The end of the 2011 season is drawing near, and it seems we hear every week about another team that is preparing to lay off employees. The U.S. economy has still not rebounded, and even though some signs are better for NASCAR (like TV ratings), it would appear that we haven’t yet found the bottom. It all adds up to what will be another tough winter for many employed in and around the sport.
Thanks to North Carolina’s WARN (Worker Adjustment and Retraining Notification) Act, we’ve had several public notifications within the last few weeks about impending race team layoffs. The state requires a 60 day notice if more than 50 workers will be laid off because of a company shutdown. Red Bull Racing, Kevin Harvick Inc., and Germain Racing have all filed with the state.
Red Bull and KHI are organizations that will be shut down completely at season’s end. We’ve obviously known about Red Bull for several months, and we learned within the last month about KHI. The Nationwide Series teams that were housed at KHI will be absorbed by Richard Childress Racing, so there is some hope for a few. But that still leaves several hundred people looking for work.
Germain, while still a bad situation, isn’t quite as dire as Red Bull and KHI. Germain knows for certain they have funding for 22 races for their Cup Series program for next season, but their Truck teams are in limbo. Brendan Gaughan may not return, GEICO won’t sponsor Max Papis, and they’ve been piecing together sponsorship for Todd Bodine for the last several seasons. With so much still to figure out, they didn’t have any other choice but to file their notice.
Besides these teams, we know there is a good chance RCR will cut back down to three Cup teams with the departure of Clint Bowyer. Roush Fenway Racing could be facing cuts, as sponsorship remains a big question for their #6 and #17 Cup teams. There is also word that their Nationwide Series program could be significantly smaller next season. And while we are talking about NNS teams, Turner Motorsports might be cutting back both their NNS and Truck programs because of lack of sponsorship. There are also questions at Rusty Wallace Racing, as it appears they need a replacement for 5 Hour Energy.
It isn’t all bad though. If Bowyer does end up at Michael Waltrip Racing like it has been rumored, that team would go from two cars to three. Also, Stewart Haas is adding at least a partial third Cup car with the addition of Danica Patrick. We also know that Eddie Sharp Racing will expand significantly next season, as the team has purchased the #8 and #33 trucks from KHI to add to their already existing #6 truck. Possible drivers for those seats include Cale Gale and Tim George, Jr. And besides adding KHI’s #8 and #33 NNS teams, RCR will start a third NNS team for Austin Dillon.
With eight weeks remaining, there are still a lot of unfinished plans. Drivers like Brian Vickers and Mark Martin still haven’t locked down seats for 2012, and there are plenty of other free agent drivers in the lower series. We also continue to hear that Red Bull’s involvement in NASCAR may not completely end. The chance still exists for that team to continue in some form or another. Either way, here’s to hoping everyone lands on their feet following Homestead.
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I started to think about this post a few weeks ago. At the time, Germain Racing, for the second season in a row, was threatening to shut down Todd Bodine’s #30 team for a lack of sponsorship. It was stunning to think the reigning series championship was about to be parked for a lack of sponsorship. The troubles at Germain though are nothing new for Series champions. Consider the following cases.
NASCAR veteran Ted Musgrave won the 2005 Truck Series championship driving for Jim Smith and Ultra Motorsports. The two had a long and fruitful run together including 16 wins, 12 poles and that one championship. Not long after winning in ’05 though the team closed the doors after losing support from Mopar and failing to get support from Ford.
Musgrave was lucky enough to find another ride with Germain for the following two seasons, but never matched his success with Ultra. He had a short stint with HT Motorsports before exiting the sport mid way through the 2008 season.
Ron Hornaday, Jr. won championships in 2007 and 2009 and has undoubtedly had a very successful run with Kevin Harvick Inc. and Dale Earnhardt Inc. before that. It was after Hornaday’s 2009 championship that his long time crew chief Rick Ren left KHI for the newly created Kyle Busch Motorsports.
Since then Hornaday has won just three races (compare that to six each in 2008 and 2009) and has just 17 top-fives (compare to 15 in 2009 and 14 in 2008) and 20 top-tens (compare to 20 in 2009 and 18 in 2008).
Certainly winning the championship hasn’t been devastating to Hornaday’s career, but the once dominant team is no more. Losing Rick Ren was nothing short of very bad luck.
The saddest case of all is Johnny Benson who won the 2008 Truck Series championship with Bill Davis Racing. Benson joined the team in 2004 and together they scored 14 wins, 50 top-fives and 72 top-tens. Benson though faced a fate similar to his contemporary Ted Musgrave when the team shut down shortly after the end of the season.
