Deloitte to audit NASCAR team finances

Discussion in 'NASCAR chat' started by FLRacingFan, Dec 3, 2018.

  1. FLRacingFan

    FLRacingFan Team Owner

    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

     
  2. dpkimmel2001

    dpkimmel2001 Team Owner

    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.
     
    Johali, TexasRaceLady and Pat like this.
  3. joe h

    joe h Team Owner

    Future headline if they go down this rabbit hole:

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

    ChexOrWrex Ya gotta wanna

    The next step is drafting drivers in separate rounds from NASCAR NEXT.
     
    Team Penske and RacerrecaR like this.
  5. AdoubleU24

    AdoubleU24 Team Owner

    Lol this sport wants parity so bad it's sickening.
     
    jws926, Snappy D, Mopardh9 and 2 others like this.
  6. Revman

    Revman May God Bless Coach Joe Gibbs and all JGR Fans

    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.
     
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  7. Revman

    Revman May God Bless Coach Joe Gibbs and all JGR Fans

    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.
     
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  8. IanMcVittie

    IanMcVittie Car Chief

    “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.
     
  9. Charlie Spencer

    Charlie Spencer Short tracks and road courses rule.

    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.
     
    Greg, jws926, sdj and 5 others like this.
  10. IanMcVittie

    IanMcVittie Car Chief

    :XXROFL:
     
  11. Michfan

    Michfan Team Owner

    Late candidate for post of the year :lol2:
     
    jws926 likes this.
  12. Ventisca

    Ventisca Jackman Contributor

    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 :).
     
  13. DanicaFreak

    DanicaFreak Green monster

    Salary cap incoming for NASCAR
     
  14. Charlie Spencer

    Charlie Spencer Short tracks and road courses rule.

    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.
     
    LewTheShoe likes this.
  15. IanMcVittie

    IanMcVittie Car Chief

    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.
     
  16. Charlie Spencer

    Charlie Spencer Short tracks and road courses rule.

    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. :rolleyes:
     
  17. IanMcVittie

    IanMcVittie Car Chief

    :XXROFL:
     
  18. Mopardh9

    Mopardh9 Team Owner Contributor

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

    Zerkfitting Team Owner

    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.
     
  20. DIDIT

    DIDIT Old School Fan

    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.
     
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  21. Charlie Spencer

    Charlie Spencer Short tracks and road courses rule.

    "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?"
     
    Speedbowl14, IanMcVittie and Bobw like this.
  22. StandOnIt

    StandOnIt Farm Truck

    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.
     
  23. LewTheShoe

    LewTheShoe Team Owner

    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.
     
    Spotter22, Greg, Zerkfitting and 2 others like this.
  24. Charlie Spencer

    Charlie Spencer Short tracks and road courses rule.

    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'.
     
    DIDIT likes this.
  25. IanMcVittie

    IanMcVittie Car Chief

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

    LewTheShoe Team Owner

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

    IanMcVittie Car Chief

    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
     
  28. IanMcVittie

    IanMcVittie Car Chief

    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?
     
  29. Team Penske

    Team Penske Team Owner

    How can you say JGR is out performing others? Labonte is the only in house driver to win a championship. :D
     
    IanMcVittie likes this.
  30. Greg

    Greg 2014 RF YAHOO CHAMP Your leader

    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.
     
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  31. StandOnIt

    StandOnIt Farm Truck

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

    LouieLouie Team Owner

    Can we just fastforward to IROC cars?
     
  33. Revman

    Revman May God Bless Coach Joe Gibbs and all JGR Fans

    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.
     
  34. StandOnIt

    StandOnIt Farm Truck

    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.
     
  35. Mopardh9

    Mopardh9 Team Owner Contributor

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

    Revman May God Bless Coach Joe Gibbs and all JGR Fans

    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.
     
  37. Revman

    Revman May God Bless Coach Joe Gibbs and all JGR Fans

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

    Charlie Spencer Short tracks and road courses rule.

    Yep. Give them a cap but them decide how to spend it.
     
    IanMcVittie likes this.
  39. StandOnIt

    StandOnIt Farm Truck

    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.
     
    Spotter22 likes this.
  40. Team Penske

    Team Penske Team Owner

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