AUGUST 31, 2005

Why Formula One has a lot to learn from NASCAR

The International Speedway Corporation and its rival Speedway Motorsports have announced that they are buying the merchandising company Action Performance for $245m. Action Performance holds many of the licences for merchandise related to the NASCAR Nextel Cup. The two companies have established a joint venture called Motorsports Authentics to produce, market and sell merchandise. There is speculation that Motorsports Authentics will now move to buy Team Caliber, another major marketing operation which is owned by race team owner Jack Roush. If that deal goes ahead it will allow Motorsport Authentics to streamline merchandising operations around NASCAR and create the possibility of complete Nextel Cup merchandise operations being established in stores across the nation and perhaps, ultimately, its own stores in shopping malls.

The move could also spell the end of trailer operations at tracks by creating the possibility of proper shopping facilities at race tracks, which could, in turn, result in NASCAR creating its own malls. This would boost profits for everyone and make it very difficult for those not involved to compete.