Tony Stewart decided, and in part I agree with his decision, to leave the owner and team that gave him the opportunity to be the driver in NASCAR that he is. He had an opportunity to “go on his own” (and I predicted he would) because of the opportunity. Violation of “loyalty”? Not hardly. And Tony asked Ryan Newman to join him, which he did. Violation of “loyalty”? Again, not guilty. Both had opportunities to “move on” (as we’re so fond of saying.)
Now comes my point—Joe Gibbs Racing showed its loyalty and commitment to an 18-year old (Joey Logano, in case you haven’t been following). Joe Gibbs is probably one of, if not the most, upstanding owner in NASCAR circles. His willingness to take on, first, Denny Hamlin (not a really proven entity) and then Kyle Busch (with his baggage) and turning them both into winners shows how smart he is. And he’ll continue to support them—spell that “l-o-y-a-l-t-y” as they continue to develop.
And add Greg Zipadelli to that list of loyalists! He didn’t run off with Tony but stayed with JGR and Logano. He even believes that Joey has a chance to make the Chase next year—and his efforts will reflect his loyalty to Logano and JGR!
And finally, congratulations to Home Depot for hanging in with JGR during this uncertain change in drivers. Frank Bifulco, senior VP for HD, indicated that there was serious discussion about whether to go with Joey, but in the long run Home Depot showed its “loyalty” to Joe Gibbs Racing by accepting JGR’s decision to put Joey in the #20. “Loyalty”—in sports it seems that that term is spelled in dollars most of the time. This week we found out what it really means. And given the political times, I certainly wish some politicians would reflect on that word.
And that’s the view from here.
Jon
And that's my view from here
Mike
And, with the Race for the Chase nearing its end, everyone’s attention is on who will make the Chase—and it’s close. But rather than ramble on that topic, I’d like to address recent comments by #31 regarding the “long-term health of NASCAR”.
It seems that Jeff Burton believes it’s in the best interest of NASCAR, the teams, and the sponsors if the number of cars attempting to qualify for a race is limited to the 43 slots.
“The philosophy of having 48 cars all vying for 43 sports, I know that’s cool and everything. Or the thought that if you’re not good enough, you just go home because you don’t deserve to be in the race. But that’s not economically sound,” said Burton in an interview at Michigan last week.
He believes that spreading the sponsorship dollars over more cars de-values the sponsor—and even hurts teams because the sponsors will, in the current economic climate, not be as willing to risk backing a team that possibly will not make the race.
“Forty-three cars that are assured of being in the field is the best scenario for our sport,” Burton stated.
I’m not even saying the "F-word” (and here's more on the "F word") but to me it certainly sounds like that’s what Jeff is saying. And how does a team get to be one of the 43?
Here’s a thought for you -- if the number of cars attempting to qualify for a race is limited to 43, how do we get new drivers, new teams, and new sponsors into the sport? Yes, the sponsors of those 43 teams are quite happy knowing their driver will be in the race but I think it’s short-sighted in the long run.
But that’s simply the view from here.
Jon
I’m struck by how much NASCAR might be experiencing the “trembling of hands”. First, the fall-off of attendance at races. Then, the diminished TV viewership (albeit, better this year–Gas Prices?). Then, the lawsuit brought by a NASCAR official for sexual and racial discrimination and unlawful employment termination. Now, the economy, which has affected so many aspects of NASCAR–attendance at races, gas prices for teams traveling here and there, termination of the Nationwide series race in Mexico City in 2009, loss of sponsors–including auto manufacturers of races at a couple of tracks. And the list goes on. Add to it the debacle at the Brickyard (those in the “know” are still writing about it).
So, is the “trembling hand” perched above NASCAR? Is the “house” about to crumble? Or worse, for NASCAR to lose its ability to say it’s the “second most popular sport” in the Usof A?
I don’t agree with “Chicken-licken”–the sky’s not falling–YET. And that’s the view from here. Jon
Either way they take on importance in our lives.
Changes in NASCAR are no different. As someone who has watched this sport grow for 45 years, change has been the proverbial only constant. And sometimes the changes can shake your loyalty to a person, place, or company in this business.
