plus 4, Project Old School KTM 380: Replacing the Chassis - Off-Road.com |
- Project Old School KTM 380: Replacing the Chassis - Off-Road.com
- Hayes Yamaha YZF-R1 Superbike Review - Motorcycle USA
- Super-X Brisbane Results - Motorcycle USA
- International Speedway Corporation is Selling For 50 Cents for A ... - GuruFocus
- Nine Inducted Into AMA Motorcycle Hall Of Fame - RoadracingWorld.com
| Project Old School KTM 380: Replacing the Chassis - Off-Road.com Posted: 06 Dec 2009 10:46 PM PST PAGE 2 In order to make the motor fit, a few things do need altering. The rear swingarm pivot on the motor was already enlarged from 15mm to the 05 style 17mm during the motor rebuild to fit the larger swingarm pivot shaft. Besides that we will also need to move the motor mounts and expect to run into other minor tweaks, but we know it can be done successfully. After the chassis upgrade, one of the main things we wanted to combat was the chance of vibration. Although we didn't notice unruly vibration on our 380, it does vibrate more than a 250cc two-stroke. Hearing about the Fasst Co. Flexx Bars we checked into them and learned they are designed to absorb shock and vibration by using tunable elastomer bushings. There are four different densities of elastomers to choose from that work in conjunction with the articulating bars to help with absorbing engine vibration and terrain changes like G-outs and square-edged bumps. Fasst Co also makes the Anti-vibration bar inserts which, according to their Web site, use a combination of brass and an elastomer expansion joint to fight vibration. They work by fitting into the end of each bar and absorbing vibration traveling through the bars that would usually end up in your hands. By using both the Flexx Bars and the anti-vibration inserts on the 380, the comfort level should be greatly improved and vibration kept to a minimum. In addition when the terrain changes, we have the ability to tailor the bars damping by swapping out the elastomers for the feel we are looking for. Another area of the chassis that must be able to deal with the power and torque of the 380 is the driveline. Honestly, it didn't take much thought on what we were going to use for sprockets - Ironman by Dirt Tricks all the way. We used them on the Project 525 back in 2003 and haven't bought a new set yet! With a one-year guarantee and the claim they last 15 times longer than OEM, it really was a no brainer. Those claims and our experience speak enough about durability, so it was just a matter or picking the ratio. Stock is 14/52 but we want a little more top end for the desert so we opted for 14/48. For the chain we opted for the latest Regina Z-Ring. The Z-Rings are supposed to offer better flexibility while still keeping the lube inside the chain. As we begin to wrap up the Project 380, we feel the end is finally getting closer. With an updated chassis, we expect the 380 to have less flex and handle with more precision. The ability to use most of the stock parts really helps with the cost of this project, and it also allows us to spend our budget on items we think will help make the 380 a better bike. The Flexx bars and Anti-vibration inserts should improve the one major nitpick many big-bore riders complain of in vibration. That combined with the articulating arms and tunable elastomer bushings should also allow us to stay in the saddle longer, especially in rough terrain. With our selection of proven Ironman Sprockets, we should gain some top-end speed over the stock setup while extending the life expectancy exponentially. Now we can focus on finalizing our build and getting out on the trails! This content has passed through fivefilters.org. |
| Hayes Yamaha YZF-R1 Superbike Review - Motorcycle USA Posted: 06 Dec 2009 10:24 PM PST  Back in the day... Old school... When men were men... We've all heard these adages plenty of times about umpteen different subjects, usually from wise old men with glossy eyes recalling their days of youth. And in motorcycle road racing these typically refer to fire-breathing TZ750 2-strokes, 500cc GP bikes and Superbikes of yesteryear – man-eating machines that required Superheros to ride them. These days traction control and electronic aids have improved safety and indeed dropped lap times, but in some people's eyes have also reduced the excitement level. Just ask Yamaha's Josh Hayes! Rolling Art One look at the Yamaha Superbike and any Petrolhead will surely fall in love. A simple glance at that deep blue-bathed bodywork covering a host of too-trick-for-mere-mortals parts, the lot lathered in carbon fiber and titanium, and it's utterly impossible for one's jaw not to drop to the floor from excessive staring. It's the prettiest bike I've ridden this year, no question. Beyond the beauty, though, let's have a look at what is responsible for propelling it around the racetrack to seven American Superbike wins this season.
