The View from Here: The Business of NASCAR

With attendance numbers steadily declining at the tracks, are corporate sponsors becoming more concerned with where their investment dollars are going or is there more than what we see at the track? This is a question that top-level executives of companies such as Sprint, Aflac, UPS, Best Western, DuPont, and other major corporate sponsors continue to reassess. Over the years NASCAR has become an intriguing place to invest for major corporations not only because of fan loyalty but also because of the potential profitable relationships that can be developed via NASCAR's B2B Model.

NASCAR's B2B Council sets up events quarterly where official sponsors can get together and come up with ways to make their partnerships profitable. This forum for B2B partnerships makes NASCAR even more attractive for investment and keeps its sponsors happy with the valuable relationships they're able to develop. A recent example of NASCAR's B2B model is "NASCAR's Fuel for Business Driving Business Award" winner Aflac. Aflac used NASCAR's B2B event to establish profitable partnerships with companies who can use their services, such as Office Depot, Ford, and Cintas.

As attendance continues to decline, it will be interesting to see how NASCAR is able to continue to provide new avenues of value for its sponsors.

And that's the view from here.

DO

Posted by at 9:13 AM | Permalink | Comments (0)

Article on Examiner.com takes a look at NASCAR's marketing challenges and opportunities. Jon Ackley offers his perspective on some of the sport's major issues.

Posted by at 9:30 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)

Well, it's that time again--school's back in session and Mike and I are beginning our Business of NASCAR course again. We have 30 students this semester--many of whom are fairly knowledgeable of NASCAR racing, but less so when it comes to the "business" of NASCAR. Exciting semester planned with returning speakers and new faces to provide interesting insights into what has become, for many, America's true sport. We start with Nate Ryan (USA Today) and Dustin Long (Landmark Communications) on the Thursday before the final race to the Chase!

It's interesting to note that the last two weekends of racing have drawn larger television viewership than the previous year's races. Could it be that, regardless of the drop in ticket price, many core fans simply prefer to stay home? If that's the case, what does that portend for the tracks? Further ticket price reductions? More pre-race attractions? Better ticket and lodging packages (now that would be a first)? It remains to be seen.

Nevertheless, the "race to the Chase" is heating up! Recent columns by Dustin (check the recent Virginian-Pilot) and David Caraviello (NASCAR.com, 8/27) have pointed up, however, some continuing problems/flaws with the current Chase formula. Time will tell whether NASCAR will make some changes if Tony doesn't win, or someone who makes the Chase takes the championship without having won a race (not unfathomable!). But that's the view from here. Jon

Posted by at 4:14 PM | 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)

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)

So are you tired of it yet? Have you seen enough, heard enough, felt enough, maybe even cried enough? Do the numbers coming from your TV set, your radio, your government just make your eyes glaze (or tear) over?

Are you wondering where and when it will all end?

Have you had enough of $1,400 wastebaskets, large bonuses for failing managers, and folks who just straight out don't 'get it'?

Had enough of the feeling of a general economic 'funk'?

Yeah, me too.

So what does all of this have to do with NASCAR?

Let's be real -- every fan, whether casual or fanatic, realizes that deep down sport is a safety valve, a pleasure, an escape.
NASCAR is no different.We get a rush from watching drivers ply their craft one inch away from a competitor while going 200mph. We love the carnival atmosphere, the chance to, well, 'release' - release from whatever daily ills and pressures we are feeling; and - for a few hours, at least - be somewhere else, doing something else, and having a few moments of pleasure.

In my mind, NASCAR has a heavy responsibilty and has gone silent. With Daytona right upon us, the excitement seems muted, the discussions softer, the rivalries more dim.

With that 'funk' I alluded to earlier, folks just are saying "I don't know" . What it is they think is missing is hard to describe - but, well, they just don't feel quite right.

That's why my (wish?, goal?, desire?, fantasy?) for this year is to see NASCAR become a beacon for saying to its fans,and the public in general -- "It's going to be ok,and we may be a bit battered but we are coming out of the darkness and into the light -- and you are too."

Remember -- Hope always springs eternal.

