Back in April, I wrote a blog post about “Petty Enterprises Final Days”. Well my friends, that day has arrived and Richard Petty has surrendered control of their family’s storied racing team in order to ensure the team’s survival in 2009 and beyond.
This week Petty Enterprises became a part of the growing trend of NASCAR teams who have sought partners for necessary investment capital. Petty announced that Boston Ventures – a media and entertainment private equity firm – has acquired a majority position of the historical racing team.
With this announcement, Petty Enterprises adds its name to the list of racing teams co-owned or controlled by billionaires, near-billionaires and investment firms. NASCAR faces an interesting transformation and perhaps even a dilemma. Teams that had formerly been owned by Crew Chiefs and former Drivers are now owned by professional businessmen and investors who may be far less accommodating to NASCAR’s antiquated financial model and unilateral rule changes; and be far more demanding about reforms. NASCAR corporate has continued to retain the vast majority of television contract revenues; leaving teams struggling to simply survive; and others to join a long list of defunct teams.
The older generation of NASCAR team owners failed to understand and quite simply take advantage of a simple fact – without drivers and teams, there is NO NASCAR. With the new professional owners, undoubtedly changes will be sought. But will team owners be successful? – Only time will tell. Regardless, if team owners want a long-term and viable business, successful restructuring will be required and it will take their unity and decisive action.
As a former NASCAR team owner, digital media executive and avid observer of NASCAR for almost two decades, I believe that the new breed of NASCAR team owners have the ability to leverage their position to secure a reasonable and adequate distribution of revenues and hopefully securing the long term future of our sport.