Motorsports Authentics to lose $15M-$20M, cites Dale Jr’s team switch as reason
Quote selected text Published July 10th, 2007 in NASCAR News
Motorsports Authentics, the biggest seller of NASCAR merchandise, will lose $15 million to $20 million in 2007, International Speedway Corp. announced today, thanks in large part to Dale Earnhardt Jr.’s planned team switch next season.
In reporting its second-quarter earnings, ISC reported that the move of Dale Earnhardt Jr. from Dale Earnhardt Inc. to Hendrick Motorsports will heavily impact the Motorsports Authentics’ performance. Motorosports Authentics is 50 percent owned by ISC and 50 percent by Speedway Motorsports Inc.
“More than half of the decline is associated with Dale Earnhardt Jr.’s decision to leave DEI at the end of 2007, resulting in lower merchandise sales in multiple distribution channels,” the company said in its news release. “To a lesser extent, some of the shortfall is driven by a more challenging consumer economic environment than was anticipated at the beginning of the year by the joint venture.
“Despite the lowered outlook, ISC continues to believe Motorsports Authentics has significant potential for generating solid growth in earnings and cash flow over the longer term.”
- Motorsports Authentics reports 2007 losses
- Motorsports Authentics reports 50m dollar loss, lays off 20 percent of staff
- Motorsports Authentics nears deal with Dale Earnhardt Jr
- Motorsports Authentics opens headquarters for Raceweek
- Motorsports Authentics forecasts loss due to big driver changes
Again, nothing to do with racing.
DRAMA!
I call bull****! A move will spur sales, as everyone will want ’special farewell collector edition’ #8 Budweiser cars and then they’ll all want to scoop up the new Hendrick-Earnhardt diecasts.
Whatever their financial woes are, it’s not due to this move, they’re using it to get off the hook for some other mismanagement.
Good, I hope they lose making diecast cars. I have a friend that had to close down his racing shop because Motorsports Authentic are assholes. They don’t give the cars to dealers, they just give them to the trailers and the shops.
a move will spur the sales, but not for this period. until dale officially gets a new number and sponsor they have no way to make money off of him. until then they may see losses
Take it out of Teresa’s earnings. That should make it fair!
So, who says DEI wont suffer?
Pigs get fat, hogs get slaughtered. Su eeeee!
Axel Foley
Jul 11th, 2007 at 7:18 pm
So, who says DEI wont suffer?
AGREED ! WHERE DO I THROW MY HAT . AT HER OR IN THE D E I TRAILER
hahaha. I say at her. You might start a trend.