ISC loses its shirt on merchandise business

Int'l Speedway Corp. announced this morning that its $122.5M investment in Motorsports Authentics had completely lost its value, based on declining sales and the lack of potential for a turnaround. ISC, which wrote down the value of MA to zero, will not record any future profits or losses from the merchandise and apparel company that it jointly owns with Speedway Motorsports Inc. Bankruptcy remains an option for MA if it cannot renegotiate the terms of its licensing deals with several NASCAR teams. Those contracts are in default, ISC said, because MA has not been making payments on the full amount of the guarantees.