NASCAR Strikes Deal to Buy ISC, Will Gain Control of 12 Tracks May 23, 2019 NASCAR NASCAR announced the $2 billion purchase of International Speedway Corp. on Wednesday, an aggressive move to gain control of key racetracks and set itself up for sweeping changes that could save America’s most popular racing series. The deal is expected to close by the end of the year. ISC owns 12 tracks that host NASCAR races, including Daytona International Speedway, Talladega Superspeedway, Darlington Raceway and Homestead-Miami Speedway. Its holdings stretch from New York to California , and ISC is one of two major facilities companies that host NASCAR races, along with Speedway Motorsports Inc. 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. And more deals could be on the horizon. “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.” Brian France, a grandson of NASCAR founder Bill France, served as CEO from 2003-2018, approving radical integral changes including the playoff system, stage racing, and a new car – during which time NASCAR lost sponsors and event attendance fell. Brian France’s uncle, Jim France, took over as NASCAR chairman last August following Brian France’s arrest on drunken-driving charges. The turmoil had many wondering if NASCAR was for sale, but the France family has suggested that is not necessarily the case. Jim France said before the Daytona 500 in February “this sport was built by families and we’re just a part of it. It’s so important that we remember that this is still a family business. Our family is committed to it.” At the very least, the move will make it easier for NASCAR to make changes out of the public eye — and away from shareholders. Many big sponsors have left NASCAR in recent years — Cup Series title sponsor Monster Energy is in the final year of its deal — and television ratings hit all-time lows at 26 events last season. Since NASCAR is private, it won’t have to publicly report attendance revenue and other financials like ISC had to do as a publicly traded company. Stockholders would receive $45 per share under the agreement. “As the businesses have collaborated a little more closely recently, they realize they may need to work together with some initiatives to elevate the business,” Katz said. “It makes sense that the France family and NASCAR should be able to make better deals themselves rather than if stockholders were in the mix.”
