A Business Post. NASCAR Case Study. How They Fixed Their Decline. SX or MX Learnings?

Snoqualmie
Posts
709
Joined
12/29/2014
Location
Boise, ID, USA
Edited Date/Time 5/16/2016 6:27pm
Just back from my annual trek to The Kellogg School of Management at Northwestern University.

It's a great place, sharp Professors and smart, savvy business people from all over the world.

We did several case study reviews in class this week. One was interesting. It focused in how NASCAR recognised its problems and fixed them.

http://insight.kellogg.northwestern.edu/article/nascar-overhauls-the-fa…

This is a bit apples and oranges in comparison to SX or MX, but are there things to learn here? To make the sport better?

Note: I have no vested interest in MX or SX and have no axe to grind with any sanctioning body or promoter body.
|
Johnny Depp
Posts
6435
Joined
10/16/2014
Location
Buda, TX, USA
5/13/2016 9:42pm
Thanks for posting this. Interesting that it doesn't mention the actual racing structure at all.

It seems that the connectivity of the fan base was determined to be of the utmost importance.

It would seem to apply largely to the MX more than the SX from that aspect.
dkg
Posts
1885
Joined
9/12/2010
Location
Rancho Cucamonga, CA, USA
5/13/2016 10:15pm
Very interesting. I definitely see a correlation between the study and a lot of the fan base attending an event where the study found attendance to be more important as a social event than fans driven to watch the race. I think this may be more pronounced in NASCAR and MX than in SX because of the ability to see the entire race. Seems to me that we could do a better job on staying connected at the events.
Snoqualmie
Posts
709
Joined
12/29/2014
Location
Boise, ID, USA
5/13/2016 10:18pm
Thanks for posting this. Interesting that it doesn't mention the actual racing structure at all. It seems that the connectivity of the fan base was determined...
Thanks for posting this. Interesting that it doesn't mention the actual racing structure at all.

It seems that the connectivity of the fan base was determined to be of the utmost importance.

It would seem to apply largely to the MX more than the SX from that aspect.
The actual outcome of the case was a bit two-fold. First, get new fans into the sport via focusung in Hispanics, Millenials. Then take complete control of their digital rights and leverage those properties to better promote the sport, teams, races, drivers. The "racing" was fine in their mind as NASCAR the sanctioning body worked pretty well. What was not working was their traditional growth path of Father to Son, etc. Hence the loss of attendance and the need (one of many) to get new butts in seats.
5/14/2016 6:15am
It blows my mind motocross (and loretta's) has not managed to land a cell phone company sponsor who brings a temporary tower to the track to boost signal for that company - and provide roaming for others.


The Shop

The Rock
Posts
8758
Joined
3/21/2007
Location
HAIKU, HI, USA
5/14/2016 10:29am
Derek Harris-I mentioned CAUs cellular auxiliary units to DC a few years back and I believe at least one Lorettas Verizon put one up.

dkg-I disagree on your fan assessment. A lot of casual SX fans are definitley there for the social experience not the racing while MX fans are hard core.
kkawboy14
Posts
11486
Joined
6/5/2015
Location
USA
5/14/2016 12:02pm
I will give you just 1 reason to be worried about the business mentality that is behind moto: how they will barely allow race footage to be used by their partners, oh wait they don't have any partners.....
h&m_cycle
Posts
4410
Joined
2/23/2014
Location
Steubenville, OH, USA
5/14/2016 12:09pm
The Rock wrote:
Derek Harris-I mentioned CAUs cellular auxiliary units to DC a few years back and I believe at least one Lorettas Verizon put one up. dkg-I disagree...
Derek Harris-I mentioned CAUs cellular auxiliary units to DC a few years back and I believe at least one Lorettas Verizon put one up.

dkg-I disagree on your fan assessment. A lot of casual SX fans are definitley there for the social experience not the racing while MX fans are hard core.
There's a reason a lot of people watched on Television and attended Evil Kneivel's jumps...

