Visit our new site at BusinessJournalism.org
Reynolds Center Programs
Daylong Workshops
Online Seminars
One-hour Tutorials
Barlett & Steele Awards
Professors Seminar
Strictly Financials Seminar
Research
Covering Business
Starting Out
Business Writing
Business Design
Business Glossary
Ethics
Five Questions with...
Immigration Series
Business Journalism Resources
Job Listings
Academic Programs
Book Listings and Reviews
Scholarships
Calculators
Web Resources
Tutorials
Article Index
Workshop Registration
The Reynolds Center has announced its 2009-10 free workshop schedule.
Select a workshop and register from the drop-down menu below.
Online Seminars
The Reynolds Center registration for Fall 2009 free online seminars.
Storytelling that Sticks
By Jeff Bailey
Proxy Digging
By Chris Roush
Savvy Spending
By Jennifer Hopfinger
Takeaways from the Cramer Interview
By Andrew Leckey
Faces of the Crisis
By Alec Klein
Racing Woes
By Jennifer Hopfinger
March 11, 2009 02:23 PM
It seems no industry is immune from trouble these days. Add the sport of stock-car racing to the list. Although in the case of NASCAR, “the roots of the problem go a lot deeper than the lousy economy,” according to a March issue of Forbes magazine. In the cover story, writer Jack Gage examines “Why its business model is a wreck” and what should be done to fix it.
NASCAR, which experienced stellar growth in recent years, is the second-most-watched sport in the U.S., but race attendance, television ratings, and corporate sponsorship are now sharply declining. Fans are losing interest primarily because it’s become boring to watch. According to the article, teams are calling for change, but the France family that controls NASCAR- and hence, the television rights, licensing deals, and racing rules - is balking. “Team owners assume the lion's share of the risk by investing heavily in people and equipment but get a pittance from broadcast revenue and none of the ticket sales,” Gage writes. The money, therefore, has to come from corporate sponsorship, but these days, only the top teams are attracting big sponsors, and as a result, they win even more often, making races more predictable.
Many are suggesting the sport go to a franchise system with a fixed number of teams that would get a greater share of television and sponsorship money. Some contend franchising would also create stronger fan loyalty. But the France family, which built NASCAR up from its humble origins, is opposed to the idea, on the grounds that “franchising is a sure way to kill NASCAR's founding notion (a myth at this point) that any driver can show up at the track and win on any given Sunday.” Gage concludes the family is faced with a simply choice: continue to “tinker on the margins to keep racing somewhat competitive” or reshape NASCAR “in the image of the wildly successful NFL.”
Email this article
Copyright © 2009 Donald W. Reynolds National Center for Business Journalism
The Reynolds Center has announced its 2009-10 free workshop schedule.
Select a workshop and register from the drop-down menu below.
The Reynolds Center registration for Fall 2009 free online seminars.
By Jeff Bailey
Proxy Digging
By Chris Roush
Savvy Spending
By Jennifer Hopfinger
Takeaways from the Cramer Interview
By Andrew Leckey
Faces of the Crisis
By Alec Klein
Racing Woes
By Jennifer HopfingerMarch 11, 2009 02:23 PM
It seems no industry is immune from trouble these days. Add the sport of stock-car racing to the list. Although in the case of NASCAR, “the roots of the problem go a lot deeper than the lousy economy,” according to a March issue of Forbes magazine. In the cover story, writer Jack Gage examines “Why its business model is a wreck” and what should be done to fix it.
NASCAR, which experienced stellar growth in recent years, is the second-most-watched sport in the U.S., but race attendance, television ratings, and corporate sponsorship are now sharply declining. Fans are losing interest primarily because it’s become boring to watch. According to the article, teams are calling for change, but the France family that controls NASCAR- and hence, the television rights, licensing deals, and racing rules - is balking. “Team owners assume the lion's share of the risk by investing heavily in people and equipment but get a pittance from broadcast revenue and none of the ticket sales,” Gage writes. The money, therefore, has to come from corporate sponsorship, but these days, only the top teams are attracting big sponsors, and as a result, they win even more often, making races more predictable.
Many are suggesting the sport go to a franchise system with a fixed number of teams that would get a greater share of television and sponsorship money. Some contend franchising would also create stronger fan loyalty. But the France family, which built NASCAR up from its humble origins, is opposed to the idea, on the grounds that “franchising is a sure way to kill NASCAR's founding notion (a myth at this point) that any driver can show up at the track and win on any given Sunday.” Gage concludes the family is faced with a simply choice: continue to “tinker on the margins to keep racing somewhat competitive” or reshape NASCAR “in the image of the wildly successful NFL.”
Copyright © 2009 Donald W. Reynolds National Center for Business Journalism