Jul 17, 2014, 4:28 PM EST
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
Dec 19, 2014, 6:55 PM EST
Michael Schumacher’s son, Mick Jr., spent a recent testing day in a Formula 4 car, a possible prelude to following in his famous father’s footsteps.
Dec 19, 2014, 4:30 PM EST
Edwards’ Arris car won’t be hard to find in a pack next year.
Dec 19, 2014, 4:00 PM EST
Rare, intriguing call for CGR to put two lesser-experienced drivers in No. 01 car.
Dec 19, 2014, 3:00 PM EST
Williams’ stellar 2014 season, recapped in pictures and words.
Dec 19, 2014, 2:15 PM EST
Ryan Newman and Matt Kenseth proved that consistency still pays.
Dec 19, 2014, 1:49 PM EST
The fan-favorite Sprint Experience at NASCAR tracks across the country is apparently no longer, according to a media report.
Dec 19, 2014, 1:30 PM EST
McMurray shined at the All-Star Race in May but missed out on a 2014 Chase berth.
Dec 19, 2014, 12:57 PM EST
Kyle Larson had a tremendous rookie season in 2014. If he was that good this season, imagine how much better he’ll be next season and seasons to come.
Dec 19, 2014, 12:30 PM EST
Felipe Nasr’s No. 12 rounds out the F1 grid number choices for 2015.
Dec 19, 2014, 12:00 PM EST
Jean-Eric Vergne signs with Ferrari as a test and development driver, which means a bunch of simulator work.
Dec 19, 2014, 11:17 AM EST
RC Enerson moves up from USF2000 to Indy Lights.
Dec 19, 2014, 11:00 AM EST
Multiplatinum artist to rock out before 2015 running of the Great American Race.
Dec 19, 2014, 10:37 AM EST
Party like it’s 1996 in 2015 – Panis and Herta sons signed to deals.
Dec 18, 2014, 9:51 PM EST
It lasts only four months, but there’ll be lots of action on the schedule for the 2015 NASCAR Canadian Tire Series.
Dec 18, 2014, 9:26 PM EST
Ricky Stenhouse Jr. will be slinging some pre-Christmas dirt this Saturday in an all-star sprint car race in DuQuoin, Ill.
Dec 18, 2014, 8:50 PM EST
One of Kurt Busch’s sponsors has joined team owner Gene Haas in backing the driver in his ongoing dispute with ex-girlfriend Patricia Driscoll.
Dec 18, 2014, 6:31 PM EST
Want to have a good laugh or two? Check out all of the bloopers and behind-the-scenes fun from NASCAR America over this past year.
Dec 18, 2014, 6:18 PM EST
NASCAR announced that a Camping World Truck Series crew member has been suspended for violating the sanctioning body’s substance abuse policy.
Dec 18, 2014, 6:00 PM EST
RoC, Mecum, and two F1 “Road To:” specials make for motors block on NBCSN tonight starting at 7 p.m. ET.
Dec 18, 2014, 4:15 PM EST
Will Power is a closet breakdancer? Who knew? Find out in the latest edition of The Penske Files.
Video from NASCAR America
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