My neighbor goes to the WOO Sprintcar races and is disappointed if there's no flips...

The fight in the stands at the supercross race got more views then most threads here...

DC
Posts
3889
Joined
5/1/2009
Location
Morgantown, WV, USA
5/14/2016 12:09pm
Snoqualmie, thanks for posting that link, definitely going to pass that along to fellow event promoters...

Derek and The Rock, we had did have the temporary cell tower Rock suggested for a couple of years but then the county got into a battle with the tower-provided because they wanted permanent towers up for the community, It ended up getting nasty and prolonged and the county would not give a permit to the temporary one last year. This all happened just before last summer's event and all paid the price of having little or no cell service for the whole thing.

After the race we even called on Loretta herself to help persuade the county to either resolve the issue with the cellular company or give us the right to bring in the temporary towers again. I know better than anyone how difficult it is to run a business when you have no phone or internet service. We are doing all we can but sometimes city hall has other ideas.

We just finalized another five-year extension for the event so I imagine we will have more leverage in a standoff like this moving forward.

DC
kkawboy14
Posts
11486
Joined
6/5/2015
Location
USA
5/14/2016 12:11pm
It woulda been a lot worse!
kkawboy14
Posts
11486
Joined
6/5/2015
Location
USA
5/14/2016 12:13pm Edited Date/Time 5/15/2016 8:51am
It woulda been a lot worse!

Fan interaction with riders and lack of cool merchandise at the events is pretty bad in moto.
Snoqualmie
Posts
709
Joined
12/29/2014
Location
Boise, ID, USA
5/14/2016 1:46pm
DC wrote:
Snoqualmie, thanks for posting that link, definitely going to pass that along to fellow event promoters... Derek and The Rock, we had did have the temporary...
Snoqualmie, thanks for posting that link, definitely going to pass that along to fellow event promoters...

Derek and The Rock, we had did have the temporary cell tower Rock suggested for a couple of years but then the county got into a battle with the tower-provided because they wanted permanent towers up for the community, It ended up getting nasty and prolonged and the county would not give a permit to the temporary one last year. This all happened just before last summer's event and all paid the price of having little or no cell service for the whole thing.

After the race we even called on Loretta herself to help persuade the county to either resolve the issue with the cellular company or give us the right to bring in the temporary towers again. I know better than anyone how difficult it is to run a business when you have no phone or internet service. We are doing all we can but sometimes city hall has other ideas.

We just finalized another five-year extension for the event so I imagine we will have more leverage in a standoff like this moving forward.

DC
DC,

FYI, here's a link with an article that has a bit more detail on what NASCAR did.

http://www.nascar.com/en_us/news-media/articles/2013/09/14/nascar-brian…

Thanks,

Rex Backman
(Snoqualmie)
5/14/2016 1:52pm
Considering that Nascar's decline started just as the housing market was flattening out (which was driving consumer spending), it may be a little self serving for them to take credit for turning things around when mainly they have been tracking consumer spending trends. Correlation is not cause and effect.
DC
Posts
3889
Joined
5/1/2009
Location
Morgantown, WV, USA
5/14/2016 3:49pm
Thanks Rex, I did not realize that you were Snoqualmie! I will check this out too.

DC
Mini Elsinore
Posts
1967
Joined
8/17/2006
Location
Huntington Beach, CA, USA
5/14/2016 4:51pm
NASCAR has "fixed" their decline?
The good folks in Bristol, TN might disagree with that assessment.
Holigan
Posts
1448
Joined
6/18/2008
Location
Dallas, TX, USA
5/14/2016 8:23pm
This/\

NASCAR ratings and attendance are in a huge decline. Maybe some good ideas, but it is not fixed. Check out this year's ratings.
Snoqualmie
Posts
709
Joined
12/29/2014
Location
Boise, ID, USA
5/14/2016 9:06pm
Holigan wrote:
This/\

NASCAR ratings and attendance are in a huge decline. Maybe some good ideas, but it is not fixed. Check out this year's ratings.
FYI. The ? was are there learnings for MX? SX?

