Business of Speed
The Money Behind the Motorsports Industry
By: Tim Frost
Date: September 1, 2018
Careers in motorsports are playing a role in moving the industry forward.
The sports management business is a highly competitive sector where people shore a passion for business and sport. The desire for both underlines the strong commitment to learn, collaborate and excel. The ultimate goal is to win on the track or on the field.
Folks looking to breaking in the sports business, including motorsports can be “who you know” as the first step. A referral provides the introduction that gets you started. The sports industry is a tight-knit community. If someone sees a resume of someone who has worked for another team, track or sanctioning body they can make a call to confirm the background of the applicant.
A career in motorsports management requires a versatile skill set, including business intellect, operational efficiency, marketing, and event management.
An initial internship will get the foot into the door. The stories of long hours, endless travel for race weekends, and compensation levels do not suppress the aspiration to make it to the next level. Working in a business that you enjoy is the ultimate combination.
Getting beyond that initial job require commitment and dedication. It depends on performance. Similar to a driver who gets that first ride, the next step requires results. It then becomes “what you know.” The metrics for job performance in motorsports continues to evolve – ticket sales goals, sponsor retention, cost savings, social media rankings, etc.
Similar to drivers trying to make it to a-main or front of the grid – the talent pool for careers in racing is deep. Everyone is smarter and looking for that edge to be more competitive. The motorsports industry is no longer comprised of just racers; it attracts talent from other leading sports leagues and sectors.
Fan are everything – they buy the tickets, merchandise, and concessions. They are part of a community creating a deep bond with various stakeholders. Expectations are part conversation – they express their feelings about results, rules, drivers, and teams.
The visibility of management and ownership in sports is unique. The racing community reflects this because they are in the garage area, top of haulers, or walking the midway. Perception may not reflect reality, but it is part of the conversation.
The recent news involving Nascar leadership has restarted the discussion. There are many items to consider – ownership, family business, transition, internal / external, etc.
There is similar theme for race team ownership. Many of the top owners have been in the sport for decades and ages are getting older. In addition, their concentration of cars on the grid is highly concentrated.
Succession planning is a key part of any business – racing is no different. Most indicate there are diagrams in place with definitive strategies to be successful into the future. It may or many not involve family ownership or management.
The growth of motorsports into a large commercial enterprise is notable. It competes with major sports leagues and properties. This attracts top talent who may not have spent time under the hood or top of the pit box.
Is that the right formula to succeed? That’s a question that has not been answered.