The View from Here: The Business of NASCAR

Many NASCAR fans are unhappy with the current format of the Chase for a variety of reasons. Some say it favors one driver in particular, Jimmie Johnson, while others argue that there needs to be a road course included in the Chase. Regardless of the reasoning, it is clear that there is a large percentage of NASCAR fans who are disgruntled by the way NASCAR crowns its champion, and it is becoming apparent in both the television ratings and race attendance.

It can't hurt for NASCAR to listen to the outcries of its core fans. There are a number of remedies suggested to curb the angst fans feel toward the Chase, such as adding more drivers, diversifying the final ten races to include a road course, or changing the points system. Since the inception of the current Chase format in 2005, both television ratings and race attendance have plummeted. One has to ask, "Can NASCAR afford not to listen to its fans for much longer?"

And that's the view from here.

LC

Posted by at 9:24 AM | Permalink | Comments (0)

The NASCAR diversity disparity would make anyone wonder why there isn't a larger percentage of drivers that aren't Caucasian or male.
Could it be that James Brown's song "This Is a Man's World" is the breathing image of NASCAR?" According to About.com, "In 2009 there are no women competing in the Sprint Cup or Nationwide series. The Craftsman Truck Series has had a few female competitors in 2009 including Gabi Dicarlo, Michelle Theriault, Caitlin Shaw and Jennifer Jo Cobb. However none of these women have full-time ride in the series."
I believe that if there were more women drivers more women fans would be attracted. I know women will come out in droves for "girl power". However, my only question is, if there were more women drivers, could a man handle them winning? In the case of more ethnic drivers, I believe that an increase in ethnic drivers will also increase a more ethnic fan base. At some point these disparities will need to be addressed because I believe that if people are going to enjoy a sport they would like to see themselves reflected in some sort of way.
And that's the view from here.
RW

Posted by at 9:34 AM | Permalink | Comments (0)

NASCAR has undoubtedly become one of the biggest and most popular sports in the U.S. As NASCAR has grown in popularity in this country, the growth of its popularity has also expanded internationally. This growth raises the question of why NASCAR is not expanding further into the international community. Currently, NASCAR races in the Nationwide Series in Canada, and previously in Mexico as well. But NASCAR has not had a points paying race in the premier Sprint Cup series in the modern era outside of the United States. Although there have been experiments with the premier series outside the U.S., specifically Japan in the nineties, it never caught enough attention for NASCAR's liking.

Another question is raised from this issue of NASCAR being international: why does NASCAR need to expand internationally when there are markets currently in the U.S. that are underserved, such as the Pacific Northwest to the Mecca of sports in the U.S, New York City? Opponents of NASCAR going international feel that the faithful American fans in underserved markets deserve to have a chance of having a track in their market. This belief makes sense to me given the economic situation is so negative at this time; new tracks could create jobs and revenue for Americans in those underserved areas.

As a result, I feel that NASCAR should focus its efforts on serving its loyal fans in their own country first, especially those underserved by the current NASCAR Sprint Cup Series schedule.

And that's the view from here.

WV

Posted by at 9:27 AM | Permalink | Comments (0)

As drivers continue to qualify for the upcoming races, many teams are scrambling to secure sponsors to even finish out the season. With the economic downturn, many of the sponsors are rethinking contracts and wondering if NASCAR is still a good investment.

Jimmie Johnson told the Richmond Times-Dispatch in May, "The economy has changed the way a lot of companies do business, but most of our sponsors are confident that NASCAR is a solid investment."

Although the bigger companies still think NASCAR is a great investment, anxious shareholders are simply seeing stock values decline.

Andrew Glangola mentions that race fans are consciously loyal to the sponsors on the cars. Some sponsors are becoming part-time, but even this is better than nothing. About 400 sponsors are involved with NASCAR in some level because they know it works. Being affiliated with this sport brings in revenue.

Though some of the sponsors are backing out, most know that NASCAR still is a solid investment and that is enough to at least be somewhat involved with the sport.