Also the NASCAR project was 2012 - 2013.

So, 2016 ratings decline indicate some new issues for them to be sure.

But to close, are there things to learn here?
dkg
Posts
1885
Joined
9/12/2010
Location
Rancho Cucamonga, CA, USA
5/14/2016 10:40pm
The Rock wrote:
Derek Harris-I mentioned CAUs cellular auxiliary units to DC a few years back and I believe at least one Lorettas Verizon put one up. dkg-I disagree...
Derek Harris-I mentioned CAUs cellular auxiliary units to DC a few years back and I believe at least one Lorettas Verizon put one up.

dkg-I disagree on your fan assessment. A lot of casual SX fans are definitley there for the social experience not the racing while MX fans are hard core.
Rock. I was a little too broad in my statement. I agree MX fans are much more into the racing.
FWYT
Posts
3553
Joined
5/25/2014
Location
San Diego, CA, USA
5/14/2016 11:27pm
I was thinking about this today and . . . I dunno.... it just seems sorta sad
that in order to gain more audience, we gotta bring in all this crap so they
can share it . . . INSTEAD BREATHING THE FUMES, FEELING THE POWER AND
ENJOYING THE BEST FUGGING RACING THAT IS HAPPENING
RIGHT IN FRONT OF THEIR PIMPLY FACES!!!!!!! *shakes fist*
kkawboy14
Posts
11486
Joined
6/5/2015
Location
USA
5/15/2016 8:49am
Things done right by Moto:

The nascar holeshot
The old guys race last year.
SRP33
Posts
452
Joined
10/1/2008
Location
Shelton, CT, USA
5/15/2016 9:05am
Nascar is an older demographic, fan experience is not enough to fill the seats.
For the MX community Its more about the traveling, from one coast to the other then back is just stupid. This eats up so a large part of budgets. Sure i know need to schedule with the tracks bla bla bla. We are in southwick then millville washougal then back to unadilla come in really.

With tight budgets less riders show up and its same 4 guys out front shits boring. Forget 250 outdoors, that budget is just damm right stupid.
Better off running 125s cheaper to rebuild everyweek than a 4 stroke.

Do drivers and or teams pay to sign up in NASAR ?
BAMX
Posts
2896
Joined
1/22/2012
Location
Fallbrook, CA, USA
5/15/2016 12:09pm
I noticed a lot of empty seats at Dover this morning. Getting better cell service and social media certainly won't hurt but NASCAR has bigger issue than that.
BAMX
Posts
2896
Joined
1/22/2012
Location
Fallbrook, CA, USA
5/15/2016 12:20pm
SRP33 wrote:
Nascar is an older demographic, fan experience is not enough to fill the seats. For the MX community Its more about the traveling, from one coast...
Nascar is an older demographic, fan experience is not enough to fill the seats.
For the MX community Its more about the traveling, from one coast to the other then back is just stupid. This eats up so a large part of budgets. Sure i know need to schedule with the tracks bla bla bla. We are in southwick then millville washougal then back to unadilla come in really.

With tight budgets less riders show up and its same 4 guys out front shits boring. Forget 250 outdoors, that budget is just damm right stupid.
Better off running 125s cheaper to rebuild everyweek than a 4 stroke.

Do drivers and or teams pay to sign up in NASAR ?
Yes, you pay entry fees to enter NASCAR races at all levels. Plus, there are back gate fees for everyone's pit credentials. Holigan would obviously be the best qualified to give exact numbers but it is crazy expensive.
Holigan
Posts
1448
Joined
6/18/2008
Location
Dallas, TX, USA
5/15/2016 12:46pm
All of the older motorsports have declining ratings and/or attendance (F1, NASCAR, IndyCar, SX/MX). The problem is that millennials just aren't into motorsports. Without younger fans, sports fade away as the audience dies off. To get younger fans, I believe you have to take the racing to them.

