[simple simon]

Dover's two Nextel Cup races will cost the track more than $11 million in sanction fees in 2007, according to its annual report. The June race's sanction fee (including Dover's contribution to the purse) is $5,914,346, and the September purse contribution and sanction fee is $5,293,075. (The figures are for this year, not 2006, as SceneDaily initially reported.) Dover Motorsports operates four speedways - Dover International Speedway, Gateway International Raceway, Memphis Motorsports Park and Nashville Superspeedway. The company also listed an "impairment charge" of more than $61 million for Nashville, Memphis and Gateway - devaluing the value of those tracks because of the lower-than-anticipated television revenues generated by the four Busch races at those tracks. Dover expected the new TV deal, which went into effect this year, to allot a bigger percentage to Busch races than the 5 percent allocated in the 2001-2006 package. But NASCAR is allotting only 5.75 percent of the new contract for Busch events. With that impairment charge, Dover reported an overall loss of $35.345 million last year. It's after-tax adjusted earnings for last year were $5.7 million, the same as for 2005.(SceneDaily.com)(4-10-2007)

Jayski's® Silly Season Site - Dover International Speedway News

[simple simon]

i found that interesting ......... though not sure if i follow all of it

NASCAR is charging Dover $11 million to hold the races there ? ....... that sounds a little extreme

and Dover lost all this money ..... how do they stay in business ?

[Bob Tanner]

Originally Posted by simple simon

i found that interesting ......... though not sure if i follow all of it

NASCAR is charging Dover $11 million to hold the races there ? ....... that sounds a little extreme

and Dover lost all this money ..... how do they stay in business ?

From a layman's point of view this look suspiciously like: If your favourite track isn't owned by either ISC or SMI (Bruton Smith), be afwraid, be vwery awfraid.

[LSC9901]

I won't try to argue for those fees but when you have 140,000 people come to your community and $pend money, maybe the 11 Million isn't so tough to come up with. If they all spent $100 in the community (now that's a stretch !!) that would be over $14 Million. That times 2 races is a lot. Granted it isn't all profit but then again not many will come in and spend only $100.00 either. It must be profitable or they'd toss the races out.

[Racer Duck]

LSC, you're only talking about ticket sales. Think about how many bodies come with the cars. They need places to sleep and eat and whatever for 3-4 days - they bring a lot of $$$ to the community. The track gets the $$$ from ticket sales and parking and concessions and ??? so their take is considerably more than the $14M in ticket sales.... In return they have to put up the purse.

But I don't like what I see NA$CAR doing with TV money. In the old days, the sanctioning body added a % of the TV/Radio monies to the purse and gave the track a healthy slice also because they're the ones that have to put up with the media all over the place... wonder if they still do? I wouldn't bet on France the Younger letting go of a buck if it wasn't absolutely necessary...

[LSC9901]

RD .. when I mentioned the $10 I was thinking in the city of Dover not ticket sales. That is aprtly why I said that the $100 was a real stretch. Food and lodging would be great if you could do it for $100 but I think you need to add a zero.

[Racer Duck]

Originally Posted by LSC9901

RD .. when I mentioned the $10 I was thinking in the city of Dover not ticket sales. That is aprtly why I said that the $100 was a real stretch. Food and lodging would be great if you could do it for $100 but I think you need to add a zero.

roger that.

still, the track does all right or they wouldn't be in business.

saw my brother race at Dover in '72 from the infield .. only time I've been there .. he said it was like driving in a tunnel - couldn't see very far into the turns .. they had a sulky track on the infield side of the inside wall: interesting....

[oncea3fan]

dover is a whole different track today compared to 1972, it's a different track since a first went in 90.
also you better believe that the dover casio bring in a poop load of cash, we always go south about 20mi. to harrington . the're slots are looser then dover's

yes that is a colleage across from dover downs, dover is a horse track the rest of the year.

[wingkey1]

Article kinda leaves ya with - well pretty much nothing.

$11M. Yeah, so. Is this more, less or the same as any or all other tracks / track owners. Can't draw anything from this. Is this good, bad, ugly, fair, unfair, etc.

Then there's the "impairment" charge. Think that's what it was called. Essentially a devalue of a business segment based on less than anticipated revenues. Called a "loss" in the article, followed near immediately by a statement saying they made +$5M for the year.

Weak.

[LSC9901]

Great point. Just how much do the locals make when the rednecks come to town ??? Interesting figures I bet.

[wingkey1]

Originally Posted by LSC9901

Great point. Just how much do the locals make when the rednecks come to town ??? Interesting figures I bet.

Yup, Yup!!

As you know from previous posts, I'm "there" both races every year. What many do not realize is that "Dover Motorsports" is a segment of an enterprise that includes a casino, hotel, horse racing (track inside of car track) all at the Dover track location. Things happen there year round. On race weekend especially the casino, hotel, and associated eateries are friggin' mobbed. Would not at all be surprising if the race itself was a "let's break even here just to get the percentage of 140,000 that eat and gamble. Let's see, eat likely in the 100% range. Gamble in the - can't even guess.