Roger Penske: The next major step is cost reduction in NASCAR

According to some there is no such thing as cost cutting or the reduction in expenses in racing as if the teams save 500K in one area they will continue to spend it but in another area.
 
He pointed out that the 5 minute repair rule will save them about $200k for the crash cart stuff. But shortening the weekend might cause problem with sponsor obligations at the track.
 
Skoalbandit33 said:
According to some there is no such thing as cost cutting or the reduction in expenses in racing as if the teams save 500K in one area they will continue to spend it but in another area.
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If sponsor dollars dry up, there won't be anything to spend in another area.
 
dave corthell said:
Two ways to reduce costs:
1) Put a $50K - $75K claimer rule on any car.
2) Nascar run all shops like a corporation with an approved budget and all expenses approved by corporate.

As the old saying goes, if they got it, they will spend it.
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And if they don't got it, they will borrow and spend it.
 
Acs said:
Preach it, captain:

https://www.motorsport.com/nascar-c...ake-sacrifices-to-cut-costs-in-nascar-883352/
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I'm not knowledgeable about just where the money goes in Cup racing, so I don't know a lot about the "levers" for cost reduction. I'd think smart racing/business people like Roger Penske, Rick Hendrick, and Rob Kauffman could figure it out. I'm sure the RTA would be an excellent forum to address such issues.

Having said that, I really really wonder why it takes a fleet of 15 to 18 cars to put one car on the grid 38 times. Most top racing series do it with 1 to 3 cars per year. And motors... 40+ for Nascar, and 5 to 8 or even less for most others. I think there are some cost levers in this area.
 
I think the key phrase in your question is '38 times'. With few exceptions, those are consecutive weekends. Excluding the Indy 500 and the endurance events, Cup races are usually twice as long (or more) than races in other series.

They may be able to get by with less than 15, but the schedule and race distances will always require more cars than other series.
 
Charlie Spencer said:
I think the key phrase in your question is '38 times'. With few exceptions, those are consecutive weekends. Excluding the Indy 500 and the endurance events, Cup races are usually twice as long (or more) than races in other series.

They may be able to get by with less than 15, but the schedule and race distances will always require more cars than other series.
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Too. Many. Races. Three a month would be plenty. End season first week of Oct. 35 car field.
 
KTMLew01 said:
The general public is gonna fix it for them. I will be surprised if NASCAR can get 1/4 of the current TV deal when this one expires. The sport is dying.
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What amazes me is the stupidity of the Networks to sign such an agreement that is in place in the first place. I would hope the negotiators for the networks that agreed to it are fired.....

I just hope they aren't working for the financial institution that is handling my 401 K.... I suspect a couple might be........
 
LewTheShoe said:
I'm not knowledgeable about just where the money goes in Cup racing, so I don't know a lot about the "levers" for cost reduction.
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You could ask Richard Childress how he was able to grow his team from virtually nothing, buy a ranch, a vineyard and a bunch of desirable Charlotte-area real estate.

Hint ... not with prize money.
 
kymartin6 said:
What amazes me is the stupidity of the Networks to sign such an agreement that is in place in the first place. I would hope the negotiators for the networks that agreed to it are fired.....

I just hope they aren't working for the financial institution that is handling my 401 K.... I suspect a couple might be........
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I never understood the broadcast deal to begin with as I don't even think anyone was bidding on the package as TNT and ESPN were running away from Nascar at Carl Lewis speeds. It is bad enough the networks spent stupid money but they probably didn't even have to.
 
KTMLew01 said:
The general public is gonna fix it for them. I will be surprised if NASCAR can get 1/4 of the current TV deal when this one expires. The sport is dying.
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The sport is not frickin' dying. It will still be around regardless of TV contracts. It will look different, at different tracks, and may not get the same amount of coverage we've come to enjoy in the last 20 years or so, but it will still be around. If it isn't, there are other, equally entertaining forms of automobile racing.
 
kymartin6 said:
What amazes me is the stupidity of the Networks to sign such an agreement that is in place in the first place. I would hope the negotiators for the networks that agreed to it are fired.....

