Many, at first glance, didn’t feel that the Chrysler bankruptcy filing on Thursday would have any effect on the Sprint Cup teams backed by Dodge. And Chrysler was quick to issue a statement on Thursday reaffirming their commitment to NASCAR. It really should not come as a surprise that the new management from Fiat realizes the current iteration of the COT and the marketing platform offered by NASCAR is too expensive and doesn’t align with their new focus. Fiat/Chrysler’s new focus is on small fuel efficient cars and not on outdated large cars that inspired the NASCAR “Car of Tomorrow”.

Many sources strongly believed that Chrysler (Dodge) may pull its NASCAR funding in 2010. As many know, Dodge already slashed its motorsports budget by 30 percent this year. Then the question becomes this: What would happen to the teams that Dodge financially supports, if indeed they pull their support? That is the great unknown.

As I have professed for over two years, NASCAR is facing a crossroad; but yet, it continues down an ill-fated pathway of an outdated “Car of Tomorrow” instead of adopting a fresh approach that would leverage “green technologies” such as, biofuels and renewable energy, and a branding platform that is attractive to companies like Fiat. As I stated in July 2008,

You must wonder – why is NASCAR asleep at the wheel? Over the past decade, NASCAR has developed a phenomenal market platform for all types of companies – but without the financial and marketing support of the carmakers – NASCAR teams can’t afford to operate.
The time is now for NASCAR to embrace tomorrow’s future – alternative energy and fuel efficiency branding is required for the long-term viability of the sport as a marketing platform for the automotive manufacturers. (See: http://tinyurl.com/cwcjpj)

I am a strong believer that negative events create opportunities. NASCAR and the Big 3 (GM, Ford and Chrysler) at one time were going down a parallel road, but unfortunately as NASCAR started to become a rapidly growing mainstream sport in the early part of the decade and corporate sponsors rushed into the sport with their large marketing budgets looking to tap into this brand-loyal demographic, NASCAR lost sight of the value proposition and ROI required to keep the Big 3 involved in NASCAR. In the next couple of years, many will ask, why didn’t NASCAR do more to keep the Big 3 involved? The answer is quite simple, NASCAR and their Teams have a huge disconnect, and what’s good for NASCAR isn’t always what’s best for their Teams. Unlike all other major sports, like the NHL, NBA, MLB, and NFL; NASCAR team owners don’t have any say in the direction and decisions of the sport, nor do they participate in the financial upside during the good times. But what I do know is that they do bare the majority of the consequences during the difficult times. When Chrysler/Dodge leaves NASCAR, many teams will suffer and likely shutdown, but NASCAR Corporate will face very little short-term repercussions.

With the economic recession, dreadful environment for automakers and falling ratings of NASCAR racing, NASCAR has the opportunity to implement needed changes to put the sport in a position for growth and long term sustainability.

The solutions and answers for NASCAR are quite simple: race a car that is aligned with the automakers objectives, provide a fair distribution of revenues to competitors (teams), implement rigid cost controls; and, equally as important, please allow the drivers the freedom to race without the fear of penalties for relatively harmless actions. NASCAR, after all is said is done, should be entertainment.

Additionally, speculation is running rampant – Gillette Evernham Motorsports (GEM) will acquire Bill Davis Racing (BDR). With BDR having yet to secure a replacement for Caterpillar for the #22 Toyota Camry, the value proposition of the proposed acquisition appears to be strictly around the coveted partnership with Toyota Motorsports and BDR’s ownership in Triad Racing Development. So it appears that if both transactions are completed; and Gillette changes from Dodge to Toyota – Dodge Motorsports will be left with just Penske Racing and Richard Petty Racing. Furthermore, I suspect at the root of Gillette’s motivation to acquire BDR is the reality that Dodge is looking to leave NASCAR all together. As my readers know, earlier this month Dodge announced their plans to leave the NASCAR Truck Series and with the founding Dodge Sprint Cup Team (Evernham) possibly joining the Toyota camp through the BDR acquisition – I think this will be most definitive indication that Dodge is saying “bye bye” to NASCAR.

