Waid's World
A NASCAR BLOG BY Steve Waid
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Slumping economy is a vicious cycle
Jul
7
To tell you that we’re in the midst of a slumping economy, higher gas prices and a stock market that’s been falling like a rock would not be news.
It’s not news to NASCAR, its tracks, its teams or its fans, either.
Speedway attendance to date has dropped, for the most part, as evidenced by the large number of empty seats at races.
Teams are just like the rest of us – they are feeling the mighty budget pinch delivered by the cost of a gallon of gas, among other things. Fuel costs them – and us – more than 30 percent more than it did this time last year.
But they still have to travel thousands of miles each year, so they have to bear it.
Of course, corporate America isn’t immune to all of this. Among other things, it has to figure out how best to spend its advertising and marketing money – or perhaps where to stop spending it.
Which means it might not be eager to put millions into a Sprint Cup team or a NASCAR contingency program.
The belief here is that, currently, it is much harder for teams to find full sponsorship than at any other time in recent years – and teams suffer for it, as Chip Ganassi Racing did when it folded its No. 40 team.
It won’t be the last to go.
When race fans are paying more than ever for gas and groceries, they think twice before they buy a race ticket. That’s understandable.
More often than in the past the ticket goes unpurchased – especially if it means filling up the car a couple of times to get to and from the race.
Which, obviously, isn’t a good thing for the speedways.
All four automakers that participate in NASCAR – General Motors, Ford, Chrysler and Toyota – reported slumping sales last month. General Motors is reeling financially right now, but it has announced no plans to get out of stock car racing.
I’m not sure that means corporate officials intend to spend as much money in the future as they have in the past.
It’s all a vicious cycle, and NASCAR is certainly a part of it. And, as Clint Bowyer said at Daytona, so are we all.
Unfortunately, there is no quick fix. Many economists tell us it will get worse before it gets better.
But hey, let’s be optimistic. It will get better.
It’s not news to NASCAR, its tracks, its teams or its fans, either.
Speedway attendance to date has dropped, for the most part, as evidenced by the large number of empty seats at races.
Teams are just like the rest of us – they are feeling the mighty budget pinch delivered by the cost of a gallon of gas, among other things. Fuel costs them – and us – more than 30 percent more than it did this time last year.
But they still have to travel thousands of miles each year, so they have to bear it.
Of course, corporate America isn’t immune to all of this. Among other things, it has to figure out how best to spend its advertising and marketing money – or perhaps where to stop spending it.
Which means it might not be eager to put millions into a Sprint Cup team or a NASCAR contingency program.
The belief here is that, currently, it is much harder for teams to find full sponsorship than at any other time in recent years – and teams suffer for it, as Chip Ganassi Racing did when it folded its No. 40 team.
It won’t be the last to go.
When race fans are paying more than ever for gas and groceries, they think twice before they buy a race ticket. That’s understandable.
More often than in the past the ticket goes unpurchased – especially if it means filling up the car a couple of times to get to and from the race.
Which, obviously, isn’t a good thing for the speedways.
All four automakers that participate in NASCAR – General Motors, Ford, Chrysler and Toyota – reported slumping sales last month. General Motors is reeling financially right now, but it has announced no plans to get out of stock car racing.
I’m not sure that means corporate officials intend to spend as much money in the future as they have in the past.
It’s all a vicious cycle, and NASCAR is certainly a part of it. And, as Clint Bowyer said at Daytona, so are we all.
Unfortunately, there is no quick fix. Many economists tell us it will get worse before it gets better.
But hey, let’s be optimistic. It will get better.
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Comments
1 response to "Slumping economy is a vicious cycle"
Dr. Spaceman said:
Jul 8, 2008 at 10:48 AMI had to cut back on my NASCAR expenditures due to increasing costs of living. I will only be attending one Cup race this year instead of 2. I know for a fact that I'm not the only one that is having to do make similar choices.
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