Monday, June 29, 2015

Franchising Could Come To NASCAR As Soon As 2016

RTA chairman Rob Kaufmann
GodfatherMotorsports.com has learned that NASCAR and its Sprint Cup Series owners are negotiating a new dynamic that could fundamentally change the way the business side of the sport operates.

Since the sanctioning body was founded in 1949, team owners have operated as independent contractors, with little stake in the sport beyond a pennies-on-the-dollar sale of buildings, equipment and inventory on their way out the door. That could change in the near future, with the implementation of a proposed new arrangement that would limit the number of teams allowed to take part in the Sprint Cup Series, as early as 2016.

Multiple sources tell GodfatherMotorsports.com that Race Team Alliance chairman and Michael Waltrip Racing co-owner Rob Kaufmann is representing the owners in their negotiation with NASCAR. Under the new system, the sanctioning body will repeatedly award Sprint Cup Series franchises – or “medallions” – to owners whose teams have attempted to qualify for every race in each of the last two seasons. A total of 40 franchises will reportedly be awarded, trimming the Sprint Cup Series starting field from its current 43 cars.

Kaufmann declined to comment when contacted earlier today, but told ESPN.com’s Bob Pockrass that he has had “productive discussions” with NASCAR about building equity for owners.

“Both NASCAR and the teams recognize that the teams building up some kind of long-term equity for participating in the sport -- year in and year out and putting on the show -- is a good thing,” said Kaufmann to ESPN.com. “You look at a lot of other sports around the world, and that's how they work.

"So the question is, can you come up with some model within the framework of NASCAR that makes sense for everybody? It's a very sensible concept. The hard part is the details. So we're having productive discussions to see if we can figure out how to do it. It's an ongoing project."

NASCAR has also declined to comment, citing the speculative and premature nature of the discussions.

15 comments:

  1. Brandon in TN3:20 PM

    So how does a new start up team enter the sport without ine of these "medallions?"

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    1. Presumably, just like they do in other professional sports; by purchasing an existing franchise.

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    2. Brandon in TN11:21 PM

      So in other words no new teams will come to Nascar.

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    3. Anonymous10:57 AM

      a move led by Penske and Ganassi to take Nascar down the road of indy cars????? Seems they have both personally benefited from indy racing than the series.

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  2. Interesting. This is much more significant than negotiating hotel block rates or insurance group rates!

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  3. Anonymous4:40 PM

    Personally I think it's just another move that will push NASCAR fans further from the sport. Especially if a new up and coming team must purchase an existing franchise to participate. Wow; talk about becoming further unconnected with most of your NASCAR fans. I want to enjoy the sport of racing; not be consumed by how much more and more it is becoming business driven and a club for only the rich to participate in.

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    1. I hear that, but it's been a long time since us po' folks were able to go Cup racing. Like me, I think you're mourning the loss of something that hasn't existed for a long time.

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    2. To further your point Dave, the economics of the sport have changed and the idea that franchising at this juncture - if it happens, not that I dispute this report - is not as radical as it would have been twenty years ago. Anonymous' point about new owners having to purchase an existing team to participate does have legitimacy, but the way the economics have developed seems to have dictated this move.

      What I am hoping comes from this is that NASCAR and teams finally figure out some form of spending controls to combat out-of-control costs, because more than any other sport racing is what the former head of KMart called NASCAR after he withdrew his company's sponsorship programs - "a bottomless pit of spending."

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    3. Anonymous5:01 PM

      I do; I miss the old NASCAR badly. A lot of people would argue it hasn't been the same since Earnhardt Sr. died. Some felt Stewart would have taken his place in the way of being a voice for most drivers in the garage for NASCAR to know where everyone stood. Sadly each year it seems more and more people are silenced and told this is the way it is if you want to participate in NASCAR. I'll admit I admired Earnhardt Sr. more after he passed but I think that's because I got older and more mature. I could see and appreciate more of what he did for the sport that maybe I didn't comprehend at an earlier age. Earnhardt Sr. will always have my respect because of the respect he had of those on and off the track. When ever I think of the respect people had for Dale I remember when he finally won the Daytona 500 and how every member of every team came out on pit road to congratulate him. What a sight...

