This Is Random

radio shackRadio Shack has dropped it’s sponsorship of the Spring race at Texas Motor Speedway here in Fort Worth. Along with Samsung, they have been the marquee sponsor of the event for the last 5 years.

I’ve known Radio Shack since I was a kid growing up in Ohio. Ricky, Billy and I would buy parts to create Frankenstein electrical creations in acts of juvenile ignorance to the ‘zap’ power of electricity.

I’ve lived in the Dallas/Fort Worth metroplex for 24 years. Fort Worth is the home and birthplace of Tandy Leather Products which evolved into Radio Shack (read that story here). Through the years my life has intertwined with employees, business-to-business dealings and local news about Radio Shack. As a company, the corporate executives have historically had their noses so far up their own butts to the detriment of the company as a whole. CEO after CEO either resigns or is fired. But, not before lining their own pockets with a lot of cash, rampant overspending and fiscal irresponsibility in every form.

Their stock value chart for the last 7 years looks like the first hill on the Texas Giant at Six Flags Over Texas.

In 2003, Radio Shack bought out one of the remaining ‘housing projects’ downtown and built the new Radio Shack corporate office Riverfront Campus. It’s colossal and beautiful. The $200 million dollar question though, ‘Why the heck did Radio Shack build new digs while in the midst of financial decline?’

I found information at the as-of-late disreputable ‘W’ (that’s Wikipedia…not George) which takes a little snark out of this post towards Radio Shack’s former nameplate prominence at Texas Motor Speedway and aims it at NASCAR and their ‘Official Sponsorship’ monopoly.

In 2004-2005, RadioShack was under the premises of NASCAR’s grandfather clause when they and Samsung sponsored a race at Texas Motor Speedway. NASCAR had prohibited the two from sponsoring a Nextel Cup Series event because of Nextel’s exclusivity with Motorola; however, when Sprint and Nextel merged, the ban was removed, since Sprint is being sold at RadioShack stores. – Source Wikipedia

This random NASCAR-economics post was inspired by our local rag’s article about Radio Shack posting it’s first profit in 3 quarters as a result of “Overhead costs coming down $89.5 million to $482 million as the company cut more than 400 jobs at its Fort Worth headquarters campus, reduced its advertising expenditures, reworked the staff scheduling process at its stores and got rid of its worst-performing locations.” Still not sure how that is good news in light of a “13% drop in revenue.”

I’ve got to say though, I am happy about their decision to cut expenses. I’d hate to see a big ‘For Sale’ sign on the 38 acres in North Downtown Fort Worth.”