GM begins to reduce NASCAR race sponsorship

UPDATE This week the International Speedway Corporation — Daytona-based parent company to a dozen speedways and assorted subsidiaries — announced a relatively small number of layoffs (50) nationwide. Annual raises are also being cut in half for employees (reportedly from 3 to 1.5 percent), while those at the top of the food chain are said to be losing their customary bonuses this year.

ISC has about 1,000 employees nationally and owns and operates a dozen race tracks around the country.

11/08/08 Excerpt from ISC teleconference transcript:

Q: Much discussion about the auto industry, what have you lost, what’s in negotiation that’s the toughest part? Can you give some thoughts as to the impact of the auto industries problems on your sponsorships and naming rights etc.? Bob Simonson – William Blair

A: We’ve been notified by GM that they don’t intend to renew at Daytona and Martinsville. Having said that, we do have conversations ongoing with them and other manufacturers. We fully expect something to be in place should they exit but as I said the sales and marketing team are still working with GM and we have relationships with them at other properties and so we’ll see. It would be premature to see where it’s all going to end up. I’m confident that those deals, if they do in fact exit, that those deals will be replaced. John Saunders – ISC