It’s rather apparent, that in 2009 the pit lane of the NASCAR Sprint Cup series will be dominated and owned by just a few organizations. One must wonder – will NASCAR reverse their policy to limit teams to just 4 cars? – Because in 2010, Roush Fenway Racing will be required to “sell” one of their teams which is expected to be transferred to Yates Racing. However, NASCAR may reverse or postpone plans to prevent any additional sponsorship deflections.

With primary sponsors becoming increasingly elusive and operating costs continuing to soar, the benefits of team consolidation may be the only way for the NASCAR teams to have a fighting chance of survival. The fact is clear: The economies of scale and integrated marketing advantages are vital to remaining competitive on the track and attractive to the few remaining potential sponsors.

Is there any hope for NASCAR’s future? Yes, but not without some major changes and “redistribution of wealth”. NASCAR’s unfair revenue model and overall lack of innovation are the primary contributing causes to the sponsorship crisis for race teams. NASCAR needs to immediately revise the distribution of TV revenues to fairly compensate the race teams – or face the reality that the life expectancy of many NASCAR race teams are limited at best and more teams will continue to close their doors.

“We’ll have no factory-funded teams.”

Delahanty told ESPN.com,

“When times are tough, there are certain things that are lower on the priority list than others.”

This leaves us to ponder: Are the other series next? For years, rumors have circulated that Dodge would pull out of NASCAR- is it finally happening?

Earlier this decade Dodge was a powerhouse in the NASCAR Truck Series, winning 46 of 99 races from 2001-2004 and championships with drivers Bobby Hamilton in 2004 and Ted Musgrave in 2005. This year, Dodge scaled back its involvement and provided manufacturer support only to Bobby Hamilton Racing-Virginia. However, Dodge informed the team that its factory support would end this season. Delahanty said the manufacturer’s involvement with the Sprint Cup and Nationwide Series is unaffected.

Now you might ask: why hasn’t NASCAR attempted to “fix” the Truck Series value proposition to raise its “priority” with Dodge and the other manufacturers – the answer is part of the problem for NASCAR – with unprecedented sponsorship deflections in the Sprint Cup Series, the Truck Series is a low priority for NASCAR.

As the former owner of Bang Racing, Toyota’s first NASCAR Team to compete in the Truck Series and the leading competitor of Dodge Motorsports, it is a sad day for the entire NASCAR community. As I have predicted, it is only a matter of time before all of the Big 3 reduce their involvement in NASCAR. The writing is clearly on the wall – the inverse proposition of marketing costs versus benefits is an alarming trend and appears to be continually ignored by the NASCAR leadership.

Instead of squarely addressing the concerns of corporate sponsors and automotive manufacturers’ – NASCAR seeks new automotive partners to rejuvenate the floundering Truck Series. In 1999, Dodge Motorsports announced their plans to enter the Truck Series and, at the time, were widely credited with saving the series. In 2003 the Truck Series was still floundering andfloundering and the Big 3 began scaling back yet again, but Toyota Motorsports and Bang Racing soon entered the the Truck Series and delivered an unprecedented amount of media attention which fueled substantial increases in technical, financial and marketing spending from the Big 3 manufacturers in the Truck Series. But now times are tough; and with the uncertainty and questionable sustainability of the Truck Series, combined with plummeting light-truck sales; the odds of NASCAR finding new automotive manufacturer partners is rather slim. Sadly, it appears NASCAR will attempt to solely treat their symptoms and leave the underlying problems unresolved.

What is the root cause of these two prominent and long-term sponsors leaving NASCAR? The answer is simple: there are too many compelling alternatives which have a greater ROI and offer far less risk. Let’s be honest, primary sponsors are asked to commit up to $25 Million to purchase “so called advertising” without any meaningful guaranties of consumer advertising impressions. Sounds rather ominous, right?

Of course, sponsoring Dale Earnhardt Jr. and any of the other top performing drivers offers a unique value proposition: residue value through their brand loyal fans, merchandise and alike. But the vast majority of sponsors are receiving a diminishing ROI by virtue of the rising costs of NASCAR sponsorship and decreased television viewership and race attendance. Since 2004, the cost of becoming a primary sponsor of a top performing Sprint Cup team has soared by over 60% while television ratings have dropped by about 10%. The dichotomy of rising sponsorship costs and decreased television exposure is a disturbing trend which is primarily affecting the worst performing teams but could soon start to challenge the most elite NASCAR teams. The change in corporate sponsors’ attitudes towards NASCAR sponsorship shouldn’t surprise anyone.

