HUSETS SPEEDWAY 2012 S. Splitrock Blvd, Brandon, SD 57005 - LoopNet
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HUSETS SPEEDWAY 2012 S. Splitrock Blvd, Brandon, SD 57005 Dennis Breske, MBA, CCIM, SIOR Dale Zomer Senior Vice President Senior Vice President +1 605 444 7100 direct +1 605 444 7117 direct +1 605 310 6666 mobile +1 605 351 1218 mobile dbreske@naisiouxfalls.com dzomer@naisiouxfalls.com
Husets.com
2012 S Splitrock Blvd | Brandon, SD 57005
P R O P R I E TA R Y A N D C O N F I D E N T I A L
CONFIDENTIAL INFORMATION MEMORANDUM
The information contained in this Memorandum has been prepared by Huset’s Speedway (“Huset’s”) for delivery
to a limited number of pre-selected parties who may be interested in a proposed transaction with Huset’s (the
“Proposed Transaction”). The Memorandum contains confidential and proprietary information of Huset’s. Such
information is being submitted solely for your confidential use with the express understanding that, unless
you obtain and receive Huset’s’ prior written permission, you are prohibited from releasing this Memorandum,
discussing the information in this Memorandum, or making a reproduction or use of this Memorandum for any
purpose other than for your sole evaluation of the Proposed Transaction.
If a party receives this Memorandum but is not the intended recipient, you are hereby notified that you have
received this Memorandum, and any attachments, in error and any review, dissemination, distribution, or
copying of this material is strictly prohibited.
Please carefully read this Memorandum in its entirety. This Memorandum does not purport to be all-inclusive or
to contain all of the information that you would need in connection with a Proposed Transaction or evaluation
thereof. You must conduct your own due diligence and review of Huset’s and any Proposed Transaction. You
also should consult with your own investment, tax and other advisors in evaluating Huset’s and any Proposed
Transaction.
This Memorandum may contain “forward-looking statements” including financial projections. These statements
can be identified by introductory words such as “expects,” “plans,” “intends,” “believes,” “will,” “estimates,”
“forecasts,” “projects” or words of similar meaning, and by the fact that they do not relate strictly to historical
or current facts. Many factors may cause actual results to differ from forward-looking statements, including
inaccurate assumptions and a broad variety of risks and uncertainties, some of which are known and others of
which are not. No forward-looking statement is a guarantee of future results or events, and you should avoid
placing undue reliance on such statements.
Except as otherwise indicated, this Memorandum speaks as of the date hereof. The delivery of this Memorandum
does not imply there has not been or will not be a change in the affairs of Huset’s after the date hereof, nor does
it create any duty on Huset’s to update or supplement any information provided in this Memorandum.
All communications or inquiries relating to this Memorandum should be directed to the persons listed below:
Charles Brennan – Founder/CEO/President
8860 W. Sunset Road
Las Vegas, NV 89148
Cell (702) 493-9422
Proprietary and Confidential
2
EXECUTIVE SUMMARY
INTRODUCTION
This one-of-a-kind, turnkey racing and entertainment venue has been quoted as being one of the nicest, most
modern and high-tech dirt track facilities in the United States. Over $18 million invested and a recent full
renovation are the latest developments in a rich history that started over 65 years ago.
Nestled on nearly 75 acres, Huset’s Speedway is a legendary gathering point for crowds that swell to over
9,000 in the grandstands and over 20,000 for concerts and festivals. The opportunities lying in wait for Huset’s
Speedway are limitless.
So what does turnkey mean? Quite simply, the assets that made the 2016 season at the Speedway so successful
will be yours. Assets such as new concession equipment, PA systems, track maintenance vehicles, monster
digital billboards, almost one hundred billboard installations, active online properties, plus much more!
The renovations that modernized the venue are truly remarkable. Some of the most notable and breathtaking
renovations include the 9,000 capacity aluminum grandstands, the newly-paved infield, an incredible 18 suite
VIP structure, and of course the iconic 3-story Turn 4 Tower.
Legendary racers from around the world have raced here like Tony Stewart, Kasey Khane, Kyle Larson from
NASCAR and Brian Clauson, Roger Rager and Steve Kinser from Indy. Concerts like Weezer, Panic! At the
Disco, and Hairball gave these crowds a fresh flavor and demonstrated the versatility of the venue.
