Skip to content

Not a good sign: Lawyers getting involved between NASCAR, new Race Team Alliance

Jul 17, 2014, 4:28 PM EDT

nascarlogo

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:

Lawyers.

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

Latest Posts
  1. WATCH LIVE: NASCAR AMERICA talks with “Eliminator 8″ at 5 p.m. ET

    Oct 21, 2014, 4:40 PM EDT

    Credit: NASCAR Credit: NASCAR

    Extended interviews with Kevin Harvick, Jeff Gordon, Brad Keselowski, and Carl Edwards also coming up on today’s episode of NASCAR AMERICA.

  2. Company that builds Caterham’s F1 cars put into administration

    Oct 21, 2014, 3:40 PM EDT

    F1 Grand Prix of Great Britain - Practice Getty Images

    A source tells Reuters that the legal action is not expected to impact the racing activities of the team, which is owned by a separate entity.

  3. Martinsville is first chance for Chase’s “lesser names” to punch ticket to Homestead

    Oct 21, 2014, 2:30 PM EDT

    GEICO 500 - Practice Getty Images

    Denny Hamlin, Ryan Newman, Matt Kenseth, and Carl Edwards can launch themselves into the Championship at Homestead with a win this weekend.

  4. Kyle Fowler to make Sprint Cup debut this weekend with GO FAS Racing

    Oct 21, 2014, 2:00 PM EDT

    32carMville Getty Images

    Kyle Fowler joins the Sprint Cup grid at Martinsville.

  5. NASCAR won’t penalize Ryan Newman, No. 31 team for Talladega infraction

    Oct 21, 2014, 1:12 PM EDT

    (Photo: Sean Gardner/Getty Images) Getty Images

    NASCAR says damage sustained during Sunday’s GEICO 500 was the cause of his car being too low in post-race inspection.

  6. Flurry of orders placed for new 2015 Indy Lights car

    Oct 21, 2014, 12:55 PM EDT

    IndyLightsLogo

    The Indy Lights grid is beginning to take shape for 2015.

  7. Total CEO dies in Moscow plane crash

    Oct 21, 2014, 12:22 PM EDT

    TotalCEO AP

    Total’s CEO dies in plane crash; this could have motorsports impact.

  8. Five up-and-coming drivers participate in Porsche Academy

    Oct 21, 2014, 12:00 PM EDT

    Urry, Skeer, Thompson, Cindric, Hargrove. Photo: IMSA Urry, Skeer, Thompson, Cindric, Hargrove. Photo: IMSA

    Porsche provides five young drivers shot to learn and further integrate themselves with the brand.

  9. Cool story: Blind 16-year-old gets to drive, once, and live his dream (VIDEO)

    Oct 21, 2014, 11:00 AM EDT

    Screen-Shot-2014-10-21-at-8.56

    A blind 16-year-old gets to live his dream and have a brief chance behind the wheel.

  10. Kurt Busch, Susie Wolff added to Race of Champions field

    Oct 21, 2014, 10:00 AM EDT

    BuschSusie Getty Images

    Kurt Busch, Susie Wolff join Race of Champions lineup.

  11. Insight: Planning Andretti’s Sports Marketing promotional efforts at Miami and NOLA

    Oct 21, 2014, 9:00 AM EDT

    GERMANY-AUTOMOBILE-ECONOMY-FAIR-IAA Getty Images

    Andretti Sports Marketing explains some of the tricks to the trade in promoting new race events, with Miami and NOLA set for 2015.

  12. “What’Cha Got” Episode 1: Chandler Hoffman sets the bar (VIDEO)

    Oct 21, 2014, 8:00 AM EDT

    HoffmanLAWCG Getty Images

    LA Galaxy’s Chandler Hoffman first up in “What’Cha Got” presented by Continental Tire show to drive a Lamborghini.

  13. NASCAR AMERICA: Parity among Chase teams in Eliminator Round (VIDEO)

    Oct 20, 2014, 9:30 PM EDT

    Geico 500 Getty Images

    Six different teams are represented among the eight remaining Chasers, and NASCAR’s post-season is starting to resemble another familiar tournament. NASCAR AMERICA’s Kyle Petty and Jeff Burton discuss.

  14. NASCAR AMERICA: Is Ryan Newman’s Chase status up in the air? (VIDEO)

    Oct 20, 2014, 8:32 PM EDT

    Hollywood Casino 400 - Practice Getty Images

    Newman, one of the “Eliminator 8,” may be penalized tomorrow by NASCAR after his car was found to be too low following Sunday’s race at Talladega. Nate Ryan has more on the situation.

  15. Everything you need to know about the 2014 Chasers at Martinsville

    Oct 20, 2014, 7:15 PM EDT

    Goody's Headache Relief Shot 500 Powered By Kroger Getty Images

    Notes and numbers to keep in mind as the 8 remaining Chasers prepare to begin the Eliminator Round.

  16. WATCH LIVE: NASCAR AMERICA at 7 p.m. ET recaps Talladega

    Oct 20, 2014, 6:15 PM EDT

    nascar america

    Recapping Talladega on NASCAR AMERICA.

  17. Despite elimination, Kyle Busch’s crew chief says Chase format is fair

    Oct 20, 2014, 6:01 PM EDT

    Geico 500 Getty Images

    A great post-season for Busch was erased by a mid-race crash on Sunday at Talladega, but crew chief Dave Rogers says there’s no point in blaming the rules of the new Chase.

Video from NASCAR America

Terry Labonte's milestone race
Top 10 NASCAR Driver Searches
  1. B. Keselowski (1986)
  2. K. Busch (1925)
  3. J. McMurray (1256)
  4. T. Stewart (1210)
  5. J. Gordon (1080)