Deloitte to audit NASCAR team finances

NASCAR taps Deloitte to audit team finances
Move could set stage for cap or other rules for how much teams can spend
By Adam Stern
December 3, 2018

https://www.sportsbusinessdaily.com...2/03/Leagues-and-Governing-Bodies/NASCAR.aspx

 

Very interesting.

I wonder what P level the infraction will be when they get caught exceeding the spending cap? They may come up with something new.

 

Future headline if they go down this rabbit hole:

NASCAR teams found guilty of colluding, bankruptcies imminent, nascar to liquidate.

 

The next step is drafting drivers in separate rounds from NASCAR NEXT.

 

Lol this sport wants parity so bad it's sickening.

 

If we are going spec, go spec bank accounts. I am good with that. Having said that, this could even be worse than what we have. Better get yourself a manufacturer who has the infrastructure and the willingness to R&D for you because you won't be able to afford it yourself. TRD and Ford Performance have that infrastructure, Chevy does not.

 

Yeah, until Corey LaJoie wins the Championship, and literally the 5 people in the stands stop showing up. Parity isn't good anywhere. This has been proven time and again. Dynasty is the thing. Knock the giant off of the hilltop. Whatever NASCAR.

 

“Continued slides in key performance indicators have further increased the urgency.”

It will be interesting to know where this all goes as if a cap is put in place will there be a floor that has to be met? More and more of the grid is field filler and reducing that would not hurt my feelings.

 

Along with the cars, teams finishing first and second each week, along with three teams chosen at random, will be required to send their books to NASCAR's R&D center in Charlotte. Any infractions found will be announced on Tuesday. Penalties may include drivers having to spend practice time sitting in their cars while taking Bookkeeping 101 classes on line, and crew chiefs being suspended to reconcile the team's month-end closing statements.

However, teams will now be allowed an additional 'over the wall' crewman, provided he holds a documented MBA.

 

Late candidate for post of the year

 

Been a fan for a few decades and I always wondered how the in-house resources for Engineering, Tooling, and Fabrication factors into the cost of running a team -- and how those costs could be hidden.

For example, Haas and his Haas Automation, F1 program, and possible other businesses, contacts, and resources he has available. Unless you go spec parts for everything, their must be significant advantages (although not guaranteeing a win), to include "working the books" in your favor to hide costs or other shenanigans .

 

Salary cap incoming for NASCAR

 

The article explicitly says driver salaries were not under consideration. If those aren't, it's unlikely the much lower salaries of the rest of the team will be capped either. It also pointed out that R&D, engineering, and other non-material costs not directly related building a car accounted for much of the spending.

 

There are so many ways to circumvent and manipulate a cap I can’t wait to see how they do it.

Also if JGR is out performing the others I can hear an Oklahoman squealing about how JGR’s books have not been taken to the wind tunnel.

 

Everyone knows the books are part of what supports the entire team. As supporting parts, they're tested with the rest of the suspension with a 7-post shaker. Geez, Larry Mac has been showing us the same graphics about it for the last several seasons.

'Wind tunnel'. Gods of us all.

 

Yep ...works in every sport, having something with constant parity becomes bland and boring.

 

If NASCAR specs a spending cap the teams will do what teams do and exploit the gray areas of the rule. I don't think NASCAR has a test fixture for the books.

 

Not sure I agree with you on this. Depends on what you mean by field filler. I see some of these smaller teams working hard trying to compete, They provide jobs for drivers, mechanics, crew and other personnel. Most aspire to be competitive and a top tier team at some point. I personally don't like the model of having 5 or 6 mega teams with 4 cars each.

 

"Mr. Haas, can you explain why SHR shows a $6.3 million dollar expense in 2019 for 'Supplies'?"

"Hey, that's legitimate! Have you seen Tony's Dairy Queen bills?"

 

yeah a business that doesn't audit the books routinely and see where they are is bad business practice. There are talks about a different cut of the pie for the tracks and the teams. As long as we are all guessing and by gollying, auditing everybody's books including theirs could make it easier to do so among other things. Penske, Hendrick, and Haas are very wealthy industrialists, Gibbs is low man on the totem pole and all of them have factory backing. The gap between the haves and the have nots probably never has been wider.

 

I think what the industry wants is economic viability of team ownership. I believe the greatest threat to the sport's long term future is the supply of quality race teams to show up every week to race... an even bigger threat IMO than any demand metric such as TV ratings or ticket sales.

Yeah, the biggest challenge to a resource cap is cost shifting between the teams and manufacturers, or between the teams and other businesses controlled by the owners. Unless a cost cap picks all that up, it becomes a farce. Gene Haas owns WindShear. TRD supplies engines and has chassis engineering services that Ford and Chevy don't have. Penske and Ganassi have IndyCar teams that have engineering capabilities, and Haas has F1. All this stuff... a big challenge to a cost cap.

Compared to what? Compared to the past, there is certainly less field filler now than then. Compared to other racing? No major league racing series is as deep in quality teams that I know of. The risk is... how long can it remain this way unless team ownership is an attractive business proposition.

 

It's all very simple. Ford teams audit Chevy books, Chevy teams audit Toyos, etc. Next season, they reverse. For their first two seasons, new manufacturers will be 'gang audited'.

 

If you feel like rolling chicanes and darts without feathers provide a valuable service all around that is fine with me.

 

I didn't say that, and you're changing the subject. If you don't want to answer the question, it's OK.

 

This just in: Nascar will be using a newly designed laser system to measure teams books before, during and after the races.

Nascar does for rules what Gerald Ford did for late night TV hosts including Chevy Chase

 

If you mean the “compared to what” thing I wasn’t comparing NASCAR’s field filler to another time or another sanctioning body. Where does it say those are prerequisites?

 

How can you say JGR is out performing others? Labonte is the only in house driver to win a championship.

 

Just run two set of books.
One for Deloitte and Tush, and another real one.

Reminds of a job in the 90s having to use JIT or "just in time" resource management.
All you needed was a secret Brick JIT house to beat the system.

 

I remember the JIT. Maybe we should start an IBM deathbed thread. How big blue, went from number one to who is big blue?

 

Can we just fastforward to IROC cars?

 

Ford does. Chevy has Hendrick still. Keep all of this quiet please, cost cap would play right into the Toyota teams' hands. I love it. Let's do it. If you tied TRD's hands in terms of its ability to support its teams, you would have @StandOnIt dream, and Toyota would leave. That would be bull****. Make the manufacturers step up. I am all in on this. Chevy has been going cheap-o for a while now, and it is showing. Time to spend some of that government bail out money.

 

Thanks Rev. I put my tin foil hat on when I read this thread. You're coming in loud and clear. ISM buys teams, set to buy Nascar, news at ten.

 

The Big three car companies aren't going to invest more in Nascar with it in contraction mode.

 

That is the thorn in their asses isn't it? The big three won't spend, but Toyota will. That's a big three problem IMO.

 

I prefer spec in the spreadsheet over spec under the hood. All day long.

 

Yep. Give them a cap but them decide how to spend it.

 

I hate to pop your bubble, but there isn't anything like spec. I don't know how many examples of that there are, but many. No two engines are the same and neither are the cars, the tires, on and on. And that is without crew chief meddling.

 

https://racing-forums.com/threads/d...posters-section-for-all-your-complains.66300/