Tom Deloach and Red Horse Racing brought Benson on in 2009 but he made it just eight races before the team was shut down due to a lack of sponsorship. Just a week after that Benson was seriously injured in a SuperModified race.
It looked like Benson may have a chance to return in 2010 with Kyle Busch Motorsports, but sponsorship never materialized and Benson raced just a few times for various organizations.
That brings us back to Todd Bodine. He received a reversal of fortune after Randy Moss Motorsports, on its last legs but with a very lucrative sponsorship deal, agreed to a “partnership” with Germain to keep Bodine in a ride through the end of the season.
Is there a curse? Maybe not. But in the last six seasons at least, it’s undeniable that there are some strange instances of bad luck for the series’ championship winner.
We are hearing today that Germain Racing and reigning Truck Series champion Todd Bodine have secured sponsorship for this weekend at Iowa from International Trucks. Bodine will race on Saturday with Mike Hilman Jr. crew chiefing, but some details have yet to be worked out, including the truck’s number.
After last Friday night’s race at Kentucky Speedway, Bodine told reporters that unless a deal was in place early this week, his team wouldn’t be racing in Iowa. The team has struggled to put together regular sponsorship for Bodine since Lumber Liquidators left following the 2008 season, and they were facing the reality of parking their #30 for multiple races through the end of this season. And, it’s only been a few short weeks since driver Justin Lofton left Germain for Eddie Sharp Racing.
There is no word on if this deal with International is for the remainder of the season, or what it means for Randy Moss Motorsports, who’ve had the International sponsorship since last season. We will keep you updated as we find out more.
The economy still stinks. Sponsorship is scarce. And racing is expensive.
These are all lessons Kyle Busch is learning first hand in what has become his ill-timed foray into NASCAR team ownership. And boy did he let us all know how tough it was standing in his shoes this weekend.
“It’s hard to get anything and there really is nobody coming into it… It’s hard to sell. Right now, just going through all that, learning how to run the team, learning how to run the business has been stressful and strenuous and very impacting on my pocketbook as well… If we don’t find a sponsor for next year, I’m going to have shut it down. I’m not going to be able to do anything. That’s very unfortunate because I love all the guys working for me.”
I can’t blame Kyle for this – I can’t imagine the amount of money he’s spent on this effort. I don’t hear anybody faulting the guy for not committing to run a race team out of his pocket – it’s a very expensive thing to do – but I don’t understand the point of this ‘poor me’ game.
While this line of talk certainly draws attention and makes everyone aware of the situation, I’m not sure it’s the kind of attention someone in this situation wants or needs. The fact is, the takeaway from the press conference was that Kyle could very well shut down his operation. Chances are a good portion of the coverage is going to be less than positive or productive. Not what a team struggling to find a foothold wants potential sponsors to read on the front pages of the sport’s most popular websites and publications.
If this tactic is to attract sponsorship, this is not the right track to take. Companies want to sponsor stable teams – this is not the sign of a stable team.
Germain worked this for a while last season, and it was marginally successful. They were able to put together some small, one-off deals, but nothing sustainable. The caveat with Germain is the amount of media attention they got with their ‘plight.’ It was a constant source of conversation during Truck race broadcasts and in the other forms of media surrounding the series, and meant that those companies doing one-off deals got all the media they could handle.
The issue with KBM though is that they aren’t looking for small, one-off deals, they’re looking for long term, high-dollar sponsorships – sponsorships that run in the $1 million+ range. These aren’t easy to come by in the current environment as Kyle continued to point out:
“The series is, as we all know, is a lower-budgeted series, but there’s a lot of guys struggling to find funding… I know a couple guys out there that put sponsors on their trucks for almost a whole year for $250,000, $300,000. That’s flooding the market. That’s just killing the Truck Series. You can’t do that. They’ve gotta get something.”
I’m not sure a whole lot can be done on NASCAR’s part – it really takes a commitment from those selling the sponsorships not to undercut and erode the entire market – but I agree with Kyle and I know some of you that there are real issues with funding in the series. What can be done about that, I don’t know.
That said, I’m not sure complaining or feeling sorry for oneself is the way to find appropriate sponsorship. It makes those doing the complaining look desperate and petty – a stench no one wants associated with their operation.
I’m not sure if this is posturing, or a shot across the bow, but I can tell you I’d be a little nervous if I worked over at KBM.
Over the last several seasons, the Camping World Truck Series has been dominated by the old guard. Names like Ron Hornaday, Johnny Benson, Todd Bodine, Ted Musgrave, and Bobby Hamilton have been inscribed on the championship trophy at years end. This season however, the landscape of the Truck Series may be changing.
