NASCAR Merchandise News
Updated: 2010
Thursday, March 11, 2010
NASCAR nears licensing agreement with teams: Seven months of negotiations have put NASCAR and its top teams in position to create the first NASCAR Properties, a trust that will serve as a centralized licensing agency for the sport. The unnamed unit will operate as a one-stop shop for licensees, but a key difference from other previously established league-licensing divisions is that revenue will be distributed to the teams based on sales and not a revenue-share agreement. The licensing body is being called a trust because one body - NASCAR Properties - will hold the rights and grant licenses on behalf of the teams. Participation by the teams will be voluntary, but the top teams such as JR Motorsports, Hendrick Motorsports, Joe Gibbs Racing and Roush Fenway Racing are in, as are several others that own valuable rights, like Dale Earnhardt Inc., which manages the late racing icon's legacy business. The teams have agreed to include only certain categories so far, like apparel. Team executives involved in the formation of the trust say it might take the rest of the spring to finalize the arrangement, but it's been called "imminent" by multiple sources. The negotiations to unify the licensing rights were prompted by the financial troubles of Motorsports Authentics, the dominant licensee in the industry. MA, which has been on the verge of bankruptcy for the past year, owes millions to several teams. As part of the arrangement to create NASCAR Properties, teams will forgive MA for most of its debt. Industry insiders say that even the most ardent opponents of MA have come to grips with losing that revenue. MA's contracts with the top teams like Hendrick Motorsports and Roush Fenway Racing guaranteed as much as $3 million a year, but MA has been paying only a third to a half of the guarantee to the teams. MA's die-cast car business will be spun off into a separate entity and will be managed by a third party, industry sources said. Revenue from the die-cast business will be shared among the teams as a way to satisfy part of MA's debt. MA is expected to continue as a much leaner company that focuses strictly on trackside retail sales.(Scene Daily)
Friday, January 8, 2010
Jeff Gordon: Dale Jr. can save NASCAR souvenir industry: Jeff Gordon believes the entire souvenir industry can be saved if Dale Earnhardt Jr. can be competitive again. His fans are extremely loyal and passionate to the third-generation driver and his father. “I think Junior has got a lot of staying power,” Gordon said. “He’s got a huge appeal, but I do think it’s a little bit different now that he’s not at DEI and he’s at Hendrick. It seems like the fans are saying, ‘OK, now you’re at the powerhouse team, show us what you’ve got.’ ” (Savannah Morning News)
Tuesday, January 5, 2010
Unsold Earnhardt Jr inventory to blame for terrible NASCAR memorabilia market: NASCAR memorabilia collectors have taken a direct financial hit. Thanks to an overproduced, massive glut of inventory, overinflated prices and now a soft economy, the NASCAR collectible market is a bust. The latest indication of that fact came last week when Motorsports Authentics - the top producer of NASCAR team diecast and clothing in the sport - filed an extension with the United States Securities and Exchange Commission. Jointly owned by Speedway Motorsports Inc. And International Speedway Corporation (NASCAR’s parent), Motorsports Authentics is on the verge of bankruptcy losing more than $20 million in the final nine months of 2009. MA’s recent financial hemorrhaging is just the latest round of bad news for the company which was created in 2005 when SMI and ISC spent nearly $250 million to buy the then struggling Team Caliber and Action Performance companies. Since then, Motorsports Authentics has been a huge cash black hole losing $7.878 million in 2006 and $42.975 million in 2007 (not including a massive business write down of $69.499 million that year). The company then turned a small $3.199 million profit in 2008 before the wheels completely came off last year. Motorsports Authentics indicated in Wednesday’s filing that the company has an additional $23.4 million in guaranteed debt still to be paid - including seven-figure sums to several top NASCAR teams including Roush-Fenway, Dale Earnhardt Jr., Hendrick Motorsports and Stewart-Haas Racing. Much of the company’s financial issues are reportedly tied to large quantities of unsold Earnhardt, Jr. merchandise and a bankruptcy filing could cost SMI alone upwards of $12 million. (Racing Nation)
Wednesday, December 23, 2009
