Visions in Leisure and Business Volume 19 Number 2 Article 5 2000 Important Factors in the Development of NASCAR Kathleen Munger Owens Community College David L. Groves Bowling Green State University Follow this and additional works at: https://scholarworks.bgsu.edu/visions Recommended Citation Munger, Kathleen and Groves, David L. (2000) "Important Factors in the Development of NASCAR," Visions in Leisure and Business: Vol. 19 : No. 2 , Article 5. Available at: https://scholarworks.bgsu.edu/visions/vol19/iss2/5 This Article is brought to you for free and open access by the Journals at ScholarWorks@BGSU. It has been accepted for inclusion in Visions in Leisure and Business by an authorized editor of ScholarWorks@BGSU. IMPORTANT FACTORS IN THE DEVELOPMENT OF NASCAR BY KATHLEEN MUNGER, TRAINING COORDINATOR OWENS COMMUNITY COLLEGE P.O. BOX 10,000 TOLEDO, OHIO 43699 AND DR. DAVID L. GROVES, PROFESSOR SPORT MANAGEMENT, RECREATION, AND TOURISM DIVISION BOWLING GREEN STATE UNIVERSITY BOWLING GREEN, OHIO 43403 ABSTRACT INTRODUCTION This study investigated the success of the The purpose of this study was to investigate National Association of Stock Car Automo­ the National Association for Stock Car bile Racing (NASCAR). An examination Automobile Racing (NASCAR) in order to and analysis of history as related to success provide a framework for understanding its provided a framework to understand the success as one of the fastestgrowing sport in sport. Content experts in the motor sport fans and venues. With 1998 being the 50th field (identified through leadership identifi­ anniversary of the sport, the public eye upon cation) validated previously established the organization and the scrutiny of its fol­ NASCAR categories through a review proc­ lowers was at a high level. An examination ess. Critical incident interviews were con­ of NASCAR history as related to its past and ducted to identify and prioritize the most present development will build a foundation important identified elements within these of understanding of the sport for future categories with the results of the interviews planning. Significant events in its past, the being compiled in a typology format. The cyclic nature of sport and its growth and typology was then reviewed by the Content popularity were examined. This analysis was experts for validation and modification of achieved through examining popularity the framework. The study identified five (Interest Level) and demand (Participation critical variable categories that influenced Level), demand analysis, forecasting, NASCAR success: leadership, fans, spon­ historical factors, and the history of the sorship, television and other. The overall sport. A critical incidence approach was conclusion was that the isolated variables used to identify the past and present factors that impacted the past success and popular­ that have made NASCAR a success and that ity of the sport will have significance for will have an impact upon NASCAR in the futuresuccess. future. 36 POPULARITY AND DEMAND indicates the confidence of the networks and cable industry in the increasing demand for NAS CAR as a motor sport has increased in the sport (9, 35, 45). popularity exponentially (43). It is Amer­ ica's fastest-growing professional sport (12). In the recent SBJ/ESPN Chitton Sports Poll, It is bigger and more popular than it ever has auto racing was the sixth best supported by th been in its 52-year history (28). The de­ fans and its biggest hero ranked 1 o among mand for NASCAR racing, especially at the sport figures (48, 49). The NASCAR Winston Cup level, is significant. Winston website is the sixth most popular (39). In a Cup Grand National Racing is the epitome poll on popularity of Sports Sponsors, of American stock car racing. It is a goal of NASCAR was number on in overall mar­ every race car driver from midgets to sprint keting efforts and was first in 18 out of 20 cars to join the Winston Cup circuit. categories evaluated (13, 37). The fan base for Winston Cup racing grows New tracks are being constructed at a rapid yearly. The 1999 attendance increased 3%. pace. The 1997 season also saw the opening The 1998 Goodyear Racing Report of new tracks in Texas and California. Only attendance was 6,310,027 (24). This is a the California race was assured a Winston 3.5% increase over the 1997 attendance Cup Race date. The North Wilkesboro (NC) figure of 6,091,356 (23). This represents a speedway lost the Winston Cup race dates it 9.0% increase over 1996 figures, with just held continuously since 1949, when new one additional race. The 1996 season track owners Bruton Smith and Bob Bahre realized a 4.9% increase in attendance over moved one race to Texas and the other to 1995 with no additional races or venues New Hampshire. Tracks built without a race (20). Growth seems