Economic Impact on Motorsports

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JohnBM01

JohnBM01

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JMarine25
This thread is not just about the current economic situation today, but economics in motorsports in general. Things such as cutting back on things like test sessions, removing seats, not competing in full series, and thereforth are in an effort to survive in troubling economic times. Remember, this is not only on the current economic situation, but economic impact on motorsports in general in the past and present.

Feel free to reply on the economic impact on motorsports today and in the past here. Do you think motorsports will live through all of this?
 
I certainly hope so, i have worried about this too. The economic problem is not quite as bad here in Australia, but still affecting it. Fuel is getting a fair bit cheaper here though, so that might help a bit.
 
Holdenhsvgtsr
erm you missed the fact that holden and ford pulled thier sponsership from half the teams in the v8 supercars?
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Oh yeah. I forgot about that, though i don't think it will get to the point that any motorsports will go completely. :nervous:
 
Amateur Motorsports... well, we'll see a thinner field, for sure... but there will always be people who will want to race.... and with prices for secondhand performance in free-fall due to the economy, carrying over from free-fall due to gas prices, some new people will be racing with metal they couldn't afford before the crash... and thanks to cheaper gas, they can afford it... but I don't think these new entrants will balance out the people who will just quit.

The biggest hit will be, definitely, in terms of professional motorsports... goodbye manufacturer support (Honda's F1 pullout is definitely one of the biggest markers for this) and goodbye to some of the traditional sponsors, who might be going under themselves.

It would help if the anti-tobacco lobby's restrictions on advertising in motorsports were eased... in hard times, a lot of people will be needing a good smoke in dark alleys while crying over their paychecks (or lack of such), so it'll be boom business for the tobacco boys... (hmm... that probably goes for alcohol, too).

By mid-2009, we'll either have half-fields or lose some series, altogether. It's a bad time to be a petrol lover, for sure. :(
 
We´ve already seen quite alot of financially induced quitting in motorsports. Honda has quit F1, and Audi will only do Sebring and Le Mans next season. Alot of LMP2 teams have called it quits aswell, both in ALMS and LMS (BK, RML, Team Essex to name a few).
Corvette has yet to say anything, but I suspect that GM will pull the plug on the GT2 project very soon, or at least limit it in the same way Audi has done.

I think globally, it´s the manufacturers that will suffer mostly, and the privateers will keep the motorsport scene alive.
 
niky
It would help if the anti-tobacco lobby's restrictions on advertising in motorsports were eased... in hard times, a lot of people will be needing a good smoke in dark alleys while crying over their paychecks (or lack of such), so it'll be boom business for the tobacco boys... (hmm... that probably goes for alcohol, too).
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Maybe in some places, but in the UK cigarettes cost more than gold. ;)
 
I'd have to say that I originally thought it would be the lesser-known & amateur events who would only be the ones to be hit hard. However, now that news has spread of the bigger names in motorsport (Honda leaving F1 & Audi dropping out of ALMS' 2009 season to name two) leaving the scene, I have become a bit more worried for all motorsports.
 
If economics force a massive cut in manufacturer and major sponsor spending, then in my opinion that can only be a good thing. There are bountiful smaller teams around who just can't afford to compete against the bigger massive budget outfits. Take most of this funding away and you get a much flatter playing field. I can see sportscar racing benefiting the most from this in the medium to long run. If the ACO and ALMS governing bodies agree to drop LMP1 and just have a single LMP class based along the lines of the LMP2 rules you'd probably still have decent sized fields and much closer racing too.
 