Michael

Posted by at 2:40 PM | Permalink | Comments (0)

Chrysler plans to cut back on spending on NASCAR -- but they'll remain in the sport. (article quotes Dr. Pitts)

Posted by at 3:51 PM | Permalink | Comments (0)

Robert Weintraub, who writes about sports for Slate, makes the case to euthanize NASCAR.

Posted by at 10:39 AM | Permalink | Comments (0)

Hall of Fame Racing says layoffs are coming.

Posted by at 4:45 PM | Permalink | Comments (0)

Is our current economic recession situation problem affecting the business of NASCAR as far as the fan base is concerned? There are many speculators who believe the current economic conditions are affecting attendance at races. Is this true and what is really going on?
I believe that the current economic conditions are not affecting the fan base too greatly. First of all let’s not forget, as mentioned in our class, that many NASCAR Sprint Cup Series races draw larger crowds than one NFL Super Bowl, one NBA Finals game and one Major League World Series game combined.
NASCAR has the largest turnout compared to any sport so what is there to worry about? The fan base is also moving from one crowd to another, so even if NASCAR is losing its traditional fan base, it is gaining a new crowd and the numbers pretty much will even out. NASCAR is moving toward a more corporate fan base due to business deals. These are wealthier people who are willing and able to actually buy more merchandise as well, which will increase profits.
In conclusion, the ‘die-hard’ fans of NASCAR will still make it out to a race even if the economy is bad. Money might be tight, but I believe that even if it’s their only vacation of the year, true NASCAR fans will somehow make it work and go out to races near their homes. I don’t think NASCAR has much to worry about in these economic times. (The economy is constantly fluctuating anyways.) NASCAR could, however, make it a priority to market to the new wealthy crowd to keep NASCAR appealing and also still make it accessible for the traditional crowd as well!
And that’s the view from here.
SV

Posted by at 9:42 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)

There has been discussion about what the future holds for NASCAR. Will it expand into more markets in the United States? Will it go into Mexico or Canada or perhaps overseas? First and foremost, NASCAR is a business and there is no question that it wants to increase its market size. I don’t think, however, that NASCAR can expand while hanging onto the Southern image.

When people who aren’t fans hear about NASCAR, an image of drunken, redneck, good ol’ boys pops into their heads. People don’t want to associate themselves with that type of lifestyle, especially the wealthier ones, if that is the image conveyed to them. If people don’t want to associate themselves, there is no fan base in that area and thus no expansion into that market.

What NASCAR needs to do is figure out a way to portray the American values, which are found in the South, to these potential new fan bases. These values include hard work, dedication, and passion, to name a few. In reality, however, many people worldwide possess these core values. They are able to relate to the sport thus increasing NASCAR’s fan base. These values are just as easily virtues that everyone wants to strive for.

The key for NASCAR is to separate the American/Southern values from the Southern image. That is the only way for new domestic and international markets to embrace this sport. People may not be able to relate to corporate sponsorships or the business of the sport but NASCAR can hook them with an image of being a dedicated hard worker just as cigarette ads got teenagers hooked by sending a message it was cool.

Internationally, NASCAR needs to make the sport seem so universal that it is easy for people to accept it. Not many Europeans would want to associate themselves with a sport whose American fans’ lifestyle they dislike. Everyone can relate to the values, not everyone can or wants to relate to the image.

In closing, the southern image cannot survive in NASCAR if NASCAR wants to expand. NASCAR can’t expand if it wants to keep the Southern image. Emphasize the American/Southern values if NASCAR wants to grow and eradicate the image. NASCAR management needs to decide which way it wants to go because it can’t do both.
And that’s the view from here.
MA

Posted by at 4:06 PM | Permalink | Comments (0)