These events and renovations put this historic Speedway back on the map for dirt-track enthusiasts. Now it’s
primed and ready for the legacy to continue in your hands.
3
REASONS TO CONSIDER
Best Racing in the Country. There are several famous race tracks around the country, but arguably the greatest
short track in the in the United States is Huset’s Speedway. The size and banking of the track makes it unique
and provides some of the closest and most competitive dirt track racing anywhere.
Tremendous Growth Opportunity. There is approximately $3,000,000 in potential annual advertising and
sponsorship revenue. From naming rights on brand new buildings and suites, to advertising opportunities on
billboards, digital boards, picnic areas and race day programs.
Huge Income Opportunity. With a facility that can hold 20,000 people for special events, the income potential
is through the roof. Ticket sales, suite sales, concessions and alcohol are going to be huge! Having the ability to
bring in the special events such as concerts and Monster Trucks is just unheard of for a dirt track.
Concession Stands. All new concession stand equipment was purchased for the 2016 season. There are
endless menu options and the potential revenue driven from concessions is unlike any other dirt track.
History. The track is widely regarded as one of the top dirt tracks in the country. Opened in 1954, the Speedway
has become a bucket list track for drivers from coast to coast. NASCAR stars Tony Stewart, Kasey Khane and
Kyle Larson have all raced at the Speedway, as has Indianapolis 500 starters Roger Rager, Bryan Clauson and
Steve Kinser.
National Awareness. Huset’s Speedway has hosted several national touring series. The famed World of
Outlaws and the United States Auto Club (USAC) both made stops on their national tour. The track also played
host to the International Motor Contest Association (IMCA) and the United States Racing Association (USRA).
huset’s SPEEDWAY AT A GLANCE
18 9000 Lots 40+ 7
vip grandstand of onsite parking Concession
suites capacity restrooms acres Areas 4
COMPANY HISTORY
may 23, 1954
crowds witness the first race at
huset’s speedway 1958
after a 2-year hiatus at
Huset’s and a driver Fall 1953
boycott of rival soo Tilman Huset
“remember boys, speedway, sioux falls breaks ground in
we’re a bunch of racing almost dies. the his soybean field
poor bastards in a newly-formed sioux falls and carves out a
rich man’s Sport.” stock car association rough track
1955 purchases huset’s and
Track is reconfigured into a racing lives on.
circle and lights are added local legend fred
buckmiller steps in as the
track promoter bringing
media, publicity, racers,
and the iconic white may1980
1964 uniform
A new engine spec was the first sprint car races
introduced that allowed a held at huset’s speedway
newer overhead valve
engine made by chevrolet, 1979
ford, and chrysler marking the final year of the
the beginning of the end for supermodified racecar
full bodied coupes 1983
World of outlaws makes its
first appearance at Huset’s
1989
1982 clarence, steve, and
greg rubin
the beach boys purchases the track
perform to an from the sioux falls
incredible crowd of stock car
over 14,000 association
1982
fred buckmiller passes
away. Bill Leesch and Ed
flowers step into
buckmiller’s role
1991
turn 1 suite building
1985 constructed
WILLIE NELSON
PERFORMS TO A
CROWD OF OVER
12,000
1993
1992 the great flood of 1993
causes extensive
crash Walls raised by 3 feet damage to huset’s
speedway
1997
JULY 2013 the united states auto
TONY STEWART RACES club makes its first
WITH THE WORLD OF 2008 appearance at the
OUTLAWS AT THE NEW CATCH FENCE ADDED speedway with a
