Jul 5, 2009

12: The shape of the ALMS to come: Part 3 of 7

An analysis on Grand Am vs: the ALMS

or

"How I learned to stop worrying and love the Grand Am."


Welcome back dear fans of premium, edge of your seat, sports car racing. In my last article we discussed hard financial numbers and rekindled our inner baking skills, and all for the better good of the sports car series we love. Expect miracles soon. Please stop emailing, I will be posting the recipe for my grandmother's pear pie very soon, as promised. The trick is to use pears that are still green as they will not turn to mush when baked.

Today by popular request (and by virtue that this is part 3 of 7 of my great Epic that is "The shape of the ALMS to come") the Serpent will begin to discuss exactly what the ALMS will look like down the road. I will admit, I have had a number of fans emailing me fearing the future... fearing if there will even be a future. But fear not, like your hero Scott A., I will calm you by focusing on a few marketing talking points until you fatigue, stop caring, and go home. Let us begin...

A primer on the ALMS:

Let us remember that the ALMS is basically an open public forum for manufacturers to design, innovate, and prove the might of their product. Even better, private coffers flip many of the bills. How good of a deal is that?!?! Innovate on Friday, join the ALMS on Saturday, win on Sunday, sell on Monday. The ALMS is merely a facilitator to the process (they might skim a few dollars profit also). They set up the show including race venues and TV coverage (including some network races) and persuade teams and sponsors to invest and join in the show to make it all possible.

The wee problem here is that the series is competing with teams for sponsorship, and that this model does not do so well in tough financial times because of a heavy reliance on major manufacturer/private support.

Moreover, if one manufacturer consistently proves difficult to beat... other manufacturers tire of the bad publicity and run. Some people don't like real competition... which makes for a nice lead in to...

A Primer on the Grand AM:

This is racing for the simple man. Keep it simple, keep it cheap, keep it close. DP's represent a poor man's prototype. The series gives manufacturers credit for the chassis and engine... so they are kept happy. Development on these cars is nill, which is great because it also cuts out development costs for teams/manufacturers. Exposure with minimal effort/expenditure by the manufacturer/team. Race DP's, sell GT's.

Teams like it because they are being subsidized to stay in the series (race winnings, cash handouts from NASCAR to keep teams/car/drivers in the series). GA is also a better place to be competitive if you have a team with a lower budget. Everyone uses the same antiquated DP's, and if one becomes dominant... they get flowers, a race trophy, and a performance penalty.

There is more catering to sponsors. GA gives sponsors lots of flat surfaces for their DP's. Remember, those cars were designed with one goal in mind... not looks, not speed, not safety, but MAXIMAL surface area for banners. They don't call DP's "a banner on 4 wheels" for nothing. The world's fastest and most technologically advanced billboard that also happens to be a car.

Finally, GA is an attempt to appeal to both the NASCAR and Sports Car crowds. They appeal to NASCAR fans by keeping things simple and competitive... and Sports car fans buy driving on tracks that are not some variation of the egg shape, and throwing in a few actual sports cars too.

Obviously, with less dependence and cost to manufacturers, they are not hurt AS MUCH as the ALMS in bad times. Plus, manufacturers that don't like all out competition (i.e. looking bad in the face of the public when they are lapped by an import, race after race) may be happy to be in Grand AM. They also have the 800lb gorilla behind them in the form of NASCAR (translation: deeper pockets in the war of financial attrition with the ALMS).

However, rumor would have it that the NASCAR war chest is being dipped into quite a lot this year with all the subsidizing that has been going around. The dozen fans at the races certainly are not paying for it. Oh yeah... sponsors/teams/manufacturers don't like the lack of viewers/fans/exposure/interest. The only thing they have going for them right now is an 800lb gorilla (that is feeling the hard economic times itself).

If the series actually had fans they would all be pretty scared right now... even 800lb gorillas don't like to keep dead weight for long.

What is GA to do?


Step one. Monopoly. Get rid of your opponent... or buy it and own it. Here is the twist: Money grubbers also call the shots on the NASCAR side of the fence. Which series can make them the most money? Hint: money grubbers want to grub money from as many people as possible. They already have the money of NASCAR fans... so they want control of a series with a different appeal/fan base. Guess who? The # of fans in the GA stands is your hint...

More food for thought for part 4: How do you buy out all or some of a series and not have it turn up the next year in a different form... competing for your dollar? Hint: Sebring will not save GA from itself. The grubbers know it.

You are welcome!

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