Several announcements recently have us preoccupied with the adage “business as usual,” which I file in the same briefcase category as the dreaded “I’m 99-percent sure,” statement, if you get my gist.
Past history has taught me well that whenever I hear or read the “I’m 99-percent sure,” line, it is a sure fire certainty that the one-percent negative will win out.
With this in mind, I cite two specific recent happenings for this week’s wonderment: the continuing exodus of Indy/Champ Car style open-wheel drivers to stock car racing and the resignation of Sprint’s CEO in the wake of major cell phone subscription losses and consequent stock tumble. Both businesses have inferred that in 2008, we’ll more or less see “business as usual.”
Let’s start with the Indy/Champ cars. Champ Car ran an unheralded November race in Mexico that featured 17 drivers, 12 of whom I’ve either never heard of or am unfamiliar with. TV Nielsen ratings and spectator attendance? Not so good. (And I’m being nice with that statement).
Over in the competing IRL IndyCar Series, where great wheel-to-wheel racing takes place with better (but not great) Nielsens, the defection of its all-time winner Sam Hornish to run full-time in 2008 Sprint Cup removes yet another IRL star from its roster. The Hornish/Penske announcement follows fellow IRL star Dario Franchitti’s declaration that he, too, will run NASCAR Cup full-time next year for Chip Ganassi.
Add to this scenario stock-car newcomers Juan Pablo Montoya, A.J. Allmendinger, Jacques Villeneuve, Scott Speed and Patrick Carpentier, along with open wheel graduates Jeff and Robby Gordon (both), Tony Stewart, Casey Mears, Kasey Kahne and J.J. Yeley, and it’s crystal clear to those who follow this sport what is now happening.
As this trend continues, it ironically fulfills “International Race Of Champions” founder Jay Signore’s 1974 vision of a successful series, albeit not on such a grand scale. Signore lost his IROC series abruptly last February when sponsorship dried up. Today, in what would impress any fan of illusion and magic, NASCAR’s Cup division is turning into a real, esteemed, weekly drama of IROC-inspired eminence, i.e.: put the best drivers from all disciplines of racing in stock cars and wave the green flag. This time, however, it will be presented from February through November, each and every year.
Roger Penske himself agrees that NASCAR is “big time” nowadays, and rightfully so. NASCAR’s strong pull of return on investment for its sponsors and owners, and the corresponding fact that Sam Hornish will probably make more income on NASCAR apparel and novelty sales than he did running Indy Cars bodes well for stock-car fans and NASCAR it particular.
Granted, NASCAR’s naysayers will point to television ratings being down a bit, or the usual less than packed seats during college and pro football season entertainment competition.
Still, I’ll bet that come February 2008, everyone will be talking NASCAR Sprint Cup, with heretofore unparalleled interest. The usual driver hype intertwines well with all-new Toyota teams and this influx of open wheel stars. It will be a drama filled, newsworthy time.
But there are downturns, too, and some are somber and uncontrollable.
Can NASCAR expect “business as usual” from its now struggling Sprint series sponsor, which committed to a 10-year, $700-million deal in 2004?
Many feel Sprint won’t be able to renew its NASCAR sponsorship unless financial conditions improve. Specifically, Sprint CEO Steven Forsee resigned his Chairman and CEO position recently amid poor company earnings and a corresponding tank in the Sprint’s stock price (from a high of $26.89 in April of 2006 to it’s close Friday, Nov. 9, at $16.31.) Sprint also expects to lose a net 337,000 postpaid subscribers in the third quarter, adding more to company woes.
CEO’s are replaced because things NEED to be changed, period. Whoever takes Sprint’s new CEO post may not see value in the NASCAR agreement, especially when the “cash out” faucets are running, stockholders are unhappy and its subscriber base is falling.
In ending, there’s more disconcerting news. The stock market is gyrating; gold has quietly moved to over $825 an ounce; mortgage foreclosures and troubled banks are increasing; and the U.S. dollar continues to lose value against foreign currencies. Add escalating gas prices, continued $100 per barrel oil banter, and the use of words “recession,” “depression,” “inflation,” and, “deflation,” spoken daily on the financial news broadcasts, and it’s hard not to arrive at the conclusion that the next year or so doesn’t look too optimistic for any business.
Thus, “business as usual” just doesn’t compute, and I’m 100-percent certain on that.
However, since racing is a business and an entertainment venue, let’s hope NASCAR fans support Sprint the next few years, Indy car racing finally comes to its senses, and the new, weekly, 2008 NASCAR “IROC” Sprint Cup succeeds beyond anyone’s wildest dreams.
We also give special thanks to Signore and son, and all their test drivers, who gave these open-wheel stars countless laps at speed in stock cars the past 30 years.