National Guard to end sponsorship of Dale Jr., IndyCar’s Rahal (UPDATED)

By Aug 6, 2014, 9:45 PM EDT
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UPDATE (9:45 p.m. ET): Hendrick Motorsports and Rahal Letterman Lanigan Racing co-owner Bobby Rahal have issued responses to today’s news that the National Guard will not continue to sponsor their respective NASCAR and IndyCar teams.

In their short statement, HMS said that the team has a contract in place to “continue the National Guard program at its current level in 2015.”

“We have not been approached by the Guard about potential changes and plan to honor our current agreement,” the release ends.

As for Rahal’s statement, here it is in its entirety:

“We were informed this afternoon that the National Guard will end all sponsorship of motorsports, including both IndyCar and NASCAR at the conclusion of the 2014 seasons. This is obviously very disappointing news to Rahal Letterman Lanigan Racing given the significant incremental brand exposure we have worked to produce for the National Guard in our first season together, including various off-track marketing and advertising programs focused on supporting the mission set forth.

“We will continue to work hard to uphold the honor and integrity of the National Guard throughout the remainder of the season. Rahal Letterman Lanigan Racing would like to thank the National Guard for allowing us the privilege of representing some of the finest men and women, those ‘citizen soldiers’ that protect our freedoms and safety each and every day… as we Focus Forward!”

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The National Guard has been one of the most prominent sponsors of American motorsports in recent years. But as part of a planned redesign of its sports sponsorship program, it will sever ties with both NASCAR and IndyCar.

That means the end of their sponsorships with HMS driver and NASCAR superstar Dale Earnhardt Jr., and second-generation IndyCar pilot Graham Rahal.

Both contracts are set to expire at the end of this season according to the Army National Guard’s acting director, Maj. Gen. Judd H. Lyons.

“Significantly constrained resources and the likelihood of further reductions in the future call for more innovative and cost-effective ways of doing business,” Lyons said in a statement released today.

Lyons added: “We believe industry and open competition can help us identify effective and efficient solutions to help us meet our marketing and recruiting objectives within budget constraints.”

This year alone, the Guard spent $32 million on its NASCAR sponsorship with Earnhardt and Hendrick Motorsports, plus another $12 million for its IndyCar sponsorship with Rahal and Rahal Letterman Lanigan Racing.

Earnhardt has enjoyed the Guard’s backing since joining Hendrick Motorsports in 2008, while Rahal and RLL took over the Guard’s IndyCar program this season after it had been with now-defunct Panther Racing from 2009-2013.

However, the Guard’s NASCAR program came under fire in May when USA Today released a report stating that the Guard had spent more than $26 million on that particular sponsorship but failed to sign up a single recruit.

The USA Today report also revealed that out of almost 25,000 recruit prospects that the Guard received through the program in 2012, only 20 of them met the Guard’s entry qualifications – and none of those 20 decided to join.

Despite those numbers, Lt. Col. Christian Johnson, the Guard’s marketing head, maintained in today’s announcement that the Guard racing programs played “an important role” in building brand awareness that “helped us achieve extraordinary recruiting and end-strength objectives over the past decade.”

This year, Hendrick Motorsports has appeared to be working hard to prepare for a post-Guard life. The team has recently brought brands like Nationwide Insurance and DC Comics into the fold, with Nationwide in particular coming on as a primary sponsor for Earnhardt over the next three seasons.

Since 2012, the Guard has drawn down its sports sponsorships to just those in NASCAR and IndyCar while eliminating programs in motorcycle racing and professional fishing.

Today’s announcement from the Guard noted that its marketing budget in the 2015 fiscal year is expected to be about half of what it was in the 2012 fiscal year.

Strong rebounds for Alex Palou, Chip Ganassi amid some disappointments in the Indy 500

By May 28, 2023, 10:00 PM EDT
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INDIANAPOLIS – Alex Palou had not turned a wheel wrong the entire Month of May at the Indy 500 until Rinus VeeKay turned a wheel into the Chip Ganassi Racing pole-sitter leaving pit road on Lap 94.

“There is nothing I could have done there,” Palou told NBC Sports. “It’s OK, when it is my fault or the team’s fault because everybody makes mistakes. But when there is nothing, you could have done differently there, it feels bad and feels bad for the team.”

Marcus Ericsson was a master at utilizing the “Tail of the Dragon” move that breaks the draft of the car behind him in the closing laps to win last year’s Indianapolis 500. On Sunday, however, the last of three red flags in the final 16 laps of the race had the popular driver from Sweden breathing fire after Team Penske’s Josef Newgarden beat him at his own game on the final lap to win the Indianapolis 500.

Despite the two disappointments, team owner Chip Ganassi was seen on pit road fist-bumping a member on his four-car team in this year’s Indianapolis 500 after his drivers finished second, fourth, sixth and seventh in the tightly contested race.

Those are pretty good results, but at the Indianapolis 500, there is just one winner and 32 losers.

“There is only one winner, but it was a hell of a show,” three-time Indianapolis 500 winner and Chip Ganassi Racing consultant Dario Franchitti told NBC Sports. “Alex was very fast, and he got absolutely caught out in somebody else’s wreck. There was nothing he could have done, but he and the 10 car, great recovery.

