Private Equity Gates Open to NASCAR

This is the Statt Mann Baby. Time to Scatt a little bit.

Three weeks ago, I offered the idea that NASCAR could attract new private equity money if it would put a cap on spending and allow teams to make a profit.

I said it would take five years. Well, it didn’t take five weeks.

This week Joe Gibbs announced he was selling a minority piece of Joe Gibbs Racing to private investors. One is Josh Harris who’s closing a deal to buy the Washington Commanders of the NFL. He also owns the 76ers of the NBA and the New Jersey Devils of the NHL.

With approvals, Gibbs will become a partner in some of Harris’ business.

The other investor in JGR is Arctos Partners, a private equity firm, with investments in 20 sports teams and sponsors.

Now here’s the linkage in all of this.

Harris and Arctos all have relationships with sponsors who need a place to advertise. NASCAR and JGR are on TV weekly and social media daily.

See the connection?

PLUS, Joe Gibbs is almost the Toyota Racing factory team in NASCAR.

Don’t be surprised if Toyota starts appearing in venues owned or controlled by Harris and Arctos.

It’s funny but NASCAR once compared itself to the NFL’s value. Now its tight fists may have the NFL thinking of NASCAR as value added.

Get on board, this train is leaving the station.

Peace.