However, NASCAR and its Teams have either refused or do not understand how to evolve in the digital age where advertisers can purchase measureable and interactive advertising with far less risk and much greater ROI. Unlike, most “traditional” businesses that reinvent themselves and innovate; NASCAR has failed to bring forth any meaningful innovations that can directly increase sponsors’ exposure and ROI.

Chip Ganassi Racing has had and continues to be one of the best performing open-wheel racing teams; and clearly delivers on and off the track performance for Target in the IndyCar Series. But unfortunately, Chip Ganassi’s foray into NASCAR has been a bitter disappointment. In 2006, Chip Ganassi secured Juan Pablo Montoya to pilot the #42 Texaco Dodge in the Sprint Cup series and hoped the media attention of the former IndyCar and Indy 500 Champion would ignite the performance and success of his NASCAR team. But excluding a few promising races (mostly on road courses) Montoya’s NASCAR career has underperformed. It appears Chip Ganassi Racing may be another victim of the sponsorship race; and soon join NASCAR’s elite defunct team list.

As many of you know, I owned Bang Racing and led Toyota Motorsports’ racing team to a victorious year achieving record results for a newcomer to the series and sport. We won our first race in our 13th attempt – and consequently fueled our continuous mainstream media exposure. I was the first NASCAR Team Owner ever to appear live of the Fox News Channel and received international attention which created a cycle of vital media interest to fuel sponsorship demand and ROI for all of the Truck Series teams.
However, the Truck Series is a different animal today. Over the course of the last few years a lack of interest and dwindling financial support from the Big 3 – has morphed the series into nothing more than Toyota versus the independents. This one-sided competition is apparent in the absence from corporate sponsors and the lack of interest from the mainstream media.

Last year, Craftsman announced their leaving the series as the title sponsor. This is clear indication of the limitations the Truck Series has as a marketing platform. In contrast, back in 2003, as the owner of Bang Racing, I had both Craftsman and Snap-On Tools competing against each other to become the Official Tools of Bang Racing and a Major Associate sponsor of my team. And now -both have vastly reduced their involvement in the Truck Series altogether.

I speak from personal experience. Looking back to 2004, the marketing appeal of the Truck Series for corporate sponsors was rather limited. Today without the financial assistance of the Big 3 and practically little hope for its return; combined and with the rising costs of fuel and decreased consumers’ demand for light trucks and SUVs – NASCAR can’t hang the hopes of the Series on the unlikely event of another Japanese automotive manufacturer saving the Truck Series from its untimely demise. NASCAR must make significant changes to the scheduling, promotion and positioning of the Truck Series if they intend to secure the long-term viability of the Series.

Oh yes, and here is the friendship part of this deal – Chip Ganassi has had a long standing relationship with Lee White, the newly appointed President of Toyota Racing Development (TRD) – and with the financial uncertainty of Chrysler (Dodge), this would provide Chip Ganassi the ability to leave Dodge and become part of the Toyota Motorsports umbrella. Secondly, the “Waltrip” brand no longer has the luster that once existed and it’s unlikely that any new prospective primary sponsor would consider aligning itself with the MWR organization. However, MWR does have a coveted deal with Toyota and with the merged resources of the two organizations; a talented driver like Juan Pablo Montoya should perform far better in 2009 than any of the organizations’ current teams and drivers.

In early 2007, I recall many NASCAR insiders suggesting that the 43 car field needed to be expanded to accommodate all the “new” teams and the “growing” enterprises which make up the Sprint Cup Series. Boy, haven’t the times quickly changed? In 2009, 43 competitive cars in the field will only be a sweet memory.

In 2007 Dario Franchitti was one of the most accomplished drivers in American motorsports. When he moved from IndyCar (IRL) to NASCAR in 2008 he was full of hopes and dreams for an exciting future – and yet now he finds himself without a “ride” in 2008. What is happening in NASCAR? For Dario Franchitti, he isn’t sure what his future holds, but the former open-wheel star said Wednesday he’d like to remain in NASCAR.

