Racing sponsors now at a crossroads of performance, ratings and ethics

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The last several weeks have seen sponsor stories take over from on-track ones as the dominant players in the North American racing news.

NAPA, of course, has made the biggest announcement with its decision to leave Michael Waltrip Racing at the end of the year, in the wake of the controversy at the NASCAR Sprint Cup Series regular season finale at Richmond. 5-Hour Energy, additionally, seems displeased with the action the organization has taken in a statement it has released.

Other sponsors are on the move, which is normal in racing, but noteworthy in their timing after Richmond. Valvoline leaves Roush Fenway Racing for Hendrick Motorsports; Jimmy John’s goes with driver Kevin Harvick from Richard Childress Racing to Stewart-Haas Racing.

Castrol made the jaw-dropping decision earlier this year to leave John Force Racing at the end of 2014 in NHRA after 29 years.

And then there is the report this morning that GoDaddy is re-evaluating its role as a primary sponsor in IndyCar with Michael Andretti’s team, citing low television ratings as the impetus for a potential move out of full-time primary sponsorship there.

It all adds up to a fascinating question: Which part of racing do sponsors prefer most? Is it on-track performance, ethics, or ratings?

To borrow a term from NASCAR President Mike Helton, the “ripple effect” of the last few weeks has changed the corporate game in a way we haven’t seen for quite a while. Sponsors often come-and-go from racing but it’s become increasingly apparent the Richmond saga has made a bigger impact on all forms of motorsport than we might have realized in the immediate aftermath.

If it’s on-track performance you crave, ideally, IndyCar would be the best bang for the buck. It costs substantially less – think in the $4 to 8 million range – for a season-long sponsorship (by comparison to $15 to $20 million in NASCAR). A sponsor can advertise itself at the Indianapolis 500, the largest single-day sporting event in North America, and have the chance to win a variety of different circuits.

That said, the marketing and promotional aspect of the variety apparently does not justify the ROI as it stands now. Roger Penske, for instance, has had to put together a consortium of sponsors to field Helio Castroneves and Ryan Briscoe’s cars since Philip Morris tobacco money exited at the end of 2010 (livery was withdrawn at the end of 2009). Elsewhere around the grid, teams have become increasingly reliant on drivers bringing sponsorship to secure a seat. There’s still plenty of talent on the grid, but the days of fully-funded rides without bringing a dollar are drawing to an end.

NASCAR, meanwhile, can offer better TV ratings on the whole, with the performance aspect secondary. It’s why Danica Patrick, for instance – long seen by this writer and others as a good-but-not-great driving talent who has made most of her career via marketing – can afford to run 25th to 30th place every week, but maintain the GoDaddy support for the awareness and buzz she creates off-track.

Now, though, NASCAR faces an ethics crisis the likes of which it has rarely seen. If NAPA’s departure is the tip of the iceberg in terms of corporate America withdrawing its dollars, it could create another “ripple effect” – to borrow Helton’s words again – where more sponsors depart and hundreds of families see jobs go away. That might be an extreme way of looking at it, but it is certainly possible if sponsors don’t see the value in the tens of millions of dollars invested and the PR too damaging to their brands.

A good take from the Sporting News’ Bob Pockrass, linked here, suggests NASCAR needs to implement a “grand plan” to soothe sponsors and their concerns. Pockrass notes there are elements where NASCAR is already involved in direct communication with sponsors – notably via Chief Marketing Officer Steve Phelps – but that needs to expand in the wake of the Richmond controversy.

As a fan, you want to see sponsors – regardless of series – do the job of activating and creating a connection that spurs you to root for said sponsor and buy more of their product. As a sponsor, you ideally want to be successful in all three aspects of performance, awareness and moral standards.

Depending on the fallout the rest of 2013 as it relates to sponsor movement, we’ll see which of the three takes precedence in the motorsports landscape.

MRTI Preview: Mid-Ohio

Photo: Indianapolis Motor Speedway, LLC Photography
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The Mazda Road to Indy Presented by Cooper Tires faces possibly its busiest weekend of the year this weekend at the Mid-Ohio Sports Car Course. Yet another double header awaits the Indy Lights Presented by Cooper Tires and the Cooper Tires USF2000 Championship Powered by Mazda, while the Pro Mazda Championship Presented by Cooper Tires tackles it’s lone triple header of the year.

What’s more, the season is rapidly winding down for all three series. Indy Lights and Pro Mazda only have three race weekends remaining (Mid-Ohio, Gateway Motorsports Park, and Watkins Glen International), while USF2000 has only two (Mid-Ohio and Watkins Glen), meaning time is running out for anyone who wants to challenge the championship leaders.

In Indy Lights, the title picture centers around one driver, while Pro Mazda and USF2000 are up for grabs between two pairs of young hard chargers. All told, the final weekends of the year have the makings for intense battles to claim not only the championships in each respective series, but also the Mazda scholarships that enable the drivers to move up.

Below are quick previews for all three series.

