International Speedway Corp. will take a steep fourth quarter charge related to its Motorsports Authentics joint venture.
Motorsports Authentics, which markets and distributes motorsports-related merchandise licensed by certain competitors in NASCAR racing, is a 50-50 partnership between International Speedway and Speedway Motorsports. The venture is expected to lose between $45 million-$50 million in 2007.
ISC (NASDAQ: ISCA) says it will record a write-off of $25 million-$50 million in the fourth quarter because of the losses.
Motorsports Authentics blames part of the losses on Dale Earnhardt Jr.’s announcement in May that he was leaving Dale Earnhardt Inc. International Speedway expects Earnhardt Jr. and other drivers to sell more products next year when they move to new teams.