The week of the race, have each team 18-wheeler visit a different high school or college in the metro area and setup the awning and race vehicle outside. Let the science teachers bring their classes by throughout the day and discuss physics, aerodynamics, thermal transfer, etc. with a team member. Every kid would get a kick out of seeing a race car or bike and the rig up close and personal.

Since NASCAR and IndyCar have qualifying days, give every student two free tickets for that day so that they can go with a parent or friend. The tracks will sell a lot of extra food and drinks that day, and a number of the kids and their parents will get hooked and be back buying tickets on race day, or at least watching on television. In the summer months, have the trucks visit colleges with summer classes and Boy Scout troops near the tracks. Smart teams will add the school visits to their sponsors' marketing packages, "we will visit 30 schools during the year and make impressions on 30,000 students." For a sport to grow ratings and attendance, you have to grow the fan base.
Holigan
Posts
1448
Joined
6/18/2008
Location
Dallas, TX, USA
5/15/2016 12:51pm
Holigan wrote:
This/\

NASCAR ratings and attendance are in a huge decline. Maybe some good ideas, but it is not fixed. Check out this year's ratings.
Snoqualmie wrote:
FYI. The ? was are there learnings for MX? SX? Also the NASCAR project was 2012 - 2013. So, 2016 ratings decline indicate some new issues...
FYI. The ? was are there learnings for MX? SX?

Also the NASCAR project was 2012 - 2013.

So, 2016 ratings decline indicate some new issues for them to be sure.

But to close, are there things to learn here?
Not aimed at you. I did mention that they had some good ideas, but they are way off if they are saying they have stopped the decline. Year after year attendance and ratings are declining.
Snoqualmie
Posts
709
Joined
12/29/2014
Location
Boise, ID, USA
5/15/2016 8:18pm
Holigan wrote:
All of the older motorsports have declining ratings and/or attendance (F1, NASCAR, IndyCar, SX/MX). The problem is that millennials just aren't into motorsports. Without younger fans...
All of the older motorsports have declining ratings and/or attendance (F1, NASCAR, IndyCar, SX/MX). The problem is that millennials just aren't into motorsports. Without younger fans, sports fade away as the audience dies off. To get younger fans, I believe you have to take the racing to them.

The week of the race, have each team 18-wheeler visit a different high school or college in the metro area and setup the awning and race vehicle outside. Let the science teachers bring their classes by throughout the day and discuss physics, aerodynamics, thermal transfer, etc. with a team member. Every kid would get a kick out of seeing a race car or bike and the rig up close and personal.

Since NASCAR and IndyCar have qualifying days, give every student two free tickets for that day so that they can go with a parent or friend. The tracks will sell a lot of extra food and drinks that day, and a number of the kids and their parents will get hooked and be back buying tickets on race day, or at least watching on television. In the summer months, have the trucks visit colleges with summer classes and Boy Scout troops near the tracks. Smart teams will add the school visits to their sponsors' marketing packages, "we will visit 30 schools during the year and make impressions on 30,000 students." For a sport to grow ratings and attendance, you have to grow the fan base.
Good ideas...
5/15/2016 8:24pm
Holigan wrote:
All of the older motorsports have declining ratings and/or attendance (F1, NASCAR, IndyCar, SX/MX). The problem is that millennials just aren't into motorsports. Without younger fans...
All of the older motorsports have declining ratings and/or attendance (F1, NASCAR, IndyCar, SX/MX). The problem is that millennials just aren't into motorsports. Without younger fans, sports fade away as the audience dies off. To get younger fans, I believe you have to take the racing to them.

The week of the race, have each team 18-wheeler visit a different high school or college in the metro area and setup the awning and race vehicle outside. Let the science teachers bring their classes by throughout the day and discuss physics, aerodynamics, thermal transfer, etc. with a team member. Every kid would get a kick out of seeing a race car or bike and the rig up close and personal.

