Briscoe foils potential huge night for IndyCar

The Texas race was pretty good, in my opinion. There seemed to be solid action throughout the pack all night long. Penske and Ganassi did not finish 1st, 2nd, 3rd, 4th and 5th, which I had feared might occur.

Unfortunately for IndyCar, Ryan Briscoe won the race. I say unfortunately because, had Danica Patrick finished 1st rather than 2nd, IndyCar would have been the lead story on Sports Center and would have owned the front pages of sports sections throughout the United States.

Victories by Ryan Briscoe, a nice guy and a talented driver, are typically deemed to be irrelevant.

I suspect that this one shall be no different.

Roggespierre

IndyCar: IRL's Danica Nightmare just Beginning

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

Danica Demonstrates IndyCar PR Problem

Danica Patrick shed absolutely zero light on her future career path at Homestead-Miami Speedway Wednesday. Unfortunately, that is apparently all that reporters wanted to talk about following the Q&A session.

Here is a telling quote from the Associated Press story.

"Patrick was at Homestead-Miami Speedway with several other drivers Wednesday to test for the IndyCar finale Oct. 10."

Who were those "other drivers?" Apparently, this is not important information. I don't blame Tim Reynolds, the AP writer. His job is to generate stories that U.S. motorsports consumers might actually want to read. They are interested in Danica. They are not interested in the rest of IndyCar's failed "stars".

This must be frustrating as hell for the IRL public relations folks.


Myth of More Promotion

Allow me to confess that I like IRL PR chief John Griffin. I admit that I do not know him very well. But I have been duly impressed in my limited dealings with him. Frankly, I also have some sympathy for the man.

His job is to sell a collection of international drivers to U.S. racing consumers who have demonstrated that they are not interested. The IRL's Big Cheese has effectively blamed Griffin and his charges for IndyCar's comprehensive market failure. Never mind that Terry Angstadt refuses to manage his product.

"Marketing" is thought to be synonymous with "promotion" at the Indianapolis Motor Speedway. Therefore, it's up to PR to create consumer demand where none exists. Good luck with that, John.


Marketing 101

First-year undergraduate business students know that marketing begins with the Four Ps.

1. Product
2. Price
3. Place
4. Promotion

Let's quickly assess the Four Ps of the IndyCar Series.

1) The product is not designed for the purpose of attracting consumers.

2) IndyCar is overpriced at every point on the supply chain.

3) The product is offered in places where government subsidies can be procured rather than where consumer demand might be cultivated.

4) Obviously, the problem is lack of promotion!

Why does anyone still believe this garbage?


Cause without Effect

You aren't going to do much better with regard to promotion than having a Dancing with the Stars winner and an SI Swimsuit model in your starting field. Helio and Danica finished 1st and 3rd, respectively, at the 2009 Indianapolis 500. Yet the Greatest Spectacle in Racing produced its worst national television rating in recent memory.

Believe it or not, the IRL has typically overachieved with regards to its public relations hires. Most have been experienced, talented professionals who tried hard, became frustrated, and then escaped to jobs where they might promote something that consumers actually want.

Management competence has been elusive in the other IRL executive offices. Unfortunately, it is there that Product, Price and Place are determined.

Roggespierre

Danica a Done Deal

According to Curt Cavin of the Indianapolis Star, Danica Patrick will remain in the IndyCar Series for at least three more years. Cavin reports that the IRL poster girl has re-signed with Michael Andretti's team and will continue with "Motorola based" sponsorship.

Cavin also reported that Danica's future NASCAR plans remain unresolved.

This is a much needed shot of good news for IRL Commercial Division President Terry Angstadt, who also hopes to sign a series title sponsorship deal with Phillips-Van Heusen, parent company of current IndyCar sponsor IZOD.

IndyCar Doesn't Deserve Danica

With each passing hour, it appears increasingly likely that Danica Patrick will take our advice and transfer her various talents to the NASCAR Nationwide Series. Tony Stewart, once mocked as the poster boy of the Indy Racing League, appears to be involved in the deal. Needless to say that nobody is mocking Stewart anymore.

We really have very little to say about Danica's decision. We try to adhere to rational economic analysis. Therefore, we had no choice but to assume that Danica would go to NASCAR, where she will not be the only driver that satisfies consumer demand.

Roggespierre

Danica Patrick: IMG not Buying IndyCar Pitch?

Jayski is reporting that Danica Patrick returned to the Stewart Haas NASCAR (sans-culottes!) shop Monday afternoon. Meanwhile, IRL Commercial Division President Terry Angstadt is in Brazil, where he hoped to finance the 2010 version of his overpriced product and land a season opening race in the process.

Keeping Danica Patrick in the IndyCar Series is "very important." So Angstadt told Versus.com's Bruce Martin.




Angstadt's further musings on this subject require translation and analysis. We are pleased to provide these services to interested citizens. Those who are new to the subject should know that Danica is represented by International Management Group (IMG).

