Action Performance's 40% drop in share price last week
is "likely because NASCAR is flexing its marketing muscle"
in the area of merchandising, "hoping to use its web sites
and its planned new post-race television shows on the
proposed new NASCAR Channel to sell, sell, sell," according
to Mike Mulhern of the WINSTON-SALEM JOURNAL. Roush
Racing's Geoff Smith was "miffed a couple of years ago" when
Action "moved to market a handful of the sport's top stars"
in what was "perceived to be a preferential way to the rest
of the drivers." Smith didn't think such a move would "be
good" for the sport: "I had the fear that if [Action] owned
those key drivers' rights, they would have complete
domination of the industry. I thought that was detrimental
to the sport because it would limit the growth of the sport,
and only benefit one company. ... So I worked very hard for
several years now to ensure there would be a flexible
business model that would attract many licensees to the
sport." Mulhern wrote that NASCAR's "role in marketing is
changing," as "for years" the organization "didn't have any
rights, really, to market its stars, and there has been some
speculation" that NASCAR execs "were maneuvering to acquire
those rights, or some of those rights." Smith: "I think
NASCAR has recognized it has an obligation to help the teams
as a whole with licensing and ensure there are licensing
markets available for all race teams." Smith: "As successful
as the sport has been, I feel we're at least $400 million in
sales behind where we ought to be" (W-S JOURNAL, 11/10).