It is not surprising, when viewing NASCAR and the economic climate today, that Dario Franchitti lost his ride when team owner Chip Ganassi closed down the unsponsored No. 40 Dodge – with 17 races into Dario’s first season in NASCAR.
But there is more in the making of this decision and the announcement really doesn’t surprise me – you have a team whose performance has been downright awful, a rookie driver struggling to adapt to a new form of racing, mass inflation in an already expensive business and serious downward pressure on the U.S. economy – specifically corporate advertising budgets. This is a wicked mixture for more future shakeups in the financially changed business model of team ownership in NASCAR.

The only question in my mind is when will there be a similar announcement from the Yates Racing organization. I can’t image that the Ford Motor Company will continue to fund the operations of a sponsor-less team; regardless of the fact that their performance has been promising.

More dark days are ahead for the NASCAR economy; rising gas prices and overall inflation are just the beginning – soon to come are significant effects of poor race attendance and souvenir sales. Since NASCAR Corp. is mostly focused on protecting the bottom line of their sister company – International Speedway Corp (ISC) – I would image there will be no relief in sight for the fledging racing teams – which are truly the heart and soul of NASCAR.

He parlayed investments in the stock market to raise start up capital for a new Internet company, Surfbuzz. Surrounding himself with some of the countries brightest marketing executives to grow the firm into a multi-national development group specializing in software and technology applications.

With such a successful track record, the assumption could be made that Meshkin hails from the likes of Harvard, MIT or Wharton, but in reality he successfully built his company between the ages of eighteen and twenty-two, just out of High School.

Meshkin has now taken the same formula for success and applied it to the world of Motorsports with the debut of Bang Racing.

At age twenty-three, he is the youngest team owner in NASCAR, and after speed weeks in Daytona, heads turned as veteran drivers, owners and crew chiefs realized this team is for real.

Utilizing a familiar business plan, Meshkin began his journey into Motorsports by acquiring a marketable product. He signed on as one of the start-up teams for Toyota Racing Development and it’s launch of the Tundra into The Craftsman Truck Series.

He then surrounded himself with the best and brightest with the likes of Larry McReynolds, and former and current series Champions Mike Skinner and Travis Kvapil.

Add to the mix solid sponsorship from Line-X and Toyota, and the group was poised to assemble tops teams and make its mark at the season opener.

In a sport that has seen many new owners who have more money than brains, Meshkin, as with most things he has done in his life appear to be the exception.

Qualifying third for the Florida Dodge Dealers 200 at Daytona, Kvapil scored a runner up finish, while Skinner, who qualified fourteenth finished twenty-eighth after being caught up in a multi-truck wreck mid way through the event.

“I don’t believe we had any surprises at Daytona”, noted Meshkin.  “We knew we had two good teams and two great drivers. The only surprise was having Mike Skinner’s number Forty-Two Toyota Tundra involved in the accident that eventually took him out of the race.  But regardless, I was very pleased with both team’s performances.”

Bang Racing is committed to the Truck Series through 2006. Many would argue that is enough to keep the team busy while learning the ropes as the “new kids on the block”.

Once again proving that he is ready to break all the rules Meshkin and company announced before the Daytona event that with support from internet giant Ebay, the team would field a part time cup effort during the second half of 2004, and a full time effort for the 2005 season.

“We’re thrilled to have ebay become an associate sponsor in the NASCAR Craftsman Truck Series and support a young entrepreneurial team’s entrance into the Nextel Cup, NASCAR’s premier series,” said the young owner.

Not a small accomplishment. Taking into consideration that there is a current sponsorship crisis in NASCAR’s premier series. It is expected that 2004 will mark the first time in years that there will be less that forty-three entries at some events, and the controversy of field fillers is already an issue. Established teams like Roush Racing and Ultra Motorsports cannot find full time sponsorship for proven winners Jeff Burton and Jimmy Spencer.

A first year team with no Cup experience scoring a multi-year sponsorship with a major company is well beyond the norm of traditional racing business.

But with Alex Meshkin, nothing is traditional.

In a sport where many drivers lament that it is better to be “lucky than good”, Bang Racing is proving their success has nothing to do with luck.

http://truckseries.com/cgi-script/csArticles/articles/000002/000211.htm

By JEFF WOLF 

The past year of racing for Travis Kvapil has been so unique it makes the spelling of his last name seem like Smith or Jones.

