Fox Sports reports that it cost $20 million to $25 million to operate a team. The driver can cost another $10 million. Chrysler said late last year the it would reduce its NASCAR budget by 30%. Chrysler, moving out of Chapter 11, should not be spending a dime of taxpayer money to race. The same holds true for GM.
Forbes recently reported that NASCAR television ratings are down 21% from their 2005 peak.
Most of the manufacturers with NASCAR programs have made some cuts, but the near-collapse of Detroit should be an excuse to zero out racing budgets. Industry reports says that GM and Ford spent as much as $100 million a year on their NASCAR programs at their peaks, while Chrysler was closer to $50 million.
Do NASCAR sponsorships sell cars? That is hard to say. Do they sell $100 million worth of cars? In the current economy, it is unlikely. And, to the taxpayers supporting Detroit, it looks bad.
Douglas A. McIntyre
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