As per DMG's new American Superbike rules, much of the internal engine parts must remain stock. These include the pistons, rods, crank, transmission and clutch assembly. One would think with so much standard equipment internally, the amount of power possible from the bike wouldn't be much more than stock. One would be wrong, though. While not willing to divulge actual numbers, they did hint it's close to 200 horsepower at the crank on Yamaha's engine dyno. So where does this added power come from? Yamaha's YEC kit parts mated to the team's handiwork. That's where. YEC kit cams, generator and variable YCC-I intakes are used in the engine, while Yamaha U.S. modifies the cylinder head in house and it is one of the biggest secrets to the added oomph. This is aided by an Akrapovic exhaust designed just for the Yamaha R1 SBK in conjunction with the team. The final piece in the power puzzle comes from Magneti Marelli electronics – ECU, fuel mapping, dash – which are designed solely for the Yamaha squad and their machines. Included in the Marelli system is full data acquisition, though that goes to tuning the chassis equally as much as the engine. And, like the engine, more of the chassis now must remain stock per the rules as well. This includes the frame and fork externals. The swingarm must start stock but can have gusseting or bracing added, though the Yamaha boys stick with a totally OE unit. For the fork they run Ohlins TTX internals, while the shock is an Ohlins TTX unit throughout. Graves Motorsports provides adjustable triple clamps, different shock links, handlebars, rearsets and case guards. As for other trick bits, the handmade aluminum fuel tank comes from Gmeiner Racing Parts and brakes are all top-spec Brembo throughout, while lightweight 17-inch (as per the rules) wheels come from Marchesini and are shod with Dunlop's latest spec slick tires. Throw on some Sharkskinz bodywork covered in a slick coat of paint from MC Pro Designs and, more or less, you've got yourself a factory Yamaha American Superbike. Add some No. 4s and a couple windscreen stickers and now it's Josh Hayes' daily driver, sitting and idling while emitting a soothing lump in Spring Mountain Motorsports Park's paddock, waiting for I to descend the red mist upon thee. Time to rock 'n' roll! Art at Speed The harder you ride it the better it performs... Read any racebike review and there's a good chance a statement of this context is art of it. And while I'm sure this is true of all of these bikes – a racing machine's intended purpose is such, after all – never has it been as apparent to yours truly as with Hayes' factory Yamaha. At anything less than really, really hard, the R1 plain kicks your butt. But gather the balls to really push the beautiful blue girl toward its limit and she comes to life like a stripper that's just seen a fat roll of $100s. And it's every bit as exciting as you may think. Exciting like taking a bath with a toaster, that is… Much of this comes down to Hayes' preference to run extremely stiff suspension – I'm talking high school principal stiff! As the crew puts it, "Josh runs it stiff to know what's going on under him, to always know the limit." I thought big boy Aaron Yates ran a rigid set-up on his Jordan Suzuki, which I rode a few months back; that was until I hopped aboard the No. 4 machine. I would be surprised if the suspension even moved at all during my warm-up laps as I got acclimated with the Superbike. At those speeds the bike kicked my ass. I was knackered after only a handful of laps; wrists pumped up, hands numb, knees locked. It was time to summon the racer within, otherwise it was going to be a very long and tiring day. Watching a recent broadcast of the last round of the American Superbike Series at New Jersey Motorsports Park I caught wind from the announcers that double-race-winner Hayes wasn't running any traction control. As I was due to ride the bike in a week's time, this piqued my interest. But as sometimes announcers have been known to exaggerate a tad, I was skeptical. Especially in this day and age, where every Superbike I've recently ridden has had it in some form or another. As it turns out, for once the TV folk weren't exaggerating. And the plan was for me to ride the bike just as it rolled off the track from Hayes' season-ending double-win. In fact, even if I wanted to switch it on I couldn't, as the option doesn't exist on the No. 4 Yamaha. Time for some good ol' right-hand-TC to keep this nearly 200-horsepower Superbike at bay. Nervous? Never… Due to my complete trust in the cat-like reflexes and sheer talent I am blessed with, I hopped right on and gave the bike the beans exiting the pits. Yeah, right… To keep life, limb and that wondrous blue paint intact, easing up to speed was the name of the game. But as I said before, going at an "easy" pace on this bike is quite tiring. And while I wasn't about to abuse the right grip immediately, no such caution was needed with the chassis. When you are put on a stripped down motorcycle like this you get back to what the core of road racing is all about; the noises, the vibration, the feel ... oh, man, the feel! While I had assumed the unorthodox Inline-Four crossplane engine would garner most of my attention right off the bat, it was actually the Yamaha's chassis and resulting mid-corner ability that was the most eye-opening. Begging to be leaned further and further, corner speed building, the feedback and ability to push the big-bore blue bike through the center of the turn was downright staggering. Compared to the street version it's as if layers of filtering have been stripped away. Think decaf versus triple-shot espresso. Quickly finding myself pulling my knees in as tight as possible and even picking up my elbows to miss the curbing in spots, never in my life have I pushed a production-based literbike of any caliber through corners with such aggression and pace. And ease, for that matter. Only complaint? The footpegs were too cramped for my bum right knee. Thus, we lowered them and back out I went, But something strange happened as a result. The R1 wouldn't change direction like it had previously, wanting to run wide mid-corner and all the way out though to the exit. I'm not talking a small change, either. I'm taking a massive change – it felt like a totally different bike. Never have I ridden a machine so sensitive to such a small differences. Turns out Hayes and crew spent a good deal of time this season with such things and, not surprisingly, know what they are doing. Back went the footpegs…
