This month, we\nwill take a look going private transactions by the publically traded track\noperators.<\/p>\n\n\n\n
October 2019\nwill be recognized as a landmark in the business of motorsports. Both International Speedway Corporation and\nSpeedway Motorsports will no longer exist as publically traded entities.<\/p>\n\n\n\n
International\nSpeedway Corporation and Nascar announced their intention to merge late last\nyear. The France Family offered to\nacquire the outstanding shares they did not own and take the company\nprivate. <\/p>\n\n\n\n
The initial\noffer of $42 per share was raised to $45, after a set of negotiations,\nlitigation, and review by financial advisors. \nA set of independent directors (non-France Family members) recommended\napproval.<\/p>\n\n\n\n
A proxy vote was\nsent to outsider shareholders and approved by a majority. As a result, shares under the ticker symbol\nISCA would no longer be traded on NASDAQ.<\/p>\n\n\n\n
The\nInternational Speedway Corporation going private deal was valued at $2.0\nbillion.<\/p>\n\n\n\n
International\nSpeedway Corporation was a publically traded company for over 20 years, since\nits IPO in 1996. <\/p>\n\n\n\n
Subsequent to\nthe delisting, International Speedway Corporation was purchased by NASCAR and\nbecome a wholly owned subsidiary.<\/p>\n\n\n\n
Speedway\nMotorsports timeline was shorter. They\nannounced their desire to go private in April.<\/p>\n\n\n\n
The Smith Family\noffered to buy all the outstanding shares they did own, starting with an offer\nat $18.00 per share and ending up at $19.75.<\/p>\n\n\n\n
Total deal value\nwas $800 million taking Speedway Motorsports private.<\/p>\n\n\n\n
The majority of\nNASCAR Cup track was now under the private ownership of the France and Smith\nfamilies. NASCAR \/ ISC would own twelve\nvenues and SMI have eight. <\/p>\n\n\n\n
Why did the\ncompanies go private? <\/p>\n\n\n\n
The primary\nreason was to face the headwinds of a competitive economic landscape.<\/p>\n\n\n\n
Being able to\nmake decisions without the scrutiny of the public markets is attractive. Meeting quarterly analyst estimates and\nexpenses for regulatory compliance will no longer be necessary. <\/p>\n\n\n\n
Decreasing\nattendance, declining television ratings, challenging sponsorship environment,\nand the uncertainty of broadcast contract renegotiation are the industry\nbiggest concerns. The expiration of the tax break for motorsports facilities is\na factor.<\/p>\n\n\n\n
Significant\nchanges are being discussed about the future of the NASCAR Cup schedule. Reducing the number of dates and a shorter\nseason are few of the possibilities.<\/p>\n\n\n\n
The broadcast\ncontracts have been the most consistent and largest source of revenue for track\noperators. The current contract expires in\n2024 and is valued at $4.0 billion. It pays about $800 million annually for a\nbundle of media rights covering NASCAR properties.<\/p>\n\n\n\n
Uncertainty over\nthe renegotiation is significant, due to rapidly changing media landscape. A guaranteed increase is not a given, and\nplateaued levels are possible.<\/p>\n\n\n\n
The sponsorship\nmodel is being redesigned to offer tiered levels. Series entitlement and category exclusivity\nwill no longer be the focus. Flexibility\nand bundling of rights with a multiple properties will be the norm.<\/p>\n\n\n\n
The key to\nfuture is strategic flexibility. The\nFrance and Smith families are making significant commitments to the future of\nthe sport. They have the backing of the\nfinancial institutions. They must be willing to innovate and make changes. The racing community will ultimately benefit\nfrom the right decisions.<\/p>\n\n\n\n
(Note: Effective October 2019, the BOS \u2013 Stock Index\nwill no longer reflect data for International Speedway Corporation (ISCA) and\nSpeedway Motorsports (TRK) since they have gone private and not traded on\npublic exchanges.)<\/p>\n","protected":false},"excerpt":{"rendered":"
This month, we will take a look going private transactions by the publically traded track operators. October 2019 will be recognized as a landmark in the business of motorsports. Both International Speedway Corporation and Speedway Motorsports will no longer exist as publically traded entities. International Speedway Corporation and Nascar announced their intention to merge late […]<\/p>\n","protected":false},"author":5,"featured_media":714,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/businessofspeed.com\/index.php?rest_route=\/wp\/v2\/posts\/710"}],"collection":[{"href":"https:\/\/businessofspeed.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businessofspeed.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businessofspeed.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/businessofspeed.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=710"}],"version-history":[{"count":1,"href":"https:\/\/businessofspeed.com\/index.php?rest_route=\/wp\/v2\/posts\/710\/revisions"}],"predecessor-version":[{"id":711,"href":"https:\/\/businessofspeed.com\/index.php?rest_route=\/wp\/v2\/posts\/710\/revisions\/711"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businessofspeed.com\/index.php?rest_route=\/wp\/v2\/media\/714"}],"wp:attachment":[{"href":"https:\/\/businessofspeed.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=710"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businessofspeed.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=710"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businessofspeed.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=710"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}