For example, I remember when Richard Petty 'defected' to Ford for the 1969 season (he had even taken up drag racing, with tragic results, in 1965). And yet the sport survived as it is larger than any one company, brand, or even, dare I say it, person.
So all the Toyota bashing is to be expected. It has happened before to others who supposedly 'buy' wins or maybe even supposedly do something more sinister.
And it won't be the last time.
As a recent Wall Street Journal article indicated only 6% of fans seem to care enough about Toyota's arrival in NASCAR to be angry. Now while that sounds small, it could represent as many as 4.5-5 million fans so I won't easily dismiss that statistic. But I will much more easily dismiss any conspiracy theorists, etc. who see Toyota as an 'invader' or a firm who has no economic impact on our country. Let's look at a few numbers:
* Toyota employs approximately 36,000 US workers
* With a payroll of nearly 3 Billion USD
* Has invested nearly 16 Billion USD in America
* Donated 340 million USD to charities
* And has purchased 28 billion USD of parts from US suppliers
While Toyota's US-based workforce is smaller than either Ford (about 55,000) or GM (about 74,000) let us not lose sight of the fact that neither
GM, Ford, (or Chrysler) employ 100% of the workforce, nor have 100% of their sales, within our borders. So those who worry about the repatriation of profits, lighten up -- at least they have profits.
That's (taking) the (long) view from here.
Michael
PS: I drive a Saturn Aura. (But we also have an older VW made in Mexico).
]]>We know in Richmond that the two NASCAR weekends bring millions of dollars into the economy. NASCAR is indeed a multi-billion dollar industry/sport/entertainment enterprise. But if we were to close down NASCAR, we would have very little effect on gasoline consumption. We’d also have to close down the NFL, MLB, NBA, and all college sporting events because fans have to drive to get to those venues as well. We might then be making some impact on gasoline consumption. But we’d also have to throw in trips to theatres and concerts, as well as our kids’ soccer match or baseball game. We now see the short-sightedness of the writer above.
Why do I even bring this up, you ask? Well, on the way to work this morning I was driving my usual 70 mph on the interstate. I never passed one car but was passed by about 50 in the span of 20 miles. And, almost without exception, every car had ONE DRIVER. So, let’s back off complaining about NASCAR’s wasteful ways; it’s a case of the pot and kettle. And that’s the view from here.
Jon
To date, we have Chip Ganassi closing one team, leaving Dario Franchitti (last year’s IndyCars champion) out in the cold (yes, he can drive in Nationwide but is that where he wants to be, especially given the “kiss-and-make-up” with the two open-wheel factions). Then we had Tony Stewart getting his release from JGR (a good move on JGR’s part given Tony’s unhappiness with his performance and the owner’s decision to move to Toyota). Recently, Ryan Newman announced he wouldn’t return to Penske next year (and forget Penske’s problem with ALLTEL since Verizon (soon to take over ALLTEL) isn’t grandfathered in the series).
What’s especially interesting from a business standpoint is how owners, drivers, and sponsors make their decisions — the criteria used. For example, why would Tony give up a great ride and team simply to have half-ownership in a third-tier team? When one makes that decision, there has to be more than ego involved.
And consider Ryan’s departure with, according to him, more options than simply joining his pal Tony.
And consider sponsors: Office Depot to Stewart-Haas, Kobalt possibly taking over the Truck series and Lowe’s perhaps becoming the “official home improvement store” as Home Depot’s contract with NASCAR expires this year.
So as Mike and I prepare for our upcoming “The Business of NASCAR” full-semester course, we have lots of interesting assignments for the students, not the least of which is determining how owners, drivers, and sponsors make multi-million dollar decisions. And that’s the view from here.
Jon
So here goes:
Pros: He’s part-owner and has some say in the operations. Hendrick makes the engines. He’s back driving Chevys. He’s part-owner and has some say……got the idea?