"We have worked hard and closely with IMG to give them confidence in our
series and her role in the future of the series." - Terry
Angstadt

It is unlikely that NASCAR (sans-culottes!) was required to provide such assurances. It has demonstrated that abundant demand exists for its Cup Series and Grand National Series products. Conversely, nearly all empirical evidence suggests that the market for the present IndyCar product is already small and still shrinking. Pity Terry Angstadt, who must convince a sophisticated marketing and financial firm that down is in fact up.

"I really respect the magnitude of this decision for her... That is why we
are respecting that as best we can with IMG." - Terry Angstadt

With all due respect, we have no idea what this means. Perhaps we can infer that failing to manage one's product tends to reduce one to pandering.

"It is sales, marketing, PR, venue selection, where she feels most
competitive... IMG challenges us and we respond accordingly." - Terry
Angstadt

These comments are fascinating. Danton suggests that Angstadt's list of generic activities is intended to imply that IndyCar knows how to maximize returns to Danica and IMG. That is, after all, why IMG is involved.

The reference to "venue selection" lends specificity and intrigue. For example, the IMG Speakers Series markets Danica's public speaking engagements. This effort is unlikely to yield favorable results in Japan and Brazil. In addition, we doubt that IMG has much enthusiasm for Edmonton. Who could blame IMG for suspecting that Danica's participation at these venues would cause her to forfeit significant revenue opportunities?

Is Danica in over her Head?

It is clear that the IRL hopes that Danica will stay because she has a greater probability of winning races in the IndyCar Series. Danica seemed to be leaning that way less than two weeks ago. Now, suddenly, she is silent and the issue remains unresolved.

If Danica intended all along to use NASCAR to get a better deal in IndyCar, then she must realize by now that she hired the wrong firm to represent her. This is not the starstruck IMG that Mark McCormack founded. Today's permutation is an aggressive profit maximizer that exists for the purpose of distributing abnormal returns to Ted Forstmann and his investors. In this case, that would mean taking Danica to NASCAR.

Roggespierre

Big IndyCar Danica Upset in the Making?

Curt Cavin of the Indianapolis Star just Tweeted that Danica Patrick will be staying in the IRL with Andretti (not Green) Racing. Cavin tends to be conservative when breaking stories, so we have every reason to believe that it's true.

This would be a huge accomplishment for IndyCar in terms of market competitiveness. We shall wait for the facts to come out before we provide additional commentary.

Roggespierre

Danica Delivers the Goods in the Marketplace

This space competes for readers just as IndyCar (allegedly) competes for consumers. Page views here increase 5x when "Danica" is in the title. Readers searching for "Danica Patrick" are infinitely greater than those searching for all other drivers combined; none has delivered a single hit to this site.

The Republic can only imagine what might happen if IndyCar could attract drivers like Tony Stewart and Kasey Kahne to join Danica. We might be as successful as Jayski.

But IRL management doesn't try to influence driver selection. This is not only a huge mistake, but also a failure to manage its product. Teams wouldn't like it, but so what? As suppliers to the IndyCar Series, their job is to provide a product that IndyCar can sell. Right now they are failing miserably by any objective measure. This is, after all, a spectator sport. Right?

If Danica escapes to NASCAR - and she will if she's economically rational - then IndyCar might finally hit rock bottom. Then, perhaps, the cars that race at Indy can be managed by someone with enough guts to identify an audience and serve it.

The Deal: IndyCar, Danica, Chip & Gillette

Is a deal brewing that involves Danica Patrick, Chip Ganassi, the IndyCar Series, and the Gillette division of Procter & Gamble? It's certainly plausible. Here's what we know.

• Gillette is part of Ganassi's leveraged supply chain deal with Target
• Chip Ganassi is rumored to have a sponsor interested in Danica
• Ganassi said publicly that Danica should stay in IndyCar and that he will not take her to NASCAR
• Jerry Gappens of New Hampshire International Speedway spilled the beans on a proposed IndyCar race at Gillette Stadium in Foxboro, Massachusetts
• Gillette has rumored interest in title sponsorship of the IndyCar Series
• Danica remains non-committal about her IndyCar/NASCAR "decision"

The Committee of Public Safety suspects that Ganassi is trying to strike a deal with IMG's George Pyne, Danica's representative, to put her in a Ganassi Indy car with primary sponsorship from Gillette.

The Problem

Danica starring in television commercials featuring Gillette products is worth much more than Danica driving an Indy car. Sponsoring her IndyCar program means Gillette must spend at least $7 million per season (probably more) of which $5.7 million is not justified by consumer demand for IndyCar racing. Pyne, a former NASCAR executive, therefore plans to take Danica and Gillette to NASCAR, where the price of sponsorship is justified by market demand.

Plausible Scenario #1

Ganassi tells the IRL's Terry Angstadt that IndyCar will lose Danica unless somebody underwrites Gillette's sponsorship of her ride at TCGR. Angstadt recalls that Gillette owns naming rights to the football stadium in Foxboro, Massachusetts. He proposes the "Indy 200 at Gillette Stadium" to sweeten the pot and keep Danica in IndyCar.