Reventón;3238594
I'd have to say that I originally thought it would be the lesser-known & amateur events who would only be the ones to be hit hard. However, now that news has spread of the bigger names in motorsport (Honda leaving F1 & Audi dropping out of ALMS' 2009 season to name two) leaving the scene, I have become a bit more worried for all motorsports.
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The amateur motorsport scene is getting stronger here in scotland,in fact one guy is buying a GT3 Spec gallardo to race in it and theres a rumour about a taxi being entered too ;)
 
TheCracker
If economics force a massive cut in manufacturer and major sponsor spending, then in my opinion that can only be a good thing. There are bountiful smaller teams around who just can't afford to compete against the bigger massive budget outfits. Take most of this funding away and you get a much flatter playing field. I can see sportscar racing benefiting the most from this in the medium to long run. If the ACO and ALMS governing bodies agree to drop LMP1 and just have a single LMP class based along the lines of the LMP2 rules you'd probably still have decent sized fields and much closer racing too.
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That, I´m pretty sure, wont happen in a hurry. ACO have very recently finalised the 2011 rules for both LMP classes, and we have already seen teams starting to adapt to them. Audi for instance.
The ACO has also said that they do want four classes, but that may have to change seeing what shape GT1 is in. No word yet about the 2010 rules for GT1, so as far as we can guess, GT1 may be killed off after 2009.

The only field of more major racing that I have read about recently, that seems to still be in very healthy conditions, are GT2 and FIA GT3, wich so happens, have mostly privateer teams. GT3 are only privateers.

Besides, ALMS are not the only series that provides P1 cars to Le Mans; LMS had a pretty large field of P1 cars this season, with 16 cars running.
 
Holdenhsvgtsr
The amateur motorsport scene is getting stronger here in scotland,in fact one guy is buying a GT3 Spec gallardo to race in it and theres a rumour about a taxi being entered too ;)
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You hassled me on msn to I could read that:grumpy:
 
I thought about the Great Depression in regards to motorsports and the economy. Read this: < http://www.hickoksports.com/history/indy500.shtml >. Here is an excerpt from this website:

"Purchasing the speedway undoubtedly seemed like a very good financial move in 1927, but the Great Depression arrived less than three years later. In 1929, it cost about $25,000 to field a racing car. That expense was beyond the reach of most drivers and promoters in 1930, so Indy adopted a new formula, allowing 366-cubic-inch engines and lowering the qualifying speed from 90 to 85 mph. Sometimes called the "Junkyard Formula," the move lowered the price to $5,000 and resulted in the largest Indy field ever - 38 starters instead of the usual 33. The formula remained in effect throughout the 1930s."



Remember that this thread is not about just the current economic climate, but about economic climates anywhere past and present. I may release a similar thread on a different subject. But that's just a little perspective on what the economy does to motorsports.
 
In the early 1970's the Trans-Am series died off because one by one the manufacturers dropped their support. The remaining privateers weren't plentiful enough to continue the series. Tough economic times sometimes do hold down the good competition and strong fields, but the racing survives. We may have a couple of lean years here, but we'll learn how to cut costs and find new innovative ways to extract speed. The show must go on!
 
There's a few thoughts in there... without the big boys, the privateers can shine... but only if you have a lot of privateers who are also willing to spend... and that's the big question-mark for 2009... how many of the small players will be willing to soldier on.

Hmmm... "Junkyard Rules"? Make a 'spec' series that's run at every track... have everyone in unsold, 2008 model cars, bang around the track... racing can't get any cheaper than 2-for-1 car deals... :lol: ...I'd pay to watch that.
 
Motorsports will obviously go on. But i can see it slowing down alot in the future more than it is now. Anyone in karting has been cringing over what the exchange rate did to our sport, my most recent kart i bought was a Margay (american brand) instead of a Tony Kart (Italian Brand, and my personal preference) simply because the parts AFTER the exchange rate are insanely expensive.
 
Check out this video that highlights a little on some of the movers and shakers in the ALMS if you haven't seen it already.



The ALMS notes come around in the first third of the video. I'm starting to wonder about factory involvement vs. independents. But man... no Subaru. No Suzuki. Factory involvement usually adds luster to certain championships. Then again, you never want your racing to disregard privateers. A thread on another message board asked if not having these big-money teams... means better racing. So I pose the question to you- will racing be better in this economic climate with privateers and independents?
 