“Great recovery by all four cars because at half distance, we were not looking very good.”

After 92 laps, the first caution flew for Sting Ray Robb of Dale Coyne Racing hitting the Turn 1 wall.

During pit stops on Lap 94, Palou had left his stall when the second-place car driven by VeeKay ran into him, putting Palou’s Honda into the wall. The car sustained a damaged front wing, but the Chip Ganassi crew was able to get him back in the race on the lead lap but in 28th position.

Palou ultimately would fight his way to a fourth-place finish in a race the popular Spaniard could have won. His displeasure with VeeKay, whom he sarcastically called “a legend” on his team radio after the incident, was evident.

“The benefit of being on pole is you can drive straight and avoid crashes, and he was able to crash us on the side on pit lane, which is pretty tough to do, but he managed it,” Palou told NBC Sports. “Hopefully next year we are not beside him. Hopefully, next year we have a little better luck.”

Palou started on the pole and led 36 laps, just three fewer than race leader Pato O’Ward of Arrow McLaren Racing.

“We started really well, was managing the fuel as we wanted, our car was pretty good,” Palou said. “Our car wasn’t great, we dropped to P4 or P5, but we still had some good stuff.

“On the pit stop, the 21 (VeeKay) managed to clip us. Nothing we could have done there. It was not my team’s fault or my fault.

“We had to drop to the end. I’m happy we made it back to P4. We needed 50 more laps to make it happen, but it could have been a lot worse after that contact.

“I learned a lot, running up front at the beginning and in mid-pack and then the back. I learned a lot.

“It feels amazing when you win it and not so good when things go wrong. We were a bit lucky with so many restarts at the end to make it back to P4 so I’m happy with that.”

Palou said the front wing had to be changed and the toe-in was a bit off, but he still had a fast car.

In fact, his Honda was the best car at the Indianapolis Motor Speedway all month. His pole-winning four lap average speed of 234.217 miles per hour around the 2.5-mile Indianapolis Motor Speedway was a record for this fabled race.

Palou looked good throughout the race, before he had to scratch and claw and race his way back to the top-five after he restarted 28th.

In the Indianapolis 500, however, the best car doesn’t always win.

“It’s two years in a row that we were leading the race at the beginning and had to drop to last,” Palou said. “Maybe next year, we will start in the middle of the field and go on to win the race.

“I know he didn’t do it on purpose. It’s better to let that pass someday.”

Palou said the wild racing at the end was because the downforce package used in Sunday’s race means the drivers have to be aggressive. The front two cars can battle for the victory, but cars back in fourth or fifth place can’t help determine the outcome of the race.

That is when the “Tail of the Dragon” comes into the play.

Franchitti helped celebrate Ericsson’s win in 2022 with his “Tail of the Dragon” zigzag move – something he never had to do in any of his three Indianapolis 500 victories because they all finished under caution.

In 2023, however, IndyCar Race Control wants to make every attempt to finish the race under green, without going past the scheduled distance like NASCAR’s overtime rule.

Instead of extra laps, they stop the race with a red flag, to create a potential green-flag finish condition.

“You do what you have to do to win within the rules, and it’s within the rules, so you do it,” Franchitti said. “The race is 200 laps and there is a balance.

“Marcus did a great job on that restart and so did Josef. It was just the timing of who was where and that was it.

“If you knew it was going to go red, you would have hung back on the lap before.

“Brilliant job by the whole Ganassi organization because it wasn’t looking very good at half-distance.

“Full marks to Josef Newgarden and Team Penske.”

Franchitti is highly impressed by how well Ericsson works with CGR engineer Brad Goldberg and how close this combination came to winning the Indianapolis 500 two-years-in-a-row.

It would have been the first back-to-back Indy 500 winner since Helio Castroneves in 2001 and 2002.

“Oh, he’s a badass,” Franchitti said Ericsson. “He proved it last year. He is so calm all day. What more do you need? As a driver, he’s fast and so calm.”

Ericsson is typically in good spirits and jovial.

He was stern and direct on pit road after the race.

“I did everything right, I did an awesome restart, caught Josef off-guard and pulled away,” Ericsson said on pit lane. “It’s hard to pull away a full lap and he got me back.

“I’m mostly disappointed with the way he ended. I don’t think it was fair and safe to do that restart straight out of the pits on cold tires for everyone.

“To me, it was not a good way to end that race.

“Congrats to Josef. He didn’t do anything wrong. He is a worthy champion, but it shouldn’t have ended like that.”

Palou also didn’t understand the last restart, which was a one-start showdown.

“I know that we want to finish under green,” Palou said. “Maybe the last restart I did, I didn’t understand. It didn’t benefit the CGR team.

“I’m not very supportive of the last one, but anyway.”

Dixon called the red flags “a bit sketchy.”

“The Red Flags have become a theme to the end of the race, but sometimes they can catch you out,” Dixon said. “I know Marcus is frustrated with it.

“All we ask for is consistency. I think they will do better next time.

“It’s a tough race. People will do anything they can to win it and with how these reds fall, you have to be in the right place at the right time. The problem is when they throw a Red or don’t throw a Red dictates how the race will end.

“It’s a bloody hard race to win. Congrats to Josef Newgarden and to Team Penske.”

Follow Bruce Martin on Twitter at @BruceMartin_500