New Hampshire's Need for Speed

Each year, hundreds of thousands of NASCAR fans descend upon Loudon for the thrill of fast cars and high-octane competition while millions more watch the action at the NH International Speedway on television twice a year, shining a national spotlight on the Granite State.

NASCAR, with 75 million fans nationally and second only to the NFL for ratings for televised sports, is an economic behemoth.

The NH International Speedway (NHIS) in Loudon is reaping the rewards with two Nextel Cup events that draw approximately 101,000 per race.

While NHIS is the most recognized and largest track in NH, the Granite State's love affair with fast cars extends far beyond it.

The state has long been among the top five in the country with the most auto racetracks per capita, says Ron Meade, director of special projects at NHIS. There are 15 race car tracks in NH, many of them dragways, which each attract thousands of visitors each year.

New England Dragway in Epping is the second highest revenuegenerating track in the state, bringing in approximately $3 million every seson, says Joe Lombardo, track manager. And that's just what fans are spending at the track. When race fans come to town, they leave a money trail.

"Every type of retail establishment out there benefits in one way or another from the spectators that motor sports facilities bring into their respective communities," Lombardo says.

However, while NHIS and New England Dragway are basking in the winner's circle, some of the state's smaller tracks are stalling and hoping they can shift gears before losing attendance to bigger tracks and other recreation venues.

Big Business in a Little State

Most of NH's race tracks tightly guard their financial information, but the economic impact that the sport has in the state is unmistakable. "Keep in mind that every one of our Nextel Cup races has outdrawn that year's National Football League Super Bowl; so when the state of New Hampshire has something that's bigger than the Super Bowl, that gives you an idea of how big this industry is in this state," Meade says. "Not too many states in the Union have two Nextel Cup events and only 13 states even host one Nextel Cup race."

While it does not release financial information, there is no doubt NHIS is the economic powerhouse of NH's racing industry. Tickets for Nextel Cup events range from $55 to $110 per person. The track operates every day from the beginning of April though the end of October and hosts the oldest motorcycle race in the nation every Father's Day (the event is 81 years old.) NHIS employs 20 people full-time and up to 1,500 during major events. Meade estimates that the track's events have created approximately 1,000 full-time jobs outside the speedway. Approximately 78 percent of the fans attending the Nextel races are from out of state, spending an average of $226.43 per day outside of the speedway, Meade says. "These events really provide additional income to the state that otherwise wouldn't be there," he says.

However, the full economic impact of the sport on the state is unknown as there is no state agency that tracks such statistics. In general, it is estimated that overnight visitors to the state during the summer spend approximately $51.17 per day while day visitors spend $41.77 per day, according to the Institute for NE Studies at Plymouth State College. Even using the dayvisitor figure as a conservative multiplier, Nextel race fans spend approximately $42 million in the state during just one day. "I don't think the state has taken a look at auto racing in the way they probably should," Lombardo says.

Smaller Tracks

Most of NE's 15 auto racetracks are concentrated in the southern tier of the state. The oldest tracks are Twin State Speedway in Claremont, which is 59 years old, and Londonderry Raceway, which has been in operation for 58 years. Many of NH's racetracks are family-run businesses and range in size from a one-sixth-mile track to as long as 1.6 miles. They attract anywhere from 1,000 visitors per event up to the impressive numbers posted at NHIS, with most hosting between 2,500 to 4,000 visitors per event.

The tracks attract a wide crosssection of fans and promote a family atmosphere to reach the widest demographics possible. "We get a range of individuals, from mechanics and factory workers to CEOs of large corporations coming to our facility," says Lombardo at New England Dragway. "Racing is a fairly inexpensive entertainment venue for families. Most people have friends who race and that helps generate interest," he says. The dragway attracts more than 250,000 fans per season, with tickets averaging $20 per person.

Wooing Sponsors

It is the ability of racetracks to repeatedly draw thousands of people to events that makes the sport a prime target for sponsors. Nationally, Fortune 500 companies have recognized the power of such sponsorships, ponying up millions to sponsor teams and events.

NASCAR.com reports that Nextel Cup teams receive $10 million to $20 million from sponsors for primary spots on their cars and others pay up to $1 million for secondary spots. At the local level in NH, though, sponsorships are far more affordable.

Sponsors, ranging from large national corporations to small local businesses, recognize the intensity of fans' loyalty to the sport. "Sponsoring companies perceive this loyalty as extremely valuable to sales of their brand-name products," says Fred Neergaard, public relations director for NHIS. "If they can win the trust of consumers, consumers will stay with them and support them and their products in the same way they support their race teams."

Across the state, national and regional companies - like Sylvania, Chevrolet, 3M, Home Depot, Coca-Cola, Lowe's, Amalie Oil, Toyota, Volvo, and New England Dodge - and a wide range of smaller local businesses sponsor everything from racers to teams to specific nights or events. Every track offers levels of sponsorship and sponsorship packages. These range from a few hundred dollars at smaller tracks to tens of thousands of dollars. Sponsors reap such entitlements as their name on tickets, billboards, the sides of race cars, and on trophies.

