Why CART will outlast the IRL

[paul-collins]

Originally posted by rush1
I am sure Mr France and Mr. George would love the European Union to ban all tobacco sponsorship. More potential sponsors for their American based series.

Yeah, I'm sure the sponsorship will just flow to them from companies looking for the audience they used to get from F1. I'm eager to see the Gauloise-sponsored Pontiacs, Lucky Strike Fords, and West Dodges.

[macdaddy]

Entertaining post there, Paul!

I was of the impression that American tobacco advertising was lying on its death-bed, much like Canada's. Players has to pull out altogether as of October of next year, leaving them unable to display their logos for the last one or two races of next season. Is there not a set date when the US companies must do likewise?

[rush1]

The one series provision was negotiated with the US Justice Department some 3 or 4 years ago. It stands at that right now. NASCAR relies on tobacco advertiseing more than Formula 1.Tony Stewart visted George Bush at the White House this week because he won the NASCAR WINSTON cup. American laws have made tobacco advertiseing more restrictive but there is not plan to ban it completely, at least not right now.

[sgw2]

I think Brian and Rush are correct that CART needs to take care of its' US base. As I like to point out to Liz and other Canadians, over 90% of the NAFTA market is USA. Saying you cover the US with races in Mexico and Canada is a bit like saying you cover the Chinese market with offices in Korea and Taiwan.

But I think we are debating after the horse have left the barn. It is pretty apparant that Chris Pook and the BoD has opted for a reduced US presence, reduced oval presence (I think zero in 2004), and an increased European foothold. So much so that only 11 of 20 races will be in the US next year, and should CART survive into 2004 as few as 8 US races then. Jon Vannini's vision has won out over Robin Miller's view. The reason seems equally obvious; Pook is trying to sell the CCWS (nee CART) to Bernie Ecclestone's FOM.

CART has repeatedly ignored warnings from it's sponsors. I know that Toyota Sales USA, Philip Morris (Marlboro and Miller Lite), and Brown & Williamson (Kool) all complained about the non-US focus long before each quit. I have no doubt that the non-US focus contributed to Klein Tools, Dayton-Hudson Stores, Shell Oil US, and even Pioneer North America's moves. It is all about market focus. Add to these companies Coors, Budweiser, Delphi and Pennzoil, to see the total impact.

For CART the current definition of sponsor seems to be driver with breifcase. Roberto Gonzales, Michel Jourdain, Joel Camathias, Andre Lotterer, Justin Wilson, Alex Yoong, and in a funny way even Alexandre Tagliani are all such 'sponsors' with CART's support plan making up the budget shortfalls. This is essentially the state that Sportscar racing has been in for decades. If CART can lower the cost another $2 M, and shift market focus to Europe, then it might well supplant F3000. This is where the powers in CART have decided to take it.

We will never know if a different approach may have allowed a recovery.

[Liz]

Some of us don't care if Champ Cars races in the United States even once, although when I took math, 11 races out of 20 was a "majority" of the races being held there. Tobacco money will be out of the USA in a year or two anyway, so nobody cares what the tobacco companys' views are on American racing. And of course there are no businesses in any country besides the United States. If fact, outside the borders of the United States, there is no world at all. Instead of "here be dragons" your maps says "here be dadgum furriners" but it's still the same attitude.

Basically what you're saying is that your personal vision is different from that of the people in charge, and therefore the people in charge are wrong and doomed to fail. What a shame they didn't put you in charge of football (soccer) too, so you could tell them that they'll never be successful because Americans don't care about football... and of course Formula One is a failure because they don't run all their races in the United States ...

[indycool]

Agree, TimD. Mods?

sgw2, welcome to this forum...I lurked for awhile and started posting here a few weeks ago...there're some extremely knowledgeable people on these boards and they seem to discuss things with passion and reality, but without flames...I enjoy it here.

[indycool]

Agree, TimD. Mods?

sgw2, welcome to this forum...I lurked for awhile and started posting here a few weeks ago...there're some extremely knowledgeable people on these boards and they seem to discuss things with passion and reality, but without flames...I enjoy it here.

[Rambo]

I'm right with Liz on this one.

[indycool]

Liz, understand your point from the Canadian/international perspective and from those perspectives, you're spot on.

Pook's trying to increase the international schedule and exposure. Those outside the U.S. will welcome CART with open arms as they have in Canada, Mexico and Australia.

But, it's as you said, you don't care if they race in the U.S. and presented the fact that business is conducted in other countries also. All true.

Unfortunately, the reverse is also true from the U.S. business perspective.

Herdez is a good case in point. They're increasing U.S. marketing and have two Mexican races to stand on. If they don't sell products in England, Belgium or Portugal, those races are absolutely worthless to them.

Similarly, if a U.S. non-international company wants to market in CART and nine of the 20 races are outside the U.S., almost half the races are worthless to it.

That's the double-edged sword Pook is faced with for the moment until he can expand significantly international and clarify the CART marketplace.

[paul-collins]

The reason NAFTA can be reasonably substituted for US when talking about race ratios is because the main market that CART has to reach is the TV market, and TV is indiscriminate. You can't say Survivor needed to be done in the US, so if CART provides the necessary good show, and the timing is right, I don't think Americans will particularly care.

Attendance at races is not an issue (aside from Chicago's awful horse track, and Milwaukee IIRC). I don't know if local presence of these races would reasonably transfer into TV ratings over the long haul. I doubt it would have any meaningful impact. Is NASCAR's popularity contained by their geography?

And, as far as fans identifying with the races, racers, etc., that's a marketing issue. Certainly local drivers (read English-speaking Americans) have a leg up on their competition, but I feel that CART didn't work on this enough. Americans can understand Sammy Sosa as well as Barry Bonds; Bruno J should be able to cultivate fans as well as Darryl Waltrip, with the right coaching and exposure.

[BootsOntheSide]

Maybe there is some potental in two companies sharing sponsorship, one doing the US races, and the other the international races. With a near 50/50 split that could be a way to balance out the budget in a beneficial way to everyone.