As fans race away, speedway owner looks to cut costs

By Jefferson George - The Charlotte Observer

After a dip in first-quarter profits and a bigger drop in admissions revenues, Speedway Motorsports will look at cutting some costs to offset a decline in fan spending at races, company officials said.

Possibilities include having fewer employees at events and renegotiating prices with vendors, said H.A. "Humpy'' Wheeler, the company's chief operating officer and president.

"You start looking at what you're paying for toilet paper,'' he said, "and if you can get that down a nickel a roll.''

Speedway Motorsports owns seven tracks that hold NASCAR races, including Lowe's Motor Speedway outside Charlotte, which hosts the Sprint All-Star Race and Coca-Cola 600 this month.

The Concord, N.C.-based company reported a first-quarter profit of $30.9 million, down 3 percent from a year earlier. Revenues were $155.2 million -- up 2 percent from the first quarter of 2007 -- and expenses increased nearly 4 percent to $104.3 million.

One reason for the higher expenses was the purchase of the New Hampshire Motor Speedway in Loudon, N.H., company officials said. Helping offset that were more revenues from sponsorships, luxury suite rentals and broadcasting rights.

Speedway Motorsports also saw a 5 percent drop in admissions revenue -- from $56.5 million to $53.6 million. Company officials blamed bad weather for smaller crowds during races in Atlanta and Bristol, Tenn.

Less spending by fans also contributed, they said, and the current economic downturn -- from higher fuel prices to tough consumer credit and housing markets -- could curb attendance at future races.

International Speedway Corp. -- Speedway Motorsports' main competitor among track owners and owner of Darlington Raceway -- also has been squeezed. The company has seen a high-single-digit percentage drop in advance ticket sales from last year, said John Saunders, executive vice president and chief operating officer, during a conference call last month.

To attract more fans, Saunders said, the company is offering more payment plans for tickets and free parking at every track, and expanding camping areas.