While getting acclimated to the chassis helped increase my pace to a point, somewhere in the mid-1:43 range, the real speed would come from picking up the throttle earlier and being harder on the brakes. That is what Superbikes are all about: get in deep, turn quickly, get back on the gas as early as possible. Needless to say, sans Traction Control, this took a few laps to get used to. And though it may have taken me half the day to truly explore the lengths of the right grip, once I did it became apparent just why Hayes doesn't run TC. There's no need. Seamless on/off throttle response mated with the torque of the crossplane crankshaft engine makes for one of the smoothest and easiest to use power deliveries of any big-hp machine I've thrown a leg over. Even with TC on some of the other Superbikes I've ridden, the Suzukis specifically, I still found the Yamaha easier to ride. In fact, it may be the easiest Superbike I've ever twisted throttle from stop to stop on. A typical byproduct of such bottom end torque can be a lack of top-end power and especially over-rev. Not with this Yamaha. It really is a belter engine; grunty low down, savage up top and musical everywhere. Get the blue bomber above 12,000 rpm and she comes to life like an un-caged rabid dog, shiftlights flashing from green to red fast enough to spin your eyes backwards. How Hayes uses them I'm not sure – they did me little to no good, quickly learning to paw for the next cog on the quick-shifter the split second I saw the first of the green lights. Anything later and I was having a violent affair with the limiter. Once the grey matter between my ears had digested just how easy it is to exploit the traction and power from this R1 something wonderful happened: The lap times began to drop with – I was easily into the 1:42s, consistently. Next order of business: Explore the immense braking potential of the Brembo monoblocs. Like his chassis, Hayes prefers his brakes single-minded and uncompromising. No initial squish or progressively building pads here; just 100% braking power – right here, right now – at the slightest touch of the lever. Keep pulling the lever and they bite harder, slamming the rider forward, taking a good bit of one's upper-body strength to not go flying through the screen. Starting to get the drift here – Hayes likes it STIFF. The binders also follow in the footsteps of the rest of the bike in regards that you get back exactly what you put in. The harder one pushes and the deeper into the suspension stroke one gets, the more feel and feedback the chassis provides. Due to limited hard-braking areas at SMMP there were only a couple places to really explore the brakes potential, but they are impressive, to say the least. On the other hand, when easy with them and not at pace, they lack feedback and do little more than make the rider jerky and awkward. Thus, there was no other option – hard on the brakes wherever possible. The final two sessions of the day cemented things in perspective. For the second-to-last outing I took it easy, concentrating on photos, as I had a few good runs under my belt and the aim was to not bring it home in a box. Problem was, at a leisurely pace the bike once again reminded me how brutal it was – arms pumped back up, hands numb and I was quickly overheating. Thus, for my final "photo" session it was time to grab it by the scruff and give it everything I had – and then some – dropping my times by over two seconds a lap (best a 1:40.3; 1:39s easily in sight). Doing twice as many laps as the previous session took half the effort – arms loose and no hand numbing here. Everything was spot on. Not to mention, how many opportunities does one get to really push a factory Superbike towards its limit for a full day? I wasn't about to let a single lap slip away, that's for damn sure. And while I could tell the team was a bit nervous that she would come back in one piece, it reaffirmed what Hayes' Yamaha YZF-R1 is all about: Ten-tenths or no-tenths. No TC or overly-complicated electronics here – just an astonishing reach of rudimentary ability; the relentless neck-snapping acceleration, the deep and glorious exhaust note and the almost spookily rigid, yet truly communicative chassis. This thing really is a proper Old School Superbike at its finest. And I enjoyed every last adrenaline-filled second of it… Santa, I want on for Christmas, please! (Note to Yamaha – Please build a production version of exactly this bike with lights and mirrors! There's no question you'll have a winner. Though you may want to soften the suspension a tad…) This content has passed through fivefilters.org.  This posting includes an audio/video/photo media file: Download Now |
| Super-X Brisbane Results - Motorcycle USA Posted: 06 Dec 2009 05:24 PM PST Reigning champion Chad Reed retained his Monster Energy Super-X Championship Title after winning the final round of the Australasian Super-X series in Brisbane. Davi Millsaps took second-overall with Jay Marmont in third. Heavy rains during the Lites final forced organizers to cut the Triple Challenge format for the Open class from five seven-lap to three five-lap races. In the first race, CDR Rockstar Yamaha's Jay Marmont grabbed the holeshot with Reed in second on the Kawasaki, but Reedy got around and took the checkers. Rockstar Motul Suzuki's Matt Moss got around Marmont and finished second with Woodstock Honda's Daniel Reardon taking third. Reed got the holeshot in Race 2 but traded the lead with Marmont for a couple of laps. Reedy eventually extended his lead and grabbed the win leaving Marmont to battle with Red Bull Honda's Millsaps for second. Millsaps completed the pass relegating Marmont to third. Moss crashed his Suzuki and was carried off the track. For the final, Reardon passed the holeshot line first, but Reed took the lead shortly thereafter. Reedy battled a determined Millsaps but managed to hold him off, crossing the line first with Millsaps in second. Reardon took the third-place spot on the podium. Once points were tallied, Reed was declared the winner, with Millsaps second and Marmont capturing third overall. "I just want to say a huge thanks to Kawasaki and Monster Energy and I am so excited for the new year. We have had a few ups and downs this series, but that's racing and it's great to finish on top. We really stepped up the series this year and I am proud to be a part of it. I like the direction the series is going and want to thank everyone involved. I know next year is going to be even bigger and better," said Reed afterwards. In the Lites class, Serco Yamaha's Kyle Cunningham grabbed the win in the first race with Brendan Harrison taking Race 2, and Lawson Bopping winning the third as the rain began to fall. Cunningham was the overall winner earning him second in the Lites Championship behind Matt Moss. Lawson Bopping was second-overall putting him third in the championship standings.
Monster Energy Super X will return in 2010 with the series calendar to be announced early next year. Triple Challenge Final Results: 1. Chad Reed (Kawasaki) 60 2. Davi Millsaps (Honda) 55 3. Jay Marmont (Yamaha) 51 4. Dan Reardon (Honda) 50 5. Daniel McCoy (KTM) 44 6. PJ Larsen 42 7. Tye Simmonds (KTM) 39 8. Michael Byrne (Honda) 37 9. Cameron Taylor (Suzuki) 32 10. Michael Addison 31
250cc Triple Challenge Final Results:
Open Overall Points Standings:
250cc Overall Point Standings: This content has passed through fivefilters.org. |
| International Speedway Corporation is Selling For 50 Cents for A ... - GuruFocus Posted: 06 Dec 2009 04:55 PM PST Company's Business....Have you ever heard of the Daytona 500? You probably have because it is the "Super Bowl" of NASCAR sporting events. While every driver dreams of winning this event, I dream of owning it. Can you imagine collecting the income stream from hundreds of thousands of people paying for admissions, hot dogs, and the most overpriced American beverage – beer? But that's not all. If you owned the Daytona 500, you would also receive income from television media rights fees, corporate sponsorship, advertising, royalties from licenses of trademarks, track rentals, and merchandise sales. As you can probably imagine, this is "big money." Even if you could afford to buy the Daytona 500, the current owners would not likely sell it to you because they know its value. But you might say, "Everything is for sale for the right price." I agree. But the right price would most likely be right for the current owners and too high for you. But in the stock market, it is a different story. Since shareholders often do not really act like real owners, but more like day traders, they get shortsighted, which allows you to scoop up fabulous businesses at pretty good prices.
