Source: Memo says France family ‘dedicated’ to sport
CHARLOTTE, N.C. » If NASCAR is for sale, the France family isn’t saying.
An attempt to calm employees about the future of the struggling, family-owned racing series came Tuesday from NASCAR President Brent Dewar, but his memo said only that there would be no comment on “industry rumors.”
It’s long whispered that NASCAR could be on the selling block and Chairman Brian France has become dramatically less visible since the end of last season. Most public duties are now handled by Dewar, who addressed employees about a report a day earlier that Goldman Sachs had been retained to explore a potential sale for the France family.
The France family, which owns a majority stake in the nation’s top auto racing series, “remains dedicated to the long term growth of our sport,” Dewar wrote in the memo obtained by The Associated Press from a person who shared it on condition of anonymity due to the sensitive nature of the topic.
The memo did not specifically address any possible deal by the France family.
“For over 70 years, the France family has worked hard to invest in the sport of NASCAR, including our recent acquisitions of ARCA,” Dewar wrote, referring to the recent purchase of the Automobile Racing Series of America, a lower-tier stock car series that sometimes races in conjunction with NASCAR events.
NASCAR has seen ratings and attendance decline in recent seasons and several big-name sponsors have scaled back or pulled out. Lowe’s, the only sponsor seven-time champion Jimmie Johnson has had in his 18-year career, is leaving at the end of the season. Home Depot, Target, Subway, Dollar General and scores of other sponsors have already exited racing.
Title sponsor Monster Energy signed just a one-year extension through 2019 and NASCAR has said it is re-evaluating its sponsorship structure.
Team owners seemed surprised by Monday’s report from Reuters citing unidentified sources that the family wished to explore a sale. One owner, who spoke to AP only on condition of anonymity, said France firmly told owners in recent months the series was not for sale. Two weeks earlier, at Talladega Superspeedway, a different team owner told AP he believed the family would listen to offers for NASCAR.
Television ratings have continued to drop over the past decade and the retirements of Jeff Gordon, Dale Earnhardt Jr., Tony Stewart, Danica Patrick and Carl Edwards may have contributed to fans tuning out. But at-track attendance has also suffered and the three public companies that own tracks where NASCAR races are held have all reported attendance revenue declines.
Despite its woes, NASCAR remains “one of the strongest brand franchises in America,” said Larry Chiagouris, a marketing professor at Pace University if New York. “Seeking to get a measure of its value now is a smart idea because we are witnessing the merging of entertainment and advertising assets at a pace not seen in several years. There could be many potential buyers, particularly media conglomerates and, yes, even some of the tech titans that could incorporate NASCAR into larger marketing and media programs and initiatives.”
Greg Portell, lead partner at global consulting firm A.T. Kearney, based in Chicago, said it was possible NASCAR’s owners are simply getting feedback on its value. He agreed that private firms or big entertainment companies would make the most sense as a buyer, “an AEG or an IMG.”
“From an outsider’s view looking at NASCAR, their value proposition to marketers for a long time was, we have great visibility, we have great enthusiastic fans and that’s why you should spend money,” he said. “But in today’s world, the value is much more around the potential to really create lifestyle marketing . ... ”