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Friday
February 16, 2007
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More NASCAR Teams Selling Ownership Stakes To Investors

Jack Roush Joins Trend Of NASCAR
Owners Selling Stakes In Teams

NASCAR team owners are beginning to sell “pieces of the entire operation” to investors amid “spiraling costs for labor and intense pressure to spend millions ... to remain competitive,” according to Erik Spanberg of the CHARLOTTE BUSINESS JOURNAL. Evernham Motorsports is looking for an investor that can “not only pour cash into its motorsports empire but also help secure more ties to corporate sponsors,” and Roush Racing earlier this week announced a partnership with Fenway Sports Group giving it a 50% stake in the team. SMI President Humpy Wheeler said, “This is just the tip of the iceberg. I wouldn’t be surprised if, in the next decade, every team has an equity investor.” Spanberg writes Richard Childress “pioneered” the concept by selling part of his race team to N.Y.-based Chartwell Investments in ’03. Chartwell brought “more fiscal discipline, tighter budget controls and a determined strategy to reinvest in the racing operation.” Chartwell Partner Bill Reid said, “It’s become a very complicated sport. A lot of these guys started out with one car and one team. Now they have four or five (teams) or more. You need a lot of capital to be able to afford building for the long run.” Spanberg notes revenue and income “have increased each year since Chartwell and Childress became partners.” While declining to give specific figures, Reid said the investment has produced “a very good return” (CHARLOTTE BUSINESS JOURNAL, 2/16 issue).

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