NASCAR to purchase Daytona
Deal for speedway, parent company valued at $2 billion, expected to close by end of year
NASCAR is buying Daytona International Speedway and its parent company, International Speedway Corp., in a deal worth about $2 billion.
NASCAR pioneer Bill France Sr. started International Speedway Corp. in 1953 to aid the construction of Daytona International Speedway. In 1999, the company based in Daytona Beach merged with Penske Motorsports and now owns some of the highest-profile tracks in the country, including the Daytona track, Homestead-Miami Speedway and the Talladega Superspeedway in Alabama.
The companies said Wednesday the deal is expected to close at the end of this year.
The agreement comes a year after reports suggested the France family, known as the first family of NASCAR racing, was looking to sell International Speedway Corp. Those reports have not been specifically addressed by the current leadership, including Lesa France Kennedy, an executive vice president and the CEO of International Speedway Corp.
NASCAR late last year began acquiring the remaining public stock in International Speedway, which owns a majority of the NASCAR-sanctioned tracks. Layoffs began after the start of the year and many longtime employees, some who had started with the company under Bill France Jr., were let go.
NASCAR could, at minimum, be seeking investors. The silence has only fueled speculation.
As long as the France family maintains ownership of NASCAR, it will still have a major presence in Daytona Beach.
International Speedway Corp. had been the subject of anti-trust lawsuits from competing tracks because France family members led International Speedway and NASCAR, which determined which races were awarded to tracks.
Now the sale gives NASCAR more control over 12 of tracks as it looks to potentially reduce the length of its schedule and seeks new ways to expand its audience.
Gaining control of a dozen tracks, along with Iowa Speedway, which it already owns, would seemingly make it easier for NASCAR to alter its racing schedule, including the possibility of fewer events.
Gaining control of a dozen tracks, along with Iowa Speedway, which it already owns, would seemingly make it easier for NASCAR to alter its racing schedule, including the possibility of fewer events.
NASCAR President Steve Phelps has made it clear that the 38-race schedule in the top-tier Cup Series, generally considered too taxing for teams and fans, is among the areas the sanctioning body is looking to change. Seven of the ISC tracks host not just one Cup Series race each season but two.
NASCAR’s five-year agreement with tracks ends after the 2020 season.
“We are pleased with the progress that the negotiation and execution of the merger agreement between NASCAR and ISC represents,” NASCAR said in a statement. “While important regulatory and shareholder approval processes remain, we look forward to the successful final resolution of this matter and continuing our work to grow this sport and deliver great racing experiences for our fans everywhere. With a strong vision for the future, the France family’s commitment to NASCAR and the larger motorsports industry has never been greater.”
The agreement is the latest makeover for NASCAR as it scrambles to win new fans and end a decline in attendance and ratings. The sale of International Speeway Inc. is one of two efforts to privatize companies owning NASCAR tracks, allowing it to make adjustments out of the public eye instead of disclosing many details while hosting events at venues owned by publicly traded companies.
“I would certainly be worried if I was any of the tracks that aren’t part of the deal,” said Victor Mathewson, a sports economics professor at Holy Cross. “My guess is NASCAR will put an emphasis on the tracks it owns rather than the ones it doesn’t. Given the decline over the past couple years, I wouldn’t be surprised if they cut some venues from the schedule and some of those tracks could be on the outside looking in.”
This transaction also is sure to spur speculation the France family is in the process of extricating itself from NASCAR.
Bill France Jr. took over as CEO of NASCAR in 1972 after his father’s retirement. He ran the company until 2002 when his son, Brian France, took over as CEO.
There were rumors NASCAR was up for sale last year after Brian France was arrested and charged with aggravated driving while intoxicated and criminal possession of a controlled substance.
He took a leave of absence and his uncle, Jim France, took over running the company in 2018. Jim France has not granted interviews about the future of NASCAR since ascending to the CEO role, but he has attended many races and won over drivers as he brought stability behind the scenes. NASCAR leadership has made numerous changes with the hopes of boosting attendance and generating more buzz.
During the Rolex 24 event earlier this year, Jim France only answered three pre-planned questions from media, and reporters were told he would not discuss NASCAR’s future.
However, there was a brief moment in his remarks, while discussing Ben Kennedy’s emergence in the family business, when Jim France seemed to be talking in broader terms.
“This is what we do, and we’ve got the next generation coming,” he said. “We plan to keep it a family.”