IndyCar Scourge - The Leveraged Supply Chain

IndyCar is hip to the streets of Baltimore. Therefore, the Republic quotes a Charm City native son as we revisit the past so that we might anticipate the future.

"Same as it ever was." - David Byrne

• 1990 - Indy loses the Texaco Star. Texaco enters a leveraged supply-chain agreement with Kmart, increasing funding to Newman Haas Racing but robbing Indy car racing of a long-time entry. Texaco continues its primary sponsorship of Robert Yates' #28 Ford in NASCAR.


• 1994 - Hardees' goes south. Priced out of IndyCar racing by numerous leveraged supply chain deals, the quick-serve chain reallocates all of its racing budget to NASCAR.
  


• 1994 - Team Valvoline is disbanded. Two years after winning at Indy as primary sponsor for Al Unser, Jr. and Galles Racing, Valvoline enters into a leveraged supply chain agreement with Cummins Diesel and Walker Racing. Valvoline continues primary sponsorship of Jack Roush's #6 Ford in NASCAR.


• 1995 - Budweiser dethroned. The world's top sports advertising brand abandons Indy car primary sponsorship. It strikes a leveraged supply chain deal with Kmart, increasing funding to Newman Haas Racing while subtracting another entry from the series. Budweiser continues primary sponsorship of Rick Hendrick's #25 Chevrolet in NASCAR.

The emerging strategy is one that we have seen before. The Committee on Public Safety trusts that citizens know the difference between an enterprise that is well capitalized and one that possesses a product that consumers actually want. Leveraged supply chains funnel money to racing teams and promoters. Leveraged supply chains do not create demand for the racing product.

That is why certain IndyCar participants love them.

We witness our future in our past.

Roggespierre