A couple of big time nascar players in trouble

I found this at yahoo.com. Top 10 big businesses facing bankruptcy. Here are two of them:

3. Sprint Nextel

Sprint Nextel is bleeding customers, and could lose as many as 4.4 million net post-paid subscribers this year.

This is a huge problem when you have large amounts of maturing debt over the next few years.

A recent Deutsche Telekom acquisition rumor offered some hope, but that appears to have faded. Facing a difficult road ahead on its own, the company better keep its lawyers on speed-dial.

6. Goodyear

Demand for Goodyear tires has sunk, and the company is saddled with massive debt and pension obligations.

It doesn’t help that The United Steelworkers union prevents the company from proper cost control by forcing factories to stay open.

Shareholders have to wonder how much value will be left of the company after bondholders and the union members have their way.

Source: http://finance.yahoo.com/tech-ticker/article/336235/Ten-Big-Compani...

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Permalink Reply by vak7 on September 22, 2009 at 8:55am

These articles always predict the demise of companies that very rarely occur. You might see one or two of their "Top 10" filing some form of reorganization but not many actually close their doors. Sprint has been in trouble since acquiring Nextel. Blending the two technologies turned out to be a bigger challenge than they bargained for. They've been running them as separate companies ever since, not part of their master plan. They've been trying to sell Nextel off again, which would solve a good deal of their problems. Thought they were close but they really haven't kept up the technolology in that brand so I can't imagine what value it may hold in the market.

But for their nameplate brand, Sprint is the industry leader in technology so it will not go away anytime soon, despite their outrageous plan costs and bleeding their customers. Their Instinct is the only true rival to the iPhone and there will always be masses who flock to a 4G network simply because they can. They'll survive. But their role in NASCAR may go away in the process.

Not as familiar with Goodyear but wouldn't hurt at all to see competing manufacturers on the track.

I have to wonder what losing Sprint would do. It would be hard to replace the series sponsor at the same pricing structure in these economic times. Maybe it would give France, Helton et al. a true idea of what their product is really worth rather than the inflated value of a few years back, something homeowners across the country already learned. How many companies have that kind of money to invest today? I shudder to think it may really become the Hendrick Cup in more than just claim to the championship. He's probably among the few who have that kind of available cash.

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Permalink Reply by vak7 on September 22, 2009 at 10:12am

That was just a bit before I started following the sport, don't know about it. I do know Goodyear's been diligent in overcoming whatever issues they've had on the track. I don't want to see them go. Just saying, easier to replace a tire manufacturer than a series sponsor.

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Permalink Reply by Keith on September 22, 2009 at 10:20am

"But for their nameplate brand, Sprint is the industry leader in technology so it will not go away anytime soon, despite their outrageous plan costs and bleeding their customers. Their Instinct is the only true rival to the iPhone and there will always be masses who flock to a 4G network simply because they can."
1) SPRINT is bringing 4G on line in the bigger markets. Will take a while to go national.
2) The PALM PRE competes nicely with I-Phone and is now a lot cheaper. (Go to CNET.com and see)
3) SPRINT plans are the least expensive in the industry, how can you say they are "bleeding" the customer? Have you actually compared the plans? Sounds like you are just parroting what somebody else has said. The $99 "Everything" plan costs I-Pone users $165 at AT&T for the same options.

SPRINT is paying the price for poor customer service from '05 through '08. You can't treat customers like a commodity and expect to keep them. They re trying hard to correct this, but once you get a bad rep, it's hard to break the stereotype. Just ask any Robby fan about that.