Unconfigured Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Deciphering the Business End of Walker's Situation

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Deciphering the Business End of Walker's Situation

    Taken from Miller's article, with commentary and questions....


    “I’ve been keeping this thing going for the last four months because I thought we could work things out, but I finally ran out of time and money. I had to pull the plug,” said Derrick Walker, whose CART team started in 1991 with Willy T. Ribbs and actor Bill Cosby. “I dropped the bomb on my team Friday and it was the toughest thing I’ve ever had to do. Everybody was shocked, to say the least, because I had been optimistic we were going to get sponsorship.”

    Translation- My money man (which is the only reason I actually was in business), officially crossed all the t's and dotted all the i's with another team owner (who used to be my boss in that deceased series) at the end of last week, taking my driver with him. And, since I haven't gone out and found sponsorship, myself, for a decade, I have no energy to try now, at this late date.


    Speaking from Laguna Seca, Calif. where his Atlantic team is testing tomorrow, Walker was meeting Nigel Mansell on Sunday night. Mansell’s two sons, Greg and Leo, are hoping to compete in Atlantics for Walker this season. “It remains to be seen whether Nigel’s sons will continue with us because there’s a lot of uncertainty about the Atlantic series.

    Translation- Since Atlantics is a feeder series to nowhere now and is on shaky ground in many ways for 2008, I don't know if Nigel will want to write the checks for his sons now afterall.



    “Tony’s Leaders Circle Program ($1.2 million per car) and the free equipment is very generous, but it was still going to take $3.5 to $4 million per car for a limited program and you would need all that,” he said. “We have two IRL cars in our shop and the boys just finished up one of them and had it painted in Team Australia colors, so we were looking pretty good for the test next week at Sebring and Homestead.”

    Translation- I don't have a clue how to find a sponsor on my own. And, even though Tony would be bankrolling most of my 2008 budget and we still have a few weeks until Homestead and another few months until Indy, I am already saying I am giving up. But, I do have 2 really nice chassis in my shop, and one of them is all ready to go racing, so if anyone is interested in either partnering with me or funding me or interested in making some kind of deal, my cell number is.....

    “Nigel and I had talked about running one or both of his sons in Champ Car in a year or two, but I don’t know if he’s interested now that it’s the IRL,” he responded.

    Translation- Nigel and his boys aren't too fired up about racing on ovals. And, Nigel ain't spending his cash, to run freakin' American ovals.



    Anyway, my question is with the free chassis and free engine lease and the 1.2 million dollar payout (tire costs and other things covered in that), where are those 3.5 to 4 million buck numbers coming from? What costs so damn much, with most of that already covered? There is very little testing during the season. There are several 2 day race weekends. There are only 16-18 races on the calendar. Could someone clue me in on what would cost that much money, during a season. Maybe he is right. But that number, with all the things on the table for these owners that are basically already being handed to them on a silver platter for 08', seems a bit high to me. I thought 08' was just going to be a learning year; where most of the CC teams would be just happy to participate and try and improve during the season, in a "unified" sport? Does Walker only want to play, to compete with the big boys?


    It would seem, to me, that if Dale Coyne or Marty Roth can put a full-season deal together, then Walker probably could. But, that's just me.
    IRL 2009: "Cars you can't see, driven by drivers you have never heard of, on a network you don't get"

    "I'd hire your grandmother, if she brought a budget"- Bankrupt Indy Car team owner Tyler Tadevic, to Curt Cavin in December, on the tough standards he looks for when "hiring" driver talent.

  • #2
    Maybe he will. If he really had his sponsor snatched away from him in the past couple weeks its no surprise he isn't able to find another one in just two more weeks. Sounds like he'll figure out a way to get back for next year or maybe for Indy this year.

    Comment


    • #3
      3.5 to 4 mil comes from roughly same place "100 mil for champcar" comes from; though truthfully, the former is probably a little closer to reality than the latter.

      I hope racers find the funds to race, but you have to wonder about any team that can't make it work with what the series is giving them.

      Comment


      • #4
        To put it into perspective, a friend from college owns a Koni Challenge team ( Grand Am showroom stock series) and for a competitive two car effort, the team budget is about 1.5 million a year. That's to run a team with 4 full time employees, about 8 weekend warriors, 2 Porsche 997's and a 10 race, or so season.