While surfing around the internet for something to write about for this blog entry, I stumbled across an article entitled: “NASCAR needs to look into alternate fuels.”
Being a fan of NASCAR and the loud engines that go along with the sport, I had to read what it was all about. According to Mike Mulhern of the Winston-Salem Journal, NASCAR needs to jump on the “green” bandwagon. Mulhern believes that NASCAR could attract more fans by re-evaluating what runs these cars. He states that “NASCAR can do {more} to appear more in step with the real world.”
However, NASCAR is not the real world. Races are where fans go to watch people battle it out for the checkered flag. Races are where people can race legally at 200 MPH speeds and not get ticketed for going that fast. Mulhern believes that NASCAR could improve its PR and marketing by putting more fuel-efficient cars on the track. Maybe it’s just me, but I feel that NASCAR would lose its die-hard fans if this were to happen.
These cars could be engineered to have more power, but would there still be the glorious roar as the drivers start their engines, or when they pass; would it make the fans cheer for their favorite driver? I, personally, would be terribly bored if the track was quiet with all the hydrogen-cell cars going around the track for three to four hours.
Mulhern also states that maybe NASCAR should use a more fuel-efficient car as the pace car. Aren’t most of the cars now more fuel-efficient than they used to be anyway? Maybe for Dodge, Toyota, Ford or Chevrolet to introduce hydrogen-cell cars to the NASCAR nation, NASCAR should use the manufacturers’ new cars as pace cars, as long as the new car can keep pace with the line of 43 behind it.
I feel NASCAR could do more to keep its fans interested in the sport, like keeping the rules to a minimum or trying to incorporate fans more during races, other than putting more fuel-efficient cars on the track.
But that’s my view from here.
CB

Posted by at 2:29 PM | Permalink | Comments (1)

As some of you who read our blog know, my colleague Mike Pitts and I have been teaching a five-week Honors module on the Business of NASCAR for the past five years. This semester, we started a full-semester class for School of Business majors on this topic as well. As part of their course requirement, all students will write one blog entry to be posted here. We hope you enjoy their comments and insights into the greatest racing series in the U.S.

On another note, it will be interesting to see what fall-out, if any, will occur in NASCAR due to the troubles on Wall Street (and elsewhere). Attendance at New Hampshire looked good on TV yesterday. The race at RIR last week was pretty well attended, given the rain-out on Saturday. However, the Nationwide race attendance was dismal. At least, that’s the view from here. Jon

Posted by at 10:22 AM | Permalink | Comments (0)

I remember as a youngster that we had to come up with games to play (especially during summer vacation when it rained). One of those was taking a deck of cards and building a “house of cards”. Of course, the foundation was very strong–often several cards long. But as the “house” was built, tensions mounted. Ultimately, the house collapsed, not because of a weak foundation but because of trembling hands as we added to the levels of the “house”.

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

Posted by at 10:47 AM | Permalink | Comments (2)

So,what is the public face of NASCAR? Is it the face of the happy American nuclear family? No? How about the faces represented throughout North America? Is it 북아메리카 (that's Korean) or L'Amérique du Nord (French) or even Norteamérica (Spanish)? Perhaps its face is Tex-Mex, Southern, or even Creole. Maybe it is the face of the surfer culture of California or that of the Midwestern farmer or the urbanite deep in the canyons of NYC.

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

Posted by at 9:26 AM | Permalink | Comments (0)

Well, I finished Mark Yost’s “The 200 MPH Billboard: The Inside Story on How Big Money Changed NASCAR” over the weekend. It was a very good “read” and put me onto several topics that I want to investigate further. Mr. Yost closed his book with an epilogue, “What’s Next for NASCAR?” Some of his observations were off. For example, he suggested that the company taking over the former Busch series could be expected to pay three to four times more than Anheuser-Busch did and we all know that wasn’t the case. Still, he raises some interesting topics.

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

Posted by at 3:29 PM | Permalink | Comments (0)

Creedence Clearwater Revival would be proud of how well the BIG WHEELS keep on turning (see http://en.wikipedia.org/wiki/ProudMary) . Indeed, over the past couple of weeks since I last posted a blog, a lot of wheels have been turning. Some of what’s been happening has been purely racing — take Kasey’s performance the last two weekends. And pity poor Tony for the blown tire with three laps to go last Sunday. And Greg Biffle, second twice to Kasey in races at Charlotte.

But there’s more happening — for example, the retirement of Humpy Wheeler and the promotion of Bruton Smith’s son Marcus as president of Lowe’s Motor Speedway. And, speaking of Bruton Smith — how about the purchase of Kentucky Speedway and his announcement that there will be a Sprint race there in 2009? Still, Brian France noted during a press conference over the weekend that NASCAR would not be scheduling such a race in Kentucky in 2009; indeed, France indicated that there may be a saturation of the market in that area.

