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

With 200 IndyCar wins in the books, Penske looks for No. 201 at Indy

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The history of Team Penske at the Indianapolis Motor Speedway is a storied one that features 16 Indy 500 wins, including a pair of four-time winners in Al Unser and Rick Mears, and number of utterly dominant performances.

Yet, they’ll head to this year’s 102nd Running of the Indianapolis 500 looking to avenge a pair of relatively subpar performances in each of the last two years.

Power was the only Penske driver to finish in the Top 10 in 2016, with Helio Castroneves and Simon Pagenaud finishing 11th and 19th after fuel strategy intervened late in the race. And last year, all the Penske cars were somewhat down on pace compared to other teams, notably the Honda cars.

Power was the only Penske driver to qualify for the Fast Nine Pole Shootout last year – he qualified ninth. Juan Pablo Montoya and Helio Castroneves were 18th and 19th in the grid, while Josef Newgarden and Simon Pagenaud were 22nd and 23rd.

And only Castroneves was in winning contention in the final laps as he battled eventual winner Takuma Sato – Montoya was sixth, while Pagenaud was 14th and the only other Penske running at the end. Both Newgarden and Power crashed out on Lap 183.

This year, however, could see a return to the dominant form we’re used to seeing from the Penske outfit. All four cars entered – Pagenaud, Power, Newgarden, and Castroneves – qualified inside the top nine, with Pagenaud and Power on the front row.

They have all been near the front of the time sheets, especially in laps without a tow from another car, and the indication is that the Penske cars may be the fastest ones in the field.

All told, it leads to very high expectations for a team that already expects highly of itself.

Leading the way for Penske is current points leader and defending IndyCar champion Josef Newgarden. Newgarden’s best Indy 500 finish is third in 2016, but he only has one other Top 10 there – ninth in 2015.

But, with an IndyCar title now under his belt, Newgarden has his eyes set on an Indy 500 win.

Josef Newgarden looks to add an Indy 500 crown to his 2017 championship. Photo: IndyCar

“I think Indianapolis…is certainly next on the list for me,” he detailed in a press conference ahead of qualifying. “It’s not next on the list for the team, they’ve won it many times. The good thing is we have four great opportunities, especially having Helio back. I think we have one of the best opportunities in the entire field to win this race.”

Pagenaud, like Newgarden, is also looking for his first Indy triumph, though his record there isn’t quite as good. He has been fast at Indianapolis Motor Speedway, but only has two Top 10s to show for it – eighth in 2013 with Schmidt Peterson Motorsports and tenth in 2015 in his first year with Penske.

And a Pagenaud win would be somewhat historic – it would be only the fourth time a French driver has won the “500,” and the first since 1920 (Gaston Chevrolet).

Pagenaud explained that this race always holds a place as a top priority, and that success at Indy is all about preparation.

Simon Pagenaud looks to become only the first French driver to win an Indy 500 since Gaston Chevrolet in 1920. Photo: IndyCar

“It really is our number one goal. In Roger and Tim’s heart, it’s the most important one,” Pagenaud declared. “We prepare really hard. The team does a fantastic job at just understanding every bit and component of this new aero kit, trying to extract the best out of the equipment.”

Pagenaud added, “On the driver side, there’s a lot you can do obviously to review the past races, try to focus yourself, try to put yourself into the race before it happens, try to just improve. That’s what we try to do every day. That’s the goal. That’s why this group is so good. We push each other so hard that you always try to push the limits away.”

Power, the man who delivered Penske his 200th IndyCar win, is no stranger to success at IMS, having won the Grand Prix on the IMS Road Course three times. But, he is yet to find Victory Lane on the oval, and that leaves a void in an otherwise stellar career.

Will Power has won the INDYCAR Grand Prix three times, and looks for his first win at the “500” this weekend. Photo: IndyCar

Power spotlighted the opportunity in front of him, and detailed that running in traffic has been a strength thus far through practice.

“It’s fantastic to have that opportunity. Obviously very focused on (trying to win),” he revealed. “I feel like we have a really good opportunity to win this year. I mean, I think Chevrolet has brought a really good engine. I feel like we’re really fast. Running in traffic and such, I felt like we’ve been pretty strong, especially when you get to the front.”

Castroneves is the only Penske driver with Indy 500 wins on his resume. But, with three wins to his name, Castroneves is more than familiar with IMS glory.

Now a part-time IndyCar driver who races full-time in the IMSA WeatherTech Sports Car Championship with the Acura Team Penske outfit, Castroneves’ sole focus is on getting that elusive fourth win.

Helio Castroneves looks to join the four-time winners club at the Indy 500. Photo: IndyCar

And he has momentum on his side too, coming off a debut IMSA win for the Acura Penske outfit at the Mid-Ohio Sports Car Course. A fourth Indy 500 win would put an exclamation point on the month for Castroneves.

“I think about it every day,” he said when asked about how often he ponders getting that fourth win. “It was one of those incredible ones, I have phenomenal car, the Pennzoil car was really strong last year. Obviously coming back here, first of all, I want to thank Roger and (team president Tim Cindric) for giving me the opportunity to be back at the Indy 500. It’s such a special place for so many people. Just to be back and able to continue our goal and pursue for the number four, it’s incredible.”

Pagenaud and Power will flank pole sitter Ed Carpenter on the front, starting second and third respectively. Newgarden starts fourth, while Castroneves will start eighth.

Follow@KyleMLavigne