Steve Waid: Fewer teams, fewer employees, fewer fans for 2009
COMMENTARY
The 2009 season may be, perhaps, the most daunting in NASCAR’s history.
The difficult economy might make it so. We have heard all about it, of course. We know about the struggles of Wall Street, the collapse or controversial mergers of banks, the deep drop in real estate, the suffering of retail outlets, the virtual bankruptcy of major American auto manufacturers and the rising unemployment rate.
We’ve heard the word “bailout” from the federal government a lot lately, and let’s face it: We don’t know, now, if that will make any difference. We can only hope it does.
With their efforts to save money and increase their revenue in any way possible, many major corporations have decided that it’s not the time to pump millions of dollars into NASCAR’s teams as sponsors.
We’ve seen evidence of that already.
Sponsorship dollars that were once plentiful for NASCAR’s teams have dwindled significantly. For the 2009 season the money has been hard to find.
Some of the more established organizations in NASCAR do not have the financial backing they require to compete – and they have said so.
Petty Enterprises and Wood Brothers Racing are two of the oldest, most successful and most respected teams in NASCAR’s history. Yet neither has acquired appropriate sponsorship for 2009.
As hard as it is to believe, the very existence of these two pioneer teams is threatened – although it is more likely they will return as downsized operations.
Other teams have already begun to deal with the harsh economy. We know that many of their employees have been relieved of their jobs, and it’s likely layoffs are not over.
One of the highest number of layoffs occurred at Dale Earnhardt Inc., which recently merged with Chip Ganassi Racing in the hopes both teams could streamline their operations and remain solvent. But the new entity still does not have all the necessary sponsorship.
There are several second-tier teams that do not, as of now, have any financial support, and it’s likely they will not be around in 2009.
Truth is, when next season begins NASCAR is almost certain to have fewer teams in all three of its top circuits.
That’s not all.
NASCAR’s speedways are likely to have fewer attendees at their races. That has already happened in 2008, when sellouts, once the norm, were few. Fans cannot afford to spend the money they once did.
It won’t be different next year. As the economy contracts, people always have the tendency to watch their spending. Necessities come first and then luxuries only when affordable – and a ticket to a major NASCAR race is indeed a luxury.
Can we really expect a fan to pay the costs of tickets, motels, gas and amenities in today’s economy when he or she will be have to consider the personal budget – or even deal with the threat of lost employment?
When it comes to selling tickets, speedways are going to have to get very creative in 2009. Of course, no one has to tell them that.
As an aside to all of this, the attention NASCAR receives from the media – especially daily newspapers – is likely to dwindle.
Layoffs at daily newspapers have been rampant and have included motorpsorts writers.
Do not take all of this as a pronouncement of the doom of NASCAR.
The sanctioning body has been amazingly resilient over the years. It has found a way to exist despite very difficult situations.
It survived nicely when the auto manufacturers pulled out – more than once.
In the early 1970s, NASCAR got past a severe gasoline shortage. People lined up for blocks just to get any fuel that was available.
It was said that NASCAR should cease operations. Why burn gasoline to race when a family couldn’t fuel its station wagon?
NASCAR took measures – it reduced the length of several of its races by 10 percent - and survived.
In the late 1970’s and early ’80s, this country experienced severe inflation that hobbled the economy. People had to restrict their spending because of high prices and interest rates. NASCAR teams had to do likewise.
The sport rebounded when the economy did.
And that will happen again.
But in the meantime, NASCAR will have fewer teams with fewer employees and races attended by fewer fans in 2009.