Motorsports Authentics attempts to restructure to avoid bankruptcy: In an all-out effort to avoid bankruptcy, the joint owners of Motorsports Authentics (MA) are attempting to reorganize the troubled licensed merchandise company and settle the millions of dollars it owes several NASCAR teams. MA's 50-50 owners, International Speedway Corp. and Speedway Motorsports Inc., have been in constant contact with the top teams since the end of the season, with one of NASCAR's top executives, senior vice president Paul Brooks, acting as a mediator. It's uncertain exactly how much MA owes the teams, but its contracts with the best-selling organizations such as Hendrick Motorsports, Roush Fenway Racing and Dale Earnhardt Inc. guarantee each of them close to $3 million annually, industry insiders say. MA, which has lost money in three of its four years in existence, has been paying a portion of those guarantees, about a third to half, based on their merchandise sales. Officials from ISC and SMI declined comment, citing the continuing nature of the negotiations. But team officials characterize the talks as frustrating because there remains no clear merchandise plan for the sport and the season-opening Daytona 500 is less than two months away. MA is responsible for most of the sport's trackside retail activity and much of its licensed merchandise, although that model could change as part of the company's restructuring. Most team officials say they're willing to forgive some of the debt from MA, but they need a clearer understanding of the plan going forward before agreeing to a settlement. MA generated more than $200 million in revenue in 2008, the only year it has turned a profit, but MA's revenue this year will be a little more than $100 million, industry insiders say. The die-cast division accounts for a little less than half of the company's revenue.(Sporting News)
Tuesday, December 15, 2009
Man pleads not guilty in NASCAR merchandise scheme: A Los Angeles man has pleaded not guilty to running a Ponzi scheme that cheated about 50 investors in a NASCAR merchandise wholesale business out of at least $10 million. Federal prosecutors say 63-year-old Eliott Dresher was arraigned Monday and ordered held pending trial in U.S. District Court. The U.S. attorney's office says Dresher claimed investors' money would be used to buy NASCAR apparel and sell it to stores. He claimed he had $70 million in various accounts and his business would return 20 percent every six months. Prosecutors say Dresher ran his scheme for about 10 years before it collapsed last year when he couldn't make payments to investors.(Associated Press)
Wednesday, October 7, 2009
Looming bankruptcy for Motorsports Authentics? Motorsports Authentics, an equally owned merchandise joint venture between race-track owners International Speedway Corp (ISCA.O) and Speedway Motorsports (TRK.N), has received default notices from certain licensors, regulatory filings show. In a filing with the U.S. Securities and Exchange Commission, Speedway Motorsports said Motorsports Authentics had stopped paying certain guaranteed royalties in its third quarter, and was attempting to renegotiate agreements with all significant licensors of NASCAR merchandising. "MA is exploring other business strategies to turn its business around. If such efforts are not sufficient or timely, MA could ultimately pursue bankruptcy," the filing said.(Reuters)
Thursday, May 21, 2009
NASCAR Kids doll in production: NASCAR and Original Appalachian Artworks have joined forces with leading toymaker JAKKS Pacific to produce NASCAR 'Kids, a crop of distinctly designed Cabbage Patch Kids in likenesses celebrating NASCAR's top drivers. The first NASCAR 'Kid to speed to the checkered flag will be Dale Earnhardt Jr. NASCAR's most popular driver is scheduled to debut his 'Kid counterpart on QVC Friday, May 22 during QVC's For Race Fans Only broadcast at 8:00pm/et. The next NASCAR 'Kid to hit the road will be Jeff Gordon, who is scheduled to make his appearance in Fall 2009. NASCAR 'Kids, will have the signature birthmark of Xavier Roberts and an authentic birth certificate showing the driver's actual birth date. The Adoption Fee is $45.12.(CNN Money)
Wednesday, March 18, 2009
Motorsports Authentics lays off 15 % of workforce: Motorsports Authentics, a joint merchandising venture by the country's two largest speedway owners, laid off 40 employees Wednesday, said Joe Mattes, the company's new interim president. The cuts represent about 15 percent of the Charlotte-based company's workforce, and between 250 and 300 employees remain, Mattes said. Named interim president last week, Mattes said he and senior managers spent recent days analyzing the company's workforce and processes before cutting the 40 positions – 33 of them full-time."It was from the manager level to the customer service level,” he said of the layoffs. “Every facet of the organization was reviewed.” (ThatsRacin)
Thursday, February 26, 2009
