
 
Spotter22 said:
They said the same thing about her Late Model days but............ I was there and yeah, it wasn't True. Maybe better than Kerry but not Jr.
Click to expand...
But man just think if she had been that good and was the first female to break into Cup with a Budweiser sponsorship!
 
I always wonder what Kerry could have been if he had broken in sooner and gotten actual backing. He looked good in ARCA but then not so good in the FitzBradshaw Busch car.
 
The Nature Boy said:
I always wonder what Kerry could have been if he had broken in sooner and gotten actual backing. He looked good in ARCA but then not so good in the FitzBradshaw Busch car.
Click to expand...
He came in when Jr came in Late Models, Kelly too
 
Spotter22 said:
He came in when Jr came in Late Models, Kelly too
Click to expand...

I was thinking earlier in terms of age. He was already in his early 30s by the time he found success in ARCA. I wonder how he would've done if he had started racing late models in the very early 90s (maybe even late 80s) instead of when his younger siblings started.
 
The Nature Boy said:
I was thinking earlier in terms of age. He was already in his early 30s by the time he found success in ARCA. I wonder how he would've done if he had started racing late models in the very early 90s (maybe even late 80s) instead of when his younger siblings started.
Click to expand...
I don't have a stat sheet of his career but I recall when Jr came in and raced at MBS Kerry was there and Kelly also. That was 94. I'm sure he ran other places like Hickory, South Boston, Concord, Florence etc.. He just didnt look good, not very competitive but in fairness to him and Jr MBS was a VERY tough place to race and had a pretty stellar late model lineup which btw was why Dale Sr sent him there to run. Jr ran there for 4 years and only had I think 2 wins. His first win was kinda tarnished, the top guys Charles Powell III( the guy I worked with and spotted for) and his brother Robert Powell were in Nashville at a big race they were having and Charles had already sewn up the Track Championship so we didn't have anything to lose by not being there.

Jr won that night and when I saw him the next Saturday I congratulated him asked how his Dad reacted, he said "he made me feel this big", using his thumb and index finger to make and inch. I said wow what the hell dude and Jr said Dad asked him " how'd those Powell boys do"? and he told them they weren't there they were in Nashville so Sr told him," well you didn't win". I thought at the time that was kind of a shippy thing to say but now I understand his reasons. But anyway Kerry just couldn't get it going and a lot of times he was just in the way to be honest.
 
You must log in or register to reply here.
Back
Top Bottom