20 MONTEREY COUNTY WEEKLY january 9-15, 2025 www.montereycountynow.com ning the track and park,” Narigi says. “The county trusted me to be honest with them and to figure out how we could make it profitable.” By Narigi’s estimate at the time, $66 million would be needed to eventually bring the track up to standards—starting with replacing the pedestrian bridge over the start/finish line with a modern structure that is ADA-compliant and a complete resurfacing of the track in 2023, at a cost to the county of $14.9 million. Both were necessary repairs. The old bridge was unsturdy, with loose wood and dangling wires. Track officials claimed that the semi-annual Porsche Rennsport Reunion would move elsewhere if it were not replaced. But Narigi also turned his attention to upgrading raceday amenities. As a result, 40,000 fans turned out for the 2024 Firestone Grand Prix of Monterey. “Coming from a hospitality background, we paid significant attention to the guest experience,” Narigi says. “That has really improved the look and feel of both our Rolex Reunions and the 2023 Porsche Rennsport Reunion, which was a huge success.” “A&D did a good job turning it around,” Eberhart adds. “That was not easy. John and A&D get the credit for that.” On that day in August when Friends completed the requirements to launch its concession agreement with the county, president Ross Merrill and the rest of its leadership team made it clear that A&D Narigi would continue to handle day-to-day operations. Just four months later, Narigi decided to step away when his contract expired at the end of 2024. “I am very happy with the cooperative relationship we’ve developed with the county and the local business community,” he says, citing in particular the bridge and repaving projects. “I am also proud of paving the way for private capital to finally come in and run Laguna Seca how it should be run. Friends has a tremendously bright future. The best is yet to come.” A premier racetrack is unusual compared to other businesses. Each would like to host the top race series, organizations such as IndyCar, NASCAR, IMSA, MotoGP and Formula 1. There are dozens of others, running on dirt tracks, drag strips, road courses and ovals. Some are developmental, others frequent small venues, but all are under the direction of a sanctioning body. Tracks essentially compete for a spot on the schedule of a sanctioned tour and must meet the standards for safety, team facilities, seating and the like of each. Events generally take four days, during which the sanctioning body assumes control of everything on the track and in the paddock. They set the rules. The reward for the track comes from sponsorships—WeatherTech’s naming rights deal is reportedly worth $1 million a year—vendor agreements and ticket sales. And that spills over to the county. According to a 2022 report, events and camping at the recreation area resulted in $250 million in spending at county businesses, dining establishments and hotels. But there are costs, in the form of safety equipment, security, improvements, payroll (more than $2 million a year), etc. Most of all, there is a fee paid to the sanctioning body. When IndyCar returned to Laguna Seca, the agreement called for $1.2 million to the series for the 2019 event, increased to $1.3 million by 2024—reasonable figures compared to Formula 1, which demands between $30 million and $60 million. “We’re not doing that here,” Eberhart says. There is a cautionary tale in the former Memphis Motorsports Park, built by a private group in 1986. It contained a drag strip, road course and an oval short track that brought in NASCAR’s truck series, IHRA drag races and ARCA, stock car’s equivalent of a minor league. In 2010 the complex sold at auction for a mere $1.9 million. Chris Simmons, who competed on the Memphis road course, laid part of the blame for its demise on poor management. In an “obituary” for Driftopia, he wrote, “With ever-changing local management and seemingly nothing left to reinvest after large events… spectators were met with bathrooms that had no lights, inches of water on the floors from leaks that were refused repair” and so on—a textbook example of Eberhart’s “three Ts” gone awry. Laguna Seca operates as one of just three major motorsports facilities on property owned by local governments, the others being Portland International Raceway in Oregon and the Milwaukee Mile, one of the oldest oval tracks in the country. That adds constraints not faced by private ownership groups. Any attempt to improve sightlines by tearing down a structure or to add garages or viewing pavilions must not only go through the usual permitting process, but also receive county approval. Under SCRAMP’s management, some years were profitable, others not. For instance, 2013 saw over $15 million in revenue, but expenses left just $115,000 in the bank in a year that featured both the MotoGP World Championship and the FIM Superbike World Championship. In 2019, on the other hand, tax filings revealed $0 net income and $513,000 in revenue. To prepare for the return of IndyCar, modifications had to be made to safety barriers around the track. The first IndyCar race on its return to the track reportedly lost money. But A&D Narigi brought the Carmel Valley diner Bear + Flag Roadside, known for its burgers, barbecue and beer selection, to the permanent dining structure in the paddock. The company also contracted with a greater range of vendors. Fans can now order craft cocktails, lobster and other unexpected offerings. A ferris wheel turned at one end of the midway at some events. Beyond race weekends, the A&D team also added community gatherings. Some of these were automobile-related. But a stargazing event, with telescopes and expertise from the Monterey Institute for Research in Astronomy, drew over 300 people on its first evening. “We improved our events significantly and both attendance and sponsorship support have increased,” Narigi says. “We’ve made it profitable over the past few years with very limited resources and an incredible team.” Eberhart observes with a smile that Friends will have no problem spending money on improvements to the facility, including its campground. The nonprofit model means that profits must be directed to the needs of the recreation area. “We’re not paying shareholders,” she adds. But with its motorsports business acumen, the organization plans to follow Narigi’s lead, running operations on a for-profit model. Before any planned amenities, however, Friends must develop a master plan and address longstanding maintenance issues. The master plan will include everything from repairs of immediate necessity to long-term improvements, to be presented to the Board of Supervisors in August. The first few months have been a time of transition. Everything from bills to payroll had to be shifted over from county accounts. Eberhart expects 2025 to be a year of stabilization—making the most urgent fixes—and assessment. “Deferred maintenance is like fixing the water heater at your house,” Eberhart explains. “You don’t see it happening, but it has to be done. We have to be methodical.” Drainage is an issue for a circuit laid out around a dry lake bed. In fact, the storms of 2023 caused part of the slope overlooking Turn 2 to collapse. And while the track has been resurfaced, the paddock has been ravaged by the heavy car haulers since the last major work was done in 2003. “The paddock remodel would hapThe hillsides of Laguna Seca offer sweeping vistas. Turner Motorsports BMW driver Bill Auberlin greets fans after the 2023 IMSA race. The open paddock allows fans to get close to drivers. Celia Jiménez Celia Jiménez
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