And that's the view from here.

CC

Posted by at 2:06 PM | Permalink | Comments (2)

We all know that NASCAR fans are 75% more likely to purchase items that are endorsed by NASCAR or a favorite driver, and 40% of all fans are females with the majority of the purchasing power. So, with numbers as high as these, I don't see why more sponsors aren't focusing more on women. A discussion today made me think about what makes a "loyal" fan. A loyal fan is someone who will not substitute another brand based on price or availability. That means that I am not a loyal fan. I don't feel compelled to always buy something simply because it is endorsed by NASCAR if there is a cheaper substitute. I don't think NASCAR has any female-only products. I could care less which home improvement store or energy drink is advertised. But I would purchase something that was specifically geared towards women. And not just the stereotypical sponsors like Tide or Target; women aren't the only people who have laundry needs. I'm talking about brands such as Tampax, Maybelline, Herbal Essences, or Victoria's Secret.

I think the entry of Danica Patrick would be a great opportunity for sponsors to jump in and target the female fans. I don't think the men in the sport would jump at the idea of driving the Tampax car, but Mark Martin drove the Viagra car with no shame. I would become a "loyal" fan if a driver, male or female, would seek out a sponsor that supported the primary needs of women.

And that's the view from here.

JS

Posted by at 8:59 AM | Permalink | Comments (3)

Many of NASCAR's race weekends usually last two or three days depending on which race it happens to be. NASCAR has been looking into making more two-day weekends for the 2010 racing season. One of the main reasons NASCAR would like this to happen in 2010 is because of the hard economic times we are facing today.

By making more two-day weekends NASCAR believes it will help save a tremendous amount of money for many of the organizations in the NASCAR circuit. Even though this approach has been considered for years, many people believe this would be the perfect time for NASCAR to go through with this idea. Many fans, including me, do not realize how much money each team could actually save from cutting down from a three- to two-day weekend. It is estimated that it costs a team $300,000 to $600,000 per car for an average three-day weekend.

So by having only a two-day weekend a small portion of that amount could be saved. Also knowing that they have to run a 36-race season, organizations would eventually save millions of dollars within a season. By seeing how much money could be saved, I believe this would be a great change for NASCAR to make most of the races a two-day weekend event.
CS

Posted by at 9:03 AM | Permalink | Comments (0)

NASCAR is said to be one of the most viewed professional sports on television. The only sport that beats it is the NFL. NASCAR is broadcast to over 150 countries around the world. It is a multimillion dollar business with millions of fans attending and watching around the world. If all this holds true, then why is NASCAR facing struggles with attendance at events and a drop in TV?
The cause of this drop-off in viewership and attendance is unknown to many. It can be a variety of things. The sport's best drivers are not competing at the same level and some may think they're running low on the tank. The new drivers that NASCAR brings in, or will bring in, may not have the same racing vibe as the previous drivers. I can somewhat compare this situation with WWE Wrestling.

At first it grew at a ridiculous rate because it was fairly new and everyone wanted to watch their favorite old school wrestlers duke it out. After a couple years, the attitude of the show, the story lines and the wrestlers themselves were getting old. With new wrestlers coming into the business, fans of the old generation were left hanging and not attracted to something they watched growing up and loved. It just wasn't the same anymore.

I believe that NASCAR is somewhat going the same way. I may be wrong or I may be right. It is just an idea to provide. Something new may have to be provided in order to remain the big business that NASCAR is. I think something needs to happen to spice things up a bit to give it an edge of entertainment and drama. As some may say, Danica Patrick may be coming to NASCAR. That can tip NASCAR fans good or bad; it all depends on how the fans take it. We may just have to see what the business of NASCAR can provide to its loyal viewers and see if a renewed interest in the sport can begin again.

And that's the view from here.