TRACK AROUND THE TRACK national midget series
race
july 2015
construction begins on
Huset’s Speedway
renovations
july 2016
USAC Sprint Cars makes their first
appearance in the state of South Dakota
at huset’s speedway
5
HUSET’S SPEEDWAY GROUNDS
VIP Suites
Turn 1 Lounge
Turn 4 Tower
***full list of buildings Climate luxury elevator 50” Private
on last page Controlled furnishings service HD TVs Bathrooms
6
ADDITIONAL ASSETS
• Turnkey Concession Areas
• Liquor License
94,000SF newly-concreted infield • Over 15 Buildings & Structures
• Over 20 Vehicles, Trailers, and UTV’s
• Complete Sound System
• Complete Racing Communication System
• iPads for POS Systems
• Cash Register Systems
• Computers, Laptops, and Cabling
600SF Driver services building
All the suites and buildings are packed
full of custom furnishings, tables, chairs,
barstools, etc…
(30) 50”+ Televisions
(2) 14’ x 48’ Digital Boards
26,000SF back pit lot (1) 10.5’ x 14’ Digital Board
online properties
3 water trucks
fire truck
***full list of assets on last page
7
2016 SCHEDULE
SAT. MAY 14 TEST - ALL CLASSES
SAT. MAY 21 $100,000 SILVER SHOOTOUT
SUN. MAY 22 HALF PRICE FAMILY NIGHT
SUN. MAY 29 HALF PRICE FAMILY NIGHT
SAT. JUNE 4 HUSET'S FEATURED RACE
SUN. JUNE 5 HALF PRICE FAMILY NIGHT
SAT. JUNE 11 HUSET'S FEATURED RACE
SUN. JUNE 12 HALF PRICE FAMILY NIGHT
SAT. JUNE 25 HUSET'S FEATURED RACE
SUN. JUNE 26 HALF PRICE FAMILY NIGHT
SAT. JULY 2 WORLD OF OUTLAWS/FIREWORKS
SUN. JULY 3 WORLD OF OUTLAWS/FIREWORKS
SAT. JULY 9 HUSET'S FEATURED RACE
SUN. JULY 10 HALF PRICE FAMILY NIGHT
SAT. JULY 16 HUSET'S FEATURED RACE
SUN. JULY 17 HALF PRICE FAMILY NIGHT
WED. JULY 20 THE HAIR BALL featuring ROB HALFORD and more
FRI. JULY 22 WEEZER & PANIC! AT THE DISCO
SAT. JULY 23 HUSET'S FEATURED RACE
SUN. JULY 24 HALF PRICE FAMILY NIGHT
SAT. JULY 30 HUSET'S FEATURED RACE
SUN. JULY 31 SUNDAY NIGHT featuring ASCS SPRINT CARS
SAT. AUG 6 HUSET'S FEATURED RACE
SUN. AUG 7 HALF PRICE FAMILY NIGHT
FRI. AUG 12 MONSTER-X TRUCK SHOW
SAT. AUG 13 MONSTER-X TRUCK SHOW
FRI. AUG 19 GOLD CUP WINGED QUALIFYING
SAT. AUG 20 GOLD CUP NON WINGED QUALIFYING
SUN. AUG 21 GOLD CUP CHAMPIONSHIP
SAT. AUG 27 HUSET'S FEATURED RACE
SUN. AUG 28 HALF PRICE FAMILY NIGHT
SAT. SEPT 3 GEICO MOTOCYCLE ENDUROCROSS
SAT. SEPT 10 CHAMPIONSHIP NIGHT
SUN. SEPT 11 CHAMPIONSHIP NIGHT
SATURDAY HUSET’S FEATURED RACE SUNDAY HALF PRICE FAMILY NIGHT
410 Sprint Cars 360 Sprints Cars
305 Sprints Cars Micro Sprint Cars
Late Model Street Stocks Hobby Stocks
8
2016 BY THE NUMBERS
Customers Through the Gates 86,577
Average Per Event 2,624
Gross Ticket Sales $1,336,424
Average Per Event $40,498
Gross Food and Beverage Sales $789,808
Average Per Event $23,934
Race Teams Attended 321
Suites and Season Ticket Revenue $179,383
Sponsorship / Advertising / Trade $646,317
Retail and Merchandise $52,869
92017 SILVER SHOOTOUT BY THE NUMBERS
May 13, 2017
Scanned Customers Through the Gates 3,324
Estimated Attendance (comps, sponsors, pit crews, etc.) 5,250
Gross Ticket Sales $101,818
Gross Food and Beverage Sales $40,878
Race Teams Attended 61
Suites and Season Ticket Revenue $10,953
Sponsorship / Advertising / Trade $25,000
Retail and Merchandise $3,254
10FINANCIAL FORECAST
Total Attendance 44,250
Tickets Sold 39,825
These numbers are based on
Comps/Sponsors/Pit Crews 4,425 the following criteria:
Revenues 16 Racing Events
Gross Ticket Sales $918,000
every Sunday from
Back Gate Fees (1) $172,500
May 31, 2020 - September 13, 2020
Food/Beverage/Alcohol $553,125
Food Vendor Fees (2) $24,891
5/31/20 - Grand Re-Opening
Retail/Merchandise (3) $44,250 $100k Big Event
6/07/20 - Sunday Spectacular
Additional Revenue
6/14/20 - Sunday Spectacular
