The Economics Of NASCAR As a Whole

SOURCE: http://a1.fssta.com/

INTRODUCTION

NASCAR, the National Association of Stock Car Auto Racing, is the most widely known motorsports series in North America. Racing isn't just a sport of inches, it's a sport of seconds, and speed. With 43 engines humming in harmony down the backstretch in harmony and flying in formation around superspeedways, there's nothing that gets people more excited, anxious, and up off their seat. However, without the economies that are a part of NASCAR, people like myself may never have seen the sport grow to what it is today.

Basic Overview

NASCAR is a family owned enterprise dedicated to stock car racing. It is lead by it’s president, Mike Helton, and CEO, Brian France, whose grandfather Bill France not only started NASCAR, but also built the iconic Daytona International Speedway.. NASCAR is the most prestigious and followed motorsport circuit in the world. NASCAR does not just include the prestigious Sprint Cup Series, it also includes the NASCAR Xfinity Series, NASCARS second top touring series, and the NASCAR Camping World Truck Series. This gives NASCAR at most three different events per week which the sport can make money. NASCAR gets revenue from ticket sales, merchandise sales, headset sales, food sales, track sponsorships, and obviously the sponsors on the cars. Some might be wondering what happens to the workers at the track. Well think of it like this. If  NASCAR wants to race at a certain track, then NASCAR must pay the track owners if they want to hold their venue at that particular track. The money collected during the race weekend by NASCAR, which is still a fairly decent profit, will go to providing  teams with necessities such as fuel, tires, carbon fiber, engines, and other parts.

How is NASCAR Benefiting In An Economical Way Over The Past Two Years?

A big part of NASCAR revolves around sponsors. In the article "From Back Alleys To Big Bucks" Over the course of one season (36 races per series), NASCAR will earn over three billion dollars in sponsorship dollars. This does not only include the sponsors on the cars, but also track sponsors, manufacturer sponsors, equipment sponsors (goodyear, sunoco), and TV sponsors. People might find it hard to believe , but NASCAR is the second most watched sport in the US, behind only the NFL. Over the course of a regular year, 75% of the most attended sporting events included NASCAR races, according to Investopedia.com. The biggest race of the year, the Daytona 500, almost always brings in the most sponsors and TV audience. Recently, there have been two big moves in the world of broadcasting concerning NASCAR racing. They include;

1. NASCAR’s Move To NBCSN. NASCAR, NBC, and FS1 had made an aliance. NASCAR has decided to leave the TNT and ESPN networks and make NBC and Fox their home. With the growing popularity of hockey, and football, NASCAR will now be able to promote their sport in front of a much larger tv audience through commercials.
2. NASCAR has been increasing the number of commercials promoting their races. Not only has NASCAR been promoting the races, but NASCAR has also been heavily promoting the playoffs, or more oftenly called the C