Tuesday, April 24, 2007

NASCAR Legal Beat

So today two stories I think are newsworthy, and both have to do with the future of a prominent team and NASCAR itself.

Kentucky Speedway revises lawsuit: The group that filed suit in 2005 to get a Nextel Cup race at the track wants to change the specifics of the suit, from getting a race to breaking up NASCAR and ISC. The suit is still sitting in U.S. District Court and who knows when it will be decided. A big thing to me is the number of cases that NASCAR is taking on. I guess they can afford to fight legal battles on several fronts. I personally wouldn't mind seeing the two companies being permanently split. At this point, I think they can exist separately. I would love to see NASCAR act as more of a sanctioning body instead of the all-encompassing monster it is currently. I'll probably be out of college before this case is ever truly decided.

Dale Jr. can have 51%... for $55 million: So, Jr. the great business mind doesn't realize that Teresa won't simply "give" him 51% of the company. DUH. Seriously, he stopped listening? My limited business mind can figure this much out: According to the 2007 Preview & Press Guide, Dale Jr. has earned almost $43 million in race winnings. Add this year's total and he is over. Now, he doesn't personally get all of that money but I'm betting he is living rather comfortably. Now, Jr. also gets millions from Budweiser and other endorsement deals annually. Jr. will need to bring in an investment team to make up the difference if he wants the controlling interest, or take out a huge loan to cover it. Now somehow, I think he can pay that back. At the same time, he won't have that 51% by himself, nor should he. John Henry and the Fenway Group have 50% of Roush, but it isn't him by himself. Jr. could easily be the front of a group that gets the controlling interest of DEI.

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