November 29, 2008
By Brenda Benedict
The economic news continues to shock us. Every day a new crisis is exposed. The morning news is becoming hard to watch. Many organizations that we have long trusted and considered secure are now in trouble.
Here in Michigan the talk is centered on a future that will look very different. The prospect that the Big Three (automakers) might fail or even be restructured, has Michiganders on edge. Life as we know it is going to change.
There are similarities between NASCAR and Michigan.
The world of NASCAR is facing its own economic crisis. Anthony Andro of the Star-Telegraph.com said recently, “There’s no question the economy was the big story at the end of 2008. Teams are merging. Others are still searching for sponsors. Attendance was down at just about every race. And then there’s the mess with the Big Three. How would bankruptcy filings by General Motors, Ford or Chrysler affect NASCAR? Unfortunately, 2009 could go a long way in answering that question.”
Jenna Fryer of the Associated Press said, “(Brian) France said a little more than a week ago that NASCAR "won't live or die" by a manufacturer pullback or pullout. But many teams most certainly will and the trickle-down effect will be devastating to those who rely on racing to pay the bills.”
The Washington Post reported last month, "With the Big Three U.S. automakers struggling to survive, they have begun to dramatically scale back their financial involvement in NASCAR, threatening the economic model that has driven the sport's popularity. All major sports leagues are suffering slumps in the economic downturn, but "NASCAR is expected to get hit harder than traditional stick-and-ball sports because of its overwhelming dependence on corporate dollars." And many of those dollars have always come from automakers. After all, what builds a reputation for high-performance cars better than winning auto races?”
Brian France has addressed the difficulties by visiting offices of the Big Three and received assurances of continued support of NASCAR from each of the companies.
However, I question how realistic those executives are about the economic future. Their testimony in front of Congress recently showed how out of touch they are with both the realities of the financial situation in this country and their own futures.
France stated confidently, “But we’re not going to live or die if one manufacturer has to pull back or pull out. The sport is on very, very solid ground, that transcends one manufacturer or another.”
Last week I wrote about attending an arena race in Grand Rapids Michigan. Arena racing is an indoor 1/10 mile track with cars built to ½ scale of a larger race car.
Watching arena racing confirms for me what is great about auto racing. The elements of NASCAR racing that make it so enjoyable for me are present in Arena Racing. It has helped me clarify why I’m such a race fan. NASCAR would do well to look their sport and capitalize on those things that the fans find important.
I met and talked with the Arena race drivers before and after last week’s race. What I heard was an internal drive and desire to win that rivals anything you would hear on NASCAR Cup race day.
Once such driver was Nate Kennon, an employee of Michael Waltrip Racing. Nate was breathing a sigh of relief because he had survived the job cuts that were rampant in NASCAR following the end of the racing season in Homestead, Florida
Kennon, who is an engine builder at Michael Waltrip Racing, also fields an arena racing team. He brought his team to Grand Rapids. The #30 car is number two in the points standing in Charlotte, North Carolina Arena Racing and looked fast in practice. He qualified first and was looking strong.
Kennon easily came in first in the A Main race and seemed poised to make it a clean sweep for the night. But it was not to be. A mechanic malfunction on the warm-up lap sent Kennon’s team packing back to Charlotte without the prize he came so far to claim.
Kennon’s story with his ties to NASCAR sounds very familiar to the story of Michigan workers. His love of racing has led him to find an outlet that gives him the satisfaction of competition while reducing the amount of money needed to be part of the team.
In Michigan, workers are leaving by the thousands to find work elsewhere. My own daughter had to leave Michigan to find a teaching job. Ironically, she is near Charlotte teaching in a North Carolina high school.
The economy in Michigan is going to have to adjust. A world where the Big Three auto companies have money flowing is no longer an option. NASCAR may have to make the same adjustments.
It will be important for NASCAR to know what is needed to continue to present auto racing in a way that keeps their loyal fans. They need to realize that those core values that I saw in a small venue such as arena racing are the heart and soul of the sport.
Michigan’s economy would not survive if we continued to follow the business model of dependency on the Big Three. Michigan businesses are seeking to broaden their economic base to develop an economy that will flourish in the 21st century. Still, the collapse of the auto manufacturing sector is going to be extremely painful. It will require a major overhaul of how and with whom we do business here in Michigan.
NASCAR will have to do the same.
The thoughts and ideas expressed by this writer or any other writer on Insider Racing News, are not necessarily the views of the staff and/or management of IRN.
