The Cars on the Track Go Round and Round
Today's paper held news about a rather unique business being established. We are all well aware of the overwhelming popularity of NASCAR racing in the US. However, this is a high-stakes corporate game now, with companies paying enormous sums to get a logo plastered on a quarter panel, or, better yet, a hood or roof.
Furthermore, the market for anything related to NASCAR is especially hot. Embroidered jackets, die-cast metal cars, and even Pepsi cans with the famous #24 on them all fetch big bucks.
So maybe it was inevitable that race fans would try to figure out how they could join the excitement. Enter: Fanz Enterprises.
This is the first fan-owned racing team in NASCAR's history. For $10 per share (minimum purchase 25 shares), you, too, can own a piece of the action.
Imagine going to the track and watching your stock do laps around the track. Imagine seeing the multitudes of race fans wearing t-shirts and jackets with your team name on them. Imagine reaping dividends if your car wins.
Fanz Enterprises envisions fielding several race teams around the country, and anticipates competing in the Winston Cup Series. Everything looks to be high profile, high visibility.
A quick scan of their web site reveals that your investment dollars will be held in a bank until they sell one million shares, at which time the team will begin to materialize. In other words, they need capitalization of $10 million before they can do anything.
Given the number of NASCAR fans around the country, this seems like a fairly simple task.
But I have my doubts about the viability of the whole operation. Imagine a fan-owned team in any other sport. Yes, the Green Bay Packers come close, but that's about it. Those folks are football die hards, and since they've already frozen most of their brain cells by living in the great white north, going to a football game in December is no big deal.
All other professional sports teams, though, are owned by very wealthy individuals or corporations, each of whom seeks out major corporate sponsors to help underwrite the operation (Enron's involvement with the Astros was a good example, albeit one now fraught with a little controversy).
I'm just not convinced the Fanz team will ever produce a solid return for its investors. Ten million dollars really isn't much money in professional sports. They will need infusions of corporate cash sponsorships to help make it all happen.
As for me, I think I'd rather invest in the companies that are sponsoring cars and drivers, rather than invest in the driver himself. The benefits to Anheuser-Busch are enormous whenever Dale Earnhardt, Jr., does well at the track, and likely do A-B more good than it does Dale.
As much as some folks resent the ever-presence of corporations in professional sports, I say let them stay, and let them put their hard-earned money into those cars.
Otherwise, I'd never be able to enjoy a race. I wouldn't see the Fanz car going around the track. Instead, it would be my money doing laps before my very eyes. I'd see a stack of my $10 bills zipping by me at 200mph. And I'd sure hope they wouldn't crash into a wall.
Because it would be like Enron all over again.
©2002 R. Nicholas Gerlich
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