Like the rest of us, NASCAR has been having all kinds of financial problems. Some large organizations, including well-known huge businesses and some which are not companies but rather are connected to the Pentagon, are leaving their multi-million dollars sponsorships of teams, races and racers as soon as the current deals run out. (Dale Earnhardt, Jr., in his National Guard-sponsored Chevy leads the Toyota of ex-open wheel star AJ Allmendinger in a Sprint Cup event). Now we come to find out that NASCAR's most important sponsor, the title sponsor of the entire series, Sprint Nextel, is apparently not only open to acquiring some partners by selling parts of itself, but might even allow Sprint Nextel to be taken over by a South Korean company. More on that a bit later, but first some background: Just last week, the US Navy announced they are dropping their multi-million sponsorship of the #88 Chevrolet in the Nationwide Series, driven by Brad Keselowski, after the contract runs out at the end of this season. JR Motorsports is a first-year team in the series, owned by Dale Earnhardt, Jr. Both Earnhardt and Keselowski have worked hard for their Navy money, the military service going so far as to create a "Dale Jr. Division" an 88-person boot camp division at Recruit Training Command. General Motors announced cutbacks this morning amounting to more than $10 billion, and no motorsport will be immune from cutbacks. GM has already notified two racetracks that run NASCAR events that their current contracts will not be renewed as part of an overall $10 billion cost-cutting program. And no one likes to cut racing from their budget because ... apart from the potential marketing and promotional boosts, it's so much fun! The execs are not sitting in some Detroit office when they're at the track. (Dale Jr., and his mother, Brenda, after one of Junior's wins). "Win on Sunday, Sell on Monday" was for decades the non-stop mantra of car-makers and their hotshot marketing departments. But the facts are that motor racing, especially in the US, doesn't have that kind of direct influence on the public anymore. GM's cuts are just the first in what could be a huge drop in support by GM, Ford and Chrysler for tracks and teams in NASCAR, the NHRA and more in the face of the weakest US auto sales in a decade. Speedway Motorsports Inc., which owns eight tracks that hold NASCAR events, already has been told GM will not renew contracts at two tracks — New Hampshire Motor Speedway and Bristol Motor Speedway. Bruton Smith is CEO of Speedway Motorsports, and, like International Speedway Corporation, which was created by the France family, both are public corporations and answer to stockholders above all else. (With tobacco thankfully gone from almost all motorsport sponsorship and advertising in the US and worldwide, NASCAR decided to accept advertising from hard liquor distillers and distributors; a family sport?). GM has contracts with 12 of the 22 tracks where NASCAR's top Sprint Cup series races and is the title sponsor for the fall race at Richmond International Raceway. GM and the other American car companies will to continue purchasing hospitality, suites and track displays, although perhaps not at the same level. Which probably means more potato chips and pretzels and fewer shrimp cocktails in the hospitality suites of NASCAR (GM prides themselves on always having the largest shrimp at their numerous cocktail receptions). All of the Detroit Three and other companies paying the way for racing in NASCAR and other American series will be forced to make cuts before long if the economic downturn continues. The way things are going with the economy and the value of the dollar versus the Euro, it might be cheaper for Formula One to run their entire series in the US for the foreseeable future. The Navy says about the newly-formed division: “Everything JR Motorsports does is centered around excellence, teamwork and professional development, and that squarely places them in that number one seat – and that’s where the Navy sits in the defense of our nation." They also have a cool website with a talking Dale Jr., kind of like one of those audio-animatronic characters at Disneyland, and you can visit by clicking anywhere on this line ... And oh, when you visit there, remember: no flash photography, please. At least that's what they always say at Disneyland, just before "Mr. Lincoln" gets up from his chair and speaks ... (Brad Keselowski is driving his Nationwide Series Chevrolet, with big-time US Navy sponsorship, to a possible series title; they're dropping the sponsorship at the end of this season. The Army, Air Force, Marines, Coast Guard and US Border Patrol have all been major sponsors in NASCAR over the years. If the US public knew how much the Pentagon and Homeland Security were spending on NASCAR alone, do you think they'd be surprised, or shocked or want to see more of it in the sport?). A couple of ironies here: Keselowski is a good bet to win the Nationwide Series this year, meaning that Navy is losing a pretty good chance of next season sponsoring the series champion. Also, while JR is losing the Navy, team owner Earnhardt, Jr., driver of the #88 Chevy in Sprint Cup, appears safe for next season with the National Guard ... yes, the National Guard ... as his primary sponsor. These are not coincidences, these are ironies. You should know the difference, especially at your age ... (And yes, that is a Dale Jr., Barbie). Click below to find out more about NASCAR's financial problems and the possible impending sale of the Sprint Cup series title sponsor to a South Korean company.
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