The future of NASCAR as we know it could soon face major changes. On Monday, Reuters reported that the majority owners of NASCAR are exploring options that include selling the majority stake of the company. NASCAR's founding family, the Frances, are reportedly working with investment bank Goldman Sachs to explore potential deals. The report notes that all discussions are still in the preliminary stages and "no agreement of any kind is certain."
This isn't the first time that the France family has been involved in major talks like these. In January, it was reported that NASCAR chairman Brian France was interested in buying the Carolina Panthers. Brian's grandfather Bill France Sr., founded NASCAR in 1948.
The plot thickened on Tuesday after the Associated Press obtained a memo reportedly written by NASCAR president Brent Dewar addressed to staff. Dewar noted that NASCAR does not comment on "industry rumors" and did not comment on the potential sale.
"For over 70 years, the France family has worked hard to invest in the sport of NASCAR, including our recent acquisitions of ARCA," Dewar wrote. In addition to the acquisition of ARCA, NASCAR has also made multiple personnel changes at the top including the promotion of Steve Phelps to Chief Operating Officer and Jill Gregory to chief marketing officer.
NASCAR is a privately held company and therefore does not disclose earnings, but according to Adam Stern of SportsBusiness Journal, a sale could likely fall between three and five billion dollars. Formula 1 was recently sold to Liberty Media Corp for more than eight billion dollars.
Jordan Bianchi of SB Nation is also reporting that the France family would be willing to sell up to 40 percent of the company in any potential deal.
It's no secret that NASCAR has seen a ratings decline on television. The most recent race at Dover dropped from a 1.9 overnight rating to a 1.7. Ratings have been mostly down this season, with the last real increase occurring during the playoffs last season.
NASCAR's current television contracts with NBC and FOX run through the 2024 season while it's entitlement sponsorship deal with Monster Energy is only extended through the end of next season. It was reported that NASCAR would be exploring a different business model once that deal was up.
It is certainly a changing time for NASCAR, with Dale Earnhardt Jr., Jeff Gordon and others out the door and the next generation of drivers, Chase Elliott, Ryan Blaney, Erik Jones, Alex Bowman and others, failing to secure wins early in the season. In turn, veterans in their 30s and 40s such as Kevin Harvick, Kyle Busch and Martin Truex Jr. are taking more trips to Victory Lane.
This all comes at the same time where fans and drivers are clamoring for more short tracks and schedule changes. The sponsorship landscape is also changing with those like Lowe's and Target pulling out and an attention being focused more on product-based sponsors such as Smithfield Foods, M&Ms and others.