NASCAR cutting race purses by about 10 percent
As part of its cost-cutting measures, NASCAR is decreasing the amount it will pay teams in race winnings by approximately 10 percent in 2010. Dover Motorsports CEO Denis McGlynn told financial analysts about the cut during a conference call Thurs...
As part of its cost-cutting measures, NASCAR is decreasing the amount it will pay teams in race winnings by approximately 10 percent in 2010.
Dover Motorsports CEO Denis McGlynn told financial analysts about the cut during a conference call Thursday, and NASCAR spokesman Ramsey Poston confirmed it Friday morning.
Purses in all three national series -- Sprint Cup, Nationwide and Camping World Truck -- will decrease.
The move will help the tracks, which pay purse fees and a separate sanction fee to NASCAR. Part of the purse fees include television money -- tracks get 90 percent of the television money allocated for a race (NASCAR keeps the other 10 percent), and the tracks then must put 25 percent of the total television money allocated for the race back into the purse. The tracks then also contribute additional purse fees, as computed by NASCAR, with other contingency awards also added to the final purse.
International Speedway Corp. officials reported Thursday that they expect television money will increase by about 2.5 percent this year but ticket revenues and other motorsports-related revenues are expected to drop 4-9 percent.
"Last year we launched an industry-wide effort to help the sport manage budgets in this economy," Poston said in a statement. "NASCAR did the right thing to work with the tracks to reduce their costs in order to manage the economic realities.
"In return, the tracks have done a great job reducing ticket prices and enhancing the fan experience. Likewise, we worked with the teams to contain costs, such as elimination of testing and other steps. This is consistent with how virtually every sport and business has adjusted to the economy over the past year."
Michael Waltrip Racing executive vice president Ty Norris said he expects overall race winnings to end up being neutral when factoring in an increase in television revenue.
"The overall winnings should be close to neutral," Norris said. "The tracks have tried to help fans by reducing prices and this is one place that will be affected. If the fans and the tracks have had to tighten their belts, it's only natural that the teams are asked to participate as well. Fortunately the television revenue share will help offset some of that."