Alex Meshkin

Over the past several days there have been rumblings in the garage about the future of the U.S. Army sponsorship program. The U.S. Army, who has sponsored Mark Martin’s Dale Earnhardt Inc. (DEI) #8 Chevy for the last two seasons, is evaluating their alternatives to DEI – even though DEI insists they are still in the running to retain the deal.

“We are talking to them on a regular basis,” John Story, VP DEI said of the U.S. Army.

According to multiple sources, Army officials have not yet decided which team they want to go with next year. One published report has them moving to Bill Davis Racing (BDR) next season, which was roundly denied by several sources close to the situation. It’s strongly unlikely that the U.S. Army would select BDR over their alternatives.

But as the NASCAR elite reach the recently implemented 4 car limit; the U.S. Army’s options are far more limited than at any other time. Let’s analyze their options, the only well performing teams which have primary sponsorship vacancies are Joe Gibbs Racing and Gillette Evernham Motorsports (GEM).
Of course, if Tony Stewart acquires the majority of HAAS CNC Racing to form Tony Stewart Racing, it could clearly provide the U.S. Army with another viable option.

But dissecting the most logical options, the question remains: Would the U.S. Army sponsor a foreign manufacturer (Toyota)?

Doubtfully – so that leaves us with GEM.

Richard Childress Racing (RCR) has much to be proud of these days and is tearing up the NASCAR Sprint Cup Series with having all 3 of his cars in the Top 12 in point’s standings; and is currently qualified for the Chase for the Cup. However, the off-the track business maneuvers of this champion contending organization is even more impressive. Yesterday, Caterpillar a long time sponsor of Bill Davis Racing (BDR) announced they signed a multi-year agreement with RCR to become the primary sponsor of Jeff Burton and the #31 team – replacing AT&T who is prevented from returning to the sport by NASCAR and Sprint. This announcement comes on the heels of RCR securing General Mills as the primary sponsor of their 4th team.
It’s ironic – the same rules that help you one season can come back to bite you the next. Case in point, the guaranteed starting position, which is afforded to the teams in the Top 35 in points, has been one of the motivating factors for the switch by Caterpillar to RCR(RCR #31 team is 2nd in the point’s standings). If you recall – this unfortunate rule was instituted by NASCAR only after the BDR Caterpillar team failed to qualify for a race in 2004 under the old rules. Regardless, you must congratulate RCR on their off-track success as they strengthen their organization to be better positioned to effectively compete with the super teams of Hendrick Motorsports and Joe Gibbs Racing.
Since 2002, the last year BDR won a race, they have rapidly unraveled and are clearly on the road of becoming defunct. In 2008 we see RCR redefining success with having 3 teams in the top 12; while two other organizations are teetering on the verge of extinction.

(full disclosure: In 2005, my team (Bang! Racing) was adding a Sprint Cup team and the Top 35 rule resulted in the loss of these new sponsors)

Dale Jr. had a victorious day in the LifeLock 400 at Michigan International Speedway – and ended an endless streak of 76 races. A win could not have come on a better day – Father’s Day. Earnhardt’s much anticipated first win of 2008 was achieved through a brilliant combination of strategy from cousin and crew chief Tony Eury Jr. and smooth driving by Jr. Ironically, Dale Jr. entered today’s race with a winless streak matching his father’s career number of victories – 76. There are numerous ironies. And yet, one can only imagine the thoughts Dale Jr. must have had as he made his way across the finish line– was Dad once again sitting beside him. I am sure there are two happy Dale Earnhardt’s today.

Congratulations to Dale Earnhardt Jr., the Earnhardt Family and Hendrick Motorsports.

Back in April, I wrote a blog post about “Petty Enterprises Final Days”. Well my friends, that day has arrived and Richard Petty has surrendered control of their family’s storied racing team in order to ensure the team’s survival in 2009 and beyond.

This week Petty Enterprises became a part of the growing trend of NASCAR teams who have sought partners for necessary investment capital. Petty announced that Boston Ventures – a media and entertainment private equity firm – has acquired a majority position of the historical racing team.
With this announcement, Petty Enterprises adds its name to the list of racing teams co-owned or controlled by billionaires, near-billionaires and investment firms. NASCAR faces an interesting transformation and perhaps even a dilemma. Teams that had formerly been owned by Crew Chiefs and former Drivers are now owned by professional businessmen and investors who may be far less accommodating to NASCAR’s antiquated financial model and unilateral rule changes; and be far more demanding about reforms. NASCAR corporate has continued to retain the vast majority of television contract revenues; leaving teams struggling to simply survive; and others to join a long list of defunct teams.

The older generation of NASCAR team owners failed to understand and quite simply take advantage of a simple fact – without drivers and teams, there is NO NASCAR. With the new professional owners, undoubtedly changes will be sought. But will team owners be successful? – Only time will tell. Regardless, if team owners want a long-term and viable business, successful restructuring will be required and it will take their unity and decisive action.

As a former NASCAR team owner, digital media executive and avid observer of NASCAR for almost two decades, I believe that the new breed of NASCAR team owners have the ability to leverage their position to secure a reasonable and adequate distribution of revenues and hopefully securing the long term future of our sport.