And, NASCAR — Brian France specifically—has acknowledged that gas prices are indeed affecting fan attendance. We suggested that when interviewed for USA Today over a month ago. Gas prices didn’t, however, seem to affect attendance at the Indy 500 over the weekend — 300,000 fans in attendance (even if that’s an inflated number, it’s still impressive).

Finally, I have to comment on the All Star Weekend a couple of weeks ago. As I watched the pre-race show, I immediately asked myself the philosophical question: Is NASCAR a sport or a business? I think we all know the answer — and it certainly was loud and clear in Charlotte that weekend.

At least, that the view from here.

Jon

Posted by at 4:32 PM | Permalink | Comments (0)

There’s an old saying that there are only two things certain in our lives — death and taxes. Well, in Richmond, there has been a third “certain” — a sellout for Richmond International Raceway NASCAR weekend races. For the past double-digit years, RIR has experienced the pleasure of having a sellout for the Sprint (Nextel/Winston) races for both the May and September races. That sellout has been as certain as “death and taxes”.

Now, however, two days before the Saturday race and RIR has announced that it has yet to sell out — although RIR management is certain it will. Still, rising gas prices and escalating ticket prices — coupled with three-night minimum hotel stays and higher food prices — are having an impact on race attendance. Clearly, it’s cheaper to stay home and watch ESPN or Fox than to venture a couple of hundred miles to drop $1,000 for a three-day weekend.
In fact, in the last ten days USA Today, the Associated Press and the Richmond Times-Dispatch have all featured a story on the impact of the sluggish economy and record-setting gas prices on NASCAR attendance.

I’ll be at the race on Saturday and I’ll do my usual walk-through of the parking lots to identify the origin of the license plates. I’m guessing I’ll see fewer Ohio, New York, New Jersey, and Tennessee plates this year. I’ll let you know. That’s the view from here. Let’s go racin’, boys! Jon

Posted by at 11:18 AM | Permalink | Comments (2)

USA Today takes a look at the impact of rising fuel costs and the soft economy on NASCAR's bottom line. Dr. Pitts and Dr. Ackley contributed their input for the story.

Posted by at 9:00 AM | Permalink | Comments (0)

Other than the welcomed sunshine of Texas, there appear to be three themes
emerging in this young season.

1. Change:

Driver changes and team changes have finally begun -- and in my opinion some
drivers seem to be on the decline (Petty, Sauter) and I really can't say how much
longer survival is guaranteed.
Strangely, the most exciting racing is among the few drivers trying to acquire at
least the 35th rung -- strange because it is somewhat exciting, also strange
because this rule should not live another day.

2. Safety:

Despite other COT issues, real or perceived, Texas showed the positive side of
research -- namely the safer barriers (perhaps time for them to be used on other
walls as well) and the overall COT safety. After all, we just have to ask those who impacted them.

3.Recession:

Not what you are expecting. I'm sure that plans are being bent (to some degree)
by those fans (and near fans) as to race attendance, but I am more curious over
logistics/fuel costs for NASCAR teams as they haul cars, etc. around the country.This
will have a telling marginal effect on the "bottom line"-- of course without more
hard data that effect is hard to calculate; but we know it can't be good. I estimated that to travel to all 36 events is around 56000 miles of driving -- and that is just a 'straight' round trip from Charlotte.

So let's see where these themes take us. Hey,you never know TV viewership may go up.After all, some may be staying home.

-- Michael

Posted by at 11:15 AM | Permalink | Comments (0)

The headline on nbc12.com (our local NBC television affiliate) read “Sagging economy could hurt NASCAR ticket sales” (March 28). Even Clay Campbell, president of Martinsville Speedway acknowledged prior to last weekend’s races that the cost of gas plus other economic woes could impact attendance at tracks, especially in light of the fact that many race attendees travel a couple of hundred miles to make a race. Despite the cold weather last Sunday, it was quite evident that Campbell’s assessment rang fairly true, given the sparse attendance. And this in spite of the fairly low ticket prices at M’ville.