INDY LIGHTS

  • Top 5 in points: 1. Kyle Kaiser, 279, 2. Matheus Leist, 228, 3. Colton Herta, 214, 4. Zachary Claman De Melo, 207, 5. Aaron Telitz, 203

    Kyle Kaiser dominated the most recent Indy Lights outing in Toronto. Photo: Indianapolis Motor Speedway, LLC Photography
  • Kyle Kaiser swept the weekend at Toronto, dominating Race 1 on Saturday and surviving a crash-filled Race 2 on Sunday. His weekend sweep gives him three victories for the year, and combined with struggles from the likes of Matheus Leist and Colton Herta to give him a sizeable championship lead of 51 points.
  • Zachary Claman de Melo and Aaron Telitz are quietly riding waves of momentum. Claman de Melo’s last four finishes are 1-6-2-3, while Telitz has gone 5-9-5-2 in the same stretch.
  • Though Kaiser has a sizeable championship lead, 39 points separate second from seventh (Leist, Herta, Claman de Melo, Telitz, Santi Urrutia, and Nico Jamin).
  • Santi Urrutia swept both Indy Lights races at Mid-Ohio last year.
  • Ryan Norman’s No. 48 entry for Andretti Autosport gets a different look this weekend, with rock band Journey featured on the car.

 

PRO MAZDA

The Pro Mazda championship has been a see-saw battle between Franzoni and Martin. Photo: Indianapolis Motor Speedway, LLC Photography
  • Top 5 in points: 1. Victor Franzoni, 174, 2. Anthony Martin, 167, 3. TJ Fischer, 115, 4. Nikita Lastochkin, 110, 5. Carlos Cunha, 103
  • Through six races, only Franzoni and Martin have won races (three apiece); with Fischer 59 points out of the lead in third, it appears Franzoni and Martin will decide the 2017 Pro Mazda championship.
  • Mid-Ohio represents the lone triple-header of the year for Pro Mazda, with races on Friday, Saturday, and Sunday.
  • Last year, in a triple-header for USF2000, Anthony Martin swept the weekend, winning all three races.
  • Nico Jamin swept the Pro Mazda weekend at Mid-Ohio last year, winning both races in what was then a double-header.

USF2000

  • Top 5 in points: 1. Oliver Askew, 283, 2. Rinus Veekay, 265, 3. Parker Thompson, 206, 4. Kaylen Frederick, 185, 5. Calvin Ming, 151

    Oliver Askew has struggled lately, allowing Rinus Veekay to close the championship gap. Parker Thompson now sits third. Photo: Indianapolis Motor Speedway, LLC Photography
  • Askew’s points lead has been trimmed to 18, with finishes of 17th (Road America Race 1, due to suspension problems) and 12th (Toronto Race 2, due to a crash) blighting an otherwise impressive season.
  • To contrast some of Askew’s recent struggles, Veekay has finishes of 1-1-2-3-2 in his last five races, allowing him to dramatically close the gap to Askew.
  • Parker Thompson’s weekend sweep at Toronto vaulted him to third in the championship. At 77 points back of the lead, it will be difficult to mount a title push, but his presence can be a spoiler for Askew and Veekay.
  • Of note: each of USF2000’s Mid-Ohio visits the last two years have seen weekend sweeps. As previously mentioned, Anthony Martin accomplished the feat in 2016, with Nico Jamin doing so in 2015. Conversely, the 2014 outing saw different winners in each race. RC Enerson, Jake Eidson, and Florian Latorre all won in a triple-header weekend that year.

Racing begins on Friday with USF2000 and Pro Mazda running their first races of the weekend. Indy Lights holds its first race of the weekend on Saturday.

Follow Kyle Lavigne.

 

Foyt, Coyne optimistic about Mid-Ohio after testing

Photo: IndyCar
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Along with Felix Rosenqvist and Chip Ganassi Racing, two other teams visited the Mid-Ohio Sports Car Course for testing ahead of this weekend’s Honda Indy 200 at Mid-Ohio (Sunday July 30, 3:00 p.m., CNBC). A.J. Foyt Enterprises and Dale Coyne Racing sent their drivers and teams to Mid-Ohio in hopes of getting a leg up on things and building optimism ahead of this weekend.

For Foyt’s team in particular, the optimism is needed. Combined, drivers Carlos Munoz and Conor Daly have only three top tens (two for Munoz, one for Daly) across a total of 24 starts, making them desperate for strong results to come their way.

Conor Daly and Carlos Munoz are hopeful that they can turn their seasons around at Mid-Ohio. Photo: IndyCar

Mid-Ohio presents an opportunity for Foyt’s duo to right the ship. Munoz has finishes of fourth, ninth, and third in three starts at the Lexington, Ohio road course, while Daly led late in last year’s race and finished an impressive sixth.

And a productive test last week has both feeling hopeful. “We needed this test to try big steps and different options and I think we gained a lot from where we started to where we finished,” said Munoz, whose best 2017 finish of seventh came at Barber Motorsports Park in April.