International Speedway Corporation is an example of a fabulous company, and it owns and operates 13 of the nation's major motorsports entertainment facilities, including the home of the Daytona 500 – Daytona International Speedway. Other famous facilities include Talladega Superspeedway, Richmond International Raceway, and Darlington Raceway. At all of these facilities, the company promotes over 100 stock car, open wheel, sports car, truck, motorcycle and other racing events. The most prestigious is the Sprint Cup series which includes a total of 38 races; 21 of these belong to International Speedway Corporation. NASCAR's Origins To understand International Speedway Corporation, it is necessary to understand the history of NASCAR. Stock car racing was born in the South on the roads of the Appalachian Mountains. For years, farmers in the mountains made their own whiskey, and during Prohibition in 1919, they sold their product to residents of local towns. By 1933, the government repealed Prohibition, but this did not reduce the demand for whiskey because people turned to alcohol during the Great Depression. During the Great Depression, the government needed revenue to fund the New Deal programs so it pursued farmers involved in illegal alcohol production by sending federal revenue agents to the Appalachian Mountains to stop their illegal activities. As a result, farmers conducted their entire business, including the transportation of alcohol, at night. This is where the term "moonshiner" comes from. Drivers constantly worked on their cars to make them faster and more reliable to be able to escape the federal revenue agents who chased them. After a while, some of these drivers and their cars started to attract a following. They bragged about their cars' performance and their driving abilities. Eventually, someone constructed a quarter-mile dirt track in the middle of a farm, and stock car racing was born. As more people started showing up to watch moonshiners race each other, the farmer fenced the track and charged admission. Over time, more and more drivers came because part of that admission was paid out as prize money. NASCAR racing would probably not be what it is today had it not been for William Henry Getty France whose nickname was "Big Bill." As a young man, he was a race car driver from Washington, D.C. Because he disliked cold weather, he decided to move his family to Miami, Florida. During the move, they stopped in Daytona Beach and realized they did not need to continue all the way to Miami. He opened a gas station and soon his business became a hangout place for race car drivers and mechanics. To attract visitors, Daytona Beach held two races in 1936 and 1937. However, both of them were poorly run and, as a result, they were financial losers. Because France was very well liked in the community, the Daytona Beach Chamber of Commerce told him that there would be no more races unless he was the organizer. France agreed and started his promotional activities. The race took place on July 4, 1938, and it was a great success with 4,500 spectators attending. Buoyed by his success in Daytona, France wanted to organize another race in Charlotte, North Carolina, after he learned that an oval dirt track was for rent. The media was reluctant to cover the race because it did not have any official sanctioning body. France contacted the Automobile Association of American (AAA), but he was turned down. So he decided to organize his own sanctioning body – The National Championship Stock Car Circuit (NCSCC). He was not pleased that the business of racing did not have a good reputation. Track owners promised certain purses to the drivers and on numerous occasions did not deliver on these promises. The entire business of racing was disorganized and unethical. On February 15, 1948, France incorporated The National Association for Stock Car Auto Racing (NASCAR). The purpose of this organization was "to unite all stock car racing under one set of rules; to set up a benevolent fund and a national point standing whereby only one stock car driver would be crowned National Champion." NASCAR guaranteed the purses for the races it sanctioned. In order to hold a NASCAR race, track owners were required to deposit purse money with NASCAR before the race. This was instrumental because it earned drivers' respect. NASCAR also created a national point system where drivers earned points depending on their placements and the driver with the most number of points was crowned the champion. This was very important because it motivated drivers to show up to all the races so that they would not lose points. Even today, this rule is instrumental because fans go to see their favorite drivers. The point system ensures that drivers show up and do not leave their fans disappointed. Today, NASCAR is owned by the France family. When the organization was incorporated, four people invested in it including Bill France. Over the years, the France family bought out the other three partners.
The NASCAR Business and its Industry
Because the NASCAR organization is not a publicly traded company, investors can only indirectly benefit from it by owning related companies such as International Speedway Corporation. Track owners have three primary revenue providers: race fans, sponsors, and television networks. NASCAR race fans are probably more loyal and fanatic about their sport than fans of any other sport. It is not uncommon to see them tattooing the faces of their favorite drivers on their bodies. Most of them attend one to two races per year and travel on average six hours to attend them. What is so different about these fans is that they are extremely aware of the different sponsors supporting the sport. If you ask most fans about the main sponsors of their favorite drivers, they will be able tell you their names without hesitation. In fact, they actually look down on drivers without sponsors. Not only are they aware of these sponsors, they also actively buy their products or services. They know that in order for NASCAR to survive, it needs sponsors, so they support the sponsors who support their favorite sport by voting with their wallets. Sponsors are very happy to reach the captive audience at the stands and on TV screens. But it wasn't always like this. Unlike basketball or baseball, stock car racing is an expensive sport. In the past, drivers and teams struggled financially. They barely had enough money for replacement parts just to keep going from one race to another. The prize money was not enough to cover these expenses. In 1972, R. J. Reynolds Tobacco Company became the sport's primary sponsor because it was prohibited from advertising cigarettes on television. It was looking for other ways to advertise its cigarettes and found NASCAR. This gave birth to corporate sponsorship in NASCAR, which was a new form of marketing. The difference between sponsorship and advertising may not seem obvious, but advertising creates quick results without long-lasting effects while sponsorship creates a bond between the customer and the company and lasts longer than advertising. This is a win-win