Not a good sign: Lawyers getting involved between NASCAR, new Race Team Alliance

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When the new Race Team Alliance introduced itself to the world July 7, everything seemed like sunny skies and good feelings going forward in the world of NASCAR. Everyone spoke positively, optimistically and seemed to be full of confidence that all — owners, drivers, teams and NASCAR — would benefit.

Even NASCAR president Mike Helton said during an impromptu press conference last Friday at New Hampshire that there was no animosity between the sanctioning body and the new upstart ownership group.

“I wanted to dispel the perception of animosity to start with and then back that up with saying we’re going to do business as usual,” Helton said. “I think everybody in the garage area knows how we do our business and the role they play in it, and so we’ll continue to do it that way.”

But less than a week after Helton’s comments, the first salvo of what potentially could become an eventual antagonistic relationship has been fired, and it boils down to what oftentimes is one of the nastiest words in professional sports:

Lawyers.

The amicable original intention of the RTA has now been responded to by International Speedway Corporation, NASCAR’s sister company, as well as NASCAR itself. Both sibling companies have made it very clear to the RTA that if there is to be any communication between both sides, it will be through attorneys, not man-to-man between RTA boss and Michael Waltrip Racing co-owner Rob Kauffman and NASCAR chairman/CEO Brian France or second-in-command Helton.

As the old saying goes, can you see where this could potentially go to hell in a handbasket very quickly when lawyers are involved?

Kauffman, at least publicly, doesn’t seem overly concerned, according to an interview with Bob Pockrass of SportingNews.com late Wednesday.

“It’s not an animosity thing, it’s just a formality thing,” Kauffman told Pockrass. “NASCAR is a big company and they’re very sensitive legally. They’ve had experience (with antitrust) and they want to be very formal and correct in the initial stages. … It’s understandable. Hopefully as time goes on and both sides get used to each other a little bit, those barriers (will) tend to go down. I think it will be fine.”

The RTA’s original intention of pooling resources, cutting expenses, etc., is quite noble indeed. Even with countless cost-cutting measures, including large-scale layoffs in recent years, plus teams folding throughout all three primary NASCAR series – Sprint Cup, Nationwide and Camping World Trucks – the cost of operating teams remains extremely expensive.

Only 10 years ago, the average team operational budget in Sprint Cup was in the $10 to $15 million per year range – just to competitive.

Today, that number is more in the $20 to $25 million per year range — again, just to be competitive. And when you have multiple teams within an organization, that cost can quickly reach upwards of $100 million for a four-car group like Hendrick Motorsports and Stewart-Haas Racing and up to $75 million for a three-car operation like Joe Gibbs Racing or Richard Childress Racing.

For all the good things NASCAR has done to reduce costs, including the one-engine rule, the interchangeable Car of Tomorrow and its Generation 6 successor, it still costs a lot for team owners to remain in the game.

That’s why it’s not surprising some teams have folded or suspended operations, including at least two Sprint Cup teams this season already.

That’s also why so many sponsors have come and gone over the last six or seven years, and have forced teams to go from having one primary sponsor all season long to a number of different primary sponsors for only a certain numbered block of races per season.

The reason: overall, sponsoring a finite number of races (anywhere from, say, six to 16) is much cheaper and an easier pill to swallow for sponsors, particularly when questioned about return on investment by their shareholders.

And with significant changes likely to come to the sport next season, including a revamped schedule, the possibility of several venue changes within the Chase for the Sprint Cup, as well as more rules and equipment changes, the nine initial owner members of the RTA are understandably looking out for themselves both individually and collectively.

But with lawyers now involved, the hoped-for amicable relationship gives the appearance that things are already starting to tug at the seams.

Few have discussed the power the RTA could potentially amass in its one-for-all, all-for-one mantra. It’s not unthinkable that if NASCAR continues to struggle at the box office and in TV ratings, that RTA may try to exert and wield some pretty powerful clout:

  • Like forcing NASCAR to deviate from its “our way or the highway” mindset that has been in place for 65 years.
  • Like forcing NASCAR to give team owners significantly more power, perhaps a prelude to the long-talked about possibility of adding franchising to give owners more of a say in the way the sport operates.
  • And the biggest potential possibility of the RTA: If the owners stay united and take a hard line stance and force the issue, they could eventually demand the power to oust or retain key NASCAR officials, including France and Helton.

That last possibility could also potentially be why both sides are now starting to lawyer up. While the intention is supposed to be amicable and formal, the end result could be something entirely different.

After all, team owners in NASCAR have the least power overall of any other major professional sport. Unlike in other sports, NASCAR team owners don’t have the ability to hire or fire the sanctioning body’s top executives, don’t have voting privileges when it comes to sanctioning body decisions, have no say in what rules can be changed (although owners do have input, NASCAR doesn’t have to listen to them), and have only the limited power that the sanctioning body gives them.

Up to this point, the France family-run and privately-owned business model has worked well. Well, let’s clarify that: it’s worked well up until about 2008, when the economy went south and NASCAR’s fortunes, popularity and TV ratings began to go with it.

But I’m not saying France, Helton and others have been the cause of NASCAR’s downfall in recent years. On the contrary.

France and Helton and those under them have done a good job when faced with some very trying circumstances and situations – certainly circumstances and situations that most other sports leagues have not had to deal with as much.

NASCAR’s top officials have worked diligently to improve safety, control costs as best they can, brought parity to the performance of race cars and trucks while also making the overall racing better, and have worked hard to attract new sponsors and businesses to the sport.