Only the wealthiest privateers will shine. Many will stay home or run a limited effort. WRC depends on the manufacturers. With Suzuki and Subaru out, there's not a lot left.:ouch:

I was totally shocked they picked now to restart the Trans-Am series. They're starting it up with SCCA GT1 spec cars much like when they restarted the series in the late 70s. They're not counting at all on manufacturers I guess.

Ford and Dodge have pulled out of NASCAR Truck Thingies. And the whole organization of NASCAR is shaking in their boots over the Big Three Bailout.:nervous: Even the great Petty Enterprises may be coming to and end. Wow!
 
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The thing with manufacturers is that they are marque-specific, and as such, more appealing to the fans. A private team has to rely more on the driver for commercial value, and needs a carismatic, stand-up guy who can sell the teams commercial value to the audience.
In my personal opinion, the manufacturers should stay away somewhat, and only provide cars and parts. Let private teams, with factory backing of course, do the running. In that way, the really big bucks are better held in check, and the same time the fans gets their favourite marque.

So is the racing better with only independants? The answer is dual - yes and no! The aspects are different though, and the effects are both short- and longterm.
Yes, because the likeliness of one team being far superior is less, and thus creating closer racing.
No, because without the manufacturers, the fanbase will diminish, and bigger series, such as ALMS, will eventually close down in favour of things like Grand-Am and such.
 
KAMKA-Z
Ford and Dodge have pulled out of NASCAR Truck Thingies. And the whole organization of NASCAR is shaking in their boots over the Big Three Bailout.:nervous: Even the great Petty Enterprises may be coming to and end. Wow!
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Perhaps NASCAR will be left with just Toyota. In which case they can reach out to a whole new JDM fan base? ;)
 
All I know is that 2009 is going to be an interesting year as far as money is concerned. Some races may even be impacted. In 1972, there was some kind of energy crisis that shortened the 24 Hours of Daytona to six hours, and the 1974 enduro was cancelled (thanks: Wikipedia). That was something completely different. It's going to be about how many races and race series can thrive in these tough times. Also about what kinds of teams and drivers can excel despite these tough times.
 
Holdenhsvgtsr
Cracker on the subject of motorsport what is our plans for next year? still racing the lotus?
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Yes, hopefully a fuller season this time too, engine woes permitting. My dad has just moved house recently to a property with a 'shed' - turns out to be 60ft x 20+ft barn with a well fitted out workshop. He's now got plenty of space to work on the car - and space for the spare shell which may be built upto Appendix-K spec for those longer European races 👍
 
I've read from a Myspace comment I received was this:

"Not much good news with the V8s I'm afraid. Holden Racing Team has been butchered by Tom Wilkenshaw and Mark Skaife forced to retire, sad times indeed."

This was after I set my status to something regarding concern in regards to how times will be different with this economic crisis. While I don't work or anything, I have my concerns this may somehow impact myself or my family. As far as motorsports go, I wouldn't be surprised if there were limited schedules or even cancelled seasons. Way earlier this year, I think the NDRA cancelled their season. I know not many people care about such a series, but the economic crisis has hit a racing series nonetheless.

I've failed Economics in college. I can't really failed to note what the difference between a depression and a recession is. Something I read was that a recession is like a depression, only not as severe. You can look around for a real definition that defines the two better. Whatever the case, this is going to be a rough offseason.
 
Kawasaki pulled out of MotoGP a few days ago. Maybe teams that aren't doing so well are backing out. Things just get tougher for various teams and manufacturers/constructors.
 
JohnBM01
Kawasaki pulled out of MotoGP a few days ago. Maybe teams that aren't doing so well are backing out. Things just get tougher for various teams and manufacturers/constructors.
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You're right there John, when times are tight, a multi-million budget for an unsuccessful international motorsport venture has got to be hard to justify to the boardroom. When you are winning at least you get some pay back at showroom level. When you are consistently mid-field or worse, it does no good for your image at all. This is why they'll be no Honda in F1, Kawasaki in Moto GP or Subaru in WRC for 2009.
 

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