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

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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!”

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.

Donny Schatz edges Kyle Larson for Outlaws victory at Lake Ozark

Trent Gower/World of Outlaws
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Donny Schatz made a last-lap pass on Kyle Larson, snatching a World of Outlaws victory Saturday night at Lake Ozark Speedway.

Larson started on the pole, led 30 of 35 laps and was in control until a caution set up a two-lap shootout to the finish before a limited crowd in Eldon, Missouri.

Schatz and Larson traded the lead twice over the final two laps, but the 10-time champion emerged with his first victory since the NOS Energy Drink Sprint Car Series returned in mid-May from a two-month layoff because of the novel coronavirus (COVID-19) pandemic.

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“Man, I don’t know what to say, but Kyle’s a damn good racer,” Schatz, who led five laps, told DirtVision after his 296th Outlaws win. “I kind of had to go where he didn’t. We got that green-white-checkered, and I decided I was going to send it. He decided the same thing.

Donny Schatz celebrates at Lake Ozark Speedway after his second Outlaws Sprint Car victory of the season (Trent Gower).

“I’m glad to get the win. It feels like it’s been forever. I’ve been out here 24 years, and every night is a learning experience still.”

Larson finished second in his fifth start since he began racing with the Outlaws after being suspended from NASCAR.

“Obviously, it would have been nice to get the win,” Larson said on DirtVision. “I figured Donny would rip the middle. The restarts before, he’d almost clear me in (turns) 3 and 4. I should have known to protect and block his momentum. I felt I exited 2 OK. We don’t have spotters or rearview mirrors so you can’t see how close he is or really hear it when the pace is so slow.

“I just didn’t do a good enough job to run a smarter final couple of laps.”

Brad Sweet, Larson’s brother in law, finished third, with Shane Stewart and David Gravel rounding out the top five.

Larson rebounded from a 10th in Friday’s feature at Lake Ozark Speedway, continuing his streak of top-10 finishes in all five of his starts since the Outlaws’ return.

“We got our car a lot better from last night, so that was a plus,” said Larson, who finished second and first in back-to-back nights last week at Federated Auto Parts Raceway at Pevely, Missouri. “These guys are really tough. To be on the podium with Donny and Brad, they’ve won lots of big races and championships, it’s nice. I just didn’t do what I needed to do that last restart.”

Larson nearly had a flawless night Saturday, turning a 11.426-second lap to capture his second pole position this season and won the pole dash to start first in the feature.

Larson, who was fired by Chip Ganassi Racing from his NASCAR Cup Series ride last month for using a racial slur in an iRacing event, said last week that he plans to run several more NOS Energy Sprint Car Series races this year.

Larson remains indefinitely suspended by NASCAR but was approved to race by the Outlaws after completing sensitivity training.