Dover reduces value of NASCAR races
In a news release detailing its fourth quarter and year-end results for 2008, the company announced that it is writing down the value of Memphis Motorsports Park by $2.15 million, Nashville Superspeedway by $3.14 million and Gateway International Raceway by $7.505 million.
The company cited projected cash flows and the fact that no anticipated material increase in revenues for Nationwide Series races from the television contract is anticipated as the reason for the reduction in value.
A write-down is an accounting measure that adjusts the value of the property to what the company considers fair market value and also impacts how much a company pays in taxes. On a conference call with financial analysts, Dover Senior Vice President of Finance Timothy Horne said Nashville's new value is approximately $51.5 million while Gateway and Memphis are now valued at approximately $10 million.