I just hope they aren't working for the financial institution that is handling my 401 K.... I suspect a couple might be........
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The theory is that NASCAR would attract larger audiences to the non-broadcast networks involved. So far, that's worked. I don't know how much of a boost was expected for FS1, FS2, NBCSN, etc, but that's the criteria for this contract's success or failure, at least as measured by the networks. I doubt the networks expected the audience the sport had in the last decade, and I doubt anyone here knows how much of a boost they expected for those cable channels.
 
Charlie Spencer said:
The sport is not frickin' dying. It will still be around regardless of TV contracts. It will look different, at different tracks, and may not get the same amount of coverage we've come to enjoy in the last 20 years or so, but it will still be around. If it isn't, there are other, equally entertaining forms of automobile racing.
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I agree that Nascar isn't dying but just becoming what it should be given the reduction of people that are interested in it. Less tracks, less series, less cars, less races are all on the horizon.
 
Charlie Spencer said:
The theory is that NASCAR would attract larger audiences to the non-broadcast networks involved. So far, that's worked. I don't know how much of a boost was expected for FS1, FS2, NBCSN, etc, but that's the criteria for this contract's success or failure, at least as measured by the networks. I doubt the networks expected the audience the sport had in the last decade, and I doubt anyone here knows how much of a boost they expected for those cable channels.
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At the time the main thing being touted about the bloated TV contracts was that FS1 and NBCS would be able to charge more to cable/sat companies for carrying their networks but to the best of my knowledge that has not occurred. IDK what benefit Nascar has had for the networks but having a come to Jesus meeting with Nascar would indicate they are not thrilled. Either way it is foolish to spend so much money on a property that has been in steep decline over the past decade especially when you don't have any real competition bidding against you.
 
Indy went full on cost cutting, now they race on parking lots, rarely get more than 21 cars, killed several good drivers with their budget built cars, only race 18 weekends out of the year, and barely register any ratings when the races are on abc. NASCAR xfinity qualifying even gives them a run when Indy races are on nbcsn. Maybe that is what Penske wants, to own half the field like he does in Indy car, and not have to invest any money or time in car development.
 
Skoalbandit33 said:
At the time the main thing being touted about the bloated TV contracts was that FS1 and NBCS would be able to charge more to cable/sat companies for carrying their networks but to the best of my knowledge that has not occurred. IDK what benefit Nascar has had for the networks but having a come to Jesus meeting with Nascar would indicate they are not thrilled. Either way it is foolish to spend so much money on a property that has been in steep decline over the past decade especially when you don't have any real competition bidding against you.
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I recall reading the viewer numbers are up. If they aren't up enough to charge the carriers more, they're likely up enough to charge the advertisers more.
 
joe h said:
Indy went full on cost cutting, now they race on parking lots, ...
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Parking lots? Which race would that be?

Are you referring to street courses that may have a small portion cutting through a parking lot? Lots of series use street courses, including those are successful by their own standards. I don't personally like them, but it's hardly racing on parking lots.
 
Charlie Spencer said:
I recall reading the viewer numbers are up. If they aren't up enough to charge the carriers more, they're likely up enough to charge the advertisers more.
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It is certainly possible but the "guaranteed" windfall that was spoken has yet to materialize as far as I know. I really need to watch a broadcast with commercials to see who is advertising and how the spots are placed as that can tell a lot however I don't think I have the stomach for it.
 
Charlie Spencer said:
Parking lots? Which race would that be?

Are you referring to street courses that may have a small portion cutting through a parking lot? Lots of series use street courses, including those are successful by their own standards. I don't personally like them, but it's hardly racing on parking lots.
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Some parking lots would make for some really cool courses especially up north with potholes and damage due to frost.
 
Skoalbandit33 said:
Some parking lots would make for some really cool courses especially up north with potholes and damage due to frost.
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Oh, I know any number of malls whose perimeter roads would make great road courses. Sell seating on the roof and put in stairs to the food court.

