Will Banks Be Buying NASCAR?

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

I had conversations lately with a couple NASCAR contacts. They confirmed what I think.

Within the next five years NASCAR will be flooded with owners who represent private equity banks and hedge funds.

Those financial streams took over Formula One when rules changed to cap spending in that sport. Once it theoretically became possible to make money in racing, people started queuing up to get involved.

We’ll see the same in stock car racing if the Race Team Alliance can negotiate spending caps in NASCAR. We’ll see owners who want to leap into the industry if the sport can create ways to salvage profits from the millions invested.

Spending caps wouldn’t hurt NASCAR. Car makers need stock car racing to sell stock cars. But Wall Street thinks losing money in racing is stupid.

Solve that problem and NASCAR will be flooded with money and I think the race teams know that. That’s why they’re playing hardball with NASCAR at the bargaining table.

Stay tuned…

Peace.