Race-track owners look to NASCAR fans to save 2009

By Dhanya Skariachan - Analysis

BANGALORE (Reuters) - As the pall of economic turmoil and a beaten-down auto industry hang over the NASCAR racing circuit, race-track owners are banking on loyal fans and a slew of promotional activities to survive the crisis.

However, International Speedway (ISCA.O) and Speedway Motorsports (TRK.N) -- which dominate the racing landscape -- face reduced corporate spending, especially from the critical auto sector, but also by spending-wary consumers.

"2009 will be a challenge," International Speedway senior vice president Roger VanDerSnick said. "We'll see some pullback on the sponsorship side and see some pullback on the consumer side."

Attendance at ISC fell in the high single digits, percentage-wise, this year, and declines could be a little worse in 2009, he added.

Attendance problems have driven down ISC stock 33 percent this year, while rival Speedway's shares have lost half their value over the same period.

In response to the smaller crowds, track operators have kick-started initiatives to promote the sputtering stock-car racing sport and make trips to the tracks more economical.

ISC, whose tracks include the home of the popular Daytona 500, is offering tickets at significantly reduced prices, free children's passes and "all-you-can-eat" tickets in which food and beverage are pre-paid.

"Over a 100,000 seats for next year will take a price decline," VanDerSnick said.

Speedway Motorsports, which owns several tracks including Lowe's Motor Speedway, is going a step further and offering fans a chance to mingle with the drivers by allowing them to visit areas they previously could not access -- track surfaces before the race, and infield areas before and during the race.

Race-track operators are also counting on falling gasoline prices to boost attendance at tracks next year. The average NASCAR fan drives about 300 to 400 miles to a race.

"We are very excited that for the season coming up, the fans will have 60 percent less fuel costs to get to the events," Speedway Motorsports' Chief Operating Officer Marcus Smith said in a telephone interview.

However, in addition to smaller crowds, the race track companies also dealt with lower spending on concessions and merchandise by those who did come to the races.

ISC, for instance, saw at-track spending fell by as much as the low double digits at some tracks.

"Instead of maybe buying a T-shirt and a hat, they are only buying just the hat," VanDerSnick said.

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