Advertising / Sponsors (4) $480,000
6/21/20 - Sunday Spectacular
Annual Suite Revenue (5) $160,000
6/28/20 - Sunday Spectacular
On-site Suite Upgrades (6) $91,800
7/05/20 - Independence Day Event
Pay Per View (7) $7,500
7/12/20 - Sunday Spectacular
Total Revenue $2,452,066 7/19/20 - Sunday Spectacular
7/26/20 - Sunday Spectacular
Expenses 8/02/20 - Sunday Spectacular
F&B Cost of Goods (8) $184,191 8/09/20 - Sunday Spectacular
Race Purse $550,000 8/16/20 - Sunday Spectacular
Insurance $32,825 8/23/20 - Sunday Spectacular
Utilities/Grounds/Etc (9) $55,200 8/30/20 - Sunday Spectacular
Race Rescue Team (10) $16,000 9/06/20 - Sunday Spectacular
Security / Parkers (11) $16,000 9/13/20 - Season Championship
Concession Staff (12) $24,000
Race Officials (13) $16,000 Average Paid Attendance each race 2,250
Various other event staff (14) $24,000
Average Comp Attendance each race 250
Audio/Video Staff (15) $8,000
Cleaning / Facilities (16) $24,000 Average Ticket Price $20.00
Annual Salaries (17) $96,000 Average food & beverage spend $12.50
Equipment Rentals $24,000 Annual Gross Advertising Revenue $400,000
Supplies / Postage $8,000 Annual Gross Sponsorship Revenue $200,000
Marketing / Advertising $59,500
Annual Gross Suites Sales Revenue $200,000
Miscellaneous Expenses $8,000
Travel Assistance (18) $15,000
These forecasts are just for a minimal racing
Property Tax $52,000
program. There are several and many more
Points Champion Accrual (19) $37,500 revenue opportunities such as adding Saturday
Total Expenses $1,250,216 races or hosting community festival events. For
example in 2016 we ran over 35 events and did
not even scratch the surface of the potential for
Profit/Loss $1,201,850
the facility that could also host major concerts.
*key and explanations on next pageFINANCIAL FORECAST (CONTINUED)
Please ask for and see our complete INTERACTIVE
ELECTRONIC FORECASTING SPREADSHEET that allows
you to plug in your own estimates to determine your
potential profits or loss exposure. This allows you to test
out ticket prices, ad sales, attendance, purse expenses,
and every expense in a fun and easy way to see how many
people you will need to break even or make your fortune.
Forecast Key and Explanations
(1) Back Gate Fees: This is based on an average of 350 people paying a back gate fee for an average pit entry fee of $30 ea.
(2) Food Vendor Fees: Outside food vendors such as pizza, BBQ, and burgers pay 30% of their gross sales to the house and
based on 15% of our gross concession numbers.
(3) Retail/Merchandise: Based on everyone in attendance spending just $1.00 each at the merch stands. Items from t-shirts and
jackets to tylenol and bug spray.
(4) Advertising / Sponsors: Includes all of the sponsorship programs, advertising revenue, billboards, group sales, etc.. Please
see the marketing package for suggested pricing (this is a net figure to the business as it already calculates the input variable of the
commission paid to the sales reps)
(5) Annual Suite Revenue: There are several individual suite options, group suite options, and season ticket options to be sold on
an annual basis. Please see the marketing package for suggested pricing.
(6) On-Site Suite Upgrades: This is based on upgrading attendees on any given night to any un-sold suite inventory including
group suites. Formula is upgrading only 10% of the paid tickets at 2x the standard ticket price.
(7) Pay Per View: Estimate of revenue share from the pay per view provider. House gets 70% and the Provider gets 30%.
(8) F&B Cost of Goods: This is based on 1/3 product cost for beer, soda, water, food, etc… 33.33% product cost is a high
estimate and it should be even less if done properly.
