NASCAR

Nascar's fututre may be eight teams with five cars each, agree?

al asifyouknowSenior Analyst IJanuary 28, 2009

The last few years have been a busy time for team owners, forming satellite teams, mergers and technical  alliances, all this may be leading to the end of the one and two car teams in a few years.

If you are a NASCAR fan you will have an idea who are the owners that can afford a five team organization. You must agree there are only a few owners who can lure the sponsors needed to have multiple cars. 

It  doesn't have to be eight teams, it could also be 10 teams with four cars each, either way (if my math is correct) there is 40 cars racing on Sunday.

Money is in short supply in every corner of this economy. Folks that have lots of it are finding the best opportunity's to make more, while folks who don't have as much are not spending any of it, do we agree so far?

Now, let's say Al Asifyouknow is a millionaire, and I got available cash to invest, and let's say Woods Brothers Racing come to me and said, "hey I got some sponsors ready, but I need $10 millions to get going", would you invest? Probably not. I've heard a NASCAR ex-owner say (can't remember who),  "If you want to make money as a team owner you better get a second job."

The point is, things are going to get worse during the next few years, and in a business like racing, where money is spent like a drunken sailor on shore leave—fast and furious— money will run out quickly. I do expect a few teams will not make it to the end of the season.

What do you think? Could NASCAR come to just a few very powerful owners running what may become a traveling show like the WWE?  

I hope not, but it could happen.

Where can I comment?

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