Ambetter Health’s Post

NASCAR is prepared to cut their nose off to spite their face! Yes, team charters need to be permanent, but the bigger elephant in the room is really ownership of the overall league... the sport... the "brand". Survival is a globally recognized sports league self-ruled by 36 charter team owners. Things change in 77 years. People... places... products... evolve with their surroundings. Today, the sport deserves to be operated by the stakeholders that love it> the charter team owners, drivers, sponsors, fans. And, the France family deserves to be rewarded with riches beyond the loftiest dreams of William H.G. France, Sr., ("Big Bill"). The operation cannot be autocratically managed because the feedback loop is unable to provide the information required to successfully react to the changing nuances of a multi-billion dollar ecosystem. One person, Jim France, representing the interests of the Founding France Family has the ability to unlock the logjam which could easily double the revenue, and profits, derived from the league/brand. Jim, if you would let go and open your arms to accept what the global marketplace of private equity is prepared to offer and provide, history will look kindly upon you. Continue to hold the sport close to your vest, and it will soon fail all around you. Your family will always have a fun product, but you will never be the National Football League (NFL), Major League Baseball (MLB), National Basketball Association (NBA) or National Hockey League (NHL). Tried to suggest this via past commentary to such members of media as Ken Belson The New York Times, Bob Pockrass FOX Sports, Eric Jackson Sportico, Adam Stern Sports Business Journal, Jared Allen PROSPORT Management, David Rumsey Front Office Sports, Dustin Long NBC Sports, Randall Williams Bloomberg, and Michael Ozanian Justin Teitelbaum Forbes. Ford Motor Company, Chevrolet and Toyota North America recognize the need to partner with the sport, and American Honda Motor Company, Inc. is ready, but hesitant, to enter the competition. Suggested that Goldman Sachs is close and understands this opportunity w Nicole Pullen Ross, Dave Dase and Greg Carey. To date, my posts have been direct and on point. Hope we don't squander the opportunity... https://lnkd.in/gig5jAQ2 https://lnkd.in/gnfVVADh https://lnkd.in/gjKrwABm https://lnkd.in/gA47_xHZ

Revving Up Change: Michael Jordan’s 23XI and Front Row Motorsports Challenge NASCAR’s Charter System In a major shakeup for motorsports, Michael Jordan’s 23XI Racing has joined Front Row Motorsports in filing a federal antitrust lawsuit against NASCAR, accusing the organization of monopolistic practices. The lawsuit alleges that NASCAR and its CEO, Jim France, have employed anti-competitive tactics, stifling fair competition in the sport and limiting opportunities for teams, drivers, sponsors, and fans. At the heart of the dispute is NASCAR’s “charter” agreement, a system that guarantees teams a share of the sport’s revenue. After two years of tense negotiations, most Cup Series teams signed a seven-year extension, but 23XI and Front Row Motorsports refused, citing unfair terms. The teams argue that NASCAR’s take-it-or-leave-it offer left them with no choice but to file suit, as their valuable charters—worth millions—were on the line. 23XI Racing, led by Jordan, has expressed frustration with NASCAR’s leadership, calling for a system that promotes healthy competition and fair profits. “I love the sport of racing… but the way NASCAR is run today is unfair,” Jordan said. Represented by renowned antitrust lawyer Jeffrey Kessler, the teams are demanding changes to how revenue is shared and how decisions impacting their costs are made. “Everyone knows that I have always been a fierce competitor and that will to win is what drives me and the entire 23XI team each and every week out on the track,” Jordan said in a statement. “I love the sport of racing and the passion of our fans, but the way NASCAR is run today is unfair to teams, drivers, sponsors and fans. Today’s action shows I’m willing to fight for a competitive market where everyone wins.” #michaeljordan #nascar #businessnews #blackexcellence #blackcommunity #blackculture #BlackOwnedBusiness #EntrepreneurSpotlight #CommunityVoices #BusinessInspiration #sports