EA Sports NASCAR sim on hold: Today NASCAR news announced that developer Electronic Arts, who have exclusive rights to developing games based on the popular racing franchise, have put the driving sim on hold for now while they review the current business model. With the recent release of NASCAR Kart Racing for the Wii, it’s clear that EA is looking find a more casual friendly audience with which to share its NASCAR series, and as such have placed plans for NASCAR 2010 on hold while they make a decision about what will best benefit both companies. EA’s Randy Chase stated that the "old game was more for the simulation players, the serious gamers" whereas the Wii game is considered "more lighthearted, something that’s more fun for the entire family. We look at it as a respectful caricature of the sport." (GameFocus)
Wednesday, January 21, 2009
Motorsports Authentics CEO resigns: Motorsports Authentics (MA) announced today that President & CEO Mark Dyer has left the company effective immediately. Don Hawk, a member of MA's Board of Managers, has been appointed on an interim basis to oversee the day-to-day operational and financial management of MA while a search for Dyer's replacement is conducted.(Motorsports Authentics PR)
Dec. 2, 2005
Shareholders approve sale: Shareholders of Action Performance Cos. have approved the company's acquisition by Motorsports Authentics, a joint venture between Speedway Motorsports Inc. and International Speedway Corp. The transaction is slated to close Dec. 9. Action, which is based in Tempe, Ariz., markets and distributes licensed motorsports merchandise, including collectibles, apparel and other memorabilia. About 70% of the company's 2004 sales related to NASCAR through licensing deals with many of the sport's teams and drivers. When the deal was announced in August, the companies said Motorsports Authentics would pay $13 per share for Action Performance. That was an 8.4 percent premium on Action's closing price the day before the deal was announced. On Thursday, Action closed at $12.76 per share. (Charlotte Business)
Sep. 8, 2005
ISC, SMI to buy team Caliber: Motorsports Authentics, the new joint venture of International Speedway Corp. and Speedway Motorsports Inc., has bought the Team Caliber collectible company, Street & Smith's SportsBusiness Daily reports. Team Caliber was owned by Roush Racing owner Jack Roush, and the purchase means Motorsports Authentics will now add Roush drivers Kurt Busch, Mark Martin, Matt Kenseth, Greg Biffle and Carl Edwards to its lineup. The company also would get merchandise rights to Ryan Newman, Joe Nemechek and Brian Vickers, among others. (NASCAR Scene Daily Newsletter)
Sep. 1, 2005
NASCAR 2006 hits store shelves: Electronic Arts announced today that the latest version of its EA SPORTS(TM) branded NASCAR(R) videogame, NASCAR(R) 06: Total Team Control, has shipped and is available at retail stores. With new squad-based racing controls, players can communicate with teammates through the crew chief and spotter, working together to bring home top 5 finishes for the whole team. NASCAR 06: Total Team Control challenges gamers to build a multi-year dynasty with the first-ever Squad-Based Racing experience. Players are able to radio to teammates for assistance, while managing on-track partnerships, or take the wheel of a teammate's car in the middle of a race to fend off rivals by utilizing the new car swap feature. With all-new game controls, and using real-time voice commands, players can communicate with the crew chief, spotters, and on-track allies to help punch through the pack. When racing without a headset, enjoy easy to use controls and communication by selecting commands with the controller's right analog stick. Players are able to upgrade pit-crews, vehicle attributes, and overall team management and attempt to outperform real-world NASCAR teams or even buy a top NASCAR team like Hendrick Motorsports. Earn the title of Teammate, Champion, and Hero in NASCAR 06: Total Team Control. NASCAR 06: Total Team Control is produced by EA Tiburon for the PlayStation(R)2 computer entertainment system and Xbox(R) video game system from Microsoft. The game has an MSRP of $49.99 and is rated "E" for (Everyone) by the ESRB. The game's official website is www.totalteamcontrol.com. (EA Sports PR)
Aug 30, 2005
ISC and SMI partner to buy Action Performance: International Speedway Corporation , Speedway Motorsports Incorporated and Action Performance Companies Inc. today announced the following: ISC and SMI have partnered in a joint venture, which will conduct business under the name Motorsports Authentics, to create a leader in the production, marketing and sales of motorsports licensed merchandise, including apparel and souvenirs. Motorsports Authentics will operate as an independent company with ISC and SMI as equal owners. . Motorsports Authentics has entered into a definitive agreement to purchase Action for $13 per common share, or approximately $245 million, in cash. The acquisition is structured as a merger of a wholly-owned subsidiary of Motorsports Authentics into Action, and the surviving entity will be operated by Motorsports Authentics. The acquisition is expected to close by calendar year-end, and is subject to several conditions including Action shareholder approval, regulatory approvals required under the Hart-Scott-Rodino Act, consents and certificates from certain counterparties to Action's material contracts as well as the lack of any material adverse event to Action's business. For more information about Action Performance and its many subsidiaries, please visit the Company's corporate Web site at www.action-performance.com. (SMI PR)
