Over the past five blog posts I have addressed an array of topics from a broad view of racing to the most notorious racing event in the world, the Indy 500. In this blog post i will be summarizing my ideas on the economics of motorsports.

Racing is cruel to drivers, race teams, workers, owners, and crew members. In racing nothing is given, both on and off the track. NASCAR has had tremendous success in the past few years concerning economics and the popularity of the sport. However, what makes NASCAR difficult from an economic standpoint is the cost of equipment. Team owners, like the legendary Joe Gibbs, pays for all the racing operations. Team workers get paid but there are some teams that do not run good but still pay for all the other costs. This in turn provides a dog eat dog world similar to any other business. NASCAR also polices itself from an economic perspective. They do this partially by limiting the amount of tires a team can be given over the course of a race weekend.

Indycar is also a popular form of motorsports. Indycar is faced with its own sets of challenges in terms of economics. The indycar series is faced with a crossroads concerning TV rights and broadcasting. It seems as if Indycar is a dying sport. Reasons include lack of sponsorship, lack of fan-base outside of the Indy 500, less popular tracks, and other problems. However i find that hard to believe. If anything indycar is becoming more and more popular. The Indy 500 is still the most prestigious race in the world, there are more competitive drivers competing full time, and there are drivers with different nationalities. The sport is beginning to become more popular in other country as well.

Racing isn't just a sport. For so many, it's a way of life. For a moment, everything goes away when attending a race, it's just you, the cars, the track, and the drivers. However, one needs to examine the economic aspects before one decides to enter the sport.