Impact of gas prices on racing...

Someone from one of the Minnesota Newspapers contacted me with some questions about the impact of high gas prices on racing. I decided to repost my reply here in the blog for you to check out. Specific names have been XXXX'd out to protect their identity:

"XXXX,

I seldom go to XXXX so I'm really not an authority on specifics there but I can give you a few of my personal observations.

As far as the fans go I don't think racing is any different than any other outdoor leisure activity. People are going to be more selective about their entertainment if their personal budget is tight. I think that would be true of trips to the cabin, fishing trips, shuttling around kids to sporting events or anything else that requires travel. In some cases people might not be traveling as far on vacation as they used to and are looking for something to do on a weekend so some of these sports might actually benefit from that. Overall being a fan of racing is just like any other activity and people will go to great lengths to enjoy their recreation.

In dirt racing there are different levels of competition. You've got the national touring organizations like the World of Outlaws Sprint Cars that criss cross the country and run 100 dates per season. They've got 18 wheelers, corporate sponsors and televised races on ESPN. Some of those teams have dropped off the tour or are only running when the tour comes close to their home base. Locally you've got the Modifieds, Late Models and Sprints that are pretty sophisticated race cars that teams have 10's of thousands of dollars invested in. They've got sponsors and deals on parts, chassis, motors and tires that help out so they're probably a little better off than the entry classes. For example, a guy who welds up a basic entry class like a pure stock in his garage might get a little help from the local bar or auto parts store but if he blows an engine he might be done for the year. In other words, the higher up in the pecking order you go the more likely the driver is going to have the resources to keep racing. Racing has never been cheap regardless of the gas prices.

Keep in mind too that divisions such as Sprint Cars, Late Models, Modifieds and Midgets on dirt all use methanol alcohol so they're not burning gas. Also, a typical race program on a 3/8 mile track consists of about 5 hot laps, a 10 lap Heat race, a few yellow flag laps and a 25-30 lap Feature . That's about 50-60 laps or 20 miles total on a typical night of racing. Even if a race car only got 3 mpg (not sure what their actual mileage is) they're not spending anywhere near as much to fuel their race car as their neighbor is spending to tow his fishing boat up north every weekend. XXXX doesn't have the facilities to host big national touring events so most of the drivers that race there probably live in the area. True, it costs more to tow a car than a fishing boat but they're not going that far.

Promoters are seeing their costs go up and they depend on a certain number of racers signing into the back gate and a crowd in the grandstand. Their cost of preparing the track, concessions and everything else associated with running an outdoor venue has gone up. They have probably lost more money on account of the weather this season than the increase in their operating costs. Many tracks have lost an entire month or more to rain, sleet, snow, cold and severe weather. The racing promoters aren't dealing with anything that concert promoters or any other outdoor entertainment hasn't had to deal with this season.

So far from what I have seen mostly at Cedar Lake Speedway near New Richmond, Wisconsin, the fields of cars have been good and they appear to have done pretty well at the gate. This weekend there is a three day special event with regional touring race teams from all over the Midwest racing there. It's looking like we could lose Thursday to rain but Friday and Saturday should be a go.

I'm not an authority on XXXX or XXXX. There is a guy up there...... I would suggest that you talk to him.... Also, you should attend a couple races and talk to the racers and promoters as they would be more in touch with the local situation. I live in Forest Lake and the tracks I attend are considered part of the Twin Cities market so it would be a different set of circumstances than XXX. Neither of the tracks you mentioned have big events like XXXX or XXXX do so they're dealing more with the lower budget local racers.

Hope this helps a little. I think all forms of entertainment will see their attendance down with the fuel and economy. Whether it's grandma and grandpa driving up from the farm in southern Minnesota to see the Twins, a company deciding if they can afford to renew their complimentary Vikings suite or a family from up north taking a trip to Valley Fair. Racing isn't the only leisure activity being affected by the fuel prices.

Stan Meissner"