AVONDALE, Ariz. -- Proms. That is what will save NASCAR tracks.
OK, not exactly. The three proms already booked for its new building won't match the revenue generated by selling the naming rights to the facility and its 1-mile oval nestled in a valley about 25 minutes west of downtown Phoenix.
But it's the symbolism of it that shows why International Speedway Corp. will spend $178 million to improve the aging facility now known as ISM Raceway. As tracks continue to see their admissions revenue drop -- for the 10th consecutive year, the public companies saw a drop in combined admissions revenue in 2017 -- they must find ways to diversify their revenue stream.
They hope to stem the tide -- the drops the past six years went from 6.5 percent in 2013, 2.5 percent in 2014, 0.2 percent in 2015, 7.4 percent in 2016 and 2.7 percent in 2017 -- and maybe $178 million in renovations will do it, but even if it doesn't, it can make money in other ways.
The $400 million renovation of the Daytona grandstands was great and all, but there's only one Daytona. Track operators can't spend that type of money at every track, and no way would they get the returns either. Companies who sponsor the grandstand areas can use their suite space at Daytona -- an iconic setting -- more than a hundred times a year for various events and meetings.
But Phoenix? The business model is different. Certainly, the track hopes that its race weekends turn more profitable once all the new amenities and seats are up and running in November. But it can't count on all the amenities generating $178 million in revenue.
"That would be a challenge in today's environment," track president Bryan Sperber said. "What we're creating here gives the business maximum flexibility [to] all kinds of different events and create all kinds of different revenue opportunities."
So the transformation of the Phoenix track is about the race weekend (Sunday's Cup race is at 3:30 p.m. ET) and beyond.
After the April IndyCar race weekend, the current frontstretch grandstands are coming down, and Phoenix will move the start-finish line to the dogleg in front of the newly built grandstands.
All grandstands -- new ones and ones that will remain will have chairback seats (cupholders for everyone!) -- and the new grandstand seats will cost about on average $10 apiece more than the old grandstands being torn down.
The ticket add-ons to get into the infield area to look in the garages or to enter the 8,000 square-foot bar and patio area outside the grandstands will generate more income from ticket buyers. Phoenix also has added a restaurant and bar that is open to all fans -- and will stay open to anyone (race ticket or not) after the race is over until 2 a.m. on race weekend, which means the track can earn more money on food and drink sales (for example, $9 beers and $14 cheeseburger and fries). With an outside area, that restaurant can seat about 500. There is even a stage for a band.
If fans are camping and want to hang and watch television in a bar-like setting, it's certainly better than having to drive down the road to another location.
The new grandstands will add 17 more suites, increasing Phoenix's suite count from 33 to 50. The deals, Sperber said, for those suites are running multiyear, a nice difference than in the past when tracks were down to selling suites by the day. There also will be three infield garage suites amid the garages for companies, if they want, to be able to have their customers hang out in an area where they can watch teams work next to them separated by just a partial wall and pane of glass. Think of it like being next to the dugout.
For those with serious cash, Phoenix's current motorhome spaces overlooking the backstretch will overlook what will be the new "frontstretch" looking back to the dogleg where the new start-finish line sits just before the entrance.
The whole facility will be entirely outfitted for Wi-Fi, Sperber said.
"If you can't come here and post your selfie, you're out of business with those kids," Sperber said about growing the fan base.
He wouldn't divulge the Wi-Fi cost, but it is part of the $178 million.
"It's not inexpensive," Sperber said. "I don't want to get into exact figures, but it's definitely a seven-figure-plus investment. But it's worth it. You have to have it."
For hard-core fans, it might not make a difference. But in the sport's heyday, the stands were filled with fans who just came to be with their friends. As discretionary income decreased and demands to be connected increased, going to a race with your friends just for the heck of it appears to have significantly declined.
Now, if a fan gets to walk in the infield or if the race is too loud, go hang out and watch it in a bar and be on their phone, then that should increase the chance of their return, no?
"Introducing them to this venue in November is way different than introducing them two years ago at this place," Sperber said.
Sperber hopes his hard-core fans love the fact that they should be able to see more of the garages and there will be some spots available for fans in the new Victory Lane. He wants fans to be able to celebrate with the winner.
Certainly there will be some growing pains. Phoenix has scrapped infield camping for those who enjoyed that opportunity.
But if Phoenix is successful, it can serve as a game plan for others, especially many of ISC's aging facilities. SMI tracks are looking at creating gathering areas. Las Vegas had a restaurant/bar area on one of its concourses overlooking the track that was open to any fan with a ticket. Atlanta set up a bar-type area that was open to its season-ticket holders on Saturday and then sold as a corporate area on Sunday. Texas will have a similar bar-type area as Atlanta -- both tracks have those bars across from the restart zone to increase value.
Tracks can't control the quality of the racing product -- although Sperber was adamant that whatever Phoenix did, it would keep what has become its signature dogleg. Why mess with something that makes the track unique?
But as he indicated, Phoenix isn't going to make up its $178 million on two NASCAR and one IndyCar race weekends. It wants to make it up year-round. That 1,500-square-foot restaurant-bar area can be used for big corporate events and can be partitioned in various ways. They will want Wi-Fi, which makes the investment in wiring the entire facility more practical than thinking it would be needed for just two Cup races a year.
There aren't many places like that in the area west of Phoenix, hence the prom reservations.
"We've been in an incredible destination market for all these years ... and we've had a facility that has been substandard and unable to accommodate really any other kind of event," Sperber said. "Even the events we were hosting, in not all areas were we [are] meeting the needs of the customer.
"Come November, that all goes away."
With the NASCAR television deal having only seven years left and no idea how that renewal might go, NASCAR tracks better find a way to make sure that if they get less money in media rights that they have a way to mitigate the hit.
Proms?
"I never thought we'd be in the prom business," Sperber said with a laugh.
Hey, whatever works. Strike up the band.