Thursday, February 5, 2009

NASCAR trying to ride out economic downturn

DAYTONA BEACH, Fla. (AP) -- NASCAR's season-opening event had a much different feel Thursday.

Drivers came to media day with all the typical enthusiasm for the Daytona 500 and the new season. But they ended up fielding more questions about the economic downturn than Jimmie Johnson's quest for a fourth consecutive championship, Tony Stewart's new venture as an owner/driver or what could be Mark Martin's best and last chance at getting a Cup title that has eluded him for nearly three decades.


All those story lines took a back seat to the struggles facing a sponsor-driven sport trying to survive tough economic times.

"We obviously are driven by a lot of corporate sponsors and our fans are the most loyal out there," four-time Cup Series champion Jeff Gordon said. "They're all going to be tested during this time."

Hundreds of NASCAR employees have been laid off since the end of last season. Several owners merged race teams, others slashed budgets and some even folded shops altogether. Bill Davis Racing, The Wood Brothers and Petty Enterprises had massive layoffs. Even powerhouse teams like Hendrick Motorsports, Joe Gibbs Racing and Roush Fenway Racing endured cutbacks.

Chrysler, Ford and General Motors have seen a significant drop in car sales, and world leader Toyota also has been affected by the economic downturn. The problems have created doubt about whether the four automakers will be able to maintain financial and technical support that has become vital to the sport.

"The news is depressing, and I know a lot of it is real," Roush Fenway Racing driver Matt Kenseth said. "I don't know how it's going to affect the sport or our season or our sponsors or any of that."

Full sponsorships have become scarce, with teams settling for two or more corporations splitting up the high price of advertising on race cars.

David Reutimann got good news Thursday when Aaron's opted to sponsor the No. 00 Toyota for the entire season. Defending Daytona 500 champion Ryan Newman may be in a more typical situation. He moved from Penske Racing to Stewart-Haas Racing during the offseason and is still looking for someone to sponsor his car for several races.

"We all need to be conscious about it and do the best that we can to make sure the grandstands are full," veteran driver Bobby Labonte said. "Everybody's has to pucker up a little bit. But at the same time, you've got to believe the cup is half full. You just hope to ride the storm, hold on as tight as you can."

NASCAR officials have tried to do their part. They sliced ticket prices for the Daytona 500 and worked with local hotels to get reduced rates.

"Generally the teams, and I know NASCAR, are doing more with less," NASCAR CEO Brian France said. "Can we do even more? Sacrifice? Sure. I just know that budgets are coming down, layoffs have happened, people are doing more with less. NASCAR is no different. We've looked at every single thing we can for the sport to figure out (a solution)."

Drivers are searching for answers, too.

Dale Earnhardt Jr. suggested track owners build their own hotels so they can better control the cost for fans attending races.

"I just wish it was easier to go see a race," Earnhardt said. "People aren't coming to the race track because it's expensive to do it."

Carl Edwards suggested NASCAR scrap its fancy, season-ending celebration in New York City and instead frolic with fans in North Carolina in an effort to give something back.

There was also talk about drivers' salaries coming under scrutiny, much like Fortune 500 CEOs who have been criticized for taking bonuses while cutting jobs.

"We all play a role," Gordon said. "I wouldn't expect any employee at Hendrick Motorsports to take a pay cut, so I can keep my salary what it is. It's not about that. If we have to cut costs, I want to know how I can cut costs along with the next guy, the next guy and the next guy."

Gordon already has tried something new. He has started flying commercial as much as possible. He even took a $69 flight from New York to Charlotte, N.C., last month.

"We know what our budget is and we have a pretty good projection of what our income is," Gordon said. "But in this kind of economy, those aren't all guaranteed. Every year we look at how we can cut back cost and raise money and be more competitive. I'm open to anything."

Although more than 50 cars are on the Daytona 500 entry list, the number likely will drop in the weeks following the opener. Drivers are bracing for the economy to get worse before it gets better, meaning some sponsors could pull out midway through the year.

"What I see eventually is team owners having to put smaller price tags on their programs," Reutimann said. "If that happens, maybe that'll open the door for other corporations who at one time couldn't afford a full-year sponsorship able to come in and do that.

"You try to put a positive spin on everything. That's all you can do right now."


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