New England Dragway offers sponsorships starting at $1,000. "This is for the average individual who might want to advertise their garage or business with a sign package and an ad in our track newspaper," Lombardo says. "Sponsorships can go up to tens of thousands of dollars for larger corporations sponsoring us. This gives them enormous exposure and offers them a different avenue to advertising."

Some tracks produce their own newspaper. New England Dragway, for instance, publishes 45,000 copies of its track newspaper seven times per season, which also highlights sponsors. Sponsor names also appear in the Dragway's printed schedule of events. "We print 100,000 copies of these, so our sponsors are getting a lot of exposure as part of their sponsorship." He notes that while sponsors have always targeted the 18- to 34-year-old male market, they are now noticing a shift in demographics to include 18- to 34-year-old women.

At Monadnock Speedway in Winchester, sponsorships start at $1,000 and go up depending on the event. "If it's a special event, the sponsorship will be more because we are drawing more people and the sponsors will get more exposure and publicity," says Michelle Cloutier, general manager.

It's not just the tracks that seek sponsors. At Sugar Hill Speedway in Weare, sponsorships help racers offset the cost of racing, says Archie Archambault, who, along with his wife Debbie, owns the one-sixth-mile asphalt oval speedway.

"Sponsors get brand recognition from their names appearing on the sides of the race cars, so they are getting exposure throughout the races," Archambault says.

Dick Therrien, general manager for Riverside Speedway in Groveton, held a sponsorship seminar in January to help racers understand how to secure sponsorships. "It was popular with about 40 race teams attending," Therrien says. "Some teams who had trouble getting sponsorships in the past used the formula we suggested and got some good sponsorship dollars."

Tracking Challenges

Some smaller tracks are struggling to hold their own and they admit one of their challenges is competing with a speedway like NHIS. "Everyone is saving to go there during the months of June and July and then the fair season starts. There's lots to compete with and with the economy, people are saving for only one event," says Danielle Purington of Hudson Speedway and Star Speedway in Epping. "We have to be creative and do things like offer special rates for family night or lower ticket prices on certain nights. We also make it cheaper for drivers (to attract more of them) in order to put on a better show."

The tracks contend with a myriad of challenges to keep operating: high insurance costs, the cost of attracting and keeping a dependable workforce, the need to continuously advertise to bring in fans, as well as property taxes and capital investments.

"To make a go of this kind of business, it all starts with good leadership and racing is no different from any other business," says Dennis Fleury, owner of Twin State Speedway. "I don't believe businesses in the industry have to be down because of the economy," he continues. "It's really a matter of going forth with good leadership."

Another challenge is the abbreviated seven-month race season as some tracks only operate one or two days a week. "It's very costly to operate a facility like this," says Jim Lafford, owner of Londonderry Raceway. "We can only use the facility one day a week, which means I have 26 days a year to operate this track and still pay for an entire year's worth of bills. And my mortgage bills don't go away during the winter months."

Smaller speedways are barely hanging on, says Butch Elms, owner of Canaan Fair Speedway, which operates a quartermile dirt track and a one-third-mile asphalt track. "They are holding their own, but they are not moving," he says, adding sponsorships are being affected. Archambault at Sugar Hill Speedway agrees. "Crowds are petering off at the smaller tracks and the cost to racers has gotten more expensive," he says, explaining racers pay $17 for an insurance pass and $20 for an entry fee each week. "We haven't increased our fees for racers or spectators in quite some time. ... Our challenge is to keep down the costs for racers so they keep coming and we can entertain more people to offset the increases in the cost of doing business."

Riverside Speedway is undergoing major marketing strategy changes, including featuring local racers more often. "We will emphasize local short-track racing by bringing back the premier late-model racing division, which is an element that has been missing from the raceway for about five years," Therrien says. The response so far has been favorable, with a large number of local racers already signed up. "This will put a lot more fans back into our bleachers," he says.

Executive Read Course

For some, it's not enough to watch NASCAR - they want to live the high-speed fantasy. If all goes as planned, NH will have its first members-only road course by 2006. "It will operate pretty much like a golf course country club, in that it will be supported by members," says Lloyd Dahmen, president of Club Motor Sports Inc. in Tamworth, of the $28 million project.

Dahmen describes the three-mile road course as a "ribbon through the woods" on the north face of Mt. Whittier. The European-style course, which will be constructed on 250 acres, will have 18 turns for drivers and motorcyclists to enjoy, Dahmen says. Club Motor Sports hopes to break ground on the course this summer should it pass a contentious permitting process. Garages, a locker room with showers, a clubhouse, maintenance facilities, a professional driving school, and a vehicle dynamics area for driver development will be constructed next year. A pool, tennis courts, an automobile museum, a restaurant, and a hotel are planned fore a later date.

In addition to monthly dues, members of Club Motor Sports will pay a one-time initiation fee of $30,000 for a gold membership, $15,000 for silver and $6,000 for bronze that buy members a certian number of hours on the course. So far, 200 people have already signed on as members. The facility plans to operate April through October. Average speeds will range between 50 mph to 60 mph, says Dahmen.