Since NASCAR and IndyCar have qualifying days, give every student two free tickets for that day so that they can go with a parent or friend. The tracks will sell a lot of extra food and drinks that day, and a number of the kids and their parents will get hooked and be back buying tickets on race day, or at least watching on television. In the summer months, have the trucks visit colleges with summer classes and Boy Scout troops near the tracks. Smart teams will add the school visits to their sponsors' marketing packages, "we will visit 30 schools during the year and make impressions on 30,000 students." For a sport to grow ratings and attendance, you have to grow the fan base.
this year at the NZ MX champs the clubs were encouraged to do this for schools in the local area, and were given a free pass that required and adult paying to get it,

all the teams were for it as it gave exposure, and it seemed to help attendance figures and gate take,
Johnny Ringo
Posts
8220
Joined
1/11/2016
Location
Tombstone, AZ, USA
5/15/2016 8:27pm
SRP33 wrote:
Nascar is an older demographic, fan experience is not enough to fill the seats. For the MX community Its more about the traveling, from one coast...
Nascar is an older demographic, fan experience is not enough to fill the seats.
For the MX community Its more about the traveling, from one coast to the other then back is just stupid. This eats up so a large part of budgets. Sure i know need to schedule with the tracks bla bla bla. We are in southwick then millville washougal then back to unadilla come in really.

With tight budgets less riders show up and its same 4 guys out front shits boring. Forget 250 outdoors, that budget is just damm right stupid.
Better off running 125s cheaper to rebuild everyweek than a 4 stroke.

Do drivers and or teams pay to sign up in NASAR ?
really. We're gonna do this fucking 125 thing again?

You need to go watch frozen and:


kkawboy14
Posts
11486
Joined
6/5/2015
Location
USA
5/16/2016 1:57am
Holigan wrote:
All of the older motorsports have declining ratings and/or attendance (F1, NASCAR, IndyCar, SX/MX). The problem is that millennials just aren't into motorsports. Without younger fans...
All of the older motorsports have declining ratings and/or attendance (F1, NASCAR, IndyCar, SX/MX). The problem is that millennials just aren't into motorsports. Without younger fans, sports fade away as the audience dies off. To get younger fans, I believe you have to take the racing to them.

The week of the race, have each team 18-wheeler visit a different high school or college in the metro area and setup the awning and race vehicle outside. Let the science teachers bring their classes by throughout the day and discuss physics, aerodynamics, thermal transfer, etc. with a team member. Every kid would get a kick out of seeing a race car or bike and the rig up close and personal.

Since NASCAR and IndyCar have qualifying days, give every student two free tickets for that day so that they can go with a parent or friend. The tracks will sell a lot of extra food and drinks that day, and a number of the kids and their parents will get hooked and be back buying tickets on race day, or at least watching on television. In the summer months, have the trucks visit colleges with summer classes and Boy Scout troops near the tracks. Smart teams will add the school visits to their sponsors' marketing packages, "we will visit 30 schools during the year and make impressions on 30,000 students." For a sport to grow ratings and attendance, you have to grow the fan base.
Man I'm not even sure how Indy car is surviving anymore. There is like 25 people in the stands for their races.
Holigan
Posts
1448
Joined
6/18/2008
Location
Dallas, TX, USA
5/16/2016 5:08am
Holigan wrote:
All of the older motorsports have declining ratings and/or attendance (F1, NASCAR, IndyCar, SX/MX). The problem is that millennials just aren't into motorsports. Without younger fans...
All of the older motorsports have declining ratings and/or attendance (F1, NASCAR, IndyCar, SX/MX). The problem is that millennials just aren't into motorsports. Without younger fans, sports fade away as the audience dies off. To get younger fans, I believe you have to take the racing to them.

The week of the race, have each team 18-wheeler visit a different high school or college in the metro area and setup the awning and race vehicle outside. Let the science teachers bring their classes by throughout the day and discuss physics, aerodynamics, thermal transfer, etc. with a team member. Every kid would get a kick out of seeing a race car or bike and the rig up close and personal.

