Jul 17, 2014, 4:28 PM EDT
When the new Race Team Alliance introduced itself to the world July 7, everything seemed like sunny skies and good feelings going forward in the world of NASCAR. Everyone spoke positively, optimistically and seemed to be full of confidence that all — owners, drivers, teams and NASCAR — would benefit.
Even NASCAR president Mike Helton said during an impromptu press conference last Friday at New Hampshire that there was no animosity between the sanctioning body and the new upstart ownership group.
“I wanted to dispel the perception of animosity to start with and then back that up with saying we’re going to do business as usual,” Helton said. “I think everybody in the garage area knows how we do our business and the role they play in it, and so we’ll continue to do it that way.”
But less than a week after Helton’s comments, the first salvo of what potentially could become an eventual antagonistic relationship has been fired, and it boils down to what oftentimes is one of the nastiest words in professional sports:
The amicable original intention of the RTA has now been responded to by International Speedway Corporation, NASCAR’s sister company, as well as NASCAR itself. Both sibling companies have made it very clear to the RTA that if there is to be any communication between both sides, it will be through attorneys, not man-to-man between RTA boss and Michael Waltrip Racing co-owner Rob Kauffman and NASCAR chairman/CEO Brian France or second-in-command Helton.
As the old saying goes, can you see where this could potentially go to hell in a handbasket very quickly when lawyers are involved?
Kauffman, at least publicly, doesn’t seem overly concerned, according to an interview with Bob Pockrass of SportingNews.com late Wednesday.
“It’s not an animosity thing, it’s just a formality thing,” Kauffman told Pockrass. “NASCAR is a big company and they’re very sensitive legally. They’ve had experience (with antitrust) and they want to be very formal and correct in the initial stages. … It’s understandable. Hopefully as time goes on and both sides get used to each other a little bit, those barriers (will) tend to go down. I think it will be fine.”
The RTA’s original intention of pooling resources, cutting expenses, etc., is quite noble indeed. Even with countless cost-cutting measures, including large-scale layoffs in recent years, plus teams folding throughout all three primary NASCAR series – Sprint Cup, Nationwide and Camping World Trucks – the cost of operating teams remains extremely expensive.
Only 10 years ago, the average team operational budget in Sprint Cup was in the $10 to $15 million per year range – just to competitive.
Today, that number is more in the $20 to $25 million per year range — again, just to be competitive. And when you have multiple teams within an organization, that cost can quickly reach upwards of $100 million for a four-car group like Hendrick Motorsports and Stewart-Haas Racing and up to $75 million for a three-car operation like Joe Gibbs Racing or Richard Childress Racing.
For all the good things NASCAR has done to reduce costs, including the one-engine rule, the interchangeable Car of Tomorrow and its Generation 6 successor, it still costs a lot for team owners to remain in the game.
That’s why it’s not surprising some teams have folded or suspended operations, including at least two Sprint Cup teams this season already.
That’s also why so many sponsors have come and gone over the last six or seven years, and have forced teams to go from having one primary sponsor all season long to a number of different primary sponsors for only a certain numbered block of races per season.
The reason: overall, sponsoring a finite number of races (anywhere from, say, six to 16) is much cheaper and an easier pill to swallow for sponsors, particularly when questioned about return on investment by their shareholders.
And with significant changes likely to come to the sport next season, including a revamped schedule, the possibility of several venue changes within the Chase for the Sprint Cup, as well as more rules and equipment changes, the nine initial owner members of the RTA are understandably looking out for themselves both individually and collectively.
But with lawyers now involved, the hoped-for amicable relationship gives the appearance that things are already starting to tug at the seams.
Few have discussed the power the RTA could potentially amass in its one-for-all, all-for-one mantra. It’s not unthinkable that if NASCAR continues to struggle at the box office and in TV ratings, that RTA may try to exert and wield some pretty powerful clout:
- Like forcing NASCAR to deviate from its “our way or the highway” mindset that has been in place for 65 years.
- Like forcing NASCAR to give team owners significantly more power, perhaps a prelude to the long-talked about possibility of adding franchising to give owners more of a say in the way the sport operates.
- And the biggest potential possibility of the RTA: If the owners stay united and take a hard line stance and force the issue, they could eventually demand the power to oust or retain key NASCAR officials, including France and Helton.
That last possibility could also potentially be why both sides are now starting to lawyer up. While the intention is supposed to be amicable and formal, the end result could be something entirely different.
After all, team owners in NASCAR have the least power overall of any other major professional sport. Unlike in other sports, NASCAR team owners don’t have the ability to hire or fire the sanctioning body’s top executives, don’t have voting privileges when it comes to sanctioning body decisions, have no say in what rules can be changed (although owners do have input, NASCAR doesn’t have to listen to them), and have only the limited power that the sanctioning body gives them.
Up to this point, the France family-run and privately-owned business model has worked well. Well, let’s clarify that: it’s worked well up until about 2008, when the economy went south and NASCAR’s fortunes, popularity and TV ratings began to go with it.
But I’m not saying France, Helton and others have been the cause of NASCAR’s downfall in recent years. On the contrary.
France and Helton and those under them have done a good job when faced with some very trying circumstances and situations – certainly circumstances and situations that most other sports leagues have not had to deal with as much.
NASCAR’s top officials have worked diligently to improve safety, control costs as best they can, brought parity to the performance of race cars and trucks while also making the overall racing better, and have worked hard to attract new sponsors and businesses to the sport.