Now that TV viewership has improved so far this year, track attendance may indeed take a solid hit — doesn’t cost much to watch from home! And that bodes badly for those tracks where attendance has fallen in the past few years. There are some calling on NASCAR to take a race date from tracks with two race weekends to distribute to other tracks (Las Vegas? Kentucky?) where attendance has been better regardless of the series that is running. I’ve been to M’ville two or three times and it’s one of my favorite tracks. But even driving my compact, gas priced at $3.259 will keep me away. I suspect that many other fans will feel the same way in the next few months.

And that’s the view from here.

Jon

Posted by at 11:35 AM | Permalink | Comments (1)

Well, within hours of my writing this, the green flag will fall on the Gatorade Duels, marking the true beginning of the Greatest Race week. We finish with our four remaining NASCAR wishes for 2008. For wishes 10 through 8, see here. For wishes 7 through 5, see here.

Wish #4: Toyota wins. Many will hate that but many, especially in NASCAR, will love it. Why? Because it adds to the fans’ interest in the sport, to the possibility of increasing TV audiences who want to see history made, and simply because NASCAR needs something other than “Dale Jr.” to save its season. If Mikey can pull off something on Sunday, what a turn-around. If hippie-looking Tony wins, he redeems himself for the “fat punch.” Gotta love it!

Wish #3: A New Venue. NASCAR’s efforts the past four to five years shows that it still has intentions of becoming a true national sport, entering all “lucrative” markets. But will a track in Denver be the answer — given the competition with baseball, basketball, and football? Even Seattle doesn’t look promising. So where? Don’t be fooled — NASCAR’s investigating other possibilities. When it didn’t get into New York, it had Seattle and Denver in the wings!

Wish #2: Less boring races. Given last Saturday’s Shoot-out, we may just see more exciting races, even on restrictor-plate tracks. We’ll know much more after today and Sunday, that’s for sure. And, there will probably be far fewer references to the COT — just what NASCAR would like. Suggestion: DW — tone it down; we’re fans. You don’t need to sell us!!!

Wish #1: Danica sees the light. You want new faces, diversity, controversy (see last year’s ending Indy race), and someone who takes away Kasey’s sex appeal. Besides, despite what NASCAR says, it’s still a man’s sport inside the track. If the open-wheelers have the success that some are predicting, and Indy doesn’t hold onto its own drivers, Danica’s move over — especially if she wins an Indy race this year — isn’t certain but can’t be counted out.

Posted by at 11:28 AM | Permalink | Comments (0)

Continuing the examination of our “NASCAR’s Wish List for 2008, we explain wishes 5 through 7, keeping in mind the “business” emphasis of the wishes. (Details on 8-10 are here.)

#7: Everyone loves the COT: The Car of Tomorrow is certainly now the Car of Today, at least in the Sprint Cup series. Tests at various locations last week showed that times were fairly comparable to those of the former cars. Most drivers had kind words for the COT as well. If success and happy drivers come out of Daytona, NASCAR’s efforts to create a safer car while minimizing team costs will be an overwhelming success. The fear of IROC style racing will be dissipated, and the fans can turn their attention back to racing and not controversy. It’s a win-win-win for NASCAR, teams and fans.

#6: One of the open-wheel drivers – preferably Montoya – makes the Chase: What better way to show the world that NASCAR racing is truly the best racing than to have an open-wheeler make the Chase. The new arrivals are adding to the diversity of the sport (at least “international diversity”) and can only help to entice open wheel fans to the NASCAR scene. That translates to fuller grandstands and larger TV audiences. And that makes NASCAR happy.

#5: An end to bickering over the 35 rule: We all know the 35 rule was instituted to ensure that major sponsors — doling out lots of change from their pockets — would have representation each week of racing. Despite the many calls — and there have been many calls from a variety of sectors — NASCAR isn’t about the scrap the rule. It’s still about the business of NASCAR, and ensuring happy sponsors is a primary goal. So, let’s get over it and go back to racing.

Remaining four wishes next week.

Can’t wait for Saturday—it’s been a long winter!

Jon

Posted by at 8:37 AM | Permalink | Comments (0)

A couple of weeks ago we posted our first blog entry for this racing season with NASCAR’s Wish List for 2008. We want to take this opportunity to expand on various wishes in order to explain why we “hypothesized” the way we did. Keep in mind that the “wishes” are based more on the business side of NASCAR than the racing side.

