NASCAR is facing some potentially dangerous turns in its business course next year that could spin some sponsors—and racing teams—off the circuit, with fans staying home in droves.
A diverse panel of racing executives, one sponsor and a TV producer delivered a mixed forecast at the opening of Sports Business Journal’s Motorsports Marketing Forum in New York City yesterday.
“Now we’re reaching the point where the demand’s not quite there,” said Joie Chitwood, president and COO of Indianapolis Motor Speedway. “It’s going to make us leaner, meaner.”
Chitwood pointed to Indy’s centennial observance next season as a marketing opportunity, but also suggested that the Speedway should broadcast races that aren’t sold out at the track on a tape delay basis.
There are widespread concerns about the prospect of smaller racing fields for NASCAR events as sponsors drop out and drive smaller teams off the track. But the consensus at the Motorsports Forum belied anxieties about diminished quality of competition.
“We probably don’t need 43 cars to start every week. We’ll still put a good product out there,” said Jay Frye, general manager and vice president of the Red Bull Racing Team.
James Shiftan, ESPN race producer, agreed: “If there is a short field every now and then, I don’t think the world’s coming to an end. As long as the top drivers are there, I think we can deliver the same rating with 35 cars.”
Over 35 NASCAR races this season, ESPN averaged close to a 4.0 rating, a respectable number in the cable TV sports universe. The cable sports network gained 7% in ratings on the nationwide series during the first half of the season.
David Zucker, CEO of Petty Enterprises, said he expects the current economic downturn to put pressure on drivers’ long-term deals over the next few years. “The [racing] teams are more subject to the vagaries of the economy,” he noted.
There was also a consensus that the immediate issue of the Big Three Detroit automakers securing financial aid from the federal government would have a direct impact on NASCAR.
“I don’t think we can underestimate the effect of that,” Chitwood said.
Frye sounded a positive note for NASCAR as a strong platform for sponsorships despite the economic difficulties ahead.
“If you’re looking to set yourself apart, now is the time to get in,” he said.
Most sponsors seek tie-ins with star drivers on the circuit, with the attendant risk that their post-race dust-ups between those drivers can muddy a sponsor’s name.
But Al Johnson, Aflac vice president of marketing services, said raw emotion in the heat of the moment comes with the track.
“We certainly don’t want garage scuffles going on. But we do want people to be true to themselves,” he said.
Zucker cast the issue in the light of Giants receiver Plaxico Burress’s misadventure with an illegal handgun over the weekend.
“A scuffle in the garage is not as bad as a self-inflicted gunshot wound. We need a little controversy,” he said.
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