They’ve worked at trying to convince hotel chains and chambers of commerce in various locales that NASCAR visits to not gouge fans for room costs on race weekends, lest that not only hurts the fans, it also hurts the overall sport and the businesses themselves.
They’ve worked to keep the sport viable and relevant. They’ve worked at alternative ways to get the sport’s message across when countless media outlets have all but forgotten coverage of NASCAR events and news. Whereas particularly newspapers used to devote hundreds of column inches to yearly NASCAR coverage in the past, now most of those same papers will run maybe a paragraph or two at best (some even less, giving nothing more than a one-sentence “report” of who won that week’s race).
Sadly, while NASCAR certainly loses in that instance, it’s the fans that lose the most because they’re deprived of the kind of expansive media coverage that helped make them fans in the first place.
While I was optimistic and hopeful that the RTA and NASCAR relationship would be good for the sport, the fact that we will now have third party attorneys doing the “communicating” between both sides is both foreboding and ominous.
We can hope for the best, but right now the best is starting to look quite concerning.
Follow me @JerryBonkowski
Jul 31, 2014, 1:45 PM EDT
Anthony Richardson bills himself as the Bad British Commentator, and it definitely shows through here with his malapropisms and complete lack of understanding of the sport and world of NASCAR.
Jul 31, 2014, 1:00 PM EDT
There may not be wholesale changes, based upon what NASCAR chairman Brian France said recently, but next year’s Sprint Cup schedule will look different. Based upon various sources and things we’ve heard and/or read, we’re going to chime in with our ideas and why we think that way.
Jul 31, 2014, 12:00 PM EDT
With six qualifying races left, a total of 10 more spots remain to be clinched to fill out the expanded 16-driver playoff field for this year’s 10-race Chase for the Sprint Cup.
Jul 31, 2014, 11:54 AM EDT
Legendary NASCAR driver Mark Martin is returning to Roush Fenway Racing. But don’t expect Martin, 55, to get back behind the wheel any time soon.
Jul 31, 2014, 11:01 AM EDT
If you collect NASCAR memorabilia and someone approaches you in the coming days with a deal that seems too good to be true – especially if it involves merchandise related to either Dale Earnhardt Sr. or Dale Earnhardt Jr. – it probably is.
Jul 31, 2014, 10:50 AM EDT
Ferrari’s head of Engine and Electrics, Luca Marmorini, has left the team ahead of the second half of the season.
Jul 31, 2014, 9:59 AM EDT
NBCSN will present live coverage of the IndyCar Honda Indy 200 at Mid-Ohio this Sunday at 3 p.m. ET, highlighting more than 30 hours of motorsports coverage across NBC and NBCSN this weekend.
Jul 31, 2014, 9:52 AM EDT
If at first you don’t succeed, try, try again. That’s the case for the new design of the Toyota Camry for the 2015 Sprint Cup season.
Jul 31, 2014, 8:57 AM EDT
Ed Carpenter says he’d like to expand to two cars, but it remains to be seen if this can actually come to fruition.
Jul 30, 2014, 7:12 PM EDT
Personal care brand will serve as primary backer for Stenhouse in multiple 2015 races plus work in a season-long associate role.
Jul 30, 2014, 5:38 PM EDT
NASCAR AMERICA on Wednesday includes a Denny Hamlin interview, a recap of the Hamlin penalties and Dale Earnhardt Jr. new crew chief news.
Jul 30, 2014, 5:00 PM EDT
Nelson Piquet Jr. shows Kristen Kenney how to wakeboard, on the day after Piquet bagged a podium finish in Red Bull Global Rallycross at Charlotte.
Jul 30, 2014, 4:45 PM EDT
Coming up today: Full coverage of Brickyard penalties against Joe Gibbs Racing, including reaction from driver Denny Hamlin; interview with Eldora Truck Series winner Darrell “Bubba” Wallace Jr.
Jul 30, 2014, 4:30 PM EDT
Next year, Ives will have deal with an amount of fan and media attention that dwarfs anything he’s ever encountered in the sport.
Jul 30, 2014, 4:06 PM EDT
The livery notes going into this weekend’s Honda Indy 200 at Toronto.
Jul 30, 2014, 2:39 PM EDT
Ives currently serves as crew chief for Nationwide Series points leader Chase Elliott and also worked as a race engineer for Jimmie Johnson during his run of five Sprint Cup titles from 2006-2010.
Jul 30, 2014, 1:14 PM EDT
In addition to talking about the meaning of Sunday’s win at Indy, Alan Gustafson touches on the penalties against fellow crew chief Darian Grubb and Joe Gibbs Racing.
Jul 30, 2014, 12:00 PM EDT
Pair of Blue Jackets players to give the command for Honda Indy 200 this weekend.
Jul 30, 2014, 11:00 AM EDT
Perhaps you haven’t noticed the uptick in form of Ryan Briscoe and the NTT Data Chip Ganassi Racing team over the last couple months. Here’s a recap…
Jul 30, 2014, 10:00 AM EDT
Seven races on tap for Indy Lights (2), Pro Mazda (2) and USF2000 (3) in critical Mid-Ohio weekend.
- Mark Martin returning to Roush Fenway Racing in unique role 0
- NASCAR AMERICA: Wednesday Round-Up Includes Denny Hamlin Interview (VIDEO) 3
- Greg Ives to become crew chief for Dale Earnhardt Jr. next season 12
- Ten with Townsend: Toronto debrief 0
- Denny Hamlin’s team hit with big penalties after Brickyard infraction 4