Arena Racing USA eyes Orlando for expansion

Orlando Business Journal - by Richard Bilbao

Arena Racing USA wants to bring a five-month indoor mini stock car tournament to downtown Orlando’s new events center when it’s finished in 2010.

Arena racing is a multi-heat, tournament-style competition using stock cars half the size of those used in NASCAR’s Sprint Cup racing. The cars, which are entered through a sun roof, are 9 feet long and can reach speeds of up to 100 mph.

The competitions are held on a custom-made aluminum track, which can be disassembled and assembled in pieces during the off-seasons.

The racing season runs from mid-October to mid-March and includes 15 events, culminating with a championship race based on point standings.

Average tickets cost $10, and there were 2,600 spectators at an event last week in Hampton Roads, Va., league officials said.

League President and CEO Bob Keane said the Mechanicsville, Va.-based league is funded through fees such as technology licensing, sponsorship, and attendance and merchandise fees. He wouldn’t disclose the league’s annual revenue.

Orlando is a natural choice for expansion since it already has an established fan base for arena games, said Keane. The City Beautiful is home to the Arena Football League’s Orlando Predators and the National Indoor Soccer League’s (NISL) Orlando Sharks.

However, in November, the Sharks announced plans to sit out the 2008-2009 NISL season due to unresolved issues after the Major Indoor Soccer League ceased operations in early 2008. And in December, the Arena Football League suspended play in order to create a better long-term economic model for the league.

With both leagues idle, it’s an ideal time to introduce a new arena sport, said Allen Schwalb, an investor in the Orlando team.

Early test-runs of arena racing in Virginia proved successful with fans who liked being able to watch a race indoors in stadium seating, which lets onlookers watch the race high above the track instead of having to watch from a distance in the larger NASCAR-style versions, he said.

The rights to operate Arena Racing USA in a city, including the cost of the track, is less than $1 million. It could cost as little $250,000 a season, to maintain the track and the cost of operations, since racers pay to participate and compete for a grand prize, added Schwalb.

Sam Stark, president of the Central Florida Sports Commission, said any sport that can generate an economic impact for the city is welcome — but starting up right now may be challenging.

“The burden is on the league and organizers to make it work,” he said. “Central Florida is always willing and ready to embrace good products and entertainment. But the question is: Can they deliver?”

Arena Racing USA

Description:
Puts on indoor mini stock car races
Headquarters: Mechanicsville, Va.
Top official: Bob Keane, CEO
Contact: (804) 402-4507
www.arenaracingusa.com

Financial adviser: Allen Schwalb
Contact: (407) 869-5202
www.AllenSchwalb.com

rbilbao@bizjournals.com | (407) 241-2888

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