Aug 6, 2014, 9:45 PM EDT
UPDATE (9:45 p.m. ET): Hendrick Motorsports and Rahal Letterman Lanigan Racing co-owner Bobby Rahal have issued responses to today’s news that the National Guard will not continue to sponsor their respective NASCAR and IndyCar teams.
In their short statement, HMS said that the team has a contract in place to “continue the National Guard program at its current level in 2015.”
“We have not been approached by the Guard about potential changes and plan to honor our current agreement,” the release ends.
As for Rahal’s statement, here it is in its entirety:
“We were informed this afternoon that the National Guard will end all sponsorship of motorsports, including both IndyCar and NASCAR at the conclusion of the 2014 seasons. This is obviously very disappointing news to Rahal Letterman Lanigan Racing given the significant incremental brand exposure we have worked to produce for the National Guard in our first season together, including various off-track marketing and advertising programs focused on supporting the mission set forth.
“We will continue to work hard to uphold the honor and integrity of the National Guard throughout the remainder of the season. Rahal Letterman Lanigan Racing would like to thank the National Guard for allowing us the privilege of representing some of the finest men and women, those ‘citizen soldiers’ that protect our freedoms and safety each and every day… as we Focus Forward!”
The National Guard has been one of the most prominent sponsors of American motorsports in recent years. But as part of a planned redesign of its sports sponsorship program, it will sever ties with both NASCAR and IndyCar.
That means the end of their sponsorships with HMS driver and NASCAR superstar Dale Earnhardt Jr., and second-generation IndyCar pilot Graham Rahal.
Both contracts are set to expire at the end of this season according to the Army National Guard’s acting director, Maj. Gen. Judd H. Lyons.
“Significantly constrained resources and the likelihood of further reductions in the future call for more innovative and cost-effective ways of doing business,” Lyons said in a statement released today.
Lyons added: “We believe industry and open competition can help us identify effective and efficient solutions to help us meet our marketing and recruiting objectives within budget constraints.”
This year alone, the Guard spent $32 million on its NASCAR sponsorship with Earnhardt and Hendrick Motorsports, plus another $12 million for its IndyCar sponsorship with Rahal and Rahal Letterman Lanigan Racing.
Earnhardt has enjoyed the Guard’s backing since joining Hendrick Motorsports in 2008, while Rahal and RLL took over the Guard’s IndyCar program this season after it had been with now-defunct Panther Racing from 2009-2013.
However, the Guard’s NASCAR program came under fire in May when USA Today released a report stating that the Guard had spent more than $26 million on that particular sponsorship but failed to sign up a single recruit.
The USA Today report also revealed that out of almost 25,000 recruit prospects that the Guard received through the program in 2012, only 20 of them met the Guard’s entry qualifications – and none of those 20 decided to join.
Despite those numbers, Lt. Col. Christian Johnson, the Guard’s marketing head, maintained in today’s announcement that the Guard racing programs played “an important role” in building brand awareness that “helped us achieve extraordinary recruiting and end-strength objectives over the past decade.”
This year, Hendrick Motorsports has appeared to be working hard to prepare for a post-Guard life. The team has recently brought brands like Nationwide Insurance and DC Comics into the fold, with Nationwide in particular coming on as a primary sponsor for Earnhardt over the next three seasons.
Since 2012, the Guard has drawn down its sports sponsorships to just those in NASCAR and IndyCar while eliminating programs in motorcycle racing and professional fishing.
Today’s announcement from the Guard noted that its marketing budget in the 2015 fiscal year is expected to be about half of what it was in the 2012 fiscal year.
Oct 22, 2014, 11:35 PM EDT
Brad Keselowski is flattered people might compare him with the late Dale Earnhardt, but he’ll be the first to say he’s not the new Intimidator in NASCAR.
Oct 22, 2014, 8:18 PM EDT
Perhaps the greatest collection of original Indianapolis 500 pace cars will soon be on display at an upcoming car show in suburban Chicago.
Oct 22, 2014, 7:36 PM EDT
For most Canadians, their homebrewed beer choice is typically Labatts or Molson. But countryman and IndyCar driver James Hinchcliffe is starting to get some traction with his own beer brand, Hinchtown Hammer Down (HHD).
Oct 22, 2014, 6:43 PM EDT
On Wednesday’s edition of NASCAR America, Parker Kligerman took a spin around Martinsville Speedway in the NBC race simulator to show why the paper-clip shaped track can be extremely difficult.
Oct 22, 2014, 4:13 PM EDT
In a stunning move that could potentially threaten his bid for a record-extending 17th NHRA Funny Car championship, John Force announced Wednesday that veteran crew chief Jimmy Prock has resigned, effective immediately.
Oct 22, 2014, 2:37 PM EDT
Crew chiefs, road crews for Nos. 10 and 41 Stewart-Haas Racing cars will swap starting at Texas.
Oct 22, 2014, 2:20 PM EDT
More murky messaging from Leafield as Caterham’s future hangs in the balance.
Oct 22, 2014, 2:10 PM EDT
When you drive a car that produces nearly 10,000 horsepower and reaches speeds approaching 330 mph, a hurricane with wind speeds over 100 mph is nothing. That was the case Sunday for NHRA Funny Car driver Ron Capps.
Oct 22, 2014, 2:00 PM EDT
Ken Block, Matthew Wilson make WRC returns for this weekend’s Rally Spain.
Oct 22, 2014, 1:26 PM EDT
Sixteen-time NHRA Funny Car champion John Force is expected to make a major announcement concerning John Force Racing later Tuesday afternoon.
Oct 22, 2014, 1:15 PM EDT
Kurt Busch’s 2015 paint scheme adds more red.
Oct 22, 2014, 11:35 AM EDT
Lotus will have a new sponsor for Austin that’s beginning, but called Endless.
Oct 22, 2014, 11:06 AM EDT
Dale Earnhardt Jr. will be featured for UPMC campaign that seeks to change the conversation about concussions.
Oct 22, 2014, 10:18 AM EDT
Series of competition changes announced by NASCAR on Wednesday.
Oct 22, 2014, 10:02 AM EDT
Sam Michael to leave McLaren at year’s end, the team confirms.
Oct 21, 2014, 10:00 PM EDT
The championship contender talks about his reputation during a Monday night appearance at Texas Motor Speedway.
Oct 21, 2014, 8:00 PM EDT
As NASCAR AMERICA’s Kyle Petty explains, the new Chase format has created something that NASCAR hasn’t seen before.
Oct 21, 2014, 7:00 PM EDT
A ninth Martinsville win on Sunday would put Gordon into the Championship Race at Homestead. Check out his interview with NASCAR AMERICA’s Jason Weigandt about his success at M’Ville and more.
Oct 21, 2014, 5:44 PM EDT
Logano admits he should’ve given Patrick more space on the race track two weekends ago.
Oct 21, 2014, 4:40 PM EDT
Extended interviews with Kevin Harvick, Jeff Gordon, Brad Keselowski, and Carl Edwards also coming up on today’s episode of NASCAR AMERICA.
Video from NASCAR America
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