It started at the end of the past NASCAR Craftsman Truck Series season when he had to sit in his truck after the finale in Homestead, Fla., until race officials determined whether he or Ted Musgrave had won the season championship.

Although the ruling favored Kvapil, his reign started under clouds of uncertainty as owners of his truck team had decided to cut him from its 2004 lineup.

So the 28-year-old from Wisconsin hooked his championship wagon to a team owned by Alex Meshkin, a 24-year-old Internet entrepreneur who never had owned a race team before starting Bang Racing late last year.

Adding to Kvapil’s gamble: Meshkin’s team would rely on the new Toyota Tundra in the truck series. The Japan-based manufacturer had a proven history in other forms of racing, but this would be its first in one of NASCAR’s three major series.

It was a pair of long shots for Kvapil, but both gambles have paid off.

He will start Saturday night’s Las Vegas 350 truck series race as one of three drivers through 18 races who have won more than once this year. He has six top-five finishes.

With one year left on his contract with Meshkin, Kvapil has no regrets that he joined the youngest team owner in a major NASCAR racing series.

“I really believed in the program he was building, and I knew that Toyota would put good motors and trucks on the race track,” Kvapil said.

Kvapil and teammate Mike Skinner, the series’ first champion in 1995, are among four teams using Toyota equipment, but Kvapil is the only one who has won.

His second win was Saturday in Loudon, N.H.

“To get the second one makes a statement that this team is for real,” Kvapil said. “We’re contenders.”

Kvapil’s team is sixth in the standings with six races left and 188 points behind leader Bobby Hamilton. While Kvapil remains a contender for the season title, he also is looking toward next season when he and Meshkin move up to the NASCAR Busch Series.

“That’s the plan,” Kvapil said. “I wouldn’t say it’s 100 percent solid, but our sponsors are behind us to move up to Busch. (Meshkin is) working on some other sponsors, so we really have the money we need.”

Kvapil also denied rumors published last weekend that he was in line to replace Las Vegan Brendan Gaughan in the No. 77 Dodge for Penske/Jasper Racing in the Nextel Cup Series.

“It’s that time of year for rumors,” Kvapil said. “No one from Penske has talked to me.”

Meshkin, a native of Washington, D.C., said he expects to make an official announcement about his NASCAR plans in 45 to 60 days and it could include a second part-time team in the Busch series. He also said Kvapil will compete in some truck races next year to support one of the team’s sponsors that makes products geared to pick-up trucks.

“When we go Busch racing, it’s more competitive and you’re racing Cup teams,” Meshkin said. “It’s an opportunity to beat (teams like ) Hendrick, to beat RCR (Richard Childress Racing). That will give us the momentum when we go Cup racing.

“We won’t go racing in any series unless we’re going to be competitive.”

Meshkin’s first year in NASCAR has included a learning curve. A disagreement with Toyota over unspecified issues led the manufacturer to announce three weeks ago that it was pulling support from the team that would have forced Meshkin to find Fords, Dodges or Chevrolets for his drivers to finish the truck season.

A week later, however, Toyota backed off the threat, but Skinner left Meshkin’s team and began driving for Bill Davis Racing, another Toyota-backed program.

“When there’s stuff like that there’s always going to be distractions, but it was neat the guys in the shop never missed a beat,” Kvapil said.

Meshkin brings a new approach to NASCAR’s tradition-based world.

“I think we’re the most successful new team in NASCAR history,” he said.

“You can accomplish anything; it’s how you go about it. I think we’re more relaxed than other teams. By having a culture that has created unity, we are a more competitive team.”

http://www.reviewjournal.com/lvrj_home/2004/Sep-21-Tue-2004/sports/24812898.html 

Rarely has a NASCAR entrance generated as much buzz as Toyota’s announcement that it would enter its Tundra model in the Craftsman Truck Series this season.

Mike Skinner, who”ll drive a Tundra, says the engine needs work, but “I’d be very surprised if it weren’t competitive within four or five months.”