to be flat or the growth date in "97", "98", and "99" include those in rate is slowing (29). Chicago, Illinois; Kansas City, Kansas; New Orleans, Louisiana; Madison, Wisconsin; St. The 1999 Nielsen Sponsors Report esti­ Louis, Missouri; Miami, Florida; and Pikes mated 300,000,000 television viewers. All Peak, Colorado (48). One new race date was major sports TV networks that carried added in 1998 at the new track in Las Vegas, Winston Cup races, ABC, CBS, ESPN, Nevada. No new races were added in 1999 TNN, and TBS, have set ratings and and one was added in Miami in 2000. Two viewership records. (4) NAS CAR has been new races will be added in Chicago and second in broadcast and cable network Kansas City in 2001. The number of ratings since 1993. The broadcast ratings Winston Cup race dates is limited due to the have been erratic from 5.0 in 1993 to 5.3 in nature of the sport, meaning that all drivers 2000. The highest scores were in 1997 (5.8) vie to race in every race. Adding additional and 1998 (5.7). The same patterns were race dates is becoming logistically evident in the cable ratings. The rating in impossible. The new tracks seat hundreds of 1993 was 3.1 and 4.0 in 2000. The highest thousands of people, the older historical scores were in 1997 (4.3) and 1996 (4.0) and tracks do not. This is the reason for the 1998 (4.0). The network rating have closing of these smaller tracks, that is, fan dropped 0.4, especially among males age demand, especially in the other regions of 18-49. This has caused speculation about the country. There cannot be more than one the popularity of N ASCAR. The new media race each weekend. There is a move to contract is only second to the NFL. This consolidate the tracks, media, and the 37 ownership. The primary reason is control (47)]. This exacerbates the problem in the (5, 38, 45). This represents a hard downward phase of an activity or sports marketing approach. popularity. The demand is down and the facilities that have just been built are The dilemma of the increased popularity, woefully empty. Nature of planning is therefore, is knowing how to provide a top extremely crucial to any sport or activity quality product with limited scheduling op­ because you must provide enough facilities portunities. The questions being raised con­ to meet demand but not enough to exceed cern the nature of change in the sport to the seat capacity within a certain period of meet the current demand without changing time because there may be a significant the product to the point of alienating the down turn in demand. racing fan and causing a drop in attendance (12). There is already much controversy The reality of single-entity ownership has among the traditional fans about ticket been projected as one element that has prices and money and its influence upon the helped in the steady growth of NASCAR sport (51). Even though this seems to be the (7). The primary question is: Where is "hey day" of the NASCAR Winston Cup NASCAR on the demand curve and are they series, there is still controversy and there are planning too many facilities that will be questions about the ultimate future of the empty when there is a down turn in popular­ sport. (34) The basis of understanding the ity? (52). A more conservative approach of popular culture aspects is demand analysis. not building facilities before you know de­ mand on a long-term basis is a prudent deci­ sion. The current philosophy in NASCAR is DEMAND ANALYSIS to build the facilities, the people will come and there will be a sanctioned race. This is Most sports or activities have a cyclic de­ the type of philosophy that has proven to be mand curve in which there will be periods of fallible in other sports and caused the over great popularity and periods where the de­ building of facilities. NASCAR is at a mand for the particular activity or sport will crossroads of changing from a regional to a be flat or decline (1, 17). Often the initial national sport. These changes will popularity is much lower than the final ultimately influence the popularity and popularity in the flat phase of the curve. It demand for the sport (52). It is important is important to recognize the different types that NASCAR take precautions to continue of demand curves and cycles that exist and to insure the popularity and demand through how these factors influence the planning ·for the proper changes. There is also a need to a sport or activity. One of the primary generate the necessary excitement to keep problems with individuals, who do not un­ the sport on an upward growth phase derstand this particular type of demand in without reaching a saturation point that will terms of cycles, is that they plan for the long ultimately cause a down turn in demand in term as a straight line increasing demand popularity of NASCAR racing.