Since NASCAR and IndyCar have qualifying days, give every student two free tickets for that day so that they can go with a parent or friend. The tracks will sell a lot of extra food and drinks that day, and a number of the kids and their parents will get hooked and be back buying tickets on race day, or at least watching on television. In the summer months, have the trucks visit colleges with summer classes and Boy Scout troops near the tracks. Smart teams will add the school visits to their sponsors' marketing packages, "we will visit 30 schools during the year and make impressions on 30,000 students." For a sport to grow ratings and attendance, you have to grow the fan base.
kkawboy14 wrote:
Man I'm not even sure how Indy car is surviving anymore. There is like 25 people in the stands for their races.
Mainly through complicated b2b deals. No way to justify $7,000,000 a year on their ratings and attendance. Really sad when you think back how awesome IndyCar was in the 70's and early 80's.
5/16/2016 5:40am
Holigan wrote:
All of the older motorsports have declining ratings and/or attendance (F1, NASCAR, IndyCar, SX/MX). The problem is that millennials just aren't into motorsports. Without younger fans...
All of the older motorsports have declining ratings and/or attendance (F1, NASCAR, IndyCar, SX/MX). The problem is that millennials just aren't into motorsports. Without younger fans, sports fade away as the audience dies off. To get younger fans, I believe you have to take the racing to them.

The week of the race, have each team 18-wheeler visit a different high school or college in the metro area and setup the awning and race vehicle outside. Let the science teachers bring their classes by throughout the day and discuss physics, aerodynamics, thermal transfer, etc. with a team member. Every kid would get a kick out of seeing a race car or bike and the rig up close and personal.

Since NASCAR and IndyCar have qualifying days, give every student two free tickets for that day so that they can go with a parent or friend. The tracks will sell a lot of extra food and drinks that day, and a number of the kids and their parents will get hooked and be back buying tickets on race day, or at least watching on television. In the summer months, have the trucks visit colleges with summer classes and Boy Scout troops near the tracks. Smart teams will add the school visits to their sponsors' marketing packages, "we will visit 30 schools during the year and make impressions on 30,000 students." For a sport to grow ratings and attendance, you have to grow the fan base.
kkawboy14 wrote:
Man I'm not even sure how Indy car is surviving anymore. There is like 25 people in the stands for their races.
Holigan wrote:
Mainly through complicated b2b deals. No way to justify $7,000,000 a year on their ratings and attendance. Really sad when you think back how awesome IndyCar...
Mainly through complicated b2b deals. No way to justify $7,000,000 a year on their ratings and attendance. Really sad when you think back how awesome IndyCar was in the 70's and early 80's.
I thought CART was at its peak in the 90s right before the split myself. It used to be great.

I think we need to look long and hard at the TV show "Street Outlaws". It has reached over 2.4 million viewers which is a pretty amazing number for some dudes racing pro mods on the "street". It's mainly a story about these guys and less about the "racing".

I personally think people like most of these sports because they want to cheer and boo different personalities. That is what made NASCAR thrive, because people either loved or hated the 3. Or the Busch brothers. Or they think Jeff Gordon is gay. I have literally watched two anti-24 fans come and drink a 12 pack while flipping Gordon off for 500 miles.

Things are a bit bland in SX/MX (Lurch's screaming notwithstanding). If there are just a bunch of bikes racing around, it's hard for non-fan/fans to care. If Weston is beating on someone, it's interesting and people either love or hate Weston. Or they simply hate Friese.

We need to find a way to better tell the stories of riders. Matthes' latest podcast with Alex Ray and Clade Clason was great and gave me some personality to attach to those two numbers. The hard part is that all of us hate when they do these personality pieces on Marvin or Dungey but painting that pictures creates human interest in the racing.

Even CART used to have Paul Tracy generally being a menace and saying "I am the boss, applesauce" regarding collisions with other drivers and that made it more fun. Today's driver is generally boring - even Juan Montoya isn't stirring shit up anymore.

Post a reply to: A Business Post. NASCAR Case Study. How They Fixed Their Decline. SX or MX Learnings?

The Latest