The current race season is\nwinding down, and this off-season will start the transition towards the next\nphase of team ownership. This month we will look at the factors influencing\nthese moves and outlook going forward.<\/p>\n\n\n\n
Motorsports on many levels has\nbeen an expensive proposition. \nBasically, spend what you can afford, then more. Money equals speed. Not the typical business rationale, but passion\ncan affect the decision-making process.<\/p>\n\n\n\n
Historically, there have different\nownership models for professional sports. \nMost are private and few public.<\/p>\n\n\n\n
Many are legacies, where the\nfamily has owned the franchise for decades and select siblings have been\ninvolved in the front office and related positions. <\/p>\n\n\n\n
This the most common the NFL.\nLeague rules over ownership percentage, voting rights and leverage are designed\nfor guidance where non-compliance results in heavy fines. The\ngoal is to provide permanency where the average team value is over $3.0\nbillion.<\/p>\n\n\n\n
Racing has long been a family\nbusiness. Time spent together prepping\nthe car, traveling to the track and on pit road is the staple. Long hours were\nthe norm and lofty expectations just part of the goal to reach the winner\u2019s\ncircle. Family legacies abound and are on display at the hall of fame.<\/p>\n\n\n\n
Success breeds success and the\nmotorsports is no exception. Business\nsavvy is as important being race-savvy.<\/p>\n\n\n\n
Drivers also contemplate their\nfuture beyond the wheel. <\/p>\n\n\n\n
Strong relationships with\nmanufacturers and knowledgeable business advisors set a few up them up with\nretail car dealerships. They are solid commercial\npitchmen, and perhaps more importantly, great salesmen. The result is a solid addition to the\ninvestment portfolio.<\/p>\n\n\n\n
Many drivers are involved in\nracing operations, in being part-owner of the team they drive for, or owning\nvarious other racing enterprises such as tracks, series, or parts\nmanufacturers.<\/p>\n\n\n\n
Professional team ownership is\nevolving in most sports. Racing is no\nexception. Many factors are at\nplay. <\/p>\n\n\n\n
The sanctioning bodies strive\nto make the playing field level \u2013 this is not easy. Cost containment is a major step. <\/p>\n\n\n\n
Technology has evolved to such\na point that the costs to participate far outweigh the benefits of doing so.\nIt\u2019s not a sustainable business model. <\/p>\n\n\n\n
The establishment of the\ncharter system has also been important. <\/p>\n\n\n\n
The goal was to provide deliver\nstability and long-term value to existing team owners while providing a clear path\nfor ownership.<\/p>\n\n\n\n
The agreements outlined a\nsystem where charter could be bought, sold or transferred on the open\nmarket. <\/p>\n\n\n\n
The result has been the rise of\nsmaller organizations. A limited amount\nof charters became periodically available.<\/p>\n\n\n\n
One early objective was also to\nlimit multi-team ownership and the power of super teams over the rest of the\nstarting grid. <\/p>\n\n\n\n
Entering strategic partnerships\nwith established teams shortened the learning curve for new teams. It also provided a reallocation of employment\nfor a highly skilled workforce.<\/p>\n\n\n\n
There has been a leveling off\non the cost structure at the highest level of racing. Big budgets and sponsorship deals will\ncontinue to exist. Always have and always\nwill. <\/p>\n\n\n\n
Traditional category partnerships\nremain involved. The interest from new\nareas with technology is unprecedented. \nIt is necessary to connect with ever changing behavior patterns of the\nconsumer.<\/p>\n\n\n\n
The access to financial capital\nis positive. Money is available and the\ncost of entry for motorsports is favorable compared the lofty asset value of\nother sports.<\/p>\n\n\n\n
Signs indicate timing is right\nfor the next generation of race team owners. \nTaking the economic checkered flag is the ultimate goal.<\/p>\n","protected":false},"excerpt":{"rendered":"
The current race season is winding down, and this off-season will start the transition towards the next phase of team ownership. This month we will look at the factors influencing these moves and outlook going forward. Motorsports on many levels has been an expensive proposition. Basically, spend what you can afford, then more. Money equals […]<\/p>\n","protected":false},"author":5,"featured_media":878,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts\/877"}],"collection":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=877"}],"version-history":[{"count":1,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts\/877\/revisions"}],"predecessor-version":[{"id":879,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts\/877\/revisions\/879"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/media\/878"}],"wp:attachment":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=877"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=877"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}