[vincesanity82]

Motorsports Authentics, the biggest seller of NASCAR merchandise, will lose $15 million to $20 million in 2007, International Speedway Corp. announced today, thanks in large part to Dale Earnhardt Jr.'s planned team switch next season.

In reporting its second-quarter earnings, ISC reported that the move of Dale Earnhardt Jr. from Dale Earnhardt Inc. to Hendrick Motorsports will heavily impact the Motorsports Authentics' performance. Motorosports Authentics is 50 percent owned by ISC and 50 percent by Speedway Motorsports Inc.

"More than half of the decline is associated with Dale Earnhardt Jr.'s decision to leave DEI at the end of 2007, resulting in lower merchandise sales in multiple distribution channels," the company said in its news release. "To a lesser extent, some of the shortfall is driven by a more challenging consumer economic environment than was anticipated at the beginning of the year by the joint venture.
"Despite the lowered outlook, ISC continues to believe Motorsports Authentics has significant potential for generating solid growth in earnings and cash flow over the longer term."
ISC, which owns several race tracks and whose majority of voting stock is owned by the France family, also predicts that it will spend $6 million to $7 million in litigation costs associated with Kentucky Speedway's antitrust lawsuit against NASCAR and ISC.
"ISC believes more strongly than ever that the vague allegations of the complaint are totally without merit," the company said. "At this point the company also believes the likelihood of a materially adverse result appears to be remote, although there is always a level of uncertainty."
The company also reported lower than expected performance from its recent Michigan and Daytona race weekends. Michigan was impacted by the sluggish economy in the region and Daytona was impacted by weather in recent years.
ISC reported second-quarter net income of $18.4 million, compared to $30.7 million last year. The difference is in part because television rights fees are lower this season as well as ISC's buying out Raceway Associates' portion of Chicagoland Speedway; ISC's decision to discontinue speedway development in Kitsap County, Wash.; ISC's continued fill of the land for the failed Staten Island project in order to sell it; and accelerated depreciation of existing offices and buildings expected to be razed in the next couple of years.
ISC also announced that it expects total earnings to be $2.80-$2.90 per diluted share compared to a projection of $3.05-$3.15 per diluted share when the year began.


Motorsports Authentics to lose $15M-$20M

[LSC9901]

Does someone have a hanky I can borrow. I feel the pain.

[PettyBlue]

ISC and SMI can both go broke for all I care.

[jks812]

So they make over 18 million and we're suppose to feel bad cause they didn't make 30 million?

[Quality88]

Originally Posted by PettyBlue

ISC and SMI can both go broke for all I care.

They are one in the same anyways..... so I agree with you.

[wardfan]

when I get done feeling sorry for Exxon I'll start crying for Motorsports Authentics

[Bob Tanner]

I have no sympathy for either ISC nor SIM, in this deal. In fact, I think it's a real hoot.

However,

The capitalist in me thinks that if they can find people who care so little for keeping wealth that they gladly pay $25 for a five dollar shirt and similar extravagances, then good for Motor Sportsd Authentics. Was it Arnie Rothstein who said, "It's a mortal sin to let a fool keep his money!"

[PenelopePitStop]

Trust me, I have no sympathy for ISC or SMI, but I'm surprised that Jr. has such an impact ... even though I am a fan. I would think that fans would be scooping up the Bud 8 novelties.

[Nevadastars]

[Racer Duck]

Originally Posted by LSC9901

Does someone have a hanky I can borrow. I feel the pain.

that was my reaction .. a tear rolled down my cheek while I was reading that sad story.

then I got to the part where the France family has controlling interest in ISC and then the rays of sunshine started comin' thru.

and when I remembered that the France's are gonna loose the Kentucky law suit, life was grand again. I wanna lay down in a field of flowers and do snow angels or maybe it's flower angels .. no matter. ain't life grand!!!

uh, can somebody help an old duck up? I'm not as spry as I used to be....

[Pepsi One]

Yea I agree that him going to HMS would boost sells, and even if it did decline which I doubt, wont they make the money back when fans purchase all his Mountain Dew stuff, oops I leaked it!

[LSC9901]

Originally Posted by Racer Duck

uh, can somebody help an old duck up? I'm not as spry as I used to be....

During one of your jumps of joy just remain upright. Problem solved.

[Pepsi One]

Originally Posted by LSC9901

During one of your jumps of joy just remain upright. Problem solved.

Racing Milestones has an article this month about how you should feel bad if you buy knock off merchandise of your driver because its like stealing money out of their pocket, I'll remember that the next time one of them pull up in their newly purchased chopper!