Have a FaceBook, Twitter, or other social networking account?

Link them to your fanatic account!

Add An Account

TAKE ME TO...
NASCAR Sprint-Cup Series
CUP: All Race Purses Cut By About 10 Percent
A trip to victory lane will be worth less in 2010...
Bob Pockrass  | http://www.scenedaily.com  |  Posted January 30, 2010   Charlotte, NC
NASCAR Sprint Cup Series driver Denny Hamlin celebrates in victory lane after winning at Homestead in 2009. (Photo: LAT Photographic)

As part of its cost-cutting measures, NASCAR is decreasing the amount it will pay teams in race winnings by approximately 10 percent in 2010.

Dover Motorsports Chief Executive Officer Denis McGlynn told financial analysts about the cut during a conference call Thursday, and NASCAR spokesman Ramsey Poston confirmed it Friday morning.

Purses in all three national series – Sprint Cup, Nationwide and Camping World Truck – will decrease.

The move will help the tracks, which pay purse fees and a separate sanction fee to NASCAR. Part of the purse fees include television money – tracks get 90 percent of the television money allocated for a race (NASCAR keeps the other 10 percent), and the tracks then must put 25 percent of the total television money allocated for the race back into the purse. The tracks then also contribute additional purse fees, as computed by NASCAR, with other contingency awards also added to the final purse.

International Speedway Corp. officials reported Thursday that they expect television money will increase by about 2.5 percent this year but ticket revenues and other motorsports-related revenues are expected to drop 4.9 percent.

“Last year we launched an industry-wide effort to help the sport manage budgets in this economy,” Poston said in a statement. “NASCAR did the right thing to work with the tracks to reduce their costs in order to manage the economic realities.

“In return, the tracks have done a great job reducing ticket prices and enhancing the fan experience. Likewise, we worked with the teams to contain costs, such as elimination of testing and other steps. This is consistent with how virtually every sport and business has adjusted to the economy over the past year.”

Michael Waltrip Racing Executive Vice President Ty Norris said he expects overall race winnings to end up being neutral when factoring in an increase in television revenue.

"The overall winnings should be close to neutral,” Norris said. “The tracks have tried to help fans by reducing prices and this is one place that will be affected. If the fans and the tracks have had to tighten their belts, it's only natural that the teams are asked to participate as well. Fortunately the television revenue share will help offset some of that."

Roush Fenway Racing President Geoff Smith said the change was not unexpected.

"We cannot and do not expect that purses will increase when the tracks have less revenue to work with," Smith said. "Prize money is shared at RFR among the team, drivers and employees, so we will all have to tighten our belts a little more again this year and hope we can still keep our pants up.

"We look forward with optimism that we will be able to share fully in the upside of the industry's revenue growth as the economy recovers."

SceneDaily.com • Dovers spring Cup race will again promote autism awareness

Watch the 39th Annual Rolex 24 at Daytona on SPEED™!
bob_pockrass's avatar

ABOUT THE AUTHOR

Bob Pockrass

SceneDaily.com

MORE BY THIS AUTHOR
Advertising | Jobs | Feedback | FAQ | Terms of Use | NEW Privacy Policy | Ad Choices | Site Map
Fox Sports | FUEL TV | FX Network | National Geographic | IGN | AskMen
The Motor Sports Authority, SPEED and associated logos are registered trademarks of Speed Channel Inc.
All Rights Reserved © Speed Channel, Inc. 2012

All external links will open in a new browser window. SPEED.com does not endorse external sites.