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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.
2009 Sprint Cup Race for the Chase Standings
Driver Standings after the Checker O'Reilly Auto Parts 500
| 1 | Jimmie Johnson | 6492 |
| 2 | Mark Martin | -108 |
| 3 | Jeff Gordon | -169 |
| 4 | Kurt Busch | -211 |
| 5 | Tony Stewart | -285 |
| 6 | Juan Pablo Montoya | -289 |
| 7 | Greg Biffle | -321 |
| 8 | Denny Hamlin | -352 |
| 9 | Ryan Newman | -411 |
| 10 | Kasey Kahne | -476 |
| 11 | Carl Edwards | -520 |
| 12 | Brian Vickers | -666 |
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