INTERVIEW WITH KENNETH FELD -- IHRA'S NEW OWNER
CEO,
recently discussed the deal and where he hopes to take the new division
of Feld Entertainment…Feld Motor Sports.Q: What was it about the motor sports division of Live Nation that made it attractive to, to the point where you wanted to acquire it and make it a part of Feld Entertainment?
Kenneth Feld: When I first heard the motor sports division of Live Nation was for sale I was intrigued. Actually I was intrigued before that. I thought it was a live event business that fit really well with what we do. These are major live logistical events, and what I really liked was that anyone on the planet could enjoy them. You don’t have to speak a certain language and it’s not a cultural thing the way certain specific brands of entertainment are. This was something I thought if you have a heartbeat you would have to love all these motor sports events.
On September 9, 2008 Feld Entertainment, Inc. purchased the Motor Sports division of Live Nation. Kenneth Feld, Feld Entertainment’s CEO, recently discussed the deal and where he hopes to take the new division of Feld Entertainment…Feld Motor Sports.
Q: What was it about the motor sports division of Live Nation that made it attractive to, to the point where you wanted to acquire it and make it a part of Feld Entertainment?
Kenneth Feld: When I first heard the motor sports division of Live Nation was for sale I was intrigued. Actually I was intrigued before that. I thought it was a live event business that fit really well with what we do. These are major live logistical events, and what I really liked was that anyone on the planet could enjoy them. You don’t have to speak a certain language and it’s not a cultural thing the way certain specific brands of entertainment are. This was something I thought if you have a heartbeat you would have to love all these motor sports events.
Q: Did you see the looks on the kids’ faces and see the families in the stands at these events?
KF: I had only been to one live Monster Jam show and I was totally thrilled with it because I didn’t really know what to expect with the audience. I was frankly surprised because I think there were more families there than I had expected. It definitely is great value for the dollar, and I always like that. Then after I met the people at the motor sports division I knew it was really the right thing for us because culturally it really fits into our company. It’s a great fit and I think it will be a wonderful union between the two businesses.
We have a great promotional organization and sales force. In North America we have 180-some people so we’re virtually in every market year-round. That’s important. I think we can become a larger part of the community, in the local communities in these areas, and I think that’s a big deal. Instead of having a presence once a year there are things we can do year-round. Not just events, but community things.
The other thing is currently there is not a huge amount of international business with these properties. I think there are great opportunities there because it goes back to what I call being a “non-lingual” event, whether it’s a motor sports event or whether it’s entertainment. This is something people can enjoy everywhere. There has been no exposure, for instance, in Asia to Monster Jam. And I think there has been very little to SuperCross. So I think there is a lot of opportunity there. I don’t know enough to know if there’s any international interest in drag racing or not, or if it’s an American cultural phenomenon.
I’m a new fan and I think I will become more loyal than they are or could ever be because I have a bigger stake in it. My goal is to bring it to more people in every possible location that makes sense. I can’t tell you today how we’re going to do it but we have a plan in place for everything. I’m a firm believer in “walk before you run, and when you start to run you run like hell.” That’s the tact that we’re going to take and I am so looking forward to October 18th in Rockingham. It’s going to be a great new experience for me. - Feld, speaking to the fans of the former LiveNation Motorsports Properties
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Q: That leads to my next question. The future of these motor sports properties, is it more of a global presence you are looking at as how you want to expand and build them?
KF: It has a lot to do with that because that’s something we’re familiar with. It’s literally 10 days since we made the acquisition and I’m not as knowledgeable as I should be on all of them. I’ll have a much better idea on the 19th of October than I do today, after I see the event in Rockingham. I’m really looking forward to that.
When we made the acquisition we were looking to better understand the whole business, all the sports, and what can we do to enhance it? We’re not in the business of making things smaller, we’re in the business of making things bigger and better. We have to understand the customer and understand how we can do it while maintaining the integrity of what it is that already existed that made it so great in the first place.
So we’re going to get educated. I can’t wait. I’m going out to the SuperCross event, the Open in Vegas, and then the following week we’re coming to Rockingham. And I’m going to be going to as many Monster Jams as I can get to as they happen. So the first thing is to let me see the audience, let me feel the people and let me talk to people there. With all of our crew we have to figure out if the people like it, how can we get them to like it even better. Those are the kinds of things we look at. I can’t sit here and say I know everything about motor sports because I don’t. But I understand human nature, which this all really is.
Q: The current leadership that’s in place in Feld Motor Sports, from Charlie Mancuso to the rest of the team he has built, you obviously have to be very excited about what they’ve done with these properties.
KF: I am and one of the reasons we were really encouraged about this acquisition was that the management team, and the associates they have, are great. Outside the people I have known for a long time with Feld Entertainment I have never seen a group of individuals with more passion for what they do than the Motor Sports people I’ve met. It starts with Charlie and goes right on down. Charlie leads by example, which is great. This is why I think this is going to be a really good fit. Everyone here in the office in Vienna (Virginia) and everyone on the road on all our shows is ecstatic. They’re really excited and I keep getting emails and calls from people around the entire company asking how they can get involved. They are all asking what they can bring to the table and how they can help enhance it. And we’re not going to just do things by ourselves. Everything we do is going to be hand-in-hand with Charlie and the entire team.
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Q: The nuts and bolts of the deal, how it came together, can you tell me about that? You saw it was for sale, made some
KF: I don’t think any deals like this are easy. We tend to be very thorough in everything we do. So the due diligence from what I understand probably went a little deeper than what most companies would have done. Because we do understand certain aspects of the business, we know the arena business and know a little bit about the stadium business, we could view things a little differently than maybe some other buyer could. We had a pretty good understanding of the operation.
Because the deal happened and everyone is happy about it, in that sense it was an easy deal. But I have really never made an easy deal on anything in my life. I always say there are no no-brainers. I guess it was what these things are, you go through the process and it goes back and forth, back and forth…there’s a little yelling and screaming and a lot of thoughtfulness on both sides, especially because both sides wanted it to happen. We’re happy. I can’t say we made the greatest deal in the world, but I think we made a fair deal and I also think Live Nation views it in the same way.
Q: Motor sports fans are very loyal and sometimes change scares them a little bit. What message would you like to send to the fans of these motor sports properties?
KF: The message is that I’m a new fan and I think I will become more loyal than they are or could ever be because I have a bigger stake in it. My goal is to bring it to more people in every possible location that makes sense. I can’t tell you today how we’re going to do it but we have a plan in place for everything. I’m a firm believer in “walk before you run, and when you start to run you run like hell.” That’s the tact that we’re going to take and I am so looking forward to October 18th in Rockingham. It’s going to be a great new experience for me.
Q: You’ve also said before that you’ve never bought anything that you’ve then sold. Is it fun for you to build properties, to expand these things?
KF: I truly have the best job in the world. I’ll tell you I never have a bad day. That doesn’t mean everything goes right every day, but I love the great days and always embrace the challenges.
Q: How excited are you to get out seeing these events, getting that under your belt, and getting the planning for the future going?
KF: On Monday I went to Aurora (Illinois, home of Feld Motor Sports corporate headquarters) for the day. I spent the whole day there and there were probably a couple hundred people I spoke to. I think I met everyone that was there that day, was there all day, and I was so pumped up when I left and came back here. I am totally excited about it. I love new things, love the excitement of it, and I love live entertainment. I love anything with a live audience because that’s where the adrenaline is. You see it right away and don’t have to wait for it to go through the editing room. You’re out there and see what happens; you see the event and see the people and how it affects them. That’s really what it’s all about for me.
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