Roush Racing, Fenway Sports Join Forces On NASCAR Team
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Jack Roush (l) And John Henry
Become Partners In NASCAR Team
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Roush Racing and Fenway Sports Group (FSG) yesterday announced the formation of Roush Fenway Racing (RFR). Under the agreement, FSG will purchase 50% of Roush Racing to form the new entity. Jack Roush will continue to manage the race teams and Geoff Smith will continue as President. FSG will support RFR’s marketing and sales activities (RFR). Red Sox and FSG Owner John Henry said that the reported $50M figure for the deal was “inaccurate,” but declined to give the correct amount (USA TODAY, 2/15). Red Sox COO and FSG President Mike Dee said, “Although there have been many instances of cross ownership in the world of professional sports, this partnership marks the first time that owners of a professional franchise in one of the four major leagues have crossed over into the world of NASCAR.” MLB.com’s Mark Newman reported any Red Sox signage on cars will be “mostly visible at the two NASCAR events in New Hampshire.” Dee noted that RFR’s rights to use Red Sox marks are “limited to New England” (MLB.com, 2/14).
MARKETING: RFR execs said that all “racing-related merchandise with the old Roush Racing logo will be phased out in favor of jackets, hats, and other paraphernalia with the new, green-and-white [RFR] insignia that also will appear on the team’s Fords.” In Boston, Keith Reed notes any revenue earned by FSG on the venture will not fall under MLB’s revenue sharing. But Henry said that that does not mean FSG will be “looking to create a slew of promotions between the racing business and the Red Sox.” The group “plans to look for opportunities where there are more natural synergies.” For example, instead of selling packages of race and baseball tickets together, FSG “will focus on getting sponsors interested in spending money with the Sox, NASCAR, and any other combination of sports properties it represents” (BOSTON GLOBE, 2/15).
DEE: In a Q&A with CNBC’s Darren Rovell, Dee said FSG was “looking to diversify our portfolio.” Dee: “We don’t think we’re going to be able to turn on the faucet one day and make the 12 million Red Sox fans here in New England immediate fans of [RFR], but we think over time the growth of the sport, the popularity of the sport, we think over time many of them will become fans.” Dee said Red Sox fans will “see highlights on the Jumbotron here at Fenway, you’ll see it on NESN, we’ll certainly highlight our affiliation with [RFR], but I don’t think Nextel Cup cars will be traveling around the warning track here at Fenway Park for a game” (CNBC.com, 2/14).
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