Aug 24, 2005
SMI and ISC to buy Action: In an unusual pairing, the France family's International Speedway Corp. and Bruton Smith's Speedway Motorsports are teaming to buy Action Performance, which sells racing souvenirs, for a reported $13 a share, according to sources close to the negotiations. Action Performance and the Jack Roush-owned Team Caliber are the top two souvenir companies in the NASCAR world, and Daytona executives have been interested in acquiring souvenir rights to all NASCAR stars in order to package them as part of a stock-car racing "mall" at each of the Nextel Cup tour's top tracks. (Salem-Journal)
Aug 22, 2005
Gordon and Johnson featured on EA Sports NASCAR: Electronic Arts announced today that its EA SPORTS™ branded NASCAR® videogame, NASCAR 06: Total Team Control, will feature NASCAR NEXTEL Cup Series teammates Jeff Gordon and Jimmie Johnson. The two avid “gamers” personify the focus of this year’s game - Team Racing. “It’s amazing how EA continues to innovate and make the game more fun for gamers and the drivers year after year,” said Gordon, driver of the number 24 DuPont Chevrolet. Jimmie Johnson, driver of the number 48 Lowe’s Chevrolet, expanded, “The addition of the team racing really changes the game in an amazing way. It’s not just about you, the driver. Now, you are challenged to manage a whole team, using your on-track relationships with other drivers and especially your teammates to bring home the NASCAR NEXTEL Cup Series Championship and build a racing dynasty.” ...NASCAR 06: Total Team Control for the PlayStation®2 computer entertainment system and Xbox® video game system from Microsoft will be on store shelves September 1st and is rated “E” for (Everyone) by the ESRB - Electronic Arts, Inc. PR More Information at www.easports.com(EA Sports PR)
July 22, 2005
It's in the Game, NASCAR '06 Total Team Control: Encompassing all of the best elements from previous games in the series, NASCAR 06 takes things a step further by introducing the first ever squad-based racing experience. Aptly named Total Team Control, this new and innovative feature offers a rich selection of interactive choices that allows you to communicate with every member of your team, both on and off the track. Fans are guaranteed to love it since it offers an ever greater, more authentic racing simulation experience. Even newcomers will be hard pressed to dismiss the game's overall level of excellence. This isn't hyperbole, folks: NASCAR 06 is just that good. In a creative move, NASCAR 06 offers players a brief taste of a common feature that you're bound to use very often, known as Dynamic Car Swapping. Introduced as an interactive tutorial set during the Daytona Pepsi 400 circuit, you'll fill the shoes of Jimmy Johnson, one of NASCAR's finest, who winds up a roadside wreck after colliding with a rival driver. Fortunately, his teammate Jeff Gordon just happens to be tailing the lead racer, giving you an opportunity to borrow his wheels and get another shot at the win. (Screen Shots and Video at GameSpy)
July 20, 2005
New NASCAR themed game: WizKids has announced a licensing agreement with NASCAR for Race Day, a "constructible racing game" featuring cars of 22 of the top drivers and cars in the NASCAR NEXTEL Cup Series, including Jimmie Johnson, Jeff Gordon, and Tony Stewart. Race Day will be sold in $3.99 game packs, each of which will include everything two people need to get into the race: two random constructible cars, one resource card, a set of rules, a die, and a track play mat. There are 30 cars to collect, each with its own special ability and rarity. Players can build their car collections out of additional game packs, which the company said will be available wherever trading cards are sold. WizKids also publishes two other constructible strategy games: Pirates (which includes two series: the Spanish Main and the Revolution), and Rocketmen: Axis of Evil. (Whiz Kids PR)
July 6, 2005