But that creates another problem. Who will pay the sanction fee for the Gillette Stadium event? Angstadt turns to the best tool in his toolkit, Apex Brasil. He lines up the International Events Unit to promote the Foxboro race and to assume the financial risk that goes with it.

Then Angstadt goes for the home run. He pitches Gillette a Brazilian-manufactured alternative to some product it has to buy anyway. It could be steel, plastic, payroll software, toilet paper - it doesn't matter so long as Gillette buys a lot of it. The Apex Brasil firm kicks some of its newfound Gillette revenue to the Indy Racing League and some to Chip Ganassi Racing.

If the deal is big enough, then IndyCar becomes the Gillette IndyCar Series. Danica Patrick joins Chip Ganassi Racing in a "Gillette" sponsored Indy car. Apex Brasil pays for both deals but fulfills its mission, landing a large new account in the United States for a Brazilian firm.

IndyCar takes to the parking lot at Gillette Stadium. Jerry Gappens' head promptly explodes. Bruton Smith looks even more like Don Rickles. The IRL invites Ganassi Racing's Mike Hull to design the new Indy car. The IMS breaks ground on the Terry Angstadt Luxury Suites & Day Spa.

The transaction did not increase ticket sales at IndyCar races. Television ratings did not improve. But the IRL is convinced that those things will happen just as soon as Gillette activates its IndyCar title sponsorship. Supply chain arbitrage saved the day!

Three years later, the IRL is still looking forward to Gillette's sponsorship activation. Gillette wanted and got Danica Patrick at fair market value. It did not care that in the process it had somehow acquired IndyCar Series naming rights, a race in a parking lot, and 15-million cubic feet of Brazilian gauze.

Plausible Scenario #2

Gillette declines the Deal of the Century and takes Danica to NASCAR, where fair market value includes the cost of operating a racing team. IRL management rationalizes that George Pyne, the former NASCAR executive, had intended to deliver Danica to his former employer all along. IndyCar returns to the business of planning a new generation of cars and engines it can't afford.

Roggespierre

Danica Patrick : Go and Save Yourself!

Dear Danica,

Citizens here know a bit about the business of IndyCar racing. We therefore write to offer some unsolicited yet humble advice. Do with it what you will.

You have made public your interest in NASCAR. As a lifelong IndyCar fan, I implore you to turn south, get the best deal you can, even if it's in the Nationwide Series, and go. Run - do not walk and do not look back - because the present direction of IndyCar racing will be of little benefit to you.

You're the Special Surprise in a box of cereal that the kids don't want.

You do not need to race at airports, parking lots, harbors, parks, city streets or any other temporary circuit. These "events" are the unmistakable signs of market rejection. I imagine that you have already figured this out. If so, then we suggest that you trust your instincts because your instincts are good. Phony racing circuits aren't your forte, anyway.

That said, the type of oval racing you'll do in NASCAR will be unlike anything you've ever done before. I suggest that you get in a midget or sprint car this winter. Competing in front-engine, tube-frame cars with lots of horsepower and little downforce is good training for the rigors of NASCAR. You'll learn a lot and be better for it.

What about winning the Indy 500? Yes, you could do it some day. But, much as it pains me to write this, so what? The IRL now serves its team owners and their managers, engineers and drivers who want to accumulate as many laptops, electronic gizmos, and road and street races as possible. Make no mistake - they all hope you stay. They would love to use you as an asset to underwrite a product that consumer rejection has bankrupted twice and likely would have a third time if not for mergification. Don't do it. The Indy 500 will suffer for it, and so will you.

NASCAR and its teams are fundamentally sound, professionally managed enterprises. Did you notice during your Carolina tour that NASCAR teams look like real, operating companies? Did you see guys molding, fabricating, and tooling in those shops? Strange, isn't it?

You see, Danica, NASCAR teams began with nothing - they earned everything they have, and they're still working for it. IndyCar teams inherited market acceptance and consumer demand but chose to throw it away, financing their whims with underwriters including shareholders, tobacco companies, auto manufacturers, drivers and their rich parents, scam artists, dictators, narcotics traffickers, governments, the Indianapolis Motor Speedway, each other, and, most frequently, supply chain arbitrage. Who has time to build a multi-billion dollar business based on mass market acceptance when you're having a really swell time racing at an airport in front of a solid crowd for Texas high school football?

The remaining IndyCar teams intend to race the way they want to race, and they fully expect to convince a new enabler to pay for it. They'll probably pull it off, too, with help from Apex Brasil. Sure, names of other "sponsors" will adorn the cars and event titles, but most of the cash will have come from the behemoth. Danica, the Brazilian industrial supply chain has nothing to offer you. You're already in demand right here. If you go to NASCAR, then the demand will actually extend to the race track. You'll have to get used to it.

Danton, Marat and I wish you well. Selfishly, we hope you stay. We love Indy cars and believe that you could help revive the sport. But we see the emerging strategy, and we know how this story ends.

On behalf of the Committee of Public Safety

Yours,

Roggespierre