RTA looking towards franchising and future

Very little info has come out of the new "RTA" alliance announcement. Many involved shared little information only indicating this was more of a management aid to help lower costs by coming together. Lowering healtcare and expenses from an HR and management view.

Until USA Today reported on Sirius this morning that RTA has been meeting with attorneys and several former Cup owners that couldn't continue operating and owners that liquidated their assets selling for pennies on the dollar their inventory and resources. Former crew chief and Cup owner Andy Petree has been a huge voice with this formation. Current owners want to protect their investments and could look to franchising teams or getting more from NASCAR's new TV package dollars to protect their investments. RTA held several meeting with former owners (not sure if RGM was involved), seeking information on why they left and what could have prevented them from leaving. The report indicates several owners are getting very high in age (Penske, Roush, Gibbs, Childress) and won't to protect their employees and investment for years to come.
The new TV deal gives a huge portion to track owners and NASCAR, but the share going to owners have left several teams fuming mad.

The report went on to say that yes "HR and Management costs" are part of the alliance as teams seek ways to make the sport more affordable for teams to get involved and manage, but behind closed doors there's several meeting taking place with several high profile legal teams to give the owners not only a voice but a more aggressive position for talks with NASCAR.

USA Today reported this could be a landmark move in NASCAR that could forever change the future of racing and how teams operate. The main goal is to protect those involved and make it affordable for those with interest to become involved in the sport.

▶ Reply to This

Replies to This Discussion

Permalink Reply by pdxracefan on July 10, 2014 at 2:57pm

Good for them. With the course that Nascar is charting, they had to do something to survive the slow motion train wreck the series has become.

▶ Reply

Permalink Reply by FD REBEL on July 11, 2014 at 9:41am

NASCAR is a fan/sponsor based business all of its management have become multi millionairs and everyone else making a very comfortable income. NOW is the time to give the teams and FANS a break and take a deep breath, make it more affordable to take a family to a race weekend. Lower the costs to the teams so they in turn can market there sponsor packages to a wider market and lower base pricing. This will pay off in aces later down the road....BUT greed will prevail and the sport continue to circle the drain, it won't take long before the fans and sponsors get a clue.

▶ Reply

Permalink Reply by Dave-O on July 11, 2014 at 10:57am

I don't think NASCAR is the driver of cost in the series - they just hoard all the revenue.

You have to spend the big $$ to be competitive because the most competitive teams are spending big $$. NASCAR could never regulate engineers, wind tunnel time, R&D spend, etc.

Thus, it costs big $$ to sponsor a winning NASCAR team. I think this is what sunk RGM - not enough resources.

Either way, the ROI on those sponsor dollars are junk, which drives the big guys to sponsor NASCAR itself. Bang for buck is a lot higher on being the "official ____ of Nascar" than being on a hood.

Way I see it, this whole got started by Hendrick Motorsports - but that's an essay for another day.