The Company is a leading promoter of motorsports activities in the United
States. The Company owns and operates three of the nation's premier
superspeedways--Daytona International Speedway in Florida, home of the
Daytona 500, widely recognized as the most prestigious stock car race in
the world; Talladega Superspeedway in Alabama, the fastest stock car
track; and Darlington Raceway in South Carolina, the first stock car
superspeedway. The Company also operates Tucson Raceway Park in
Arizona, owns a 50% interest in the Watkins Glen International road
course in New York, and holds a 12% interest in Penske Motorsports,
Inc., which owns and operates Michigan International Speedway and
Pennsylvania's Nazareth Speedway and is constructing The California
Speedway near Los Angeles. In July 1996, the Company opened DAYTONA
USA--The Ultimate Motorsports Attraction, a motorsports
themed-entertainment complex that includes interactive media, theaters,
historical memorabilia and exhibits.
The Company, including Watkins Glen, currently promotes over 70 stock
car, sports car, truck, motorcycle and other racing events annually,
including seven Winston Cup races, five Busch Grand National races, the
premier sports car endurance event in the United States (the Rolex 24 at
Daytona) and a number of prestigious motorcycle races. In fiscal 1996,
NASCAR-sanctioned races at the Company's facilities accounted for
approximately 78.3% of the Company's total revenues. Based on
statistics developed by Goodyear, spectator attendance at NASCAR's
Winston Cup and Busch Grand National events increased at compound
annual growth rates of 15.1% and 17.3%, respectively, from 1993 to
1995. Moreover, each of CBS, ABC, ESPN, TBS and TNN has recently
experienced increased ratings for its televised NASCAR Winston Cup
events. Attracted by these increases in spectators and ratings, leading
consumer product and manufacturing companies have expanded their
participation in the motorsports industry. The Company's major sponsors
include Pepsi, Anheuser Busch, Sears, Winston, Gatorade, Pontiac, Ford,
Chevrolet, Goodyear, DuPont and Rolex. |
