The mood in the paddock at Road Atlanta this weekend was apparently every bit as gloomy as the weather. Rain forced the ALMS to shorten Petit Le Mans. A poor value proposition took care of the rest.
Citizens on site report that disappearing financial backing is on the minds of many in ALMS. We already know that the St. Petersburg Round will vanish along with Adrian Fernandez's team in 2010.
But our informants tell us that the gloomiest teams of all were those that had hoped to add IndyCar operations next season. The problem?
"It goes back to the value proposition and finding the money to compete." - InformantHerein is another problem with the present course of IndyCar racing. Government subsidized events in Brazil and at Barber Motorsports Park might fill the schedule and ensure that the league can continue to waste money on the present teams. But these events do nothing to increase the value of the IndyCar Series.
That would require working to establish a legitimate fan base that actually wants to watch the racing from week to week. Unless and until that happens, prospective new competitors will find it extremely difficult to finance their upstart IndyCar ventures.
We sympathize.
Roggespierre
We have proven (you have the numbers) that the IRL is not viable.
ReplyDeleteIt is also stuck with the same car and lump for two more seasons--which makes it's survival a real question.
Any person, group, company considering starting a new team, has to have money to burn, or they are living in a dream world since an acceptable return on investment isn't predictable!
So my focus has turned to "life after 2011"; is it possible for the present managment of the IRL to design a new car, engine package and series that will attract new teams, fans and sponsors?
Can the IMS survive a total failure of the IRL and prosper?
I'm starting there---what are your thoughts.
osca
Osca,
ReplyDeleteI see no reason to think that IRL management is not in denial. These guys think that signing deals for races that are subsidized by governments is a mark of progress.
I do give Barnhart credit for seriously considering the 3-wheeled car. Like the idea or hate it, you have to admit that it's pretty bold. That tells me that Barnhart might have some sense that big changes are needed. That's about as good as it gets with regards to IRL management.
Angstadt might sign Van Heusen as title sponsor. The only way that he'll get the money he's looking for is if he can arbitrage a supply chain - say, Macy's or Kohl's - to get Van Heusen some real value in another market. But Angstadt is either so dim or so in denial that, should he pull off the deal, he will really think that IRL is worth $6 million to $9 million, or whatever the amount might be.
No, I don't think that present management has what it takes to reinvent IndyCar racing to make the sport a viable competitor. Unfortunately, IRL "leadership" will continue along the same path for as long as the IMS, APEX Brasil, and state and municipal governments are willing to subsidize it.
That's why I call it the Zombie Racing Series. It's dead to the marketplace, but it is kept undead by non-market forces. Just like our banking system!
Best Regards,
Roggespierre
Keep in mind that the Brickyard 400 of NASCAR, MotoGP and other venues, do bring in paying customers so I do not think that IMS is in trouble. But the IRL ....... good question! I can't see how it is going to survive if the numbers get worse.
ReplyDeleteOldwrench,
ReplyDeleteApparently, some IRL team owners think that next year's 500 is in trouble. I have heard that they want to meet with the sisters. What they might have to say is a matter of speculation.
This thing is about to die. The sisters have no idea what's going on.
I say less than 33 in the race next year. That should end it.
Roggespierre
Roggespierre said:
ReplyDelete"This thing is about to die."
During its Centennial Era, no less. If the IRL dies it will be unlamented here. Its demise will actually provide an opportunity to revitalize the "500" and de-link the anchor that is the IRL. Whether or not the opportunity is seized is the question.
I agree. I have tried to work the numbers in consideration of running a team and they simply don't work. If the value isn't raised buy next year, I believe Indy Car racing as we know it may be done for good. It seems sad that a product that was once loved by a country has been effectively thrown to the wolves. I believe that both the Trans Am and Can Am of the 60's and 70's ended on this sad note also!
ReplyDeleteAnonymous,
ReplyDeleteYes. The death of the series would probably provide an opportunity to revitalize the 500. But is there any reason to think that, as you say, the opportunity will be seized? I see no one in a leadership position who appears to have what it takes to pull that off.
Oldwrench,
The history of U.S. motorsports is littered with international road racing series that failed financially. The irony of the ALMS teams that want to go IndyCar racing is that the very elements of the present IRL that appeal to them are the ones that do not serve a consumer market. They are the primary reasons for the financial difficulties.
The keys to economic success in U.S. motorsports are consistent and easy to identify.
1. Low cost
2. U.S. drivers
3. Ovals (because the attract U.S. drivers)
Yes, NASCAR is losing sponsors. But it will be sustained by its depth and its base value proposition, which remains very good. The teams don't get everything they want, but they do get a lot of money. That's not a bad deal.
Best Regards,
Roggespierre