Tip of the Iceberg?

It's not looking good for the Big Three and NASCAR. The Senate failed to approve a bailout plan that would give the Big Three automakers a much needed financial shot in the arm. What does that mean for NASCAR? Well, its a bit early to tell, but Chrysler and Chevy have both said they could go under by the end of the year. Ford seems to be in better shape and is likely to survive through 2009.

The recession dealt a major blow to one of the most successful teams in the NASCAR's history. Petty Enterprises announced they would be parting ways with 2001 series champ Bobby Labonte. Petty claims the current economic climate is forcing them to take a vastly different approach as they head into the 2009 season. In addition to releasing Labonte from his four year contract extension, Petty Enterprises is reportedly in discussions with merging with Gillette-Evernham.

It doesn't stop there. The following is an excerpt from www.jayski.com, listing current layoffs in and around NASCAR:

The Unofficial NASCAR related Layoff Count since end of season:(exceptions noted)
Dale Earnhardt Inc -- 116
Ganassi -- 76 +Nationwide team
Petty Enterprises -- 65
Bill Davis Racing -- 60
Richard Petty Driving Experience -- approx 45
Roush Fenway Racing -- 40-50
Furniture Row -- 25 [approx]
Earnhardt-Childress Racing Technologies -- 25 [approx]
Wood Brothers -- 22
Hendrick Motorsports -- 19
Stewart-Haas -- 16
Richard Childress Racing -- 15
Red Bull Racing -- approx 15
JTG Daugherty Racing -- 12
Michael Waltrip Racing -- 12
Ernie Elliott Inc [Ganassi engines] -- 9
Joe Gibbs Engines -- approx 5
Hall of Fame -- heard many were let go this week, no number yet
Yates -- Unknown
See my Racing Schools/Jobs page for news, postings, links and more including Racers Form Support Website, Motorsports Employment Task Force and more.(as of 12-10-2008)

Please visit www.jayski.com. They do an excellent job covering NASCAR.

Will NASCAR Survive?

This week's Senate hearings on a potential bail out plan for the Big Three auto makers will play a massive role in NASCAR's future, or lack there of. You don't need an economics degree to understand the devistating blow NASCAR would be dealt if any of the Big Three go under. The furture already looks bleak as big name teams are combining resources to save money. Smaller teams are holding on for dear life. Forget about finding a sponser. They are about as available as republicans in Congress. NASCAR is doing away with off season testing, which costs teams about a million dollars. Change is already here.

So, what will happen if the Senate tells the automakers to take a hike? Can NASCAR survive? I believe it can, but we are talking about sending the sport back about 30 years. Can you picture Jerry's Auto Detailing and Joe's Garage once again gracing the hoods? Most teams will have probably have one car in the garage. And chances are it will be a Toyota or, dare I say, a Saturn? Ohh boy. Heck, it might 1986 Monte Carlo. Who knows?

The schedule would dwindle to about half of it currently is today. TV contracts will be severly altered. No sponsers=no money=no tv!

Globally, we are already seeing the effects the economy is having on racing. Honda announced it will pull out of Formula One, thanks to an anticipated 40 percent drop in sales.

Make no mistake, even if the government bails out Detriot, NASCAR as we know it will change.
The 64,000 dollar question is; what can it do to weather the storm?