Cons: He leaves a team that gave him his start and supported his two championship runs. He leaves a team that has, arguably, one of the most honest, straightforward owners in racing and one who has defended Tony on many occasions. He leaves a team that probably has the greatest potential in the coming years as any team currently running — Kyle, Denny, and most likely Joey — and he can be the “poppa” figure directing their climb to fame. He’s part of a stable that has the top running racer in the Sprint series — and that can mean continued sources of shared information.
Now the business part — which is the real essence of Tony’s decision. He’s buying into a second- to third-tier team (sorry, but when have they been consistent winners?). Who has the seven post shaker rig? Where’s the wind tunnel time? And, most importantly, how much R&D money will trickle down to Tony’s team given the economic times and Motor City’s need to ration its resources when it comes to NASCAR teams (remember Hendrick and Childress?)?
Geez, don’t you think Gillett/Evernham is worried? And Ganassi with his Reed “here’s your pink slip” Sorenson, Dario “this looked easy” Franchitti, and Juan “I’m looking at an oval win” Montoya isn’t real sure about Chrysler. Even Toyota announced that it’s revising its sales goals for 2009, in light of economic conditions, so what’s that say about its involvement?
Tony’s no novice when it comes to business. But, really, is this the time for Tony to “go on his own?" I certainly don’t know — but again, that’s the view from here.
Jon
P.S.: If I were a betting man (and I’ve played the lottery so that tells you something about why I seldom bet!), I’d put my money on Tony leaving JGR. Why, even though I make a pretty solid argument for staying? Because Tony is his “own man” — Tony believes what he wants, says what he wants, and does what he wants — and I think he wants to show everyone that he can DO what he wants.
]]>If others aren't careful this could be a runaway year for M&M's. After all "Dale" means valley and well, what does "Kasey" mean?
That's the (abbreviated) View from Here
Michael
Whatever the face of NASCAR is, it is surely a face that has character and one that has deep value. While the recent lawsuit has yet to show what fruit it will bear one thing is sure -- it can not be taken lightly or NASCAR will slip back into the world of shadowy stereotypes. You know, the stereotype which stunts the acceptance of NASCAR as a 'legitimate sport' and which turns away the 'might-be' fan.
I won't belabor the point here. I hope NASCAR's house is in order. And if not, that it is restored soon.
Because,a good reputation can be fleeting.
"Quella è la vista di qui"
('That's the View From Here' for all you fans of Italian)
Michael
]]>Indeed, NASCAR likes to promote its clean, family-oriented sports image and likes its drivers and crews to reflect that image. In fact, sponsors and NASCAR have been blamed for the blandness of the sport, with fans citing the lack of the flamboyant drivers and hard-racing action they came to love in the past.
So, now that NASCAR is in the midst of a multi-million dollar lawsuit that weighs heavy on the clean-cut image that NASCAR has worked so hard to develop, what will the sponsors now think? Will we see a revolt of sorts by current sponsors as their contracts with team owners begin to expire? Will teams be faced with even more difficulty securing sponsors because of the nastiness of the charges along with the current economic situation that we’re all facing?
It’s hard to imagine NASCAR coming out of all this without some major bruises to its image as the sport without controversy, drugs, or scandals. Time will tell whether sponsors will reconsider the value of putting their names on cars to the tune of $20-25 million when the sport may be in court—legal as well as public opinion—for quite some time. This isn’t a “Kentucky lawsuit”; it’s a lawsuit that most everyone can identify with in one way or another.
And that’s the view from here.
Jon
One that struck me was that he saw NASCAR eventually building the Car of Tomorrow and selling it to the different teams. In that way, NASCAR accomplishes two important objectives: (1) make sure all the cars are the same so that no team has an advantage and (2) make MORE MONEY! NASCAR “owns” a great deal in the sport, including TV rights, merchandising rights for NASCAR merchandise, and even NASCAR Images, which controls photography and film. So, why not own the cars and have rights for building and selling them to teams? Seems like a possibility “down the road”.
And, in case you missed it (and that would be hard to believe), a former black female NASCAR official has filed a $250 million lawsuit for racial and sexual discrimination, sexual harassment, and wrongful termination. If, as they say, “perception is reality,” this will be a major blow to NASCAR’s drive for diversity.
