Buyers Hesitant for NASCAR Neighborhood?

This is the Statt Mann Baby. Time to Scatt a little bit.

NASCAR is famous for left hand turns. But right now it’s approaching a figure-8 intersection with few trying to avoid the inevitable crash.

The issue is the NASCAR charter system. When it was adopted in 2016 charters were supposed to give the teams a way to attract investors and make money.

They work something like the equity in your house. If you’re in a good neighborhood, that equity grows because buyers are standing in line to buy a piece of that neighborhood.

But charter equity is challenged when neighborhood stability is challenged. NASCAR’s latest charters expire at the end of the season when its media deal ends.

There’s a new, larger media package in place but the teams that own the charters want to renegotiate for a larger piece of that new deal. The teams say they’re going broke but NASCAR won’t budge.

And that’s where we are, headed for an intersection and no one’s reaching for the brake. Think the 2008 Housing Bubble… and the debris left behind.

NASCAR likes to compare itself to the NFL. But the NFL has revenue sharing, stability, and makes billions a year. NASCAR doesn’t, its stability is questioned and so are its annual revenues.

Pay attention the next few months if you like witnessing a massive game of chicken coming to one neighborhood on America’s sports horizon.

Peace.