Point

NASCAR as a Business

By Mike Contreras

"Have you got twenty minutes where I can show you something that could change your life?" Anyone who has had to endure an Amway sales pitch, is familiar with this refrain.

Have you ever had someone give you the double diamond, ruby jubilee pitch at a family BBQ or birthday party? Think about that for a second: What causes a perfectly rational human being to make a sales pitch to a friend? It is the idea of business, the idea of making money. Traditions, even long standing family ones, go down hard in the face of many greenbacks. Not that is any less palatable, but it happens.

Despite what many think, NASCAR is a business. Make no mistake about it. Folks don't produce thousands of metal cast cars in China for the sake of tradition. It is all about the money.

Yes, I know we have had a Southern 500 in Darlington since Stonewall stood fast at Manassas, but that was yesterday's news. Today belongs to tomorrow and more importantly, the "What have you done for me lately?" of modern business.

Take the poor old Southern 500: The track in Darlington is a great track, produces great racing, looks good on camera, has a great nickname, but for some reason, can't fill up its grandstands. Why?

Is it because the track is hard to get to? Is it because of the weather? Is it because of the great trout pond monster that stalks turn 4? (Turn 2 for traditions sake.)

You would think that with all these fans screaming about tradition, they would be beating down the doors to get in the stands. But up until drivers' introduction; I could still get seats at the ticket booth. The fact is that no one wants to go to Darlington. If they did, they would be there.

Traditionalists have a ready made list of excuses; weather, timing, heat, cold, Mothers Day, Fathers Day, Wade Hampton's birthday, but after all is said and done none of these dogs hunt.

NASCAR has moved beyond the old tracks, it is major league, big city, and most importantly, big business. I think it is time to move forward.

Tradition and $50 bucks to the maitre de' may get you a table, but it won't bring in new sponsors, new fans, new drivers, or new owners. CART and IRL have great traditions (LeMans, Indy 500, etc.) but lousy business models, just look at how successful they are.

This brings me back to the business of racing. Why have races if no one wants to show up? Tradition doesn't bring folks into the stands; glamour, glitz, and the business of marketing does.

Money drives NASCAR, from the multi million dollar sponsors down to the guy hawking "free MBNA" t-shirts.

Imagine yourself a sponsor trying to get your product onto the shelves of a retailer which would you prefer to say:

"You will love Darlington. There is a great little diner off route 52 that serves the best apple butter; you really need to try it."

"C'mon up to New York. Friday we will catch qualifying and "The Producers". Saturday we can see the Busch race and then catch dinner at Mama Leonis."

NASCAR has a perfect legitimate business reasons for moving dates, closing down tracks, and seeking new opportunities. If anyone expects NASCAR to do the same thing over and over, all the while losing money at it, had just as soon kiss NASCAR goodbye. It cannot survive by serving tradition over making money.

Big Bill France didn't gather all those folks in the Streamline Hotel in 1947 to discuss tradition. Talladega wasn't built for tradition. Winston didn't come in to maintain a tradition. ESPN didn't broadcast races in order to establish a tradition. Those things all started out as sound business decisions, they became traditions because we fans deemed them to be so.

Patty, I appreciate the history, tradition, lore and legend of stock car racing, but that stuff belongs on 45 minute episodes of "NASCAR Classics". This is a business. Decisions need to be made with the bottom line in mind.

I say: NASCAR you do what is best for the sport, and if you make more money then all of Haiti, Canada, and Poland put together than good for you.

You can contact Mike Contreras at.. Insider Racing News

Counterpoint

NASCAR as a Sport

By Patty Kay

Before I present my side of this discussion, let me hasten to agree with my esteemed colleague that NASCAR is indeed a business, so we are starting out on the same page.

It is, however, a business based upon the sport of stock car racing. When Big Bill France drew up the rules for the sanctioning body, he and others that worked diligently alongside him did so to promote better organization of a sport they all truly loved.

Back in the day, race promoters had a nasty habit of disappearing with the purse money before anyone was paid for the race. Also, there was no way to guarantee which drivers, if any, would show up on a given day for a race.

The sanctioning body was needed to assure drivers and track owners that there would indeed be a race and that race would pay the advertised purse. The fact that NASCAR eventually became a lucrative enterprise was a happy consequence of Big Bill’s original desire to clean up the sport.

When R.J. Reynolds aligned with NASCAR in the early 1970s, they became the catalyst that changed the sport into a thriving business through concentrated advertising campaigns and promotions.

What the France Family knew about racing, R.J Reynolds knew about promoting and the two complimented each other very nicely for over thirty years.

My colleague discussed Darlington and the excuses why it seldom filled. In my opinion, it never filled because it was poorly run and poorly maintained. It’s as simple as that.

What’s that you say? Yes, Darlington and Rockingham (Now defunct) as well are tracks owned by ISC, another lucrative little business to grow out of NASCAR. Some will strive to convince you that the two corporations are separate, but they are not. I have pockets on both sides of my jeans, but the money in both pockets is still mine. Can you say, “Planned obsolescence?”

It would appear that in the name of good business, NASCAR is bent on leaving the area of its birth and taking on new and better worlds. Go, with my blessing, and don’t let the door smack you in the derriere on your way. Before you leave though, how about giving us an actual body count of the attendance at the Southern (California) 500 on Labor Day? You know; that new Michigan clone that only has seats on the front stretch, many of which were empty.

There is one thing that every business is dependent upon and that is customers.

It doesn’t matter if one is selling widgets, thingamabobs, salted peanuts or races; every business needs customers. In stock car racing, we, the fans are the customers and expect fair value for our dollars. If all the races are to be run on cookie-cutter tracks, many of which become gas-mileage yawners, we need only watch one race a year.

“NASCAR has moved beyond the old tracks, it is major league, big city, and most importantly, big business. I think it is time to move forward,” my colleague tells you.

I don’t think it’s true that “glamour, glitz and the business of marketing” bring folks to a racetrack. We can get that on Saturday Night Live. When this fan goes to a racetrack, it’s to watch a race. When I turn on my commercial-laden TV, it’s for the same reason. Racing is about the race, not the dang “Show.”

How long will a business last that sells only grandiose packaging, devoid of the good product that used to be found inside a plain brown wrapper?

Let’s look at the product being marketed here.

The RACE is the only product NASCAR has to sell. They are free to run their business any way that they see fit and make a gazillion dollars doing it. However, if they persist in taking the race out of the sport, sooner or later fans will realize that the pretty box is empty and find a new seller with a better product. Caveat emptor; all that glitters is not gold.

This old Georgia gal still believes that Christ belongs in Christmas, the words “Under God” belong in the Pledge of Allegiance and that the RACE is still the most important part of racing.

Be well gentle readers, and remember to keep smiling. It looks so good on you!


You can contact Patty Kay at.. Insider Racing News