AM

Posted by at 10:43 AM | Permalink | Comments (0)

A serious issue in NASCAR is the decline of ticket sales and television viewership. Everyone has their own theory, from the new cars to the economy to Digger. Digger, an animated gopher that pops up on Fox broadcasts, has taken the most flak. Digger only shows up on the turn camera; it pops up and screams when cars go by so it is not featured that often in a race. Still, many people despise it. In fact, in a USA Today article, Fox Sports Chairman David Hill stated that a NASCAR executive sent him an e-mail blaming Digger for the drop in viewers, that every time he shows up, people turn off their television sets. Hill had another reason, stating that "if Dale won, more people would watch". This statement actually makes a lot of sense.

People go to sporting events to cheer for their driver/team/ horse/player, etc. When their favorite starts doing badly, they gradually start to lose interest. Although there are always die-hard fans (such as Detroit Lions fans), there are those who will just stop watching, period. Dale Jr. has not won a race all season, and in the last race at New Hampshire on Sunday, he was doing very well and was looking at a top three finish when he hit the wall. The lackluster performance he's had the previous season, while not that bad as he did make the Chase, has really hurt his fan base. People are not going to show up if they know Jr. is going to place 12th and Kyle Busch is going to get another win. They go to see Jr. win and do well, much like how they go to see Tony Stewart be a jerk and Jeff Gordon (hopefully) hit the wall.

How can NASCAR get these viewers back? Really, there is not that much they can do unless Jr. (or whoever the driver is) starts winning or at least starts doing better. I, however, would like to think if they made Ward Burton a commentator, then ratings would skyrocket, but that's just me.

And that's the view from here.
AS

Posted by at 8:58 AM | Permalink | Comments (5)

Richmond International Raceway is located in Henrico County, Virginia. Henrico has a population of about 300,000 people and has been ranked one of the best places to work, live, and play. And on race weekend, it becomes an even better place to play.

A few times a year, fans from all over the country flock to Henrico County to watch the NASCAR races. This year, more than ever, Richmond and Henrico welcomed fans with arms wide open.

Over the past few years, Richmond has joined the rest of the country in feeling the effects of the slumping economy. Sales have decreased in a variety of different retail stores and many businesses have been struggling to survive. In the weeks around race weekend, people start coming to Richmond and this migration has a great impact on our economy. Restaurants, gas, campgrounds, and hotel sales skyrocket during this time, and we couldn't be more thankful. The business Richmond receives from NASCAR is astonishing, and thus another reason why Richmonders love the race! And that's the view from here. RR

Posted by at 12:40 PM | Permalink | Comments (0)

With the summer winding down, one can begin to see the signs that autumn is quickly upon us. The leaves are beginning to change color. The Back-to-School sales are in full swing. And, everyone is looking forward to NASCAR coming to Richmond.
Having lived in Richmond all my life, I am very familiar with the sights and sounds of race week. Twice daily - to and from work - I pass by Richmond International Raceway where the race is held. As race weekend approaches, an atmosphere develops very similar to a circus or state fair. This is appropriate since the raceway was formerly the fairgrounds where the annual state fair was held. Early in the week, the fans begin to converge on the area with their mobile homes, campers and trucks. Flags supporting their favorite drivers are everywhere.
In the surrounding neighborhoods around the raceway, signs appear offering camping and parking spaces to those in need. Many people in the area earn a large portion of their annual income from the money made during race week renting out their front yards. Although with the decline in the economy and reduced attendance, there is not quite as much money to be made as in previous years.
It is very amusing to drive into town during race week and pass by the raceway early in the morning and see bare-chested good old boys with their beer bellies hanging over their pants sitting on the tailgates of their trucks or in lawn chairs in front of their campers having their morning coffee and cooking breakfast. This is truly the only way to live!
Closer to race day, the traffic patterns in the area begin to change. When driving down "360", there is a steady stream of vehicles heading toward the racetrack from all directions--flags and banners of favorite drivers flying. If you are lucky enough to hit a red light at "360" and Laburnum, usually on Wednesday evening before race day, you can experience the delight of what I call the Driver's Big Rig Train - a line of rigs bringing in the drivers' cars. It is truly a sight to behold. I guess you could call it NASCAR's circus train.
These are some of my fondest memories of race week. And all this is BEFORE the race even begins! Please share your memories. And that's the view from here. SH