(9) Utilities/Grounds/Etc: Utilities, Landscaping and various regular and occurring expenses broken down to a per event estimate
(10) Race Rescue Team: The weekly race fee that we were paying for race rescue personnel and ambulance service
(11) Security & Parkers: Based on approximately 12 security and parking staff per event.
(12) Concession Staff: Based on 24 concessions, bartenders, wait staff, etc.. Part time per event.
(13) Race Officials: Based on 10 Racing officials per event ranging from $50 each to $400 each per event for the main competition director.
(14) Various other event staff: Based on an additional 20 part time staff per event from ticket takers to box office, scoring,
announcing, bar backs, and other misc positions.
(15) Audio/Video staff: Based on 6/7 audio and video part time staff for each event, camera operators, production staff, etc.
(16) Cleaning / Facilities: Internal and outsourced cleanup fees and staff to clean up the facility after each event.
(17) Annual Salaries: Full time facility general manager and part time administration assistant.
(18) Travel Assistance: Estimate of any travel assistance fees you may want to pay to the race teams to off-set their expenses.
(19) Points Champion Accrual: A fund set up for the various race class point champions for the full year of racing
12SUMMARY
PRICE
$7,450,000
LAND MACHINERY & EQUIPMENT
+/- 74 Acres of Land • Concessions and restaurant equipment to fill and fully
operate all of the concession areas.
BUILDINGS • Two fully operational food and beverage concessions trailers
Over 15 new or remodeled Buildings & Structures including: • Industrial Mower
• VIP Suite Tower: 8,700 sq.ft. • Fire safety systems, alarms and extinguishers
• 18 VIP Suites: 300 sq.ft. each • Custom grill with 84” firebox
• Turn 1 Tower: 1,500 sq.ft. • T-shirt gatling gun
• Turn 4 Tower: 7,500 sq.ft. • Walk-in coolers
• Driver Services: 600 sq.ft. • Sound system – Pro Switcher ATEM
• Admin Building: 450 sq.ft. • Sound system – broadcast panel
• A/V Production Building: 350 sq.ft. • Complete Video Production System
• Midway Merch Stand: 340 sq.ft. • Portable bars
• Midway Bar: 500 sq.ft. • Four safes
• North Ticket Booth: 160 sq.ft. • Six chest freezers
• South Ticket Booth: 60 sq.ft. • Infield vehicle scale
• Outlaw BBQ: 320 sq.ft. • Complete Racing Communications System
• Pizza Ranch: 240 sq.ft. • Two High Capacity Vaults and Cash Dispensing units
• South Concession: 310 sq.ft.
• Quonset: 2,000 sq.ft. COMPUTER EQUIPMENT
• Light Speed point-of-sale restaurant hardware and terminals
• iPads for point-of-sale system
VEHICLES
• Technology equipment necessary to run the individual
• Two Can-Am 8DGA Defenders, both 2016
buildings (switches, ports, WiFi, etc.)
• United 8x16 Trailer, 2007
• Computers, Laptops, and cabling
• GMC CM66003 Red Water Truck, 1973
• Cash Register Systems
• Chevy C7D042 Dump Truck, 1979
• International 1724 Water Truck, 1982
• International 1645 Truck, 1984 FURNISHINGS
• GMC W4S042 PT, 1986 All the suites and buildings are packed full of custom
• DLTR 7x18 Trailer, 1994 furnishings, tables, chairs, barstools, etc…
• DCT Flat 14 Trailer, 1995
• GMC G3500 PT, 1995 MISCELLANEOUS
• Chevy CK15 Pickup, 2001 • 94,000 sq.ft. newly concreted infield
• Mercury Grand Marquis Packer Car, 1999 • 26,000 sq. ft. paved back pit lot
• Ford F700 Firetruck, 1980 • 90 Billboard Spaces
• Chevy Silverado K3500 Tow Truck, 2006 • 8,300 seat grand stand
• Chevy C35 Truck, 1995 • 1,800 flip-up seats
• Dump Truck Runner, 1936 • 40+ acres of parking
• Case 580-E Backhoe • Over 12 bathroom facilities
• Green John Deere • Liquor License
• International S1600 Lift • Website and Social Media Pages
• Grater • TV’s and large digital boards
• Massey Furgeson Red Tractor
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