situation for everybody. Sponsors want their brands to gain greater exposure, so they make it possible for race teams to afford expensive equipment. Drivers return the favor by constantly talking about their sponsors to their fans. Fans go to the stores and buy their products because they know that without sponsors, ticket prices would be much higher. You might think that television networks jumped on the idea of broadcasting the race to millions of fans around this time, but it wasn't until 1979. This was the first year that the Daytona 500 was broadcasted live. There were doubts whether such a move would be successful. NASCAR was a sport from the South and it was not certain that it would be well-received by other parts of the country. To everyone's surprise, the 1979 Daytona 500 live broadcast was an incredible success with 15 million viewers. This created headlines all over the country. Now NASCAR was being exposed not only to thousands of people, but to millions. The media found a goldmine in NASCAR as racing became the second most-watched sport in America after football. Why did NASCAR become so successful in comparison to other sports? When you watch football, basketball, or baseball, you have to wait the entire season to watch the best teams play each other. In NASCAR, you get to watch the best drivers race each other every time there is a race. This is exciting. Another reason for the success is the limited schedule. There are only so many weeks in the year and NASCAR's Sprint Cup races 38 weekends in a year. The open weekends are used to reschedule events that are canceled due to weather. If you miss a race, you might have to wait a week or two for another one. In other sports, you are overwhelmed with the number of games that you can watch. Moat A moat is what gives a company an advantage over its competitors. It keeps competitors at bay so that a company can keep generating profits and grow over time. The two companies that dominate the NASCAR racing scene are the International Speedway Corporation (ISCA) and Speedway Motorsports (TRK). International Speedway Corporation owns 13 racetracks which constitutes half of all the tracks in the nation. Speedway Motorsports owns seven racetracks. A competitor could technically build a state-of-the-art racetrack, but it wouldn't be worth much until the track could get a Sprint Cup race. Non-Sprint Cup races would not bring enough fans and broadcasting rights to make such a project financially feasible. It costs over $100 million to build a racetrack. NASCAR determines every year which track gets what race. Because fans and drivers are used to having certain races at certain tracks, NASCAR tends to keep races at the same locations for years. But from the point of view of a track owner, NASCAR's power to revoke a race possesses a certain risk. If for some reason NASCAR decided to move the Daytona 500 from the facility owned by International Speedway Corporation to another facility owned by a competitor, this would result in a tremendous loss for the company and it would most definitely be reflected in a falling stock price. This, however, is unlikely to ever happen because International Speedway Corporation is controlled by the France family which also owns and controls NASCAR. The France family is unlikely to take races away from their own tracks. It is evident that International Speedway Corporation enjoys a wide moat that serves a tremendous barrier to entry to another competitor. Management International Speedway Corporation is controlled by the France family who owns 40 percent of the shares and controls 68 percent of voting power. In 1992, Bill France passed away and his son William Clifton France (also known as Bill, Jr.) took over. There was some concern whether he would do a good enough job running NASCAR and International Speedway Corporation. Under his leadership, NASCAR exploded. He really put International Speedway Corporation on the map as a big business. Bill Sr. saw NASCAR as a sport, and Bill Jr. saw it as a product. Bill Jr.'s children, Brian and Lesa had an even greater vision for NASCAR because they saw it not just as a product, but as entertainment that could attract not only men, but also families with children. Today, women constitute 40 percent of NASCAR's fan base. By owning such a significant portion of the company, the France family's interests are aligned with the interests of shareholders. Analysis Bill France founded International Speedway Corporation in 1953, but back then it was under a different name – Bill France Racing, Inc. In 1957, he renamed it Daytona International Speedway Corporation and, as the name implies, the company only had one track. When it acquired Talladega Superspeedway in 1968, the name of the company changed to what it is today. Over the years, the company strategically acquired different racetracks. Today, the company owns the majority of racing's prime real estate. On November 4, 1996, the company went public at $20 per share. Today, it can be purchased for about $26 per share. It has been 13 years and the stock only appreciated $6 per share. The company must not have grown very much since then, right? Well, let's take a look at a chart comparing 1996 and 2008.
It can be seen that the number of tracks increased by 225 percent, which pales in comparison to the performance of the other metrics. Revenues increased 703.4 percent, net income by 614.6 percent, earnings per share by 418.5 percent, and book value per share by 655.8 percent. Despite these increases, the stock is trading only 30 percent higher than what it was in 1996. Isn't this just ridiculous? I think it is. You might say that in 1996, the stock was overpriced because it had a P/E ratio of 37. If we use a P/E ratio of 20 instead, the stock would have had a price of $11 per share. Comparing it to $26 per share, this would be an increase of 136 percent. Either way, I still cannot believe that investors have the opportunity to buy this company for $26 per share. How could the company only increase the number of tracks by 225 percent and increase other metrics by 418 to 703 percent? As mentioned before, the company has three sources of revenues: race fans, sponsors, and television networks. The company not only increased revenues from race fans by increasing the prices of tickets, concessions, and parking, etc., but also by adding seating capacity at its racing facilities. Since the demand from race fans was so strong over the last decade, the company was barely able to keep up with all of the ongoing expansion projects. The company also increased revenues from sponsorships. This type of revenue growth is cheap in comparison to capacity expansion. This is because the company does not have to build anything from concrete to add more sponsors. NASCAR sponsorship was created in 1972 and kept growing because as more people became saturated with advertising, sponsorships allowed companies to sneak in their marketing message to race fans without being totally explicit about their marketing. Revenues from television broadcasting rights also grew much faster than the number of tracks