Struggling U.S. Economy Having Impact On NASCAR Owners, Tracks

Doug Yates (l) Says Lack Of Sponsorship Could Drive Number Of NASCAR Teams Out Of Sport

With the sagging U.S. economy and escalating fuel prices, sponsors "have become more vital" to NASCAR team owners, but have also been "hard to come by,” according to ESPN’s Mike Massaro, who examined how the economy has affected NASCAR. Robert Yates Racing co-Owner Doug Yates "has been challenged with finding sponsorship, and at times this season has been forced to enter cars whose only decals were the numbers." Yates said he is “trying to fight the fight and keep Yates Racing alive.” Yates: “We could see six or so teams shut down if they're not funded. You know, nobody's going to run this out of their own pocket for too long, myself included.” However, Texas Motor Speedway President Eddie Gossage said that NASCAR team owners “are doing quite well. It's hard work, but you know, I think stories of their demise because of the economy is grossly overstated.” But Camp & Associates President Larry Camp said, “There is a substantial cutback on some of the clients that we have. They cut their programs back. Some of the programs we were going to bring for ‘08 are now scheduled ‘09 programs. So they're operating like the rest of us, under pretty tough times.” Camp noted primary sponsorship for Sprint Cup teams five years ago was $10-15M, but a top-level team now asked for $24-30M. NASCAR CMO Steve Phelps: “As the costs have risen for Sprint Cup sponsorship, you see cars that were once just sole primaries going to two primaries or three primaries.” Yates said, “Hopefully this sport doesn't get to where we don't have full fields and fully competitive cars and all the money goes on the top cars because that's part of the shift that I've seen. When you see these sponsors splitting cars, well, you just took a sponsor away from another car.” NASCAR driver Kyle Petty, whose Petty Enterprises recently sold a majority share to Boston Ventures, said, “There's teams out there who just have the numbers on the side of their doors who haven't been competitive and they're going to get put out of business. It's the way of the world. It's the laws of nature. The strong survive and the weak get culled out.”

FUTURE OF SPRINT SPONSORSHIP: Phelps said Sprint in the last 12-18 months, "has gone through some (financial) difficulties. But we meet with them on a weekly basis, we talk to them on a daily basis to try to ascertain ways that we can help them.” When asked if there was a concern that Sprint might not be stable enough to continue its title sponsorship of the Cup circuit, which goes through 2013, Phelps said, “We don't have that concern. We think that they're certainly going to get out of some difficult times. They're going through a rough patch at this particular point. But no, we think they'll go through the end of the contract and we'll renew it.” Gossage: “Sprint's not going to go away. ... I'm not terribly concerned about where Sprint is or where our sport is economically” (“Outside The Lines,” ESPN, 6/29).

Sellouts Of NASCAR Sprint Cup Races Have Been Few And Far Between This Season

HARD TIMES: In Hartford, Shawn Courchesne writes, "From fewer fans in the grandstands to financial troubles in the garage, the signs of economic stress are all over the sport," as sellouts "have been at a minimum this season for the Sprint Cup Series." New Hampshire Motor Speedway (NHMS) Exec VP & GM Jerry Gappens: "Everyone in business is feeling the effects of the economy and the challenges that it presents." (HARTFORD COURANT, 6/29). However, NASCAR claims that attendance figures "are flat compared to last year” (“Outside The Lines,” ESPN, 6/29). Meanwhile, in Winston-Salem, Mike Mulhern wrote the Car of Tomorrow that NASCAR "forced on these teams triggered a new high-tech war between teams, a multi-million dollar war that has pushed Detroit carmakers to up their stake, too." And for team owners, the "name of the NASCAR game right now, in this economy, is star power: If you've got a big name and a good reputation for delivering, you've got the playing field. And if you don't well, you could be toast" (WINSTON-SALEM JOURNAL, 6/29).