Here are three wishes.

#10: No “three-peat”. Las Vegas bookmakers give #48 a 4 to 1 chance of three-peating as Sprint Cup champion. It’s only been done once. We think NASCAR would like to see a close championship but with a new face (or even familiar face) in order to stimulate greater fan interest in the Race for the Chase as well as the Chase itself. An analogy would be the Chicago Bulls, UCLA under Wooden and even the Pittsburgh Steelers. Fans of those teams loved their dynasties but others were turned off by their repeated success.

#9: #88 makes the Chase. He’s been the most popular driver the last several years but has had his ups and downs. What better way to stimulate fan interest than to have Dale Jr. make the Chase — or even better, to win it all? Given all the off-season hype about Jr. winning races and making the Chase, fans would be sorely disappointed if after Richmond in September, he’s down in 14th or 15th place.

#8: TV ratings and track attendance improve. Of course, NASCAR wants these to happen but not simply to point to the sport’s popularity. Rather, sponsors and TV network exec’s would be thrilled at the possibility of greater exposure — and that’s why they pay big bucks for television contracts and bright logos on the race cars.

Stay tuned for further elucidation.

Jon

Posted by at 1:28 PM | Permalink | Comments (3)

Well, the end of semester is about here so professors are doing what comes naturally—assigning grades. Since I’m in the grading mood, I thought I’d reflect on NASCAR’s “semester” and determine what grade I’d assign. As with all courses I teach, several different elements are assigned grades, after which an overall grade is determined. So that’s the approach I’ll use here.

Races: For the most part, too long, too many different starting times, and too much announcer hype — before and during — the race; unexplained cautions early in the season for “debris on the track”. Grade: C-

Announcers: Early season announcing seemed to be more centered on racing and less on hype. End of season announcing, especially as the Chase was ending, too much hype about “anyone can still win this” when we all knew it was a two-driver Chase. Grade: B-

Driver Performances: Montoya’s win at Infineon, Truex’s win at Dover, Mears' win at Lowe’s, and Bowyer’s win at New Hampshire—firsts for all; last-minute entries of other open-wheel drivers to stimulate interest; Michael Waltrip’s pole effort near the end of the season after devastating season; and Harvick’s win by two feet at Daytona: Grade: A

Driver Performances, Part 2: Drivers consistently “sitting back” to avoid “the big one”, Hendrick’s dominance with 18 wins, and Jr. unable to win a race all lead to less than dynamic racing. Grade: C

Car of Tomorrow and Toyota’s Debut: Just too soon to tell. Grade: B-

Business Dealings: Nationwide and Coors coming on board next season replacing A-B, Bruton threatening to move Lowe’s, continuing lawsuits — settled and unsettled, television viewership and fan attendance down again, New Hampshire being bought with possible race date shift, and ISC’s inability to build a track anywhere it looked. Grade: C-

So, time to fill out the grade reporting form: Overall, 2007 rates a “C+”. NASCAR needs to study a little harder next year!

Posted by at 2:23 PM | Permalink | Comments (1)

So what do Major League Baseball and NASCAR have in common?

They both will probably have the same nightmare. What’s that nightmare? Think about how much trouble the MLB head office went to ensure that the World Series games would not be (1) during the day on a weekday and (2) not up against football at night. So what happens? First, Colorado sweeps the National League pennant. Bosox saves the day by clawing out of a 3-1 deficit to win the American pennant.

Then the NIGHTMARE—a Bosox sweep in four!

So, let’s now look at the situation in NASCAR. The New York front office increased the number of drivers in the Chase (and Jr. still didn’t make it), hyped the change in the points system to reward race winners, and kept talking about how the top five drivers in the Chase are all capable of winning the championship even as late as the Martinsville race. Three weeks ago I wrote that after Martinsville, the Chase would be down to two drivers — no one even flinched. Well, we now have exactly that — Teflon I and Teflon II.

Who even cares now that we know that Hendrick will once again carry home the trophy — just which of the Teflon men will it be? Do Tony’s fans care? Matt’s? Denny’s? Hardly!

