General Discussion » Can Tony Jr do for Brad what he couldn't do for Dale?
There weren't that many bad calls on timing and pitstops.
Earnhardt Jr. team switch boosts Motorsports Authentics
By Bob Pockrass - Associate Editor
Thursday, April 10, 2008
Jonathan Ferrey
Getty Images
Motorsports Authentics had a $10.1 million turnaround from the first quarter of 2007 to the first quarter of 2008, making company executives cautiously optimistic about breaking even this year.
The merchandise company rode, at least in part, the wave of Dale Earnhardt Jr.’s change from Budweiser to National Guard and Amp as well as the change in his team and number to help post a $3.6 million profit. It lost $6.5 million in the first quarter last year.
“We really challenged ourselves from day one to turn a profit in ’08,” Motorsports Authetnics CEO Mark Dyer, who joined the company last June, said in a phone interview with NASCAR Scene Wednesday. “It’s been good to see some smiles on people’s faces after a difficult year.”
MA is a 50-50 partnership of track-operating rivals Speedway Motorsports Inc. and International Speedway Corp.
The company lost nearly $43 million last year and the companies wrote-off another $69.5 million.
“While it is early in the year and MA is susceptible to future economic challenges, we are very pleased with the progress that we’re seeing in that business,” ISC Chief Operating Officer John Saunders told financial analysts Wednesday.
Dyer, a former NASCAR executive, said there were several factors that led to the turnaround: The new Earnhardt Jr. product line, the
reorganization of Motorsports Authentics' staff as well as a consolidation of merchandise haulers sent to a track on a weekend. The company had enough inventory to fulfill demand at Daytona without having much Daytona-oriented product that would have been considered obsolete after the event, cut a substantial amount of overhead and also allowed some of its less-profitable licensing contracts expire or be renegotiated.
There are still some merchandise haulers that are not making money and will be re-evaluated.
“We’re doing a much bigger average per trailer because of eliminating a lot of unprofitable trailers,” Dyer said. “We’re bringing a
lot more to the bottom line. With the exception of Dale Jr., there’s not much growth on a trailer per trailer basis. There are a small handful of drivers that are showing some gains this year.
“The tough economy shows up at the track and the amount of dollars they can bring to an event and buy souvenirs and do the whole experience. But so far, the trackside business has held in there very well.”
Mentioned Drivers: Dale Earnhardt Jr.
Popular News
Recent Headlines
-
Brian Vickers, Scott Speed give Red Bull Racing front-row sweep at Chicagoland
Comments (10) -
Dale Earnhardt Jr. doesn't blame media for slow start to season
Comments (4) -
Closing date on Memphis Motorsports Park sale extended to September
Post Comment -
Roush Fenway's Carl Edwards shoots to top of charts in final Nationwide practice
Comments (1) -
Joe Nemechek secures sponsor for his Nationwide, Cup teams
Comments (1)
Poll PositionView All
Was anyone at fault for the mayhem at the finish of the Coke Zero 400 at Daytona International Speedway?
Promotions
-
Play "WIX Filters' Pick 3" stock car fantasy and win prizes. Season 2 is now in session!
-
Tweet your thoughts about each race and join the conversation with other fans.
-
Drive an authentic NASCAR Sprint Cup car at the Jeff Gordon Racing School.
-
Play our simulation racing fantasy game. Free with promo code "FREECRD".
No Comments
Be the first to comment on "Earnhardt Jr. team switch boosts Motorsports Authentics". Login or sign up for a free account to post your comment