Private equity firms and sports funds have been circling NASCAR in recent months looking at possible investments, driven by momentum around sports overall, racing specifically, and the relatively low cost of team charters.
Trackhouse Entertainment Group became the latest team to accept private equity last month when it announced a deal with former Milwaukee Bucks co-owner Marc Lasry’s Avenue Sports Fund, which acquired what it called a significant minority stake in the company.
Other firms also are said to be in the mix, and NASCAR has proposed rules for its next governing agreement around private equity investments.
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“Other pro sports team owners are now looking at NASCAR, as team values are still very low especially compared to other sports,” Andrew Murstein, the former majority owner of Richard Petty Motorsports, wrote in a text message. “Savvy investors like Marc Lasry have sold their interests in the NBA and have invested in NASCAR as they feel it has a lot more upside.”
The exploration by private equity firms has industry executives wondering if one could persuade Dale Earnhardt Jr. to take his JR Motorsports team to NASCAR’s premier Cup Series if the firm puts up the price of a charter. JR Motorsports now competes only in NASCAR’s secondary Xfinity Series.
Among those who have kicked the tires on investing in NASCAR include the Steinbrenner family, sources said. George Michael Steinbrenner IV and Julia Steinbreinner, children of late New York Yankees co-owner Hank Steinbrenner, have been involved in IndyCar, in which they have invested in a team run by Andretti Autosport.
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NASCAR declined to comment, but a person familiar with the sanctioning body’s thinking cautioned that charter negotiations are ongoing and fluid, so plans could change. NASCAR is proposing a seven-year renewal of the charter agreement with a seven-year option. Teams wanted the charters to become permanent — or at least have a longer guaranteed duration — and some believe the lack of a longer duration could hinder investments.