that International Speedway Corporation owns. Similarly to sponsorship dollars, broadcasting rights revenues can grow without much capital. Since there is only one NASCAR, television networks are fighting over the rights to broadcast the event in order to attract viewers. From the point of view of NASCAR and International Speedway Corporation, it is a good place to be. These revenues are likely to keep going up. What is even more ridiculous about the current stock price is that the comparison chart between 1996 and 2008 does not include the full impact of television rights that NASCAR negotiated for the eight-year period from 2007 and 2014. In 2007, NASCAR entered into an eight-year contract with FOX, ABC/ESPN, TNT and SPEED for the broadcasting rights for three national touring series – Sprint Cup, Nationwide, and Craftsman Truck. The agreement is for $4.5 billion over the eight-year period. This equates to $560 million average per year for the entire industry, which is 40 percent higher than the last contract for $400 million per year. The contract also contains annual increases of about 3 percent per year. This income stream provides stability and predictability. It is particularly important to all the companies in the industry when race attendance is down. This income is also easy because it doesn't require any work. It is like saying to the television networks, "I am running a number of race events. Bring your cameras and do what you need to do to expose my sport. After you are done, take your stuff, come back next year, and don't forget to write me a check for half a billion dollars. Once the contract is up in 2014, we will probably jack up the price because we are pretty sure that NASCAR will be even more popular and advertisers on your television networks will be fighting each other to get a chance to have a 30-second commercial exposed to NASCAR fans." However, International Speedway Corporation is not getting the entire $560 million because this is for all the companies in the industry. In 2008, the company received $257 million and only $189 million went straight into operating income. The reason why the entire $257 million wasn't retained was because about 25 percent goes to the drivers. Still, the operating margins on the television rights are about 73.5 percent. Based on the current stock price, the company is trading for a market capitalization of $1.3 billion. If you just take the television rights at $189 million and place a conservative multiple between 6 and 8, the value of these television rights is between $1.1 and $1.5 billion. In other words, the television rights on its own are worth as much as the entire company. By purchasing it at $26 per share or $1.3 billion of market capitalization, you are paying for the television rights and getting all the racetracks and sponsorship dollars for free. Why is International Speedway Corporation's stock so cheap? As mentioned before, track owners have three primary revenue providers: race fans, sponsors, and television networks. It costs about $50 to $100 for an admission ticket, but if the hotel, travel, food and everything else is included, it is not unreasonable to say that it costs approximately $1,000 per person to attend a race. Since most fans attend one to two races per year, this equals to an annual expenditure of $1,000 to $2,000 which comes from discretionary income. Half of NASCAR's fans earn $50,000 or less annually. The current recession definitely has negative effects on their attendance, but this happens because fans are less able to afford it and not because they dislike the sport. I believe that this is only temporary for as long as the economy stays weak. Sponsors that are seeing the attendance down and their own businesses struggling from the effects of the recession are cutting down on their marketing budgets. Some of them might not be able to afford sponsorship and others might be cutting expenses to protect their stock prices. For whatever reason they are pulling back, I believe this also is temporary. In the end, there is only one NASCAR. If they want to advertise in a newspaper, they have plenty of choices, but if they want to reach NASCAR fans, they can only do so through NASCAR or racetrack owners. Sponsors will be back because if they don't, there will always be someone who will want to reach NASCAR's fans even if it means that it will be foreign companies. NASCAR has a toll bridge and whoever wants to drive through has to pay up. It is that simple. When the top line revenue declines, expenses stay relatively stable because the majority of them are fixed. The expenses include sanctioning fees to NASCAR, prize money to drivers, and other operational costs. The track owners have to pay a NASCAR sanctioning fee and drivers' prize money no matter how many people show up to the race. The costs that are variable are the operating costs such as the number of employees during the race. Track owners usually hire one employee for every 75 race fans and this expense can obviously be reduced as fewer fans show up. The good news is that when the recession ends, the top line will recover, the bottom line will grow much faster. Valuation I believe that the normalized earnings power of International Speedway Corporation is about $3 per share. For a company of this caliber, I have estimated an earnings multiple between 15 and 20. Based on this, the stock is worth between $45 and $60 per share. The average is $52.50 per share. On Yahoo finance, you might notice that earnings per share are $0.65 which means that the P/E ratio is about 40. This is misleading because the earnings per share listed includes a non-cash equity impairment charge in the second quarter of 2009 for $57 million or $1.18 per share. This impairment charge is a one-time hit against earnings. Without this charge, earnings per share would have been much higher and the P/E ratio much lower. Conclusion Wall Street, with its short-term mentality, is giving this company away for about 50 cents on the dollar because it is unable to see past the current weaknesses in the company's earnings. This is why recessions produce investment opportunities because they make investors do unwise things such as selling wonderful businesses at cheap prices. But the key here is patience, which is always in short supply on Wall Street. NASCAR is not going anywhere and owning International Speedway Corporation is the best way to benefit from this sport. The time will come when this company will shine again, and when it does, Wall Street will pay us a price much higher than what is it is today because it will see all the positive things about this company that now it refuses to acknowledge. Disclosure: I, or persons whose accounts I manage, own shares of International Speedway Corporation at the time of this report. This report is not a solicitation to buy or sell securities. Neither Mariusz Skonieczny nor Classic Value Investors, LLC, is responsible for any losses resulting from purchasing shares of International Speedway Corporation. You are advised to consult your financial advisor or conduct the due diligence yourself.