Posted by at 10:32 AM | Permalink | Comments (0)

With the economy slumping, it's becoming harder for NASCAR fans to get to a track to enjoy live racing. Even with tracks lowering ticket prices, most races aren't selling out. You would think that because of this attendance issue television viewership would be just as good as last season, if not better but the truth is ratings are lower now than the same time last year.
True, ratings for the last couple of races (Michigan and Bristol) were up from last year's averages but the reality is football season is about to start and history has shown that once football games begin being aired NASCAR viewership drops.
Now, back to the decline in ratings of this year's earlier races. There hasn't been a clear change in the way NASCAR has presented its races in the past two weeks, so what was wrong with the previous races that led to a drop in viewership? Could it be the much disliked COT that drivers claim isn't competitive enough? Or is it that stock car racing just isn't what it used to be? I'm not old enough to have seen Richard Petty's first win or Bobby Allison's wreck at what is now Talladega Superspeedway, forcing NASCAR to mandate restrictor plates there and Daytona, but I've seen video and TV footage of the beginning of NASCAR's modern age and I know today's racing isn't as exciting. While I love racing and always have, I miss what it used to be just 10-15 years ago. The sport has lost some integrity and I almost prefer local short track racing to sitting at home and watching a Cup Series race on tv.
So the solution to NASCAR's television rating problems is yet to be resolved, even with the recent increase in viewership. Is the economy to blame or is it because of the COT and lack of excitement? Of course there's always the argument that NASCAR just isn't like the old days. And that's the view from here.

HG

Posted by at 11:02 AM | Permalink | Comments (1)

"Nascence": (n) the beginning or coming into being of something (Encarta World English Dictionary)

Two columns appeared in the last couple of days that were very interesting. The first, by Dustin Long in the Virginian-Pilot on May 11, dealt with the dominance of Hendrick Motorsports. It seems that Hendrick's drivers, as well as teams supplied by Hendricks (read Tony Stewart's shop and Phoenix Racing) have been driving away from the competition. In fact, according to Long, 67% of the top five finishes have been teams using Hendrick equipment. Except for a couple of wins by Roush-Fenway and Gibbs, nobody seems to be able to keep up. Long closes his article with "Just about anybody driving a Hendrick's car is having fun this year"-except those who want to see more racing.

And, in an article in scenedaily.com/news on May 11, NASCAR is studying the reasons for the drop-off in television viewership of NASCAR races-reportedly just over an 11 percent drop from last year at this time (and last year's viewership was down from previous years). What was interesting was the number of comments following the story (117 when I read the article!). Most were explaining the dropoff by complaining about Fox coverage, confusing times for starting races, not racing on Sundays, and the Car of Today being too "generic". Some of those providing comments simply said the racing was BORING!

As much as NASCAR can continue to say that the economy has impacted attendance negatively, there is simply no plausible explanation that those not able to afford to attend a race can't simply turn on the television. So, to answer my headline above, there simply is nothing to suggest a NASCENCE ("undergoing the process of being [re]born"). And that's the view from here. Jon

P.S.: Further proof? I gave up my season tickets to RIR!

Posted by at 10:07 AM | Permalink | Comments (6)

I have been thinking about humility a lot lately -- not sure why but I do think it is a good issue for all of us to consider.

We often are too tied up with following the economics of others that I think we miss a part of who we are. And that's a good issue to ponder when it comes to NASCAR and its fans.

Let's examine ...

Just who is NASCAR? And who are its fans? No, no, I don't mean the endless dissection that results in a freeflow of statistics. I mean who are we and what do we (as fans) want? What will make us satisifed? What do we seek?

This is a valuable question to ask because it is why NASCAR is continually validated-by sponsors, fans, et.al.