The din has only slightly abated as some fans appear willing to welcome the Japanese carmaker to the heretofore-American sport. But keepers of the flame fear another Yankee stronghold is slipping away to a foreign interloper. Just recently, Nextel Cup and sometime Craftsman driver Jimmy Spencer broke off a xenophobic rant that NASCAR declined to discipline.

But Spencer’s comments seemed to express the sentiment of some, whom at the very least wonder if this is Toyota’s first step on the way to Nextel Cup. The company, which builds the trucks in Tennessee and Indiana, won’t comment.

Time will tell whether it comes true. For now Toyota will settle for being able to hang with American brands Ford, Dodge and Chevy.

Preseason testing revealed a horsepower deficit and other issues, but most expect the dependable Tundra to close the gap by season’s end, setting the stage for more suspense in NASCAR’s most competitive series.

“It’s stable,” said 1995 series champion Mike Skinner, who will team with reigning champion Travis Kvapil as part of Toyota’s four-team, seven-truck contingent. “We’re behind the gun a little bit, but I think we’re off to a great start. They’ve just got to make the engine better. I’d be very surprised if it weren’t competitive within four or five months.”

If signing Kvapil was intended to help give Toyota track credibility, adding irascible Darrell Waltrip and Larry McReynolds provides experience as well as comic relief. Waltrip, the three-time Cup champion, and McReynolds, the late Dale Earnhardt’s longtime crew chief, are best known for their repartee as Fox TV analysts.

They will be respectively known as team owner and management. Waltrip will drive in three Craftsman races this season but will mostly oversee David Reutimann’s progress in Darrell Waltrip Racing’s No. 17 Tundra.

McReynolds will supervise Kvapil and Skinner as Bang! Racing’s vice president, a prospect he didn’t consider until examining Toyota’s business plan last year. That erased his reservations, but he quickly discovered that not everybody was so open-minded.

“It’s disappointing to me, this old-school thinking,” McReynolds said. “I’ve been called a traitor and a lot of other things I can’t repeat. But I’d bet that those who are against Toyota coming into NASCAR probably have Mitsubishi and Sony TVs and a lot of other foreign things in their homes.

“If you had come to me five years ago and told me Toyota would be in NASCAR. … I’m more enlightened now. It’s very American-oriented.”

In addition to Bang! and Waltrip, Bill Davis Racing will field a two-truck effort with Bill Lester and Shelby Howard. Innovative Motorsports will enter Robert Huffman and Hank Parker Jr.

Toyota will be the primary sponsor for Kvapil, Huffman and Lester.

If Kvapil thought it was tough rallying from third to win the closest-ever points race last season, consider what he’ll face as the man to beat. There’s the matter of Ted Musgrave, who finished 18 points back in third after officials black-flagged his final-restart pass for the lead at the Homestead finale. He immediately vowed to be more, er, daring, this season.

As if that isn’t enough to deal with, there’s runner-up Dennis Setzer (nine points back), fifth-place Jon Wood and seventh-place Rick Crawford, whose three-wide victory at Daytona last year set the tone for the season. Former Cup regular Steve Park joins Orleand Racing, and 2002 truck champion Jack Sprague is racing for Xpress Motorsports.

That makes the points race too hard for even drivers to handicap.

“With Toyota in, it has to be stronger,” Crawford said. “It has stepped everybody up to the plate. Toyota didn’t come into NASCAR just to play around and be a number in the finishing order; they’re coming in to win. Look at what they’ve done in other forms of racing. I’m sure they’ll make the same impact in NASCAR.”

That confidence sustains Kvapil as he gets used to a new truck and his third team in as many seasons. Last season’s jump from third to series champion in the finale taught him that things somehow fall into place, minimizing his initial concerns about Toyota. He also believes Toyota eventually will silence debate over its place, which might be the biggest victory.

“We’ve blown a few engines in testing, but that was to be expected,” said Kvapil, who set a series record by completing all but one half-mile lap last season. “Toyota is building engines to be there at the end. They’re fine-tuning some things, so there are definitely some question marks. But we’ll be there.”

Also competing are Tina Gordon, the series’ only full-time female driver, and Kelly Sutton. Gordon will drive the No. 13 Chevy, while rookie Sutton, a former Dash series driver, will guide the No. 02 Chevy.

http://www.usatoday.com/sports/motor/nascar/2004-02-12-bonus-toyota_x.htm