Future direction of NASCAR up for debate

PHOENIX

It looks as if it's time for Brian France, the CEO of NASCAR, to call car owners, track promoters and maybe TV executives together to ensure that key figures in stock-car racing are working together in two areas crucial to success -- putting fans in the stands and eyeballs in front of televisions.

Geoff Smith, who runs Jack Roush's racing operations, said: "No paradigm should be sacred right now…. It's ‘What's the result? What worked? What didn't? Can we improve? Can we get rid of the things that didn't work?'

"There is not one reason that is acceptable not to change, if it leads to a better result. And if anybody's ego gets in the way, that's too bad…."

The state of stock-car racing is ripe for debate as Jimmie Johnson and car owner Rick Hendrick roll through the final days to what looks like a third straight Sprint Cup championship after Johnson's solid win Sunday in the Checker O'Reilly Auto Parts 500.

France addressed the issue head-on Sunday, but more might need to be done, and a summit might be the next step.

Smith said that the basic issues are clear.

"The key barometer of health for all of us relates to fan attendance at the track and fan attendance to the broadcasts," he said. "Those two can be viewed as the primary focus for priorities, and if they're working, at some level they will work for everybody.

"Without those two things, the sponsorship attractiveness would diminish for everybody.

"Right now, in terms of the Sprint Cup series, there is still very robust fan attendance and excellent TV ratings. But in the economy overall, you either have marketing budgets that have been cut or are being held back, waiting to see where money has to be moved in order to survive.

"So what we have is the teams that have been able to demonstrate performance and organizational strength have been able to get sponsorship to go forward…. The weaker performing teams have uniformly had some difficulty now."

In light of the new administration going to Washington, the good news for NASCAR is the willingness, even eagerness, to help the automotive industry. But it is a complex situation facing NASCAR and its many businesses.

"There are macroeconomic factors affecting us all," Smith concedes. "Because nobody knows, for example, how much debt Mike Mulhern has…. So everybody is taking a look at ‘How much spending can I defer?' while trying to get right-sized.

"Companies have their fingers on the pulse of the consumer, and if they think the consumer isn't going to spend, then they may defer marketing investments.

"As far as our product, it's a good time to make sure we're prioritizing everything we all can do --tracks and NASCAR, drivers and teams --to make sure the stands are filled. Because if the stands are filled, those fans are sharing in the experience, and they can take that experience to their friends, and that's how we get a bigger fan base."

One possible spinoff from that is NASCAR's testing policies. France said he understands well the marketing and promotional value to his tracks of open testing, and it has been suggested that NASCAR open testing to all Sprint Cup tracks, within as many as 10 days before a race, and use the sessions not only for studying tires and technology but also for marketing the sport to fans and allowing fans in free.

"Yeah, but who's going to pay the drivers?" crew chief Greg Zipadelli said skeptically. "These drivers don't come cheap."

Maybe France should simply tell his drivers to do it?

Smith ponders that option: "It's a good time to consider things. We've always had the philosophy that there is nothing we do that isn't subject to review as to how it can be done better…. If we are doing things -- individually, or collectively -- that makes it less interesting to invest in NASCAR, then everyone should make adjustments….

"We need to participate wholehearted, we need to participate with the media fully, to help support the events and the fans. We need to ensure the drivers remain accessible to fans. I'm sure there are a lot of ideas that could come out ... but there is no collective way to address them.

Smith said that part of the problem is that there is "no general community" in NASCAR to discuss business issues.

"It's all run by NASCAR," he said, "and when NASCAR wants to solicit an opinion it will send a team out. But sometimes they send that team to the wrong people, to people who don't have any decision-making authority. But they generally ask the questions they're interested in, rather than about the industry itself.

"I'm sure the hard questions are being asked. I sure want them to be asked. Just tell us: ‘Are you doing everything you think you can do to bring fans in?'"

Right now, the NASCAR garages and shops are filled with worried crewmen, wondering if they'll have jobs next week, after the season ends.

Smith said that it doesn't have to be that way.

"We've been able to grow things in the past … but right now we're hamstrung. We could grow jobs, by being allowed to run more than four teams. So there is a policy there that has an impact on jobs.

"Sponsors want to go to teams that can manage things the best.

"NASCAR sets the business agenda, for the entire inter-relationships among teams and tracks and television. They might be satisfied with all the input they're getting from all their sources. But it is more difficult for us, because those kinds of things aren't transparent."

Smith said that the most important thing for the sport is having fans in the stands but that teams have "no voice in addressing what might be done by track practices to improve that."

"Maybe they might need to lower their profit margins," he said, "to help fill the stands. It is a critical time, and it will be a prolonged critical time. And I wouldn't leave any stone unturned about what might be done to ensure that the sport as a whole rides through this.

"Starting with fans at the racetrack … let's make sure our stands are filled."

■ Mike Mulhern can be reached at mmulhern@wsjournal.com.