The recently ended quarter was not good to International Speedway Corporation. The House of France's satellite track ownership and promotions company is operating at a net loss after three quarters of FY2009.Keep this in mind the next time someone claims that ISC is trying to kill the IndyCar Series. In my estimation, it is much more likely that ISC is merely trying to generate profit. If the IndyCar races at Kansas and Chicagoland do not produce profit as stand-alone events, then they will not continue to exist.
That is why IRL management loves publicly subsidized races. There is not only no financial risk, but also no pressure to attract a legitimate audience.
The year-over year ISC numbers for the quarter are interesting.
- Admissions Revenue - down 15.96% to $53.35 million
- Motorsports Revenue - down 18.22% to $105.96 million
- Food & Beverage Revenue - down 31.38% to $12.62 million
IndyCar fans should take notice of the line item that accounts for more than half of all ISC revenues. Motorsports Revenue is primarily a function of direct distributions from NASCAR, as well as track and event sponsorships and licensing. The NASCAR distributions are enabled almost exclusively by television ratings.
Next week, we look to the future of IndyCar. Exponentially increasing U.S. television ratings is paramount.
Roggespierre
Good points. IIRC, track owners receive 60% of television revenue on a per venue basis from NASCAR. As long as ICS wasn't taking sponsor dollars away or diminishing NASCAR's share, ISC/SMI would love a successful IndyCar series doing the same.
ReplyDelete-John
Somewhat related:
……………………………………………………………………………………
From: American Auto Racing Writers & Broadcasters Association
As some of our members may be aware, California Speedway (nee Auto Club Speedway) has decided to charge for meals during the upcoming Cup weekend, October 9-11.
I wish to encourage AARWBA member not to pay the $25, and instead to seek other alternatives.
The issue at play is not the food, but rather the unmitigated greed and a disguised attempt to charge us for access, the first step in a "slippery slope."
If the track had stated that they would no longer serve meals (due to economic considerations), this e-mail would not be relevant or necessary. But turning the Media Center into a profit center is just plain wrong.
The track is owned by International Speedway Corp (ISC), and they are making plenty of money. A few years ago, the fall race had a gross margin in excess of $30 million. But that’s apparently not enough for the controlling shareholders.
……………………………………………………………………………………
Apparently the scribes don't read the financials.
-John
(cont'd)
ReplyDeleteThe only logical explanation for the instituting a policy to charge media for food is that the controlling shareholders do not want to see a reduction of their dividend, and hence their lifestyle. All of us are taking major hits in this economy, but if they’re successful in this attempt, what else will the controlling shareholders feel we should pay them?
Can you imagine not being allowed to bring your computer or camera to ISC tracks, unless it bore an ISC sticker? And having to pay an annual license fee of, say, $2500 for the privilege? Guess what, folks, that is what will be next.
Impossible you say? Then why do the teams have to pay ISC an annual license fee, in some cases approaching $5000, when they use their own golf carts or other ancillary equipment when they race at ISC tracks?
But that’s not all: the spectators are taking it in the shorts, in more ways than you can imagine, but that’s the subject of another email. So, the media be damned, the spectators be dammed, and so, too, the sponsors.
How would you like to be the Auto Club of Southern California paying a reported $5 million annually for track naming rights or Pepsi shelling out $2 million for title race sponsorship and being associated with a sports property that increasingly alienates people?
Did Auto Club and Pepsi really sign up for a diminishing relationship, such as angering and alienating the media, or aggravating spectators by eliminating the temporary mass transit station (outside the backstraight) for those fans who do not want to be stuck in ill-advised "traffic planning?" Or worse, affiliated with a track where the General Manager was recently fined for not filing two years worth of conflict-of-interest forms with the State of California, for a Governor Schwarzenegger-appointed post?
Why should I have any inclination to include Auto Club or Pepsi in any story I write? Why would I want to embarrass them further?
The argument that "times are tough economically" doesn’t wash. Until I see the controlling shareholders of ISC in the breadline, I have no sympathy. Their mismanagement does not mean I should pay for their mistakes, now or in the future.
Send the message that this is not an acceptable policy -- don’t pay their $25 tariff. The food is not the issue; it’s what they will do to us in the future, if we do not draw the line in the sand. Now.
Also, if you’re so inclined, dash a note to representatives of the track’s "partners," stating how you feel about this situation:
Just to kick 'em when they're down: JC France arrested for possession of coke. Oh dear. I guess it could be worse; you could have invested millions with a conman.
ReplyDeleteOh, wait. He did that too.
Combine that with trying to charge the press to eat at a track no one likes, and good lord, I imagine some hilarious press coming out of this weekend.
Isn't greed wonderful!! Makes you warm and fuzzy doesn't it !!!
ReplyDeleteVirtualBalboa,
ReplyDeleteI don't know the JC France/conman story. Was he a Madoff investor?
Roggespierre
Henri Zogaib, as you may remember, was a driver in the Grand Am series...and also invested millions of dollars from its "gentleman drivers" into claimed iron ore futures which would garner huge and quick returns. Guess what happened next?
ReplyDeleteThe only guy believed to have gotten his money back is AJ Allmendinger. At least, that's what he says.
VirtualBalboa,
ReplyDeleteGot it. I had heard about Zogaib's exploits, but I did not know that JC was involved. As I recall, Zogaib's "futures" scam was even more unbelievable than those of Madoff and "Sir" Allen Stanford.
Thanks for the clarification.
Best Regards,
Roggespierre