I want to start off by giving you an interesting stat. Through the first ten races of the 2010 season, Ron Hornaday is winless. It’s the longest opening stretch of races he’s ever gone in his CWTS career without winning a race. For Hornaday and KHI, that’s a very big deal. While Hornaday still sits third in the points standings, this winless streak appears to have taken its first victim. Jayski is reporting that crew chief Doug George has left KHI. Harvick expects the #33 Chevy to be competing for wins every week, so this move doesn’t come as a shock. No word yet on who might replace George.
The other moderate surprise this season has been the struggles of Mike Skinner. After winning three races in 2009, Skinner currently sits sixth in the standings and his best finish was fourth at Texas. On top of that, he hasn’t been a real threat to win in any race this season. I say moderate with Skinner, because on some level his performance isn’t surprising. His #5 Randy Moss Motorsports team has been in disarray since it lost crew chief Eric Phillipsto Kyle Busch Motorsports before the season started.
So who has been winning races while Hornaday and Skinner struggle? Besides at least one win by Todd Bodine, Kevin Harvick, and Kyle Busch, the story of 2010 has been the new faces. Aric Almirola, Timothy Peters, Austin Dillon, and Johnny Sauter have all scored at least one victory, and any of these guys could legitimately challenge for the championship.
Starting last weekend at Iowa Speedway, the Truck Series now starts into a summer stretch of races that will go nine straight weeks. With only ten races currently in the books, a lot can and will change over the next nine weekends. While you can never count the veterans out, I wouldn’t be surprised if the Truck Series had a first time champion in 2010.
Sponsorship, or lack thereof has been on the mind of just about every team executive in NASCAR this season. While the year has been rough for the sponsorship market as a whole, in no place has it hit harder then in the Truck Series.
The biggest anomaly in the series are the amount of experienced, winning drivers that have been affected.
Take defending champion Johnny Benson. He became the latest victim of the economy this week after Red Horse Racing shut down his unsponsored team. I believe the only time the team actually had any deal was at Daytona with K&N. The rest of the time the truck has remained white.
Now he hear Timothy Peters is joining Red Horse from his own fledgling organization. Peters’ biggest asset is the Strutmasters sponsorship he brings with him.
Todd Bodine doesn’t quite know Johnny’s plight, but he has been driving race-to-race all season. Every time Bodine has been on the cusp of reaching his final race, sponsorship has come through and they have been able to continue. The brilliant thing this team has been doing is publicizing their struggle and they have gotten a lot of great exposure as a result.
Germain ran several very small sponsors early on in the season (which were plugged heavily during the broadcasts), and then signed Copart for the last several races. Copart has three races remaining with the team this season. After that the team finds itself in a familiar situation.
Another former champion feeling the pinch is 26-time winner Mike Skinner. He joined Randy Moss Motorsports this season after Bill Davis Racing folded. Skinner brought with him a partial sponsorship from Exide and some support from Toyota, but he and most especially his wife Angie have been working very hard to put together smaller deals for the holes in his schedule.
They have had everything from Daytona Beach law firm Rue & Ziffra to Bad Boy Mowers on the truck. Mike and Angie, instead of waiting and hoping on others to find deals, took the initiative and are keeping Mike’s career alive and still very vibrant.
Unfortunately NASCAR has been less than enthusiastic about furthering the Truck Series. It has become the overlooked series, almost an after thought by the sanctioning body. If you want an example of this look at purse money. Just something to consider; the top grossing driver, in terms of purse money, in the Cup Series is Tony Stewart. He has pulled in $3,459,120. In the Nationwide Series, Kyle Busch is tops; he has earned $506,620. In the Truck Series Todd Bodine holds the crown with $286,875 in winnings. He is not the norm either. The points leader at the moment, Matt Crafton, has pulled in $130,000 less than Bodine. While it is true it’s a little cheaper to run in the Truck Series, it’s not that much cheaper.
Another big issue the series faces is a lack of media exposure. While they have been making ratings strides on Speed, the untapped market is very large. Despite the extensive amount of programming that covers the other series, the Truck Series has very often left out in the cold.
And now we have reached the point where fewer than 30 trucks will even actually finish the race. At Texas there were only 22 trucks running at the end. This weekend there are 32 on the entry list and I counted at least six start and parks.
It’s hard not to commend the teams who are actually fighting and going the distance. I can’t say enough times how much I love the Truck Series. It is the most fun to be around and the best racing you’ll see most weekends. Unfortunately NASCAR has been slow to give the series the credit it deserves. It will be interesting to see how the remainder of the season plays out for those sponsor-challenged teams.