Munoz added that, while they are still playing catch up a little, the team gained valuable information that should help them this weekend. “The car was much more competitive from where we started so we closed the gap but we need a little bit more to compete with the top guys. But the information that we gathered will help us to show up stronger than we did at the test so I’m looking forward to going back,” he asserted.

Daly echoed Munoz’s sentiments and added that his near-win last year makes him upbeat ahead of the weekend. “It was a really productive (test) for us. Every day with this car and aero package we are learning more. I feel like I came quite close to winning the race last year so I’m hoping to have another strong result this year,” Daly expressed.

Technical Director Will Phillips added that the knowledge they gained should help them at Watkins Glen International and Sonoma Raceway at the end of the season, particularly in terms of maximizing the grip from the tires.

“We certainly believe that the area we made an improvement in will help us at all the road courses to come – we have been slow to extract performance from the tires at times and it was in this area that some changes we made had a very positive response,” Phillips described. “We will keep our feet on the ground but are optimistic that we can carry the gains through for the remainder of the year, not just for Mid-Ohio.”

On the other side, Dale Coyne Racing has been a giant-killer in 2017, winning at St. Petersburg with Sebastien Bourdais and finishing third at the Indianapolis 500 with Ed Jones. James Davison, Tristan Vautier, and Esteban Gutierrez have also impressed in fill-in roles for the injured Bourdais.

Dale Coyne Racing has shown a lot of speed in 2017. Photo: IndyCar

And while the team has also incurred more than it’s fair share of crash damage, they have consistently showcased speed at nearly every event, and the team’s drivers are confident Mid-Ohio will yield more of the same.

“We had a really good test last week at Mid-Ohio. It was very positive and we worked on a lot of things,” said Ed Jones, who has four starts at Mid-Ohio from his days in Indy Lights Presented by Cooper Tires, with a best finish of sixth. “The car seemed pretty fast compared to others that were there. As we saw at Road America, it’s beneficial to be able to test somewhere before we race there. It can give you an advantage early on and hopefully we can produce another good result because of it.”

Teammate Esteban Gutierrez, making his sixth start for the team this weekend, is more modest of his expectations, but did reveal that a top ten finish could be realistic.

“In terms of objectives for the weekend, I want to keep on learning and it would be nice to reach the top ten. We know that it’s been a pretty steep learning curve for me in IndyCar but we’ve made some progress and hopefully we can make our way into the top ten pretty soon,” Gutierrez detailed.

Of the drivers mentioned here, Jones ranks the highest in the championship standings, currently sitting 12th. Munoz sits 15th, Daly 19th, and Gutierrez 25th in his fill-in role.

Follow Kyle Lavigne.

Lando Norris also gets confirmed for Hungary test with McLaren

Photo: Lando Norris PR
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McLaren Honda young driver Lando Norris has joined the list of those confirmed for the post-Hungarian Grand Prix test as well.

He’ll run on the second day, Wednesday, of the two-day test with Stoffel Vandoorne running on day one, Tuesday.

The teenaged Brit races for Carlin in the FIA F3 European Championship this season and is one of the most talented prospects in the pipeline, following his karting career and early years in formula cars. This will mark his test debut in an F1 car.

He was announced as part of McLaren’s development program in February.

Norris was confirmed a little more than a week ago for next year’s Rolex 24 at Daytona in a United Autosports Ligier JS P217 LMP2 car but this gives him his first go in a proper F1 rocketship.

 

Pirelli review says Raikkonen tire not faulty at Silverstone

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BUDAPEST, Hungary (AP) Formula One tiremaker Pirelli has concluded that Kimi Raikkonen’s tire damage late in the British Grand Prix was likely caused by external contact.

Raikkonen was set for second place in the July 16 race but his tire problem allowed Valtteri Bottas to complete a Mercedes one-two with Lewis Hamilton. The Finnish driver even looked set to lose his podium spot to his own teammate Sebastian Vettel, but in a bizarre twist he ended up third after Vettel’s own tire shredded.

The sight of two Ferraris capitulating within moments of each other led Pirelli to conduct extensive post-race tests on both cars. Raikkonen’s problem, Pirelli said in a statement Wednesday, did not come from the tire itself.

“The possible initial cause of this damage is consistent with contact against an external body, leading to a partial separation of the belt from the carcass in the two affected areas,” Pirelli said. “On no occasion was there any sign of fatigue, detachment or laceration -or even the beginning of such problems – that affected the structure of the tire. In conclusion, Pirelli can confirm that no issues have emerged connected with the tire itself.”

Last week, Pirelli said that Vettel’s shredded tire at Silverstone was caused by a slow puncture.

Vettel appeared to be heading for third place at Silverstone until his front left tire suddenly blew apart two laps from the finish. The four-time F1 champion managed to steer his Ferrari back to the pits for a tire change, and secured seventh place to cling onto his championship lead. Raikkonen’s pit stop to change his tire came just before Vettel’s.

Hamilton won to cut Vettel’s championship lead to one point. Raikkonen, who has three podium finishes this season, is fifth overall.

The championship continues at the Hungarian GP this weekend before a month-long summer break.