Yes, gentlemen (and ladies): we have a repeat of the MLB Nightmare — except now it’s NASCAR’s turn. As Mike said, “twice of one or half of the other”! Better leave the lights on so as not to fall asleep.

Jon

Posted by at 2:51 PM | Permalink | Comments (1)

A couple of months ago I highlighted a new book, "Silent Speedways of the Carolinas," by Perry Allen Wood. I’m currently reading it while on sundry vacation trips. What has caught my attention — and that was early on in the book — was how much the many, many people involved in the early “strictly stock” racing were so committed to the sport for the sport’s sake.

Now when I pick up a newspaper or open NASCAR.com, I’m immediately inundated with news of “the BUSINESS of NASCAR”.

Consider the recent Busch mergers of Hendrick and JR Motorsports and Childress and Harvick. On one of the NASCAR-themed TV shows this past Monday, a discussion was held on the possible sponsorship of Jr. by Pepsico — to the tune of a possible $30 million deal.

We also are reading about Yates teaming with the open-wheel organization of Newman/Haas/Lanigan. And don’t overlook the DEI/Ginn deal, preceded by Jack-in-the-Hat and Fenway. There’s also talk of Evernham getting together with someone with $$$.

I’m beginning to believe that NASCAR may be making the same mistake as F1, becoming the “champagne racing league” instead of remembering its “down-home” roots. My colleague Mike has lamented on several occasions that NASCAR may become a league of five-six multiple teams, despite NASCAR’s limiting to four the number of teams held by an owner.

If you’re interested, look up who has won races the past three years — I think there’s just one winner from a one-car team (I’m writing this while at the beach so I don’t have the statistics in front of me — I’ll publish them another time). So the BUSINESS of NASCAR is alive (and well?).

What do you think — too much BUSINESS and not enough racing?

Is that a good thing?

Jon

Posted by at 9:11 AM | Permalink | Comments (1)

I had the opportunity to attend the Indy Car race at Richmond International the weekend before July 4. It had some interesting moments, especially with the sky divers arriving just before the race. Still, 241 of the 250 laps were led by the same race driver. And basically, the race was a run-away for him. At least Danica had a good evening, finishing sixth.

This past Saturday I tuned into the Pepsi 400 from Daytona. I liked the new screen format but was a little distracted by the pop-up ads, especially since the audio of the race was muted. But what impressed me the most was the quality of the racing, the lead changes and most certainly the dramatic finish. I sat back and mentally compared these two races: 19 Indy cars, 43 Nextel cars; 250 laps (3/4 mile track results in 187.5 miles versus 200 laps (2.5 mile track results in 400 miles); around 160 mph for the Indy cars and around 185 mph for the Nextel cars; virtually no lead changes in the Indy race with 27 lead changes in the Pepsi 400 race.

For me, I’ll take close wheel driving versus open wheel any weekend. If you watch both types of races, it’s not difficult to see why NASCAR racing is TV’s number 2 sporting event.

Hope you see it my way as well.

Jon

Posted by at 11:19 AM | Permalink | Comments (1)

I hate to be a “Chicken Licken” but maybe the sky in NASCAR Country is indeed falling. Consider the following:

The resistance by the public and government officials in New York and Washington results in ISC dropping its quest to build tracks there.

The request by AT&T for an injunction against NASCAR so that the AT&T logo can appear on #31.

The continuing lawsuit by Kentucky Speedway against NASCAR and ISC in order to be given a race date.

Continuing falling television ratings — viewership for Martinsville was down nearly 4 percent from last year (which also wasn’t a stellar ratings season).

Seats still not sold out at various venues (even Richmond International Raceway is advertising tickets for sale for the Nextel Cup race in May).

Disgruntled Nextel drivers dealing with the CoRN (Car of Right Now, as some have begun calling it).

Hardcore fans lamenting the fact that NASCAR seems to be opting for more and more $$$$ at the expense of good racing.

As my colleague Mike would say, it sure would be more fun to have Jocko Flocko back in the race. That would take our minds off looking up at the sky to check on what’s dropping next.

