12 more active tracks could soon be under the NASCAR banner with major sports merger
On Wednesday, International Speedway Corp announced a merger agreement with NASCAR.
How much are 12 active NASCAR tracks worth?
The buyout is valued at $2 billion. ISC’s shareholders (other than certain controlling shareholders of ISC and certain related entities) and they will be paid off at $45 a share. That’s ISC Class A Common Stock and ISC Class B Common Stock.
The deal has been approved by board members. However, it still needs to pass a vote of both class A and B shareholders.
Initially, the offer from NASCAR at the end of 2018 was met with some resistance from the current ISC shareholders.
The Firemen’s Retirement System of St. Louis recently opened a lawsuit noting ISC and the Fance family. That case is The Firemen’s Retirement System of St. Louis v. James C. France, et al., Case No. 2018-CA-032105-CICI (Seventh Judicial Circuit, Volusia County, Florida). They argued that NASCAR and the France family manipulated the stock price before placing an offer to buyout the company.
However, the press release, ISC noted that The Firemen’s Retirement System of St. Louis met with representatives of the Special Committee. The case has since been dropped.
Related: Class action lawsuit filed against NASCAR
NASCAR expects the deal to be closed by the end of 2019, pending shareholder approval.
NASCAR comments on International Speedway Corporation merger
“We are pleased with the progress that the negotiation and execution of the merger agreement between NASCAR and ISC represents,” NASCAR said in a statement.
“While important regulatory and shareholder approval processes remain, we look forward to the successful final resolution of this matter and continuing our work to grow this sport and deliver great racing experiences for our fans everywhere. With a strong vision for the future, the France family’s commitment to NASCAR and the larger motorsports industry has never been greater.”
Active ISC Tracks: Auto Club Speedway; Chicagoland Speedway; Darlington Raceway; Daytona International Speedway: Homestead-Miami Speedway; Kansas Speedway; Martinsville Speedway; Michigan International Speedway; ISM Raceway; Richmond Raceway; Talladega Superspeedway; Watkins Glen International (Route 66 Raceway is also an active drag strip)
ISC was founded by Bill France Sr in 1953. NASCAR’s current CEO, Jim France is the Chairman of the company. Additionally, Lesa France Kennedy is the ISC CEO.
Inactive/Active ISC Tracks: Nazareth Speedway; Rickingham Speedway; Pikes Peak International Raceway; Tucson Raceway Park;
NASCAR controls the sanction of the top level of stock car racing. However, the only track they own is Iowa Speedway.
Placing this portfolio of tracks under the NASCAR banner would allow them far more control of the series schedule. Currently, any change of race dates and/or tracks must be approved by the track owners.
Current track sanction agreement are in place through the 2020 season. New agreements are set to be written and NASCAR has stated previously that they would like to have new lines in their which give them more scheduling freedom.
Yet, buying a whole batch of track outright would give them the ultimate freedom.
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