And that’s the view from here.
Jon
THE FAVORITE BUSCH
Fans might boo Kyle Busch, but somebody is buying his merchandise.
Mark Dyer, president and CEO of Motorsports Authentics, said Busch merchandise has seen among the biggest increases in sales from last year.
Part of that, no doubt, relates to M&M's, which is Busch's sponsor. The candy product is a popular souvenir item.
Busch is in the top 10 among drivers but hasn't cracked the top five, which typically includes Dale Earnhardt Jr., Jeff Gordon, Kasey Kahne and Jimmie Johnson.
Said Dyer of Busch: "He's captured the imagination of a lot of fans with his aggressive style and winning races. He's been way up this year. It's been exciting to see."
Also note that this is even more interesting when considering that Mars, Inc., owns numerous brands that also appear on his (and others) car such as Pedigree, Snickers, etc. He also is linked with Pedigree in a campaign. I have pasted most of it below:
"From May 1, 2008 through October 15, 2008, NASCAR fans and dog lovers can log onto http://www.Dogsrule.com to make a monetary pledge to sponsor miles* of any of Busch's Sprint Cup races during that window; a roster which will sport 25 races and more than 10,000 miles. Donations from pledges will directly benefit The PEDIGREE Adoption Drive Foundation, a non-profit organization that provides funding to 501(c)(3) status animal shelters and breed rescues nationwide. Kyle kicked off the program from Richmond, Va., where he raced the No. 18 PEDIGREE(R) Toyota for the first time during the Crown Royal Presents the Dan Lowry 400.
"As the owner of two dogs I know how happy they can make you, so to me it's really sad that each year four million dogs end up in animal shelters and breed rescue organizations and two million never make it out," said Busch. "Kyle's Miles hopes to raise money and awareness for the dogs that are so often overlooked and I'm excited to be able to do my part to help."
As an added incentive to the "Kyle's Miles" program, anyone who sponsors miles* is automatically entered into a sweepstakes to win a trip for two to Phoenix in November to meet Busch and attend the Checker Auto Parts 500 at Phoenix International Raceway on November 9, 2008. Those who'd like to enter the sweepstakes but not sponsor Kyle's Miles can also do so at http://www.Dogsrule.com .
The PEDIGREE(R) Adoption Drive
The fourth annual PEDIGREE(R) Adoption Drive launched in February 2008, with a goal to raise more than one million dollars for The PEDIGREE Adoption Drive Foundation. Because of their love for dogs, PEDIGREE(R) Food for Dogs created The PEDIGREE(R) Adoption Drive to help shine a spotlight on the plight of homeless dogs. Through no fault of their own, more than four million dogs end up in shelters every year. Sadly, nearly half of those canines never find a place to call home, a trend that the PEDIGREE(R) Brand and Busch hope to help reverse.
In addition to making a donation to "Kyle's Miles," there are several easy ways NASCAR fans can take part in The PEDIGREE(R) Adoption Drive all year long that help benefit the foundation:
-- If you're a dog owner, you can purchase PEDIGREE(R) products. Donations from product sales will benefit the foundation.** -- Visit Dogsrule.com to browse Dogs rule.(R) gear, a line of merchandise and apparel for dog lovers. Proceeds after expenses from the sale of all Dogs rule.(R) items benefit The PEDIGREE Adoption Drive Foundation. -- Additionally, those who adopt a dog from a local shelter or breed rescue anytime during 2008 are eligible for a FREE, one-month supply of food as a thank you from PEDIGREE(R) Brand."
Finally, two other points.
1.Mars, Inc., has announced it is buying Wrigley's for 23 billion.Think about who (JPM) drives the Juicy Fruit car (he finished second at Talledega). So now Mars will have a wider assortment of promo opportunities.
2.Since Mars' fiscal year ended in December 07, I know that their 2007 sales were up a whopping 19% to 25 Billion.
Nothing to 'snicker' at .....
Sorry, just couldn't resist.
Mike
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