The answer is that I don't know ...

Because, honestly, I mean, really honestly, NASCAR doesn't even need (dare I say it?) to ... exist.

So, there it lies, in all its stone coldness. What we want I can't say. But I can say something to NASCAR, something that I think they 'get' but of which I still need more proof. That something is the theme of my little corner here ... being humble.

So NASCAR -- go back to your fans, show them you get it, tone down the 'rockstar' image.

... And be humble that anyone comes at all.

That's My View from Here

Michael

Posted by at 3:12 PM | Permalink | Comments (0)

Last November I was quoted by Sarah Rothschild in the Miami Herald regarding the effect of the halting economy on NASCAR. That quote dealt with the diminished discretionary money that fans could use to attend races. I suggested that tracks should consider lowering their ticket prices, “but that’s not going to happen,” I stated. Well, lo and hold, we’ve seen several tracks do just that, as well as take other steps to make racing more affordable for fans.

Still, costs are not coming down and NASCAR, track owners, and team owners will continue to see a decline in revenue from the various sources. In fact, faced with the prospect of race attendance falling off, Bruton Smith has suggested that the television networks consider a local blackout if a race hasn’t been sold out — much like the NFL has done with televised games that haven’t sold out locally.

The sentiment has not been held by Paul Brooks, ESPN senior vice president, who indicated that ESPN has no such intentions; he feels that fans shouldn’t suffer simply because they can’t afford to attend a race. And David Hill, CEO of Fox Sports, in a Dustin Long (Landmark Communications) column when asked about Smith’s comment, stated “I thought it was total bull----.I thought he had absolutely turned his back on the fans….”)

In fact, the local fans will probably be in the stands because they’re not faced with three-to-five night hotel minimum stays, long drives even with falling gas prices, or the need to spend money for meals. Rather, it’s the fans who in the past drove a couple of hundred miles for an extended weekend at the track that will probably be the casualties of the economy.

What I think this entire scenario surrounding the upcoming season suggests is that those of us who follow NASCAR closely will see many new innovative approaches to maintaining the fan base. Clearly, it’s time now for NASCAR to tighten its belt and the belts of all those involved in the racing community. Now is not the time to gouge the loyal fan; now is the time for NASCAR to tell everyone involved in the sport — from track owner to team owner to hotel operator to concessionaire — to treat our fans with the respect their loyalty deserves. Lower ticket prices seem to be the first such step in the approach to serving the fans.

And that’s the view from here.
Next week, my prognostications for the upcoming season — for what they’ll be worth.

Jon

Posted by at 11:38 AM | Permalink | Comments (0)

Scary times are ahead as the US dollar declines and the economy goes with it. Almost all businesses are feeling the pain of the economy going into arrest, and NASCAR is a business that is no different. Retail markets are drying up, and in response, big businesses that double as race sponsors are starting to tighten their belts to insulate their assets. On the NASCAR circuit, the drivers and their teams are the ones feeling the impact as sponsors cut back heavily on their usual spending and advertising.
NASCAR may be in trouble as its main source of income, seventy-five percent of its budget, comes from sponsorship dollars. Compared to even this time last year, large companies that are regulars in the NASCAR world have considered cut backs if not already cutting their spending. Current NASCAR stakeholders worry that the near future may bring widespread layoffs throughout its business structure, and even fielding all 43 cars may become an issue. Drivers are implementing split sponsorships to cope with the changing times and to pay their incurred expenses. “Tip to tail” sponsorship is becoming a thing of the past as most cars that race now are littered with logos from several sponsors, and almost all space on the cars are prime sales for advertisers. Even popular drivers such as Tony Stewart are having trouble finding funding, not just for themselves, but for their teammates.
Drivers are also acquiring sponsors for only a certain number of races per season, instead of the entire season, and are now becoming pressured to constantly find cash investors. The hardest hit are those who are independent car owners that solely depend on sponsorship.
Smaller sponsors are now starting to join NASCAR, and are creating a new stream of revenue that is helping relieve financial plight. But if most of the original larger investors pull out, will these new investors be enough to support the NASCAR business? Outside of NASCAR, how are other motorsports being affected by weakening economies?
Recently the Canadian Grand Prix has been dropped from the 2009 schedule, cancelling all races in North America, and the French Grand Prix has been cancelled as well. It is not only the US that is struggling at this current time; rather, declining economies, increased operating cost and reduced sponsorship are hurting NASCAR and even greater, motorsports as a whole.
And that’s the view from here.
CJ