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  4. The owner's basically have nothing, or very little at the end or if they want to sell their teams. Could you imagine building up a franchise like RFR, Penske, Hendrick, Stewart-Haas and in end being told that just sell your stuff to the highest bidder. It makes business sense and protects these owners a bit. You can't grab a group of 9 guys and walk into Fenway and say we are here to play the Sox. You have to buy an existing team to do that. But, OTOH, is could completely block out new, small teams trying to get into the sport. But, like any sport, if you want to get into it at the highest level you better have deep, deep pockets. I think the only sport where a common man or woman could actually get to the top based on their skills is golf's U.S. Open.

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  5. Doug M.9:20 AM

    Too many unknowns to form a real opinion right now, but I see a lot of potential things that bother me. Same teams locked in every week. Never anyone that needs to qualify to make the show. Hard for a young driver to run a couple of Cup races the year before he/she moves up to Cup. Another possibility: They award franchises, but still allow "free agents" to show up and try to race. Maybe get the best of both worlds.

    There is also the risk of complacency if teams know they are guaranteed a spot on the grid and a share of the series revenue. We could end up with the NASCAR equivalent of the Miami Marlins. Spending the bare minimum on equipment, team, and drivers without a huge worry about being competitive.

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  6. Dwayne in Memphis9:26 AM

    So NASCAR will no longer be "haves" and "have nots" - it be the "haves" and the "get outs." This sport is starting to get too rich for its own good. More and more people are mourning the loss of something that hasn't existed for a long time. I'm wondering how many of us are still watching racing out of habit? Since the introduction of The Chase, individual races and their results have been relegated to afterthoughts compared to The Chase implications of each race. We've spent all season arguing if the Busch Brothers belong in the chase. The fact that both could qualify based on a partial schedule and the way they've raced is an amazing story. But we miss the race results to argue over The Chase that's still nearly 3 months away. "Good points day" was something that people got tired of hearing, but it was a throw-away line to summarize an ok race day. Now we focus on who won, only on who won, and how many wins they have now. And the greatness of the race gets lost IMMEDIATELY as we look ahead to The Chase.

    Now we're squeezing out (officially) the little guy who works hard to break into the sport - e.g., Furniture Row Racing. Makes the sport appear even more elitist than some people already think it is. So yeah, this is another domino in a long line of dominoes that has us mourning the loss of something that hasn't existed for a long time...Great racing for the sake of great racing.

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  7. Anonymous6:51 AM

    Great comment Dwayne and the thought about us watching races out of habit was even more interesting to me; as I can kind of agree with that for myself. Listen, great racing is great racing and when it happens and your watching it, it's awesome. But when you look at the heart of NASCAR anymore and those feel good stories, David defeating Goliath; it just doesn't really happen anymore. Maybe something will change; but the course taken the last 10 plus years would suggest otherwise.

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  8. Anonymous10:57 AM

    If they only franchise teams that attempt to enter every race then Wood Brother's Racing won't be a part of NASCAR. Hey Dave, do you want to be a part of a NASCAR where the Wood Brother's won't have a franchise or won't be allowed to race? Talk about throwing your history out the window.

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  9. I personally am sick of all these people that live in the past. the reason why NASCAR is struggling right now is because it refuses to change to accommodate the present. Franchising is a absolute must. The system would help distinguish each individual team just like every other sport that happens to be more successful than NASCAR. I'm looking forward to seeing the team24 franchise to be apart of NASCAR forever just as the Redsox are apart of the MLB for forever. This is a team sport its not all about the drivers. Also with this system teams build equity, which make sponsors come into the sport. This, especially, is helpful to the smaller teams and may possibly make them more competitive. You will see more of a cycle of good teams as you do in other sports as things change. One of the biggest advantages to this is fans of other sports may be able to latch onto this and start to understand and relate to our sport more, hopefully getting rid of their ignorant opinions. All in all this is a very good thing that should have been done along time ago but wasn't because NASCAR refuses to accommodate to the present. (Hints dying fan base)

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