Integrating Diversity into Motorsports: A Strategic Approach to Reparations The potential scale of reparations for Black Americans could impact 10 million to 40 million individuals. A creative channel for these resources is introducing 107 new minority-owned race teams into motorsports. This initiative addresses diversity and offers strategic smart growth in racing. Cost Breakdown for the Motorsports Initiative Racecars: $8,988,000 Trucks & Trailers: $7,490,000 Facilities: $3,000,000 Tires: $1,926,000 Fuel & Maintenance: $2,000,000 Support & Staffing: $5,000,000 Contingencies: $2,840,400 Summary: Initial Setup Cost: ~$19.5 million Annual Operating Costs: ~$8.9 million Total First-Year Cost: ~$31.2 million Strategic Growth and Impact Incremental Expansion: The racing ecosystem can handle incremental growth. Introducing teams gradually (10-15 per year) is ideal, as it allows for fine-tuning and manages the production limitations of specialists. Economic Multiplier Effect: New teams will create jobs and stimulate local economies, driving significant development in minority communities. Training and Development: Comprehensive training programs are crucial for success. Partnering with professionals ensures competitiveness and sustainability. Diverse Representation: More minority teams can increase diversity and provide a pathway to NASCAR, attracting new fans and sponsors. Community Engagement and Sustainability: Promoting the program through media and community events will build support. Revenue streams from merchandise, tickets, and sponsorships will sustain the initiative. Conclusion: A motorsports initiative for minority communities is a significant investment with a potential profound impact. Integrating 107 new teams can create career opportunities, drive economic development, and foster diversity. This approach creatively addresses reparations while positioning motorsports as a leader in inclusive growth. #Motorsports #DiversityInRacing #Inclusion #Reparations #EconomicGrowth #SmartGrowth #CommunityImpact #MotorsportsInnovation #RacingDiversity #CareerOpportunities #SustainableGrowth #SportsIndustry #NASCAR #MinorityInvolvement #RaceForChange

And NOW, we interrupt your regularly scheduled programming for a post about the Indy 500, and more largely the motorsports industry. 🏎 🏍🖲 💚 ❤️ 💛 💙 🖤 Manufacturing, technology, and life sciences are big economic impacts for many state economies. Racing, while niche can also greatly impact a community and state. In North Carolina, the motorsports industry accounts for $6B. In Henry County, Georgia, their track draws $250M in economic activity. In Indiana, the IMS, the oldest operating racetrack in the United States, hosts the world's largest single-day sporting event, the Indianapolis 500 in May.  It's a sight to behold. Even more impressive, the Indy 500's impact during the month of May is more than half of the state's economic activity, about $1B in total. 😮 😲 🤯 Communities focusing on a particular industry, like racing, can see that economic impact really racks up. Sources: https://lnkd.in/g_HpMxq8 -https://lnkd.in/g4vnUCq2. #incentives #growyourbiz #mayisforracing

Are you aware that NASCAR is back in Chicago? This weekend's second Chicago Street Race is a chance for NASCAR to deliver on what it planned last year before torrential rain disrupted the event. The big picture: The 2.2-mile course that weaves through Grant Park was a tough sell to a city not as consumed with racing as other sports, but NASCAR is using it to attract a wider, more diverse fan base. Friction point: Even before last year's event was disrupted by rain, commuters were mad about street closures in the Loop, downtown residents and alders complained about noise and pollution, and Taste of Chicago fans were frustrated the event lost its summertime Chi slot. Between the lines: Former Mayor Lori Lightfoot brokered the city's contract with NASCAR, which runs through 2025, so some thought Mayor Brandon Johnson would wave it goodbye once he took office in 2023. -The agreement can be terminated with at least 180 days' notice without compensation or damages. Reality check: He didn't. But NASCAR and the city negotiated for six fewer days of race set-up and breakdown — from 25 to 19 — for this year's race. What they're saying: "Our unparalleled skyline provides a stunning backdrop for NASCAR's television and streaming audiences, and that's to say nothing of the economic benefits that come with the event," Chicagoland Chamber of Commerce CEO Jack Lavin told Axios in a statement. Zoom in: Saturday's lineup includes The Loop 110 (50 laps), performances by Buddy Guy, the Black Keys and the Chainsmokers, and Q&As with drivers. -The big race, Grant Park 165 (75 laps), is Sunday at 3:30pm with performances by Lauren Alaina and Keith Urban earlier in the afternoon. -NBC will also broadcast the races. If you go: Two-day tickets start at $269 and go up to more than $3,000 for hospitality suites. -New this year is a general admission one-day ticket for $150, with kids free on Saturday and $45 on Sunday (alongside an adult ticket). -Metra has also announced more trains will be running for the event. #nascar #chicago #grantpark #downtown #racing #city

As Chris Van Den Elzen has built VDE Racing from the ground up, we have learned so much about how motorsports marketing centers entirely around the people and relationships in our sports, not on the racing at all. Unfortunately, this concept is not well understood and athletes at all levels of racing, whether grassroots or professional, struggle to build their race program because of it. Ultimately, this inspired us to launch Racer on Demand - a company built on the vision of revolutionizing the way fans and racers interact by building a platform that fosters connection and modernizes motorsports marketing. Today, we hit a huge milestone and launched the Merch Marketplace. This marketplace allows fans to shop for racer merchandise all in one place. Our MVP has launched with racers from Champ Off-Road, the premier short-course off-road series in the U.S., but we have plans to scale to more motorsports and series as we grow. Twenty-five racers are set up to sell on the marketplace as of our launch, and we've got more joining every day! Take a moment to check it out - we'd be grateful for the traffic and the feedback. https://racerondemand.us

