Are race teams profitable?

This discussion is rampant in other threads; however, I thought the topic deserved a dedicated thread.

Does anyone know how many NASCAR teams actually "make money"?

On the surface, it seems (at best) to be profit neutral, with most owners having substantial business interests outside the sport.

(NOTE: this is also true of most sports franchise owners, NBA, NFL, etc.)

From the outside looking in, this point is what makes the SPEED endeavor so interesting. Clearly, energy drinks make money.

I'd be interested in thoughts, fact and speculation. Please note: I'm confident there are profitable teams....I'm wondering if that is the exception or the rule.

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Permalink Reply by Mike Kenyon on February 28, 2012 at 12:55pm

Teams that have there own engines are closer to neutral, IMO, with my limited knowledge. Teams with engine programs that can lease engines to teams are more likely able to show a minor profit.IMO with my limited knowledge.

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Permalink Reply by bajaready on February 28, 2012 at 1:19pm

I do not have any solid facts but I tend to agree with Mike K. A race team is basically a moving billboard for hire. The money lies with how much you can sell the advertising spots on the car for. The prize money may only keep the lights on at best, even then I believe you need to be consistent and towards the top half to accomplish that. If a team is that consistent, one would assume that they would be able to obtain a sponsor thus making a team profitable.

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Permalink Reply by 7gason7 on February 28, 2012 at 1:40pm

Penske and Hendrick use their Cup teams to offset costs to their dealerships too. Shell/Penzoil is with Penske not because they want to sponsor the team, but so they will get used in every oil change in his dealerships. Most race teams are not profitable in a 'normal' business sense. You are either a racer at heart like Robby and do it because you can, or you sh_t hundreds and you do it because you want to hang out with racers.

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Permalink Reply by Donald Hennagin on February 28, 2012 at 1:48pm

You know how you make a $1M in racing..........start with $2M! Any profits come from business dealings away from the track.

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Permalink Reply by mj on February 28, 2012 at 3:17pm

That's like what Richard Childress said " to become a billionaire in nascar start out as a millionaire " lol

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Permalink Reply by mj on February 28, 2012 at 3:19pm

Oops flip flop that lol

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Permalink Reply by Mike Kenyon on February 28, 2012 at 3:30pm

I'm thinking , you had Brian France on the brain when you typed that. Becouse he's the only one making money at racing.

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Permalink Reply by mj on February 28, 2012 at 3:41pm

That a$$hole hasn't made any money he has it handed to him from grandpa and daddy . I'd like to see a business profit chart comparing the money Big Bill sr and jr made compared to how Brian is doing . Yeah I know youde have to adjust for inflation and all that stuff but I'd bet it would be an interesting read

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Permalink Reply by Short Bus on February 28, 2012 at 5:57pm

Another take off of this saying I have heard, supposedly attributable to Penske is that the best way to make a small fortune racing is to start with a large fortune.

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Permalink Reply by RG7FAN on February 28, 2012 at 3:44pm

I agree that the only race teams that are profitable are the teams that are doing B2B arrangements. I think that RG has a solid plan, if he can steer the ship through this economey. Not many teams that are there own sponsorship left.

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Permalink Reply by Sean O'Neill on February 28, 2012 at 3:57pm

Agree. Racing is all B2B for the most part. There is no such thing as a "Sponsor" any more. It's all about "Partnerships and ROI". Robby seems to be a great student of the game when it comes to business side of it, and that's how RGM will continue to survive as they have since 2005.