December 29, 2008
By Matthew Pizzolato
Matthew Pizzolato
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With all the teams in NASCAR merging or scaling back operations and with the automakers begging for handouts from Congress, how much longer can the NASCAR as we know it, survive?
Indeed, sad days abound for NASCAR next season and one doesn’t have to look very far to find a heart wrenching story. Just about every team has laid off employees or scaled back operations. Even some of the major automakers are slashing efforts on the track next season.
Chrysler announced it would be cutting NASCAR operations by 30% next season, due in part to the merger between Dale Earnhardt Inc., and Chip Ganassi Racing. Ganassi, formerly a Dodge team, will be running Chevrolet’s next season.
In an article on espn.com written by Marty Smith, Dodge Motorsports director Mike Accavitti sought to reaffirm Chrysler’s position in NASCAR next season.
"It is a debt-spiral if we stop advertising and expect to sell any vehicles. It's a proven fact -- advertising sells vehicles,” Accavitti said. “NASCAR is a form of advertising.”
Hendrick Motorsports, Roush, and Joe Gibbs Racing have all parted ways with some of their employees; so apparently, the budget crunch is not limited to the second-tier teams in NASCAR.
Will there or won’t there be the famous 43 car in Petty Blue racing next season? There are talks in the works for NASCAR’s most legendary team to merge with Gillett Evernham Racing. However, Petty Enterprise officials say that if the merger doesn’t happen, they will run next season as a one car operation with the 43 team.
Even Gillett Evernham Racing has cut back operations in its Nationwide Series efforts in order to maintain a more direct focus on its Cup Series cars.
Bill Davis has sold the majority interest in his racing team and his engine company after he struggled to find sponsorship for next year. Davis has been in NASCAR as an owner for more than 20 years and won this season’s Truck Championship with driver Johnny Benson.
Even the Budwiser Shootout is not immune to changes next season. No longer will the race be fielded by the drivers who earned a pole position during the previous season, but by the top six teams in owner points of each manufacturer. According to Anheuser Busch, a partial reason for the format change is because of the sponsorship of the Pole award by a rival brewer, Coors.
The tough economic times have taken their toll on the drivers as well. Roush Fenway teammates are discussing jet-pooling to appearances during the off-season, and Greg Biffle sold his helicopter in order to trim his budget.
"It's stupid what we spend on motor homes and planes," Jeff Gordon said in a David Newton article for espn.com. "Do we need that? No, but things have been good for us. The sport has been good. I've had success. I'm living this way because things have been very good. Obviously, we're having to cut back. I have to cut back, too."
What is ridiculous is how much the drivers make each year. Forbes Magazine lists Jeff Gordon as making $32 million this year, including endorsements. The quickest way to fix the economic crunch in NASCAR is to cut back on what the drivers are paid.
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