Are you aware that NASCAR is back in Chicago? This weekend's second Chicago Street Race is a chance for NASCAR to deliver on what it planned last year before torrential rain disrupted the event. The big picture: The 2.2-mile course that weaves through Grant Park was a tough sell to a city not as consumed with racing as other sports, but NASCAR is using it to attract a wider, more diverse fan base. Friction point: Even before last year's event was disrupted by rain, commuters were mad about street closures in the Loop, downtown residents and alders complained about noise and pollution, and Taste of Chicago fans were frustrated the event lost its summertime Chi slot. Between the lines: Former Mayor Lori Lightfoot brokered the city's contract with NASCAR, which runs through 2025, so some thought Mayor Brandon Johnson would wave it goodbye once he took office in 2023. -The agreement can be terminated with at least 180 days' notice without compensation or damages. Reality check: He didn't. But NASCAR and the city negotiated for six fewer days of race set-up and breakdown — from 25 to 19 — for this year's race. What they're saying: "Our unparalleled skyline provides a stunning backdrop for NASCAR's television and streaming audiences, and that's to say nothing of the economic benefits that come with the event," Chicagoland Chamber of Commerce CEO Jack Lavin told Axios in a statement. Zoom in: Saturday's lineup includes The Loop 110 (50 laps), performances by Buddy Guy, the Black Keys and the Chainsmokers, and Q&As with drivers. -The big race, Grant Park 165 (75 laps), is Sunday at 3:30pm with performances by Lauren Alaina and Keith Urban earlier in the afternoon. -NBC will also broadcast the races. If you go: Two-day tickets start at $269 and go up to more than $3,000 for hospitality suites. -New this year is a general admission one-day ticket for $150, with kids free on Saturday and $45 on Sunday (alongside an adult ticket). -Metra has also announced more trains will be running for the event. #nascar #chicago #grantpark #downtown #racing #city

Over the past 5 years, this unfortunately was almost inevitable in the contentious evolution of the #NASCAR business and their teams' revenue models: https://lnkd.in/eFsQfn7y Full disclosure: before continuing my career in #transportation leading XPO Logistics and RXO's global air transport division, I had several inquiries about returning to racing. In 2018 I interviewed with the executive search firm hiring the executive director for the Race Team Alliance (RTA). Their objectives had merit, but I had reservations about methodology, alignment between the stakeholders, and thus this role. While the #RTA certainly gets credit for driving the introduction of the "charter system," many other initiatives (or lack thereof) perplexed me and others with management backgrounds in and outside racing. Teams are "unified" on wanting more revenue and income from NASCAR (which today is primarily derived from media broadcast rights), but aren't necessarily well-aligned on other factors. Neither are the drivers. One key factor is 3 unique types of NASCAR team owners today. (1) "legacy financial elites" (ex. - Hendrick, Penske) with tenure who are a small part of their owners' large-cap commercial empires. So even a $20-30M valuation as alleged for recent charter sales is just a blip on their financials. These teams rely heavily on B2B to outperform their rivals in sponsorship revenue and marketing their commercial businesses. (2) "hustlers" (previously called drive-and-park or rent-a-ride teams) at the other end of the spectrum, mainly long-time racers, some with questionable financial/business resumes, that mastered the art of fielding a NASCAR team with minimal Capex and Opex, and then "hustling" for pay drivers and jigsaw sponsorships to meet budgets and generate personal income. This group benefited most from the charter system and has been most active selling/renting them. (3) "rest of the field" - comprised of of new and legacy organizations who lack the wealth or b2b resources of Hendrick or Penske, but have a track record of commitment to the sport and fielding competitive Top 20 teams not based primarily on the "hustling" model. Each group has different motivations - why teams haven't appeared unified or reached a consensus under the RTA despite "negotiating" for 2+ years. Reportedly by ultimatum, most teams finally signed NASCAR's new "charter agreement" because they were out of time, re-secured their guaranteed entries, and increased revenue. NASCAR leadership recognized these factors and that guided how far they would divide their revenues. #MichaelJordan and 23XI were the most likely to challenge NASCAR for 3 reasons: (1) public/commercial clout, plus wealth (2) no long-term history with NASCAR (3) unique contract and legal perspective from other sports leagues. Court proceedings will be interesting; the defendant wants to avoid disclosing business and financial data, conversely, discovery is a key leverage factor for the plaintiffs. 🤔

Effective communication is a cornerstone in reshaping the narrative of thoroughbred racing. Our article highlights how speed and direction in messaging are crucial for influencing public opinion positively. A valuable read for anyone looking to make an impact in the industry. https://lnkd.in/gnFvr4qT

In our latest article, we delve into the profound impact of media portrayals on the world of thoroughbred racing. From capturing the thunderous excitement of the race to addressing controversies, media shapes public perception in powerful ways. How do you think this impacts the racing industry? Let's discuss the role of media in shaping our understanding of this dynamic sport. #MediaInfluence #ThoroughbredRacing #PublicPerception https://lnkd.in/ggywr4Qw