No matter where you purchase a Jeff Gordon No. 24 or any other NASCAR die-cast, it comes from the same place. Credit: Gavin Lawrence/Getty Images

ISC, SMI set to corner collectibles market

Two weeks ago, it was announced that International Speedway Corp. and Speedway Motorsports Inc. had joined forces to buy Action Performance Companies and created Motorsports Authentics, a wholly owned subsidiary to run the licensed apparel/die-cast business.

On Monday, the other shoe dropped when Team Caliber, another of the companies which makes motorsports collectibles, sold "certain of its net assets" to Motorsports Authentics.

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What does this mean?

It means, among other things, that most of the licensed motorsports merchandise you buy from here on out will come from the same place.

Team Caliber, like Action Performance, markets and distributes licensed motorsports merchandise, including die-cast replicas of motorsports vehicles, apparel, gifts and memorabilia. Its merchandise is marketed through collectible, mass retail and trackside distribution channels.

While financial terms of the sale were not disclosed -- and we didn't want to pry -- the addition of Team Caliber comes with a kicker:

Roush Racing has granted Motorsports Authentics a long-term license "for exclusive and non-exclusive motorsports merchandise distribution." That includes licenses for each of the five Roush Racing teams that raced their way into the Chase.

Jack Roush's racing conglomeration extends far beyond the track. Credit: Autostock

"This transaction represents a great opportunity for Roush Racing's drivers and sponsors, as well as for motorsports as a whole," said Roush Racing president Geoff Smith. "We view Motorsports Authentics' strategy of improving the overall licensing of NASCAR industry properties as in the best long-term interest of the sport's constituents.

"Further, ISC and SMI's extensive relationships and marketing expertise as seasoned track operators will allow Team Caliber to more quickly capitalize on incremental growth opportunities."

Loosely interpreted, that means that since the two largest track owners in the sport teamed up to buy the industry leader in motorsports collectibles, it made sense to have it all under one roof. One major player in the licensed collectibles game remains apart, and that's Racing Champions.

"This purchase is another step forward in Motorsports Authentics' cohesive strategy for the design, marketing and distribution of licensed motorsports merchandise," said Marcus Smith, executive vice president of national sales and marketing at SMI. "As part of Motorsports Authentics, we plan to build upon the continued success of Team Caliber and its outstanding staff.

"We believe these assets will further allow Motorsports Authentics to execute its long-term strategy of closely managing relationships with teams and drivers, developing and selling highly desired products, and strengthening relationships with retailers through proper channel management and on-time deliveries supported by integrated marketing plans."

	Despite not making the Chase, Dale Earnhardt Jr. and Jeff Gordon are out in front in sales. Credit: Autostock
	SUPERSTORE •   Die-cast Cars •   Dale Earnhardt Jr. Gear •   Jeff Gordon Gear •   Chase for the Cup Gear

As Motorsports Authentics becomes a reality -- by merging the various products and programs from Action and Team Caliber together under a single banner --look for an increased presence by the new company in the coming weeks.

"We continue to believe in the strategic importance of having strong, well-run companies designing, marketing and distributing licensed merchandise for NASCAR and other motorsports," said Lesa France Kennedy, president of ISC. "Team Caliber is a successful business that will significantly contribute to the future success of Motorsports Authentics.

"With the combined expertise of ISC, SMI and Team Caliber, we believe Motorsports Authentics will emerge as the pre-eminent source for NASCAR and other motorsports-related licensed merchandise."

Since Motorsports Authentics is owned by ISC and SMI, that's Holy Writ.

The collectibles business began in earnest in the early 1990s, with die-cast and a heavy influence from trading card companies like Fleer, Maxx and others. Sports Image was a player early, but Dale Earnhardt Sr. bought the company and sold it to Fred Wagenhals at Action Performance for a tidy sum.

As the die-cast boom grew, so did Action. Team Caliber came on the scene later and made inroads into Action's market share.

With the new company taking over and absorbing both Action and Team Caliber, there's plenty of reason to believe that since the lines will no longer be competing against each other, profits will improve.

Licensing, as has been discussed here, is the lifeblood of the sport at the consumer level. No T-shirt, die-cast car, can cozy or trading card can exist without it.

Now that Motorsports Authentics is all but the exclusive supplier of licensed merchandise, there should be a stabilization of the sometimes-volatile business. Perhaps the biggest roadblock to success lies in solving the merchandise model for mass channels, which Action had already announced it was doing when ISC and SMI ponied up for it.

The mass channel is basically Wal-Mart/Target/Kmart, with several smaller national chains like Meijer in the Midwest mixed in.

One of the good things about this acquisition is that now you won't have to wonder where your Jeff Gordon/Tony Stewart/Dale Earnhardt Jr./etc. licensed merchandise comes from any more.

It all comes from under the same tent.