They’ve worked at trying to convince hotel chains and chambers of commerce in various locales that NASCAR visits to not gouge fans for room costs on race weekends, lest that not only hurts the fans, it also hurts the overall sport and the businesses themselves.

They’ve worked to keep the sport viable and relevant. They’ve worked at alternative ways to get the sport’s message across when countless media outlets have all but forgotten coverage of NASCAR events and news. Whereas particularly newspapers used to devote hundreds of column inches to yearly NASCAR coverage in the past, now most of those same papers will run maybe a paragraph or two at best (some even less, giving nothing more than a one-sentence “report” of who won that week’s race).

Sadly, while NASCAR certainly loses in that instance, it’s the fans that lose the most because they’re deprived of the kind of expansive media coverage that helped make them fans in the first place.

While I was optimistic and hopeful that the RTA and NASCAR relationship would be good for the sport, the fact that we will now have third party attorneys doing the “communicating” between both sides is both foreboding and ominous.

We can hope for the best, but right now the best is starting to look quite concerning.

Follow me @JerryBonkowski

Mario Andretti says Colton Herta could be next American star in F1

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Mario Andretti’s last Formula One victory is also the last by an American driver in more than 42 years on the international open-wheel road racing series.

If you had told Andretti that while he was celebrating on the Grand Prix of the Netherlands podium on Aug. 27, 1978 at the Vandzoort circuit, he wouldn’t have believed it.

“Absolutely not,” Andretti told Kyle Petty during the most recent “Coffee With Kyle” episode (video above). “It’s a shame. Somehow we have so much talent here, and either there’s no invitation or something there. But I think it’s time to give some of this young talent that, in my opinion, is absolutely capable.”

The Dutch GP was the last of Andretti’s 12 victories in F1 and came during his championship season. No one since has come close to matching his success in F1.

Mario Andretti drives his Lotus-Ford to victory in the 1978 Grand Prix of the Netherlands (Bernard Cahier/Getty Images).

Andretti’s son, Michael, took a full-time ride with McLaren in 1993 but left with three races remaining in a season marred by crashes and mechanical problems.

Scott Speed was the last American to run a full F1 season in 2006, and Alexander Rossi made the most recent F1 start by a U.S. driver in 2015. Rossi has said he has no desire to return to racing in Europe after winning the 2016 Indianapolis 500 and becoming an IndyCar championship contender.

But Mario Andretti believes Andretti Autosport has another rising star with F1-caliber ability.

“Colton Herta is one that comes to mind,” Mario Andretti said. “As a young lad, his dad sent him to Europe, he was doing Formula 3, and he knows most of the circuits there. He’s trained. He’s showed in his rookie season and won some premium races at COTA (and Laguna Seca), beat two of the very best Indy has to offer (in) Will Power and Scott Dixon.

“This is one kid I’d love to see him get a break over there to fly the U.S. colors again.”

Herta, 20, seems interested in exploring an F1 leap over the next few years. After winning Sept. 13 at Mid-Ohio from the pole position (his third career victory in the NTT IndyCar Series), the No. 88 Dallara-Honda driver is ranked fourth in the standings in his sophomore year and regarded as one of the series’ top prospects.

Herta recently told RACER.com “I’d love to give Formula 1 a crack” but said he also would be happy driving in IndyCar and IMSA.

A naturalized U.S. citizen who told Petty about spending several years with his family in an Italian refugee camp before coming to America, Mario Andretti said F1 brought an enormous sense of patriotic pride.

“Formula One is like the Olympics in a sense,” he said. “You’re in a different country, a different continent. When you earn that highest step of the podium, they play your national anthem. That’s when you take nothing for granted. You feel like I’m representing my country, and the proudest moments are those.

“I’d just like to see some other American drivers experience that. It’s time.”

Mario Andretti with four-time NASCAR champion Jeff Gordon and six-time Formula One champion Lewis Hamilton before the Nov. 22, 2015 season finale at Homestead-Miami Speedway (Jared C. Tilton/NASCAR via Getty Images).

During the “Coffee With Kyle” conversation, Andretti also discussed:

–His versatility as a winner in IndyCar, sports cars, NASCAR and Formula One;

–His 1967 Daytona 500 victory and how he enjoyed racing with crew chief Jake Elder at the famed Holman-Moody team;

Mario Andretti Colton Herta
Mario Andretti and Kyle Petty saluted “The King” by wearing their Richard Petty-style hats during the latest “Coffee With Kyle” (NBCSN).

–Why he delayed his entry to F1 for a few years because of his earnings power in IndyCar. “I always say I’d race for free, but at the same time, you’re thinking of family and the future,” he said. “It was in the back of your mind that you can’t give up the earning power of IndyCar. That kept me from going full time in Formula One, but I always said that sometime in my career, I’d have to devote a period to Formula One.”

–On what it was like racing in an era when driver deaths were more prevalent. “If you’re going to do this, you’re not going to dwell on those negatives,” Andretti said. “There’s no way. You knew it was present. Especially in the ‘60s at the beginning of the season at the drivers meetings, you couldn’t help but look around and say, ‘I wonder who is not going to be here at the end of the season.’ We’d lose four to five guys. In ’64, we lost six guys.

“It’s something if you dwell on that, you’re going to take on a different profession. It’s a desire and love to want to drive that overcame all that and then the confidence it’s not going to happen to me. And then you pray.”

Watch the full “Coffee With Kyle” episode in the video above or by clicking here.

Mario Andretti looks on before the 103rd Indianapolis 500 on May 26, 2019 (Chris Graythen/Getty Images).