But I don't know of any parking lots that are used by IndyCar.
 
Skoalbandit33 said:
At the time the main thing being touted about the bloated TV contracts was that FS1 and NBCS would be able to charge more to cable/sat companies for carrying their networks but to the best of my knowledge that has not occurred.
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Any support for your post, and I only ask because I've never seen any published info on the economics Fox and NBC expected, much less any guarantee of windfalls. That would make fascinating reading, if you have a link.

Both networks have grown their subscriber base substantially, and they are paid per subscriber. Their Nascar ratings may be below expectations, but Nascar is consistently the highest ratings those networks get. It might seem their ratings are under-performing across the board? And would that be a shock, considering there was just ESPN, and all of a sudden there were competing networks launched by Fox, NBC, and CBS?

Let me be clear... I believe Nascar ratings are a serious problem, mainly because of the impact on team sponsorship. I'm interested in learning more about what is undoubtedly a complex, multi-dimensional issue. It ain't as easy as pinning it on BZF and the Chase, IMO, although many members here seem to disagree.
 
LewTheShoe said:
Any support for your post, and I only ask because I've never seen any published info on the economics Fox and NBC expected, much less any guarantee of windfalls. That would make fascinating reading, if you have a link.

Both networks have grown their subscriber base substantially, and they are paid per subscriber. Their Nascar ratings may be below expectations, but Nascar is consistently the highest ratings those networks get. It might seem their ratings are under-performing across the board? And would that be a shock, considering there was just ESPN, and all of a sudden there were competing networks launched by Fox, NBC, and CBS?

Let me be clear... I believe Nascar ratings are a serious problem, mainly because of the impact on team sponsorship. I'm interested in learning more about what is undoubtedly a complex, multi-dimensional issue. It ain't as easy as pinning it on BZF and the Chase, IMO, although many members here seem to disagree.
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Nascar had it's 15 minutes of fame, it was the "in thing", now it isn't, the cycle of fame is on to another "big thing", that's the way things work now in the me generation. Us old school guys stick with things, but the new generation does not, they want instant gratification. I think that is where Nascar lost a lot of its fan base. The older fans are...well getting older and lets face it dying, to replace them with younger fans Nascar has resorted to the Gimmick angle, is it working...so far I'd have to say no, but give it another 3 years. If the downward spiral continues I see a smaller schedule, different tracks....short tracks, on the schedule and shorter races.
 
Got an idea if these business men start losing money they'll be gone quicker than a Model 77 in .204 Ruger can vaporize a groundhog.
 
Mopardh9 said:
Nascar had it's 15 minutes of fame, it was the "in thing", now it isn't, the cycle of fame is on to another "big thing", that's the way things work now in the me generation. Us old school guys stick with things, but the new generation does not, they want instant gratification. I think that is where Nascar lost a lot of its fan base. The older fans are...well getting older and lets face it dying, to replace them with younger fans Nascar has resorted to the Gimmick angle, is it working...so far I'd have to say no, but give it another 3 years. If the downward spiral continues I see a smaller schedule, different tracks....short tracks, on the schedule and shorter races.
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One reason younger people move between interests is because they have so many more options than we did. When you only have three channels and the only sports shown are Wide World and the local football and baseball teams, it's easy to stick with your only choices.

I don't stick with things once they stop entertaining me, especially not just for loyalty's sake. I dropped baseball a few decades ago when it seemed like they were on strike every other year. I stopped watching action movies when they started paying more computer programmers than they did stunt men. Tastes change. I didn't know squat about NASCAR until I was 35, and only started taking bird watching and yoga seriously in the last couple of years.

I don't see anything wrong with seeking instant gratification in one's entertainment choices. It's their money and attention.
 
R Clarence said:
Got an idea if these business men start losing money they'll be gone quicker than a Model 77 in .204 Ruger can vaporize a groundhog.
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Excuse me, what does 'Model 77 in a 204 Ruger' mean? I can make a semi-ignorant guess as to '204 Ruger'; what's 'Model 77'? I assume it's nothing like Agent 86.
 
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