Motorsports Authentics forecasts loss due to big driver changes
Quote selected text Published October 4th, 2007 in NASCAR News
Motorsports Authentics, the predominant NASCAR merchandise provider, will lose $20 million to $25 million in 2007, according to a new forecast from International Speedway Corp., which owns half of the company with track-operating rival Speedway Motorsports.
In July, it was announced the company would likely lose $15 million to $20 million.
“The primary contributor to this outlook was associated with Dale Earnhardt Jr.’s decision to leave DEI,” ISC Chief Operating Officer John Saunders said during a conference call with financial analysts. “This resulted in significant reduction and cancellations of pending and anticipated merchandise orders.
“Since July, several additional significant team and driver changes for 2008 have been announced, which has negatively impacted the sale-ability of existing merchandise.”
Those other changes included Kyle Busch’s move to Joe Gibbs Racing, Kasey Kahne’s sponsor move from Dodge to Budweiser, Joe Gibbs Racing’s transition to Toyota and Ginn Racing’s merger with DEI, Saunders said.
“This year has been very unusual in the total number of high-profile driver and team changes - also the timing of these changes, which is earlier than usual, exacerbates current year’s sales and inventory issues,” Saunders said.
Bookmark to:
- Speedway Motorsports reports loss for third quarter
- Motorsports Authentics reports 50m dollar loss, lays off 20 percent of staff
- Motorsports Authentics reports 2007 losses
- Motorsports Authentics opens headquarters for Raceweek
- Motorsports Authentics nears deal with Dale Earnhardt Jr
I’m sure they’ll make more than double what they loose off of JR. alone next year
gkirb wrote:
Exactly. Almost all merchendise for all teams that
were mentioned in the article will double.
Gee, the France Family screwed everyone over when they purchased the company and now they want us to feel sorry for them! No tears here, Brian.
Dont Cry to much with the changes come sales of the new gear and merchandise
The numbers will come back before the 2008 season starts I’m sure.
I can’t wait to support my favorite Driver DALE JR!!!!! and
purchase my new JR gear!!!!! OH yeah!!!!
Everyone will be scrambling to be decked out in the newest Jr style so I am confident that they will gain it all back and besides…won’t they be able to do something on their taxes with that…prolly be just a write off anyway! In the long run it will mean more money for them. I myself will run right out and buy, buy, buy.