IndyCar's Bernard talks Sense

Take a look at the new Associated Press interview with IndyCar Supremo Randy Bernard from the Sports Illustrated website.

The good news is that the chief executive continues to say things that make a lot of sense. The bad news, of course, is that the devil is embedded in details that remain to be seen.

We must keep our television numbers up... Sponsors buy off television... I
think the television number determines the future of the sport. - Randy
Bernard

This is a direct hit. Nothing can create revenue-generating leverage like good television ratings. That Bernard recognizes that poor TV ratings are much more than an unfortunate inconvenience is very good news for IndyCar fans.

Dan Ochs, manager of programming and acquisitions at ESPN, then chimes in with this gem.

We need to determine what's causing viewership to fall off. - Dan
Ochs

The Indy 500 has established historic statistical lows in consecutive years for the following:

1. Television Rating
2. American Drivers

Might there be a causal relationship?

Anyway, let's return to Bernard.

We haven't changed the product, and until we change the product, we have to
be very realistic on this. - Randy Bernard

Mr. Bernard shall get no argument from me. IndyCar has never seriously attempted to manage its product. If it were to do so in a strategically advantageous way, then it might just be able to become a viable competitor in the marketplace.

That, of course, is where those devilish details enter the picture. The product is much more than chassis and engines. The IndyCar "whole product" includes drivers, racing circuits, television broadcasts, and more. A new spec in and of itself could represent nothing more than added cost.

Much more important are those things that the new specs might allow IndyCar to do. Appealing to the present group of true believers will not be sufficient.

I thank Mr. Bernard for providing encouragement and wish him well as he attempts to deduce specific solutions.

Roggespierre

Bernard must shift gears to grow IndyCar

Before I head to Indianapolis for my 33rd consecutive Indianapolis 500 Mile Race, I want to discuss the challenges that face new IndyCar CEO Randy Bernard.

Curt Cavin's in-depth discussion of Bernard in Friday's Indianapolis Star reignited my interest in this topic. As one might expect, the portrayal of Bernard is glowing. Bernard's past success with Professional Bull Riders has earned him the benefit of the doubt, not to mention a significant Honeymoon Period.

I do not take issue with that in any way. The man deserves credit for the good work that he has done. Furthermore, I am encouraged by his work ethic and his results.

PBR vs. IndyCar: a different brew

That said, with Professional Bull Riders, Bernard essentially created a business enterprise where there had not been one. Building something out of nothing is difficult, to be sure. However, working from a clean sheet of paper does provide some advantages.

1. Low cost basis
2. Little or no direct competition
3. Low expectations
   

Unfortunately, Bernard can look forward to enjoying exactly none of those advantages as he attempts to revive IndyCar, where...

• The cost basis is exponentially greater than the value of the end product.
• Direct competition abounds both nationally and internationally.
• Perceptions of past success and the existence of successful firms in the motorsports space make for unreasonably high expectations among buyers and suppliers.

To summarize, Mr. Bernard is sure to discover - if he hasn't already - that Professional Bull Riders and IndyCar are very different animals.

PBR - NASCAR with Horns?

The good news is that Professional Bull Riders succeeded because Bernard effectively sold it to a quasi-mass market. This conclusion is supported by the types of sponsors - Wrangler, Jack Daniel's - that signed on. Thus, PBR would seem to be positioned similarly to NASCAR. Apparently, those folks still have time to watch something on TV in addition to Cup and Grand National. PBR's 2.4 rating with its NBC time buy further supports this conclusion.

One wonders, then, why Bernard would embrace a very different approach to marketing IndyCar.

Yes, the product is different. Then again, Bernard would seem to have authority to change the product in order to attract a large audience. Instead, it seems that he is attempting to create an entirely new breed of U.S. racing fan.

That - the Clamor for Glamour - shall be the topic of an upcoming post.

My next post, however, shall be one of longing.

Wish You Were Here - the 2010 Indianapolis 500 Edition - is forthcoming!

Roggespierre

Bernard Selects a Real Leader

New IndyCar czar Randy Bernard obviously sought and found an experienced leader to head the advisory panel that will recommend the next generation of specs for the IZOD IndyCar Series.

According to the Indianapolis Star, the job will go to Retired Air Force General William R. Looney III. This is a man who has achieved much. I am therefore encouraged by his appointment. Congratulations, Mr. Bernard!

I trust that the general will effectively keep factional interests at bay throughout the selection process. That is, after all, much of the battle.

General Looney - here's hoping that you deem significant cost reduction and control to be Jobs 1A and 1B. Drivers are for driving, not financing!

The Citizens solute you and wish you well.

Roggespierre