Mariusz Skonieczny is the founder and president of Classic Value Investors, LLC, an investment management firms that builds and manages customized investment portfolios for its clients. He is the author of Why Are we So Clueless about the Stock Market? Learn How to Invest Your Money, How to Pick Stocks, and How to Make Money in the Stock Market. Email: mskonieczny [at] classicvalueinvestors [dot] com. Webpage: www.classicvalueinvestors.com User Comments: For a company of this caliber, I have estimated an earnings multiple between 15 and 20. It seems to me your margin of safety depends on this multiple. Could you share with us your calculation ? From Wikipedia: Estimation is the calculated approximation of a result which is usable even if input data may be incomplete or uncertain. This content has passed through fivefilters.org.  This posting includes an audio/video/photo media file: Download Now |
| Nine Inducted Into AMA Motorcycle Hall Of Fame - RoadracingWorld.com Posted: 06 Dec 2009 11:26 AM PST Dec 06, 2009, ©Copyright 2009, Roadracing World Publishing, Inc. A Night of Honor: AMA Motorcycle Hall of Fame Class of 2009 inducted in Las Vegas gala event LAS VEGAS, Nev. -- It was a night of heroes and legends at the 2009 American Motorcyclist Association (AMA) Motorcycle Hall of Fame Induction Ceremony Saturday, Dec. 5, as nine of motorcycling's brightest lights were honored by fellow riders for their contributions to the motorcycling lifestyle. Celebrating in high style at the Hard Rock Hotel & Casino Las Vegas, hundreds of riders from across the country converged to pay tribute not only to the class of 2009, but to all members of the AMA Motorcycle Hall of Fame, based at AMA headquarters in Pickerington, Ohio. In all, more than three-dozen members of the AMA Hall of Fame, including the nine members of the 2009 class, were among more than 500 enthusiasts in attendance. "Tonight begins a new era for the AMA Motorcycle Hall of Fame," noted AMA President and CEO Rob Dingman. "From this point forward, we will shine the light of achievement on each and every member of the AMA Hall of Fame, like we've never done before." Moving the Induction Ceremony to Las Vegas this year is part of that, Dingman noted, as is a new tradition of bestowing special AMA Hall of Fame rings to inductees. "These rings are a fitting symbol of their accomplishments, and a visual tribute that will be recognized by everyone in the motorcycling community -- and beyond," he said. Jack Penton, an AMA Motorcycle Hall of Famer who also serves as chairman of the board that raises money for the museum, noted that the new focus would extend to the AMA Hall of Fame Museum itself. "While the Museum has hosted some incredible exhibits over the years, none of them has paid proper tribute to these incredible achievers -- and that's about to change," Penton noted. "Over the next year, we're redesigning the permanent display for the AMA Hall of Fame by moving it upstairs to the main exhibit hall in the Museum. In addition, each year we will have an exhibit area dedicated to our latest inductees, allowing us to truly spotlight our legends, which is only fitting as a tribute to their contributions to motorcycling." The ceremony, hosted by motorcyclist and actor Perry King, honored the AMA Hall of Fame class of 2009: industry innovator Robert Bates, off-road champion Randy Hawkins, motorsports giants Bob and Geoff Fox, suspension pioneer Gilles Vaillancourt, off-highway rights activist Mona Ehnes, longtime motorcycle safety proponent David Hough, legendary race team manager Gary Mathers and successful dirt-track racer and tuner Chuck Palmgren. Each took the stage to offer their thoughts. Robert Bates Robert Bates, who started Bates Manufacturing Inc., in Los Angeles in 1939 to service and overhaul motor scooters and sell accessories. He sold the company in the 1950s to Bob Rudolph, but remained with the company and saw it grow into the manufacturer of the popular Bates colored-racing leathers that most people remember it for today. Speaking on behalf of Bates, who passed away in 1970, Rudolph noted: "Many of the things Bob started, and which made Bates attractive in 1959, still guide the company today and I believe have contributed to its longevity. It was an established business, it had and manufactured its own products, it had a reputation for quality, it had many customers, not a few large ones, was family owned, with hands on management and personal service. Robert Owen Bates, is a worthy inductee into the AMA Hall of Fame. Mona Ehnes A long-time champion of off-highway motorcyclists' rights, Mona Ehnes charged into the fight for motorcyclists' rights in 1967, when controversial legislation was introduced that would have restricted off-highway vehicle (OHV) riding opportunities in her home state of Montana. Ehnes has been at the front lines of the OHV rights battle ever since, as a founding member of both the Great Falls Trail Bike Riders Association and the Montana Trail Vehicle Riders Association. She remains both an active advocate and off-highway motorcyclist today, and serves as executive assistant to the National Off-Highway Vehicle Conservation Council. "I became an activist because I love to ride," Ehnes said. "I'm not competitive or fast. I just love motorcycling and having fun. I'm also part of the motorcycle community that the public doesn't see on TV or in the ads -- the family that rides together. "Receiving this recognition is indescribable and is something I'd never even imagined," she noted. "I hope this encourages all the activists out there to keep working, writing letters and comments, raising legal funds, attending meetings, cutting logs, swinging polaski's and pulling weeds." Bob Fox Bob Fox is well known to off-road riders as the creator of the legendary Fox AirShox, sold by his company FOX Racing Shox. Bob's shocks have won AMA championships, the Indianapolis 500, World Mountain Bike Championships, the Baja 1000 and more. "When I began 35 years ago, never in my wildest dreams would I have imagined that some day I might be standing up here -- being inducted into the AMA Motorcycle Hall of Fame!" Fox said. "35 years ago I was just a guy who loved engineering and loved motocross -- and was lucky enough to find a way to combine them into a career and a business. I was just doing what I loved. "How did this all begin?" he asked. "Well, it began with a revolution. Back then -- in the mid-1970s -- it was called 'The Long-Travel Suspension Revolution' In just a few years, the suspension travel on motocross bikes increased radically -- from 4 or 5 inches to about a foot, front and rear. The good news was that you could go a lot faster over rough ground. The bad news was that shock absorbers were overheating and fading. And all-too-often they were even breaking in two! Lucky me. That was my opportunity." Geoff Fox In 1974, Geoff started a legacy that will remain