Jon

Posted by at 2:45 PM | Permalink | Comments (1)

Let’s pretend we’re a manufacturer of widgets (School of Business lingo for generic products) that are purchased by the government. The government, however, has decided to grandfather in 35 of its last year’s suppliers of these widgets and any other manufacturer must meet certain minimum specifications on its widgets before the government will purchase them.

Even if our widgets exceed the minimum specifications, the government might not purchase them because the other manufacturers who are also not grandfathered into the agreement have also exceeded the minimum specifications. Even if any of the 35 suppliers that were previously grandfathered in as guaranteed suppliers meet only the minimum specifications and are bypassed by any of the other non-guaranteed suppliers, the 35 still have their products purchased.

Eventually, the stockholders of our company see the “handwriting on the wall” and sell their shares in our company and buy into the 35 companies that are guaranteed to have their widgets purchased, thereby making those companies even more successful because of the increased capital.

Is the government’s policy really fair for all? Why grandfather 35? Why not grandfather only, let’s say, 12? Now, substitute the following in the appropriate places: NASCAR, Nextel teams, qualifying times, sponsors. Get the picture?

Jon

Posted by at 10:33 AM | Permalink | Comments (1)

Prior to the Daytona 500, and then again heading into the California race this past week, several media reporters suggested that NASCAR (and Brian France) had its head in the sand by stating that NASCAR’s off year in 2006 was a glitch.

Well, let’s look at what’s happened so far. Daytona’s TV viewership was down from last year (10.1 rating in ’07 vs. 11.3 rating in ’06) but was still one of the top five ratings in the race's history.

Again there was no sell-out in the stands for last week’s California race — NASCAR estimated the crowd at 87,000 while California can seat 92,000 plus the suites and 2,000 RV spots (sixth race in a row that was not a sell-out) — but California officials are pleased with the crowd size, especially given the weather on Sunday.

Nielsen reports that TV ratings for California were tied with last year’s ratings (6.2 rating) but lower than 2005.

So where does that leave NASCAR? Too soon to tell but Las Vegas might be a better barometer of NASCAR’s performance.

Here’s a thought to ponder: My colleague Mike suggested that NASCAR consider moving one race each year to a track that no longer has a Nextel race — rotating once every three to four years as needed. Might spark some new interest, especially in those areas that have lost their race(s) to other tracks.
— Jon

Posted by at 10:03 AM | Permalink | Comments (1)

Top 10 Fearless (but not ones we are betting any cash on ) Predictions for 2007:

10. Staten Island - DOA; Hello, Seattle!

9. The rising cost of attending a race drives fans away.

8. Introduction of Toyota--what will be the reaction, one like Jack Roush or more like Brian France? (We know, we know, it is more of a question than a prediction)

7. New demographics-- Montoya's entree into Nextel and Busch's points race in Canada lead to new viewers

6. COT confuses fans who don’t want IROC-style racing.

5. JPM finishes well and two more F1/INDY drivers follow.

4. New Busch Series Sponsor -- big deal or non-story, and will there be a "target" on the new sponsor?

3. The fines just keep on a coming

2. Toyota wins by seventh race. (Ensuing controversy good for solving item # 9).

1. No one can replace Benny.

Big stories of the Week:
"Just in time for Valentines...The Candymen deliver"

1. David and Lazarus are appropriate monikers for the front row holders of this year's Daytona 500. By providing Yates Racing and Masterfoods, Inc., the front row for this Sunday's classic, perhaps the folks at Snickers can place into their rearview mirror their strange Super Bowl commercial.

2. The only question left to be answered is the "water into wine" miracle for Michael Waltrip (perhaps we should say "mystery liquid into 'oil' "). Hey Matt, that should show you that a few misplaced holes are not that exciting.

3. On the other front we are guaranteed that for the first time since 1963 -- when Smokey Cook ran an MG (yes, you read that correctly) at Bowman-Gray stadium in a 200 lap event won by Junior Johnson -- a foreign entry will run in a NASCAR points race. Wonder what took them so long?

4. James Hylton age 72 looking relaxed and ... well, need we say more ?

5. New life for Chip Gnassi !

Overall: Score a -3 for the Toyotas and a +1 for candy.

--- Jon and Mike

Posted by at 9:03 AM | Permalink | Comments (3)