Nascar Hits Speed Bump With GM Bankruptcy

[Hannah Bell]

People across the country are feeling the impact of General Motors’ bankruptcy filing: plant workers in Michigan, car dealerships in California and, of course, the Nascar fans in Texas.

Yes, Nascar fans are experiencing the sting of bankruptcy just like everyone else. Both GM and Chrysler were major sponsors of the racing league (some estimates put Nascar’s investment at $125 million) and their restructurings could spell trouble for Nascar.

GM has already cut back on its sponsorships, dropping four of its 12 deals last July, and more contracts could end up on the chopping block as the company navigates its bankruptcy proceedings. Plus, with the U.S. taking a 60% stake in GM, the company could be more prone to scrutiny from government officials like Massachusetts Congressman Barney Frank, who has questioned whether companies should be spending their government money on sports promotions, according to ESPN.

http://blogs.wsj.com/bankruptcy/2009/06/02/nascar-hits-speed-bump-with-gm-bankruptcy/

[RB TexLa]

1. "Win on Sunday, Sell on Monday" has been gone for a while

Racing investment now is more about pride and research. I don't think GM is going to fight too hard to keep spending a lot of money on it. They'll still spend some but not like before.

[islandmkl]

2. hey NASCAR....how's that generic 'car of today' you have everybody using working out??...

you bit the hand that fed you, chasing off brand loyalty (a fundamental component of the fans' enthusiasm for your sport)...and now the car companies will conveniently 'find' that they don't have the money to dump in your industry...

if the fans can't tell the Chevy from the Ford from the Toyota from the Dodge...what's the point in underwriting the programs??

[Demeter]

3. I'm Here in Michigan, Trying to Work Up a Spare Tear or Two for NASCAR

but it just isn't happening....7 plants closing, suppliers filing for bankruptcy, thousands unemployed, health and pension benefits gone, homes gone,

Nope, no tears left.

[leveymg]

4. NASCAR has nothing to do with "stock car" racing. Would be a better sport if factory teams left.

and the racing returned to smaller teams that ran actual production-based cars, like in the sixties and seventies.

[HooptieWagon]

8. Welll....

As much as I would like to see that, production-based cars simply are not safe enough. And there are no "factory" teams anymore - haven't been for decades. You are correct that there are no GM parts on the cars - GM's support has been in the form of sponsorships, contingency awards, and engineering (especially computer modelling). So, while they (and Chrysler) will be missed, it is no more catastrphic than any other significant sponsor leaving. NASCAR will survive - probably with reduced sponsorships, reduced spending, and reduced fan base - but that is a trend over all sports.

[JustABozoOnThisBus]

5. Maybe the "new" GM could sponsor

a few teams in the NASCAR "hybrid" race class, or "electric vehicle" race class. Might be pretty boring if the electric vehicles have eight-hour pit stops to recharge. Oh, well, any excuse to sell (or consume) beer.

:hi:

[blindpig]

6. k&r n/t

[BlooInBloo]

7. Ohnoes. I can't watch people make a continuous left hand turn any more?

[blindpig]

10. The way this country is going...

left hand turns are the only option.

[BlooInBloo]

11. :)

[Mika]

9. Another big tax cut for NASCAR team owners and track owners ought to do it. n/t

[NNN0LHI]

12. Yep I just can't imagine 800,000 pissed off GM retirees paying to see Toyota's go round and round

Thats for sure.

Don

[Mika]

14. The Kia 500. n/t

[Blue_Tires]

13. good..

the big 2.5 should have pulled out YEARS ago, even when things were still good...GM got a LOT more return for its investment by doing road racing/ALMS then they ever did in NECKCAR

[FarCenter]

15. The only GM and Chrysler contributions to NASCAR are decals and money

The cars are all custom, hand-built race cars. For example, they are all rear-wheel drive. Aside from the fact that production models are front-wheel drive, there are no automobile differentials that would tolerate the horsepower of a NASCAR engine.

Their resemblance to any production car is in name only.