With today's economic uncertainty and families struggling to get by, for the first time in a long time, NASCAR is feeling the pinch.
Recently Chip Ganassi announced that they were closing shop on Dario Franchitti's No. 40.
Due to lack of sponsorship, Franchitti never gave his sponsors enough performance to believe that their investment in that team was worth the money.
Last week came the news that Juan Pablo Montoya's No. 42 will lose its longtime sponsor Texaco Havoline after a long relationship with NASCAR.
This now leaves Chip Ganassi and company searching for new sponsors for JPM and and a new driver for the No. 41 after Reed Sorenson announced his intentions to leave Ganassi and drive for Gillett Evernham Motorsports in 2009.
Overall, the team has just three top fives and five top 10's in 2008. Performance is everything.
Toyota is another fine example in the fine line teams are walking when it comes to sponsors.
Joe Gibbs Racing changed over to Toyota in 2008 and the transition was questioned by everyone but the organization.
Now we are entering the Chase and Kyle Busch has won eight races and Denny Hamlin has won once. While he has yet to win, Tony Stewart has run strong and is securely in the Chase.
With strong support from M&M's, Fed Ex, and Home Depot as their primary sponsors and with Busch, Hamlin, and Stewart's cars continually running up front—their names and sponsors being mentioned or seen every race—these three teams are securing their sponsors for a long time to come without even knowing it.
When you cross that line, you have organizations like Michael Waltrip Racing.
They also run Toyotas, but their performance on the track is anything but consistent.
David Ruetimann, Michael Waltrip, and Michael McDowell have struggled to stay in the top 35 in points which would guarantee them a spot in the next race.
With such a poor showing on race day, many of the team's once strong sponsors are looking for a new car to put their name on.
UPS has been rumored to be leaving Rueitmann's #44 and potentially signing with David Ragan in 2009. McDowell potentially has no sponsor for 2009, leaving MWR searching for a name to put on their cars in 2009.
For smaller teams, the economy leaves too many questions.
Yates Racing—which fields Travis Kvapil and David Gilliland—have been running many of their races without main sponsors. Even so, they have been running in the top 15 all season long and currently sitting comfortably in the top 35.
But uncertainty lies ahead for them as they have no sponsors going into 2009.
Small organizations like this are few and far between.
NASCAR is all about big business and teams like JGR, Hendrick Motor Sports, and Roush Fenway Racing that have cars consistently in the top 10, leaving teams with one or two car operations struggling to keep up with the lack of cash flow and lack of information coming from within the organization.
Coming to the track on Sunday and running well means more than ever. And if something is not working within your organization, you have to make a change.
Larry McReynolds said earlier this year at Richmond, "with the pressure to perform, there is no growing time, it's either you are there or you have to make a change."
11 comments Last one added 10 months ago — Leave a Comment
Mary Jo Buchanan 10 months ago
Good article Patti. You bring up some very important points - NASCAR fans are devotedly brand loyal...let's hope the sponsors consider that as their dollars get tighter and tighter.
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Patti Rodisch 10 months ago
thanks Mary Jo. Only time will tell. Sponsors need to make money too, so unless they see there investment paying off they ahve no reason to hang around... and for many thats the case..
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Hollis Warren 10 months ago
Good article. The line between the haves (Hendrick, Roush-Fenway, JGR, RCR, Stewart-Haas in the future, and to an extent Penske and GEM) and have nots continues to be more definitive. I thought the COT was supposed to level the playing field, but it has done the opposite, and as a result, sponsors are flocking to the same four or five teams. At least those that are spending money in NASCAR during the economic downturn. Yes, if I wanted to put $20-30 million into a race team, I'd want a winner. Unfortunately, unless you are part of a super team, being a winner is next to impossible, and I think the reasoning is twofold: the bigger teams have deeper talent pools to draw from, and deeper pockets because they are able to reach out to a company and justify spending $20-30 million/year on a rolling billboard. Who wants to spend that kind of money on a 25th place car? Before long, they'll be six or seven four-car teams out there each week, and either start-and-parkers filling out the field or 30 car fields. Kind of like a stock car version of Formula 1. Maybe if NASCAR actually preached cost containment once in a while the Pettys of the world would have a fighting chance.
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Hollis Warren 10 months ago
Building on my last comment, some of the old-timers can probably recall the days when you were lucky if two cars finished on the lead lap. So yes, the competition has come a long way. But if you look at the other professional sports, nearly every team goes through a cycle of winning and losing from time to time. Not in NASCAR. Basically, the same teams have been up front for 15 years. NASCAR owes it to themselves and the fans to have 43 cars capable of winning on a given Sunday, and just because a car is two-tenths within the leader doesn't necessarily mean they can win. Right now, it seems as if we have 15 cars that can win, and 28 who are just not quite there.
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Patti Rodisch 10 months ago
well said on both points..I have seen old races and the elader laps the feild. I think it's NASCAR responsibility to make sure that the feild is competitive and this year has been nothing like that.. But the sponsors are in crunch time and putting there money on cars that aren't even up front is difficult and is asking alot. thats why you see these owners having to swap drivers sponsors are hesitate to use certain drivers with there brand and its tough for those smaller teams..
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Mary Jo Buchanan 10 months ago
Hollis and Patti, how much of the competition issues have stemmed from the COT? Seems like some have gotten a handle on that and other teams just haven't.....
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Patti Rodisch 10 months ago
hmm.. but I think what would settle this for most fans would to see the comparsion onf racing before the COT and with it.. I know that with the new car there had been more quality passes then before..I just think the leader has the advantage because clean air does wonders for these cars. It will get better until then us fans will have reason to compalin.. they say nascar is working on these cars i hope they use the offseason to allow teams a little more "gray area" maybe the racing will improve, like the competition has this year..
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S M Napier 10 months ago
Really like your article Patti. Your right about the diehard fans supporting their drivers. Being a Bobby Labonte fan, I 've taken it a step further and continue to support his past sponsors. So I only drink Maxwell House, still plug Interstate Batteries, eat Slim Jims, drink Coca Cola, use Wix Filters, eat any of ConAgra or General Mills brands, Champion Spark Plugs and whomever sponsors him in 2009 will definately have my support.
I honestly feel NASCAR will have to open their big fat wallet, infuse some of the money they made through the years and pump some of it back into all three series. Plus all the developmental series that also are part of NASCAR.
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Patti Rodisch 10 months ago
thanks....I think we forget about those series outside of the big three.. they are really feeling the cash crunch. thats a good idea I might look into that.. you gave me an idea for my next article... thanks..
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Saraswathi Siriginia 10 months ago
Great article Patti, money or the rush for it seems to be taking most of the sports in the direction of sponsors who tend to dictate terms... receding budget lines and the sell out to foreign companies seems to be ailing not just sport but big business, take for example the Korean Banks buying out/on the verge of buying out Lehman Brothers
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Patti Rodisch 10 months ago
It's time to go BACK TO BASICS!!!!
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