forever an important part of the foundation for what motocross is today and will be in the future: Fox Racing Inc. From starting the company to Fox's evolution into the world's premiere motocross apparel company, the Fox logo has grown to the become the most popular and recognized icon in motocross. "I would like to answer the question that I am most often asked by interviewers: 'When you gave up your position as a university professor to go into the motorcycle business, did you ever imagine where that path would lead?'" Geoff said. "The simple answer to that question is 'No.'" "Given the chance however, I always add that I was very confident that I could support our growing family, and I knew that I was entering an area that I was passionate about," he said. "That passion, that love of motocross, has endured. Along the way the most important business lesson learned and practiced has been 'the only constant is change.' The other constant has been our passion for what we do. Every day has been a challenge, and a thrill. And best of all, being able to work with your family. Believe it or not, we all get along great!" Randy Hawkins Randy Hawkins has won multiple AMA National Enduro Championships, 13 ISDE gold medals and 73 AMA National victories. Today, Hawkins is the team manager of AmPro Yamaha, which competes in the AMA National Enduro Championship, the Grand National Cross Country Series, EnduroCross and AMA Regional Hare Scrambles Championships. "I'm honored and blessed with the career I've had racing motorcycles," Hawkins said. "I never even knew anything about a Hall of Fame. I just rode motorcycles for fun on the farm. It took a little while to sink in because it's such a great honor. I couldn't have done it by myself. So many other people were involved through support and friendship to get here. It's a blessing and an honor I will cherish forever." David Hough David Hough is a long-time motorcycle journalist who turned 25 years of experience commuting through city traffic into articles about riding skills and crash avoidance. He is best known for his series, "Proficient Motorcycling," in Motorcycle Consumer News, and books including Street Strategies: A Survival Guide for Motorcyclists, Proficient Motorcycling: The Ultimate Guide to Riding Well, and More Proficient Motorcycling: Mastering the Ride. "While I'm blown away by the personal attention, I see myself not as some highfalutin' riding skills guru, but rather, as this year's 'poster child' for the serious endeavor we call 'motorcycle safety,' Hough said. "So, I'd be proud to share the spotlight with everyone who has been involved in educating riders, including those dealers, salespeople and enthusiasts who have simply passed on some advice to a new rider, or loaned them a book on riding skills, or cajoled them into taking a training course." "I'm amazed to be here," he continued. "That's because historically the honors have gone to successful racers. Inducting a safety journalist and instructor is a significant and welcome event." Gary Mathers As a racing team manager, Gary Mathers produced dozens of championships in road racing, dirt track, Supercross and motocross for Honda and Kawasaki. His keen eye for talent discovered future Grand Prix roadrace World Champions Eddie Lawson and Wayne Rainey while Mathers was with Kawasaki. Then, at American Honda, for 16 years he produce a total of 48 championships in dirt-track, motocross, Supercross and roadracing, winning two championships every year except for one. "Since the day when (AMA Motorcycle Hall of Fame Nominating Committee Chairman) Don Rosene called me about this event, I wondered what I would say when the day finally came for me to stand here," Mathers said. "Finally, I realized this was more about others than me -- all those who worked so hard and for so long. Without those folks, this wouldn't have happened. When we think about racing, we think about riders. They are the stars, they get the big bucks, and they are the heroes! "And we've been associated with some of the best. Names like Bubba Shobert, David Bailey, Johnny 'O,' George Holland, Eddie Lawson, Jeff Ward, Ricky Johnson, Wayne Rainey, Ricky Graham, Randy Renfrow, Tom Kipp, Jeff Stanton, Miguel DuHamel, Eric Bostrom, Ben Bostrom, Fred Merkel, Jeremy McGrath, Steve Lamson, Doug Henry, Nicky Hayden and many more." Mathers continued: "But for me, there are more heroes, the ones behind the scenes, the administrative people who make it all happen. They are office staff, parts people, shop technicians truck drivers and all the people that make up a successful operation. These people were always the other half of our teams." Chuck Palmgren Chuck Palmgren is a Grand National dirt-track competitor who won multiple Mile events as a racer and earned a reputation as an innovator of the Yamaha 750cc motor and frame design. Traveling the circuit for many years, Palmgren was well respected by his peers, always ready to help a fellow racer and sign an autograph for a fan. "I was told I would be blown away, that is an understatement," Palmgren said. "I can tell you this, nobody's ever won this award by themselves, and I am no different. Except I think I had more help. I had help from Champion Spark Plugs, Goodyear, from manufacturers like Triumph, Yamaha and Harley Davidson. But mostly from some really good people -- my brothers Larry, Don and Dennis. Dan Gurney -- what can I say? -- we've been together almost 40 years. Thanks sounds small but this is from the heart. And all the people at All American Racers, Phil Remington, John Miller, Kathy, all the rest. Gary Nixon, Jay Springsteen, Mahoney, Branch, Mayhan, Gene Romero, Skip Van Leewwen, all the friends in Indy and everybody else." Gilles Vaillancourt A pioneer in modern motorcycle suspension development, Gilles Vaillancourt in the 1970s developed off-road motorcycle shocks that featured a revolutionary multi-stage damping system. The shocks were a huge success, and his efforts grew into the legendary Works Performance powerhouse in the off-road world. The company also has expanded into other areas and builds suspension for airplane, photographic and military applications, among others. "I've been very fortunate to have some good experiences in the sport and meet some very terrific guys who I count as friends these days," Vaillancourt said. "I'm really honored that somebody would recognize what I've done in this industry. I got my start working in a motorcycle shop. In the winter, the shop effectively was shut down, so we spent a lot of time rebuilding the trade-ins, and that's how I got involved in working on motorcycles. After immigrating to the U.S. in 1960, I worked as a motorcycle mechanic and as a foreman on a printing press. Then, in the early 1970s, I got involved in modifying existing shock absorbers. That's how it all started -- it's been a long ride."
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