If you’re reading this, it’s probably safe to assume that you’re either a) a car fan, or b) you know one. If you’re not exactly sure which camp you fall into, then we’ve got some sad news for you: you’re probably in the wrong place. Don’t get us wrong, we love cars as much as the next guy, but this isn’t the place for you if your favorite form of transportation is picking up ladies and giving them head. If you’re not exactly sure what we mean, then please read on and we’ll fill you in.
The Early Days
It all started with a bang: in 1908, auto racing was born when Barney Oldfield bolted from the starting line and won the Kentucky Derby. Since then, auto racing has been around for over a hundred years and has seen its share of ups and downs.
In the 1950s, road racing was at its peak. From Indianapolis to Daytona, drivers were constantly charging down the straights and passing other cars from time to time. It wasn’t unusual for cars to get in duels, with drivers going at it tooth and nail until the checkered flag waved. It was an exciting time to be a motorsport fan.
In the 1960s and 1970s, the amount of road racing decreased as series like the NASCAR began to take over. Manufacturers built cars that were more efficient and could last longer on a single tank of fuel. Engineers also began to play a more prominent role in developing race cars, with computers taking over the process of creating optimal driving situations. By the early 2000s, road racing had almost entirely disappeared. It wasn’t until 2005 that NASCAR and IndyCar began to bring road racing back as a way to attract new fans.
The Evolution Of Racing
There are many theories as to why road racing declined in the first place. Some blame it on the boom in popularity of motorcycles, while others point the finger at soaring costs associated with buying new cars. Whatever the reason, NASCAR and IndyCar have worked hard to bring road racing back as a means of attracting new fans and making money. That’s the key to keeping any form of motorsport alive: making money. Without it, motorsport isn’t exactly sustainable.
Nowadays, NASCAR and IndyCar both offer various forms of racing ranging from open wheelers (such as the IndyCar series) to touring cars (like the NASCAR series). Each form has its perks and downsides. For example, open wheelers are much faster than touring cars but can suffer from balance issues caused by the lack of a structured interior (i.e., there’s no roof!). The best form of motorsport for any car fan is what they call ‘combined’ racing: a mix of the two. For example, the IndyCar series could host a race at Indy and then have another car race alongside the IndyCar at some other location (think Long Beach or Detroit). It’s the best of both worlds: the thrilling speed of a road race and the excitement of a showpiece event!
The Biggest Name In Racing
You don’t need us to tell you that there’s a lot of money to be made in motorsport. With the likes of NASCAR, IndyCar, and various other racing series, there are endless opportunities for investors. If you’ve got the money, you can probably make large sums of money through proper investment in motor racing. That’s essentially what happened when the family of George Steinbrenner – the billionaire businessman who bought the New York Yankees – invested several million dollars in a controlling stake in the NASCAR team Richard Petty’s Grandaughter owns. As a result of their investment, the team now bears their name and logo (Petty Enterprises) and they also make all the decisions regarding the team. The deal was reportedly worth $4.9 billion.
Similarly, a group of investors bought a controlling stake in the IndyCar team that Roger Penske owns. This is the same Roger Penske who owns several other teams and companies, including the Red Bull Indycar team. The deal was worth an estimated $15 million and, as a result of the investment, the team now bears the name of Penske Sports and Marketing Group. We’re not exactly sure what the exact details of these two investments are, but it’s clear that owning a piece of a racing team can be a lucrative venture. When you add that up across all the various team ownerships in motorsport, it’s easy to see how much money there is to be made. If you’ve got the connections, it’s probably not difficult to enter into one of these investments. We’re not exactly sure how much money you need to make the right investment, but with the right connections, it’s surely possible!
The Biggest Purchase In Racing
The two investment items we mentioned above pale in comparison to the biggest purchase in motorsport history. After buying out the shares of Carl Kessel and Paul Dana of Kessel-Dana Motorsports, which owns the #24 car in the NASCAR Cup Series, Anheuser-Busch InBev (A-B InBev) is now the owner of the entire NASCAR team. The cost of this one single investment was an estimated $22.5 million. When you compare that to the millions of dollars made by simply investing in a NASCAR team, it’s clear to see why this is such a popular way to make money. A-B InBev is a large company with numerous brands, including Budweiser and Stella Artois, which is why the investment in the NASCAR team was such a wise move for them. They now own the iconic Number 24 truck and everything that comes with it. This form of investment in motorsport has definitely become popular since it’s so lucrative.
One of the main reasons why Anheuser-Busch InBev purchased the Kessel-Dana team is because of its lucrative sponsorship opportunities. Kessel and Dana own a vast amount of NASCAR-related real estate, which they purchased for a song. For example, they owned two of the garages that were being used by the NASCAR team Roush Fenway in the early 2000s. These garages and their contents were valued at over $5 million, which is why they were sold for such a cheap price. The real estate continues to be valuable as it now houses several top-tier NASCAR teams, including Joe Gibbs Racing, Richard Petty Motorsports, and more. In fact, everything from the pit crew gear to the paint scheme of the car becomes the property of the new owner. It’s estimated that this type of investment can be worth up to ten times the amount paid for the team itself. Plus, once you’ve made the investment, you can begin to see substantial returns within weeks.
The Reasons For Buying Out A Racing Team
There are several reasons why Anheuser-Busch InBev bought out the Kessel-Dana team and why they’re doing it again (the first time was in 2017). First off, it’s lucrative. As we mentioned above, making large sums of money through proper investment in motorsport is something that’s possible. Plus, the company has the resources to make more lucrative investments, like this one. Second, it’s a passion project. Kessel and Dana are both diehard NASCAR fans, so it makes sense that they’d buy out a team that they love and that loves them back. This is justifiably what made the investment for them; it wasn’t like they’re doing it for the money.
We mentioned above that everything inside the garage belonging to the Kessel-Dana team becomes the property of the new owner. Well, that’s not quite true: the real estate itself belongs to the team, but everything inside it (such as the cars, equipment, etc.) become the property of the new owner. This is part of a legal agreement that the team had to agree to in order to sell their shares to A-B InBev. The part that belongs to them is the pit equipment, logo, and bumper stickers. The rest – including the cars – become the property of the new owner. We should also mention that the new owner is not allowed to paint their cars a different color than that of the original team. This is to prevent the new owner from running different strategies and tactics than what the team used to win. In order to comply with this rule, they had to keep the original orange and black, but everything else was fair game.
Another Huge Purchase In Racing
While Anheuser-Busch InBev made a large investment in NASCAR, that’s not to say they own all of it. Far from it: they’re not the only ones with money and connections in NASCAR. Other wealthy individuals and companies have jumped in as well, looking to make large sums of money through investment and to give life to a passion project.