Big Stars + Big Purses = Big Crowds + Big Risk

A question every racing promoter has to consider when scheduling an event revolves around the amount of purse money to offer. Of course, tracks want big stars to race at their facility, especially if it is known that they are coming early enough that their participation can be advertised. In order for that to happen, the purse money will have to be considerable enough to serve as proper enticement.

At the same time, however, the promoter has to be careful not to offer a winner’s check(and full purse) that the track will have a difficult time paying. He/she has to considered that weather might be just iffy enough that some fans, and their ticket money, won’t show up if the forecast isn’t perfect. That obviously cuts into the amount of money the track takes in. While it can’t be known what the weather will do weeks from from a particular date, a certain degree of caution might be necessary when setting the payout.

It goes without saying that offering big payouts comes with big risk for the track. Selling tickets is a must when doling out $25,000, $50,000 or $100,000 to the victor. Gambling that everything will come together perfectly could be a make-or-break proposition for the promoter.

Along with the purse money being offered to draw in big stars comes the possibility that some local and regional drivers might opt to skip the event and its entry fee in favor of running multiple future shows later. Also, the likelihood of stiffer competition for a big purse might discourage some of the track’s regulars.

So the internal debate facing many who operate race tracks is what purse will draw in the big stars but not drive away the regulars. Of course, the track wants to make money from the sale of tickets to fans and the presence of big stars helps to sell out the grandstand. At the same time, the presence of local and regional racers helps add to the amount raised at the pit gate which helps to pay the purse as well.

It used to be that the safe play was to go with a lower purse. In the event that fans did not show up because of weather concerns or an inopportune date, the promoter would not be out too much money. But as Michael Moats and I recently blogged about, the new formula for drawing a big crowd is to offer a big purse to lure the big stars, and thus, fans.

Events of this past weekend highlight the new theory that big purses and sanctions by national tours are the best way to go about luring fans. Moats and I attended the World of Outlaws CASE Construction Late Model Series event at Ponderosa Speedway in Junction City, Kentucky. That race featured the likes of feature winner Mike Marlar as well as Bobby Pierce, Brandon Sheppard and Dennis Erb Jr. as well as local heroes such as Josh and James Rice along with Dustin Linville. The fans responded in a big way.

That $15,000-to-win purse along with the national touring series sanction served the purpose of not only enticing top drivers but also filling the seats in the grandstand.

This past weekend also featured major happenings at Eldora Speedway as the ‘Eldora Million’ and the Kings Royal for Sprint Cars drew in the largest crowds in the history of that facility. The offering of massive purses was certain to land the top stars in the sport and the fans clearly knew that. As the Late Models discovered last year, offer $1,000,000 to win and both fans and teams will show up.

Smoky Mountain Speedway’s $50,000-to-win Lucas Oil Late Model Dirt Series show experienced great attendance as did Tazewell Speedway’s $21,000-to-win Bill Corum Memorial. The car counts for both were good, although not great, but fan attendance no doubt served those promoters well.

It’s classic risk vs reward. The reward of offering a big purse can be great if the seats are sold. At the same time, the risk can be considerable if there is a great deal of money promised to the racers whether fans come through the gates or not.

Granted, there is still a place for local and regional racing. Not everyone can travel as much as is required to compete nationally. Also, of course, the expense of running such a schedule is prohibitive for many racers. Regional tours such as Ray Cook’s Schaeffer’s Oil events, the Valvoline Iron-Man Series and the Southern All-Stars are just a few of those who help many realize their dreams but not saddle promoters with huge payouts.

That said, however, as was discussed in the Turn 2 Blog mentioned above, streaming has made big stars out of some Late Model and Sprint Car drivers. And while there are many out there who are fans of the sport of dirt racing, there are probably many more who are fans of those star drivers. And because some drivers have been elevated to superstar status because they are on television sets and tablets on a weekly basis, fans want to take advantage of the opportunity to see them in person.

As a result of the current economic model within the sport of dirt racing, many promoters appear to be taking their chances with the formula of Big Stars + Big Purses = Big Crowds + Big Risk. I am no mathematician but I’m pretty sure math formulas are supposed to provide predictable answers every time they are used. But in racing, no formula is predictable.

Please consider also reading:

Brandon Sheppard looking forward to a more consistent second half

Respond to this post on Twitter by following @RichardAllenIDR and @MichaelRMoats or by liking the InsideDirtRacing.com Facebook page.

Also, NASCAR and pavement racing fans can check out InsideCircleTrack.com