The Indy Racing League refuses to manage its product so that it might appeal to motorsports consumers in the United States. A natural and unpleasant result of that particular management failure is now in its nascent stage. It is shaping up to be a long-term nightmare for the IndyCar Series and the IRL Public Relations staff.I am referring, of course, to the Danica to NASCAR story. Ten days prior to a three-driver shootout for the a season championship that consumers have deemed irrelevant, Danica to NASCAR is the undisputed Top Story in IndyCar racing.
Columnist Bill Center provides a solid summary in the San Diego Union-Tribune.
Danica to NASCAR: a Management Problem
Unless IndyCar teams hire compelling U.S. drivers, Danica to NASCAR will dominate all coverage of the league until she finally joins the dominant market leader on a full-time basis. Of course, most IndyCar teams are unable to hire drivers from anywhere because they require Piloti-shod financiers to fund their operations.
This is the fault of IRL management.
Management has mucked up the supply chain so badly that teams must pay the Motegi Tax, the Mid-Ohio Tax, the St. Pete Tax, the Toronto Tax, and the Formula Dream Tax in order to acquire underpowered, spec Honda engines. There is no price competition among makers of chassis and replacement parts because Dallara has a monopoly.
The teams are uninvolved in manufacturing the racing equipment. They must purchase everything. They are not permitted to manufacture, cooperate, and sell in order to recoup cost - not that they would do it if they could.
What do these factors have to do with Danica to NASCAR dominating press coverage of the IndyCar Series?
Everything.IndyCar is not a consumer product because its costs are approximately five times greater than its value. Everything - from drivers to racing venues - therefore must in some way subsidize market failure. The formula favors international road racers and driver-financiers that can't be sold to a large U.S. audience.
No Stopping this Train
IRL Public Relations can not stop Danica to NASCAR. Do not blame PR.
Reporters are instructed to write and present stories that might attract a large audience. Danica to NASCAR is the only such story in IndyCar racing. Do not blame the media.
Tim Cindric wants NASCAR drivers at Indianapolis next year. Cindric is one of two team owners that can afford to hire driving talent from the United States. Why does he not do so? Why does he want others (NASCAR drivers) to solve the problem? Perhaps it is because that is the IndyCar Way.
The IRL is managed by Terry Angstadt, Brian Barnhart and Tony Cotman. Collectively, they have paved the way for the behemoth that is and will continue to be Danica to NASCAR. Why should they not be held accountable? They are the managers, after all.
They have inflated the cost of participation.
They have invited monopoly.
They have granted concessions.
They have elected to seek government subsidies rather than consumer acceptance.
They have earned the long Danica to NASCAR nightmare that is only now just beginning.
Roggespierre
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