Motorsports Authentics reports 50m dollar loss, lays off 20 percent of staff
Quote selected text Published December 12th, 2007 in NASCAR News
The Motorsports Authentics licensed-products business will lose between $45 million and $50 million in 2007, International Speedway Corp. reported during a conference call Wednesday with financial analysts to discuss 2008 projections.
ISC, which will record a write-off of $25 million to $50 million in 2007 from Motorsports Authentics, projects that the business will break even in 2008.
“While we are clearly disappointed in the magnitude of the [write-off], we continue to believe the sale of licensed merchandise represents a significant opportunity in the sport,” ISC Chief Financial Officer Susan Schandel said.
Motorsports Authentics, a 50-50 partnership between ISC and Speedway Motorsports, has laid off more than 20 percent of its staff and has changed certain operational procedures.
- Speedway Motorsports reports loss for third quarter
- Motorsports Authentics reports 2007 losses
- Motorsports Authentics to lose $15M-$20M, cites Dale Jr’s team switch as reason
- Motorsports Authentics opens headquarters for Raceweek
- Motorsports Authentics nears deal with Dale Earnhardt Jr
Funny I read a column on NASCAR.com about fans sick of NASCAR’s crap stopped buying NASCAR gear! Weird!
Fans not happy, not as much merchandise sold!
You do the math NASCAR!
NASCAR is going the way of Rome.
refuses to wake up and look at the real picture.
Ratings down, losing money in sales, losing overall market share. The
Reasons to a common sense person are obvious.
NASCAR has left it’s “roots”. It was in the historic past………GOD, country and racing in that order.
Now it is market share, ratings, market share, ratings, market share, ratings over and again, more accurately defined as money,money,money……..a cancer which will do great harm.
Did NASCAR worry about this as the racing giant was growing? Of course not.
NASCAR, it is suggested you remember “what brung you to the dance”. It was GOD, country, racing, and all the rest naturally followed.
I hold little hope that we will see any real change…………..so as Rome went so NASCAR will follow.
Another fine business screwed up by the France family! Does it ever end?
This is what happens when your business model involves putting all its eggs in one basket!
But didn’t this loss already get blamed on Dale Jr. because he changed teams ??
Maturity, I like your little Rome theory but wake up, ALL Business is “about the money”.
As a consumer I’m interested in what I will get for MY money that I spend at the track and for licensed products.
So I would say that it is not the money NASCAR makes it’s what they give back for it.
That means if the company is not making a profit and there customers are unhappy then it is bad management that is really the cause of the problem.
That can be fixed by France staying home and sipping a scotch and leaving the real management to the people that were trained to do it.
Don’t worry, with all the new Jr merchandise they will make record amounts of money next year.
Also while I’m not 100% sure about this, but I bet this loss has something to do with the fact that the actual suplies used to make the Merch cost more, but the prices haven’t gone up.
MATURITY wrote:
Does that mean that Brian is going to move into a little village inside Daytona Speedway….? l0l j/k
But also in relation to your post, what does god have to do with NASCAR?
Let’s not forget that the real loss is in the 20% cut back..
That means that just before the holiday season 1 in every 5 people working for this company is now with out a job. The sad part is it could have been avoided if only ISC had better management.
Cut backs are a fact of life but they are especally hard at this time of year. If you work for a company that has it all togeather then count yourself as one of the lucky few.
“Fishy” Its hard to belive that you think material costs were to blame for a 45 million $$ write off…
Junior was blamed but as I recall his #88 die cast was selling like crazy! This company was cranking out the new #88 stuff since the announcement back in the summer. And those people in China needed a cost of living raise too. Rice goes up every 10 years (lol).
Bob, never said it had every thing to do with it, just that it was part of the reason. Also its not just ISCs management, SMI is involved too.
As long as you have goofs like the current France family line up and their peers calling the shots, we’re gonna have problems.
MATURITY: Leave your GOD nonsense at home! You want to be a religious nut job, fine, but keep it to yourself!
To real8fan
Thanks a lot for your comment that I should leave my GOD nonsense at home. You know, that is where I do conduct my devotions. I thank you for reading my comments.
If one should throw a rock into a lorge crowd of people, the one hit would scream the loudest.
One remaining pleasant action of NASCAR is the prayer before the races. Hurts no one and intorduces, invokes the peace and protection of GOD. Many are grateful that NASCAR brings GOD into the racing business.
I will be thinking of you and remembering you. And. please be sure, this is not an angry response, just a peacefull reply.
Maturity
And what the heck does that have to do with this topic? You should take you SPAM and go someplace else.
Fishy 69 :
God will be happy to know you have demoted him to SPAM IN A CAN status…
He has a point in that NASCAR does provide a prayer before the races and has done so long before you were around and nobody seems to mind that.
What has any of this to do the topic ???
Nothing I can see but when has that stopped you or me or any one else around here from expressing a off topic comment now and again…
POINT= show some respect for other ideas as we do yours.. If it keeps up then you can crap on them.
I have about 30 JOHN FORCE collectibles and my pic of JOHN’S car last year his parachutes are on the outside of the wing and my collectible has them on the inside which is ( a pain in the ass ) pardon me for saying. so let me no what you are goona do for 09 please.