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| What is Junior Worth? Steve, some others, and I discussed this over the weekend past. I couldn't find the thread to continue it so I'll pass on the following as info for those who might find it interesting. I DO NOT give these figures as facts, only as info I heard on a radio interview. On a pre-race show Sunday morning, Zack Walker, an official of a sports marketing company Welcome to Just Marketing: The Ultimate Marketing Vehicle the question was asked, "How much is Dale Earnhardt Junior worth to NASCAR?" As best I remember the response (what I give may not be verbatim but it's darn close), this is the reply (All figures below were Walker's best educated guess): All of NASCAR-licensed souvenir and memorabilia gross sales total (grab something solid!) $2 billion dollars!!?? Junior accounts for approximately $600,000,000 of those gross sales. After all cost were taken into consideration (all sales overhead) net profit to Motorsports Authentics (which since last year controls all NASCAR license merchandise) is approximately $200,000,000. Walker put the figure actually getting to Junior as around $14-$20 million. He went on to guess that Junior gets around a $10,000,000 salary from DEI. This plus addition endorsements and winnings put his annual income somewhere north of $40 million. What was amazing to me was the fact that Motorsports Authentics, which controls the $180 million left after Junior gets his cut, is owned wholly by both ISC (NASCAR) and SMI (Bruton Smith). They bought these rights from Action Sports and Caliber Sports (Roush) last year for an undisclosed amount. Since sales in Junior stuff will probably spike when he gets a new car number, new colors and a new team, now might be a good time to consider buying some ISC and/or SMI stock? I won't vouch for the above figures. However, in considering them, they seem reasonable, more or less. But they do indicate that Junior is a VERY VALUABLE commodity to NASCAR and the parent organization has a distinct vested interest in his future.
__________________ Bob I think we ought always to entertain our opinions with some measure of doubt. I shouldn't wish people dogmatically to believe any philosophy, not even mine. Bertrand Russell (1872 - 1970) |
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| Re: What is Junior Worth? I think that Jr. is worth more to NASCAR than any other sport figure in history, with the possible exception of Tiger Woods and here is why. All other sports are defined by "teams". The great players in baseball, football, basketball, etc. are members of a team. When they get traded or leave to pursue greener pastures in free agency, I would say that only a small amount of fans follow them. The fan's allegience is to the team, not the individual. In most cases, the exact opposite is true in NASCAR. I don't care where Jr. goes, the majority of his fans will follow. |