Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

International Speedway Corporation (ISCA), Speedway Motorsports, Inc. (TRK): Three Ways to Make Tons of Money Owning a NASCAR Track

NASCAR was hit hard by America’s recession, but that doesn’t mean track owners aren’t making money — it’s just that they’ve had to be more creative to do so. While admissions sales have declined, broadcasting revenues have increased — and even with a slow economy there’s still lots of money to be made.

So let’s take a quick look at three ways NASCAR track owners bring in the revenue.

Race-day ticket sales
When the recession took the steam out of NASCAR ticket sales, International Speedway Corporation (NASDAQ:ISCA) was one operator of several that reduced the seating capacity at some of its tracks to create more demand. At Daytona International Speedway Corporation (NASDAQ:ISCA) reduced capacity by 46,000 — about a third of all seating — by ditching the back-stretch seats and increasing the size of existing ones.


Las Vegas Motor Speedway. Source: Chief Master Sgt. Gary Emery (public domain).

But even with the decline,  International Speedway Corporation (NASDAQ:ISCA) made $66 million from tickets sales from January to May this year — but that’s down from almost $69 million from the same time last year. Likewise, Dover Motorsports, which operates Dover  International Speedway Corporation (NASDAQ:ISCA) and Nashville Superspeedway, brought in $4.86 million in admission sales in the second quarter of this year — but that’s down from $5.32 million the same time last year.

With admissions sales on the decline — although still lucrative — track owners have looked to bring in additional revenue during events.

Event-related revenues
Although ticket sales are an important revenue stream for track owners, there are still other ways to make money. While not all of the companies that own NASCAR tracks report event-related revenue in the same way, this category can include things such as luxury suites, merchandise, concessions, and catering.

Tracks such as Las Vegas Motor Speedway and Texas Motor Speedway — both owned by Speedway Motorsports, Inc. (NYSE:TRK) — have luxury RV spots that provide a great view of the track, as well as TV feeds, wireless Internet, and a concierge — for a mere $15,000. The price includes things such as pre-race pit passes for the coveted Sprint Cup races and other special membership access.

Aside from entertaining racing fans, Dover Motorsports hosted the Firefly Music Festival at its Dover, Del., track back in June, which helped the company earn $4.64 million in event-related revenue in the first six months of this year — up by $559,000 from the previous year.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.