NASCAR Apparel sells up huge: NASCAR is not only fast and furious, it's downright fashionable. Sure, there's talk of tire pressure and transmissions down in the pits, but high on the hill here, where the souvenir trailers are parked, tank tops and toe rings are the hot topics. There are ample baseball hats and T-shirts to pick from, but NASCAR is also increasingly popular with fashionable female shoppers, who represent about 30 million of the sport's fans. On June 25-26, thousands of fans attended the Dodge/Save Mart 350, the annual Northern California stop on the Nextel Cup circuit. They came for the 10 turns of road-course racing, and they came to shop for that most trendy piece of clothing--or jewelry--that seals the fashion bond between fan and driver. It was clear that there's pentup demand: California doesn't have nearly as many brick-and-mortar stores that sell Nextel Cup clothing as say, North Carolina, says Joe Mattes, vice president of e-commerce for NASCAR.com in Charlotte. "California is our No. 1 state" for online shopping, Mattes says, followed by the Northeast (New York, Ohio, Pennsylvania) and then Texas. Mattes reports a 28 percent growth in sales last year, with apparel making up more than 50 percent of the buying. (Chicago Tribune)
June 15, 2005
More on Undercover Counterfeit Sting: Undercover officers were so successful halting sales of counterfeit merchandise during this month's NASCAR race weekend that Dover International Speedway officials plan to conduct similar stings at future races. The team of officers, disguised as racing fans, seized about 3,500 T-shirts, hats, flags, stickers and rain ponchos from illegal vendors at the Speedway, Speedway spokesman Gary Camp said. He could not provide a definitive value for the seized merchandise. Eight vendors caught selling the unlicensed merchandise were held and questioned. No one was charged, he said. "Through collaboration with Dover International Speedway, the FBI, Delaware state and Dover police, we were able to significantly reduce the sale of counterfeit merchandise," Dover police Maj. Ray Taraila said. (DeleMarvaNow)
June 11 2005
NASCAR Seize illegal merchandise: The police say putting the brakes on counterfeit sales at Dover's NASCAR race last weekend was a huge success. Law enforcement officers removed and fined, eight illegal vendors during the race held at Dover International Speedway. Raceway officials, the FBI, and Delaware police agencies worked together. They went undercover looking for counterfeit merchandise. "It was a difficult operation in some sense because you're not looking for the legal vendors who have their booths set up," said Capt. Lester Boney of the Dover Police Department. (WBOC)
May 23, 2005
At least 35 NASCAR Official Stores, First in Orlando: The Orlando Harley-Davidson power couple and their business partner, Mike Bozic, have chosen Orlando as the headquarters for American Road Retail LLC, the exclusive national licensee, owner and operator of the new NASCAR Official Stores retail concept. Moreover, the trio will open their first NASCAR store this July in a 1,100-square-foot storefront next to their Harley-Davidson store near International Drive and Sand Lake Road. "We decided we were familiar with the available market and talent in the area because of Harley," says Anne Deli, also co-founder and president of HD American Road LLC, which owns the Harley-Davidson Orlando dealership. "Plus, we like Florida's business friendly environment. It made a lot of strategic sense to us." The decision comes just weeks after the Delis and Bozic officially announced their partnership with NASCAR to develop a retail chain of stores in the nation's top 20 tourism markets and top 35 U.S. airports. (BizJournal)
May 10, 2005
NASCAR to Open Offices Tomorrow in Bentonville: NASCAR will be the latest business to open an office in Bentonville, racing officials said Tuesday. The office, which is scheduled to open Wednesday, will help give the stock car-racing organization a presence near Wal-Mart. The nation's largest retailer has a big stake in selling many different NASCAR-licensed products. NASCAR spokesman Kerry Tharp says the licensing office will help NASCAR have a greater presence among companies that make its merchandise and sell NASCAR items. Tharp said the office will help spread the NASCAR brand name. Reigning NASCAR Nextel Cup series champion Kurt Bush will be on hand for wednesday's opening ceremony. (TheHometownChannel)
May 3, 2005
Fake Merchandise Seized: Law enforcement officials seized more than $160,000 worth of counterfeit merchandise during last weekend's NASCAR race in Talladega, Ala. Immigration and Customs Enforcement (ICE) spokesman Marc Raimondi says more than 7,000 items were confiscated. (USA Today)
April 19, 2005
NASCAR Office in Bentonville, Ark: NASCAR will become the first sports property to open a licensing office in Wal-Mart's hometown of Bentonville, Ark., Street & Smith's SportsBusiness Journal reports. The office is designed to offer a direct link between the sanctioning body, its sponsors, its license-holders and Wal-Mart, which sells NASCAR-licensed products in more than 30 departments. Larry Helton, national retail operations manager for the Gillette Co., who is no relation to NASCAR President Mike Helton, has been hired to run the office. (Scene Plus)
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