Merchandise industry overhaul begins as teams, NASCAR band together to form licensing trust
The NASCAR licensing industry took the first step in its transformation Wednesday as NASCAR announced the formation of the NASCAR Teams Licensing Trust, which will license apparel, diecasts, toys and trackside retail for its members.
Among the teams that are part of the trust are Dale Earnhardt Inc., Earnhardt Ganassi Racing, Hendrick Motorsports, Joe Gibbs Racing, JR Motorsports, Michael Waltrip Racing, Penske Racing, Richard Childress Racing, Richard Petty Motorsports, Roush Fenway Racing, and Stewart-Haas Racing.
Previously, each team negotiated its own licensing deals with merchandise companies – most with Motorsports Authentics, which is owned by track-operating companies International Speedway Corp. and Speedway Motorsports Inc.
But Motorsports Authentics, which was formed when ISC and SMI bought Team Caliber and Action Performance for approximately $247.5 million, has been unable to pay the guarantees in its contracts with teams and drivers, according to filings with the U.S. Securities and Exchange Commission.
ISC and SMI list Motorsports Authentics as having no net worth.
Now, the NASCAR Teams Licensing Trust will handle the negotiations for the teams with merchandise companies, with the teams getting revenue from their sales. The current NASCAR licensing staff will represent the trust for the initial calls, said NASCAR spokesman Tom Sullivan. All approvals will be made by the board, which will consist of John Bickford (representing Jeff Gordon Inc.), Scott Hammonds (Hendrick), Joe Mattes (JR Motorsports), Brooks Busby (Stewart-Haas), Dave Alpern (JGR), Jamie Rodway (Roush Fenway), Ty Norris (MWR), Walter Czarnecki (Penske), Steve Lauletta (Earnhardt Ganassi), Jeff Steiner (DEI), Michael Brown (RCR), Kevin Scanlon (RPM), Paul Brooks (NASCAR) and Blake Davidson (NASCAR).
“This is a landmark moment for our sport and great news for our loyal fans,” said Hendrick Motorsports owner Rick Hendrick. “There was a need to improve the structure of this business, and NASCAR and its teams worked together in an unprecedented manner to make this happen.”
Which companies will create the diecasts and apparel has not been finalized, Sullivan said. The future of Motorsports Authentics is still to be determined but it is expected to play a role in the at-track sales of the merchandise.
“The creation of this new organization is one that the fan might not notice today but will receive the benefit from tomorrow and beyond,” said Richard Childress Racing owner Richard Childress. “Merchandise in our sport is one of the great ways our fans communicate their passion and support of NASCAR. We want to provide them with the best quality products to do so, and this will help offer them a wider selection of merchandise representing a much bigger offering of drivers.”