Posted by at 5:05 PM | Permalink | Comments (1)

The Orlando Sentinel takes a look at how gas prices might affect the upcoming NASCAR season, particularly in relation to attendance. Dr. Ackley is quoted.

Posted by at 12:07 PM | Permalink | Comments (0)

Yes, as I was quoted yesterday in Dustin Long’s column appearing in the Virginian-Pilot, “perception is reality” and the reality for the non-NASCAR fans is that we’re all “bubbas”.

Why is it that the “bubbas” in the stands simply can’t stomach their driver not winning and thus have to act like Neanderthals?

I don’t care that the Philadelphia Eagles’ new stadium has a jail; we don’t have jails at our race tracks. We don’t need these ______ (fill in the blank as you choose) throwing beer containers on the track — what’s next, didn’t like that pass by the “24” so we’ll throw something at him the next time he goes by? Then Tony Stewart would indeed see debris on the track.

The fact is that we, as fans, must police ourselves. No amount of cajoling by track owners prior to a race or by drivers and owners after the race will change fan behavior if we, who sit next to these ____ (your choice again), are allowed to throw things at drivers simply because (1) they don’t like the driver, (2) are inebriated, or (3) both.

So if you’re reading this blog and love the sport of NASCAR, take a stand this weekend if you’re in Richmond. And if not Richmond, then wherever you attend a race. To paraphrase our Virginia tourist theme, NASCAR is for Lovers, not for bubbas! Let’s go racing, boys!

Jon

Posted by at 11:41 AM | Permalink | Comments (1)

Writing in his NASCAR.com column last week, David Caraviello shared his views on “NASCAR’s real challenge” — not TV ratings or ticket sales. Rather, “fan base” is the real problem: the disparity between “traditional fans” (spell that “old timers”) and the “new fans” (see “chardonnay” in your dictionary).

Caraviello suggests that the traditional fans need to understand the need for NASCAR to change in order to continue to grow while new fans need to realize that those who came before see NASCAR not simply as a sport but as a “prized heirloom passed from one generation to the next”. Thus, traditional fans need to accept the “car of today” and that NASCAR will continue to evolve and new fans must understand that a Saturday evening or Sunday afternoon is more than just entertaining clients.

I would like to inject my opinion on what else constitutes the “NASCAR challenge”: NASCAR’s inability to reconcile its desire to “keep racin’” with placating its financial supporters. What do I mean, you ask? A couple of days ago Juan Pablo Montoya was fined $10,000 and placed on Busch Series probation until December 31 for making an obscene gesture during Busch Series practice. NASCAR stated that he was in violation of Section 12-4-A of the Busch Series rules book: “actions detrimental to stock car racing”.

Let’s get real here children! Anyone reading this blog is probably guilty of “actions detrimental" to their offspring riding in the family car when someone cut them off in traffic!

I doubt most followers of NASCAR were even aware of JPB’s adolescent behavior — or care! The problem is NASCAR’s inability to understand that driving 160 mph oftentimes leads to tempers flaring. NASCAR’s desire to be non-controversial in order to keep sponsors happy has led to “too much grease on the squeaky wheels” and way-to-many trips to the wood shed. If NASCAR wants to fill the grandstands and increase TV viewership, it needs to be less concerned with “regulatin’” and more concerned with “good ol’ racin’”. What do you think?

(By the way, I prefer cabernet.)

Jon

Posted by at 9:50 AM | Permalink | Comments (6)