|
NEWS The following appeared in the editors' digest of the November, 1998
edition of RPM, the Idea Newsletter for Auto Racing Promoters:
WONDER NO MORE: Since the announcement of Speedway Motorsport's public offering, we wondered when a consortium of investors might acquire
short tracks under the umbrella of a single operating company, not only to spread risk, increase revenues and gain operating economies, but as an investment. As an investment, such a group of tracks would
eventually be an attractive takeover target, commanding a premium price from prominent
super speedway companies as they move to "vertically integrated" business - operating tracks ranging from the smallest to
the largest, with the goal of controlling a greater share of the premium revenue-producing race dates. Such integration would also be attractive because growth through acquisition is less costly in the long run than
creating revenue growth through ticket sales. Though such ventures have been considered, there are no publicly held short track companies and multiple track ownership is limited to individuals who operate several
tracks, such as Glen Donnelley, Robert Lawton, Rick Farren and Ted Carlson. Recent ads in National Speed Sport News suggest a change might be in the offing. The ad in the "Miscellaneous" section of recent
NSSN's announces that Bill Posey's National Racetrack Clearinghouse is the "exclusive buyers' agent" for a substantial corporate client planning to purchase multiple short tracks. Posey's venture is one of
what we believe to be two such acquisition efforts in the planning stage. Posey would confirm only that fortune 500 companies make up the investment group. Posey would say, however, that his investors were keen to
acquire tracks as soon as "next season."...
|
