|
In regards to the charters that the post is about, the one thing I've not seen discussed anywhere is the long-term appetite Flo will have to fund HL at such a high level.
There are a few very large differences between Flo and DirtVision - the main, and this is my opinion, but Flo is a tech-oriented streaming company with a vested interest in dirt racing to grow subscriber base. WRG is a dirt racing company that owns DV as a streaming company to grow interest in dirt racing. Of course, DV subscriber base is part of that, but the unknown factor is what Flo's involvement will be several years down the road. WRG seems to want to build out their empire primarily focused on dirt track racing - they own multiple series and tracks and likely will look to expand on that. Tossing aside all venom between Smoke and WRG, if Eldora were for sale, it would make much more sense for an entity like WRG to purchase it rather than Flo.
I'm sure there are signed contracts between HL/Flo for the foreseeable future that include the charters, but I get hesitant knowing that Flo has taken several rounds of VC money throughout the years. While the influx of cash can be a boon to help build out a product/service, the downside is sooner or later that VC wants the return on investment. While I don't have a problem with it, Flo has already shown way more aggression in cutting tracks/series that they likely view as low performing - there are way fewer options than a year ago.
I'm as much a sprint car junkie as anyone, and I know there has been tremendous growth in the popularity of the sport over the past few years, but I don't necessarily know if those numbers are going to continue to quench the growth thirst of Flo as time goes on. This becomes more of an issue when VC wants paid, and could potentially be a much bigger issue if Flo ever decides to IPO.
DV seems to have a much less volatile path forward and seems happy to grind growth and expansion at a steady rate. I hope for success mainly for the drivers and teams that put the effort into competing and creating entertainment for fans, so I don't wish for anything to negatively impact the sport, but I feel there the above concerns are valid when looking into the future a few years.
|
