Friday, August 13, 2010

NASCAR Attendance Decline

The USAToday has an article on the recent decline in NASCAR attendance and TV ratings. It makes sense that some of the decline in attendance can be attributed to the national and local downturns in the economy, that is not the only factor. Another is that ticket prices (and the costs of attending a NASCAR race) are higher than what many customers are willing to pay. That combined with a decrease in income should have a negative effect on NASCAR attendance.

The puzzling thing to me is that NASCAR has also declined in TV ratings. If falling income and high prices reduce the demand for race attendance we should expect an increase in the number of TV viewers, which is not the case. Thus NASCAR has a problem on their hand, which they are expecting to recover with changes in the "product" on the track. I wish NASCAR well.

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