NASCAR driving into economic crisis
Published 2:06 am Friday, February 6, 2009
By By JENNA FRYER, AP Auto Racing Writer
DAYTONA BEACH, Fla. — Brian France and the NASCAR brain trust had to have felt a twinge of jealousy as they watched another spectacular Super Bowl come to a close.
Played in Tampa just 100 miles south of Daytona International Speedway, the NFL’s season finale had everything NASCAR’s chairman wants for his family business: A thrilling finish for the deep-pocketed fans and sponsors in attendance, plus millions more watching on TV.
It’s a tough act to follow for any major sport, but more so for NASCAR, which heads into the Feb. 15 season opener fighting the effects of the economic crisis.
That’s putting it mildly.
Because the sport depends so heavily on corporate funding as the primary support for owners, the landscape will look vastly different from a year ago when the track opens Thursday for teams to begin preparations for the Daytona 500.
Many owners have merged, others have slashed their budgets and some have simply folded their race teams. Hundreds of team members have been laid off since November’s season-ending race, and the cutbacks spanned the entire spectrum: deep-pocketed Hendrick Motorsports, Joe Gibbs Racing and Roush Fenway Racing all made small reductions to their work forces, while underfunded Bill Davis Racing, The Wood Brothers and Petty Enterprises had massive layoffs.
Chrysler, Ford and General Motors are suffering through a steep drop in car sales, while world leader Toyota is facing its own surprising downturn. The monetary and technical support of the four automakers is vital to the race teams.
And the NASCAR fan base, traditionally the blue-collar workers of America, is struggling to afford a weekend at the racetrack.
Despite all the economic issues facing the sport, France remained confident 2009 will prove NASCAR’s perseverance.
France points to several on-track story lines he hopes will steer focus away from the economy and toward competition:
Compelling competition, indeed, but NASCAR won’t be able to avoid the economic issues outright.
Although 50-plus NASCAR teams are listed so far on the Daytona 500 entry list, the number should drop significantly a week after the race when the circuit shifts to venues in California and then Las Vegas. A March swing through the South could bring some car owners back to the track, but the true indicator of just how tough it will be to make it to the track this year should come in the seventh and eighth events of the season — a western swing through Texas and Phoenix.
The outlook, he predicts, will filter out the competition.
The financing is still solid at the front of the field, where at least 15 teams should be strong enough to challenge Johnson’s reign. It’s the back of the field where the economic effects will be noticed — assuming anyone is paying attention to the also-rans.
France said more than a dozen new teams had applied for certification, including Cup entries for former full-time driver Jeremy Mayfield and Tommy Baldwin, who was director of competition at BDR before Davis sold the team in late December. The new owners of BDR don’t have sponsorship to bring the No. 22 to Daytona, where Ward Burton drove it to a Daytona 500 victory in 2002.
So perhaps the credit crisis will help NASCAR return to its roots, to a day when anyone could pull a race car to a local track and take a shot at winning the main event. But the sport will do so without many of its pioneers.
Petty Enterprises and The Wood Brothers, NASCAR’s two oldest teams, have had dramatic makeovers.
Petty Enterprises no longer exists as a family run business, merging with Gillett Evernham Motorsports last month to form Richard Petty Motorsports. So far, it doesn’t appear the iconic driver will be anything more than a figurehead at RPM.
And The Wood Brothers only have plans to run 12 races this season as sponsorship woes have crippled the storied team.
Kurt Busch, the 2004 series champion, admits he’s a bit insulated from reality as a driver for heavily sponsored Penske Racing, a team that recently boasted it didn’t lay off a single employee during the offseason.
But he’s not unaware of the struggles many teams will feel through 2009.