        In ICS, the nose assemblies for the cars cost about half of what he paid for one of his Porsches over the offseason.

        Comment


        • #5
          I would think most corporate spending budgets to the tune of what's needed to run a full season in the IRL were written last year. Kinda tough this late in the game to suddenly approach sponsor XYZ and say. "Hey, we finally got back together, how about that 2-3 million you were willing to spend on my effort if the 2 sides got back together?"
          Trump, he's one of the nicest, most decent human beings possibly ever to walk the planet..

          Comment


          • #6
            well, you have to pay npeople to run the business....
            http://thepurginglutheran.wordpress.com/


            http://thegatwickview.tumblr.com/


            http://thepurginglutheran.tumblr.com/

            Comment


            • #7
              The real translation is: everybody (except the hateful at CCW) agrees that a merger or whatever it is called was needed, but it was done in the worst way possible and hurt very bad the CC teams.

              TG's wet dreams of 30 cars grids won't materialize. The IRL will find itself with low 20s car counts at best and there will be no impact on ratings or on the credibility of the sport. Actually, if there is any impact on the credibility it will be a negative impact.


              Originally posted by Jimmy Hendricks
              Taken from Miller's article, with commentary and questions....


              Translation- My money man (which is the only reason I actually was in business), officially crossed all the t's and dotted all the i's with another team owner (who used to be my boss in that deceased series) at the end of last week, taking my driver with him. And, since I haven't gone out and found sponsorship, myself, for a decade, I have no energy to try now, at this late date.


              Comment


              • #8
                Originally posted by Domingos
                The real translation is: everybody (except the hateful at CCW) agrees that a merger or whatever it is called was needed, but it was done in the worst way possible and hurt very bad the CC teams.

                TG's wet dreams of 30 cars grids won't materialize. The IRL will find itself with low 20s car counts at best and there will be no impact on ratings or on the credibility of the sport. Actually, if there is any impact on the credibility it will be a negative impact.
                Pretty easy to be critical about the way it was done without having to offer an alternative. Given that the owners were tired of dumping money down a bottomless pit, tell us...what would you have done differently? Would CCWS just not answering the bell a race or two into the year been a better alternative?

                The consolidation had nothing to do with Gore alligning with KK, and that is the basis for Walker's problem. Jimmy is right. The business end of this sport dictates that, once Walker lost his sponsor, it was time for him to go find another. He didn't, so he can't play. Simple as that.

                One of the legacies of the split that will haunt open wheel for years is the fact that there is now a group of fans out there who seem to think that if an owner has the desire to field a team, SOMEONE out their has an obligation to fund said team. They feel if that funding is not forthcoming, it MUST be the fault of the series. That's just not true.

                That being said, however, it sounds like you are as optimistic about the ending of the split as the "hateful at CCW."

                Comment


                • #9
                  Originally posted by Domingos
                  The real translation is: everybody (except the hateful at CCW) agrees that a merger or whatever it is called was needed, but it was done in the worst way possible and hurt very bad the CC teams.

                  TG's wet dreams of 30 cars grids won't materialize...
                  OR we're seeing a necessary weeding-out of the teams that either don't want to be in the IRL (arguably Forsythe) or would create a financial drain on the IRL (arguably Walker).

                  Oh, and knock off the editorial comment about something TG never claimed would happen. The ONLY people who even ventured the idea of 30 car grids after this agreement were media writers and overzealous fans.
                  "I didn't hear a single comment about airboxes, "carbashians", or how terrible the car looked. I did see dozens and dozens of little kids in awe of the speed and how cool the cars looked. We should learn from our children."
                  --Danny Noonan

                  Comment


                  • #10
                    Originally posted by millrace
                    Maybe he will. If he really had his sponsor snatched away from him in the past couple weeks its no surprise he isn't able to find another one in just two more weeks. Sounds like he'll figure out a way to get back for next year or maybe for Indy this year.
                    Just playing devil's advocate here (as I to think Walker has only existed the last decade because of other people's work). Walker is supposedly owed $1.5 million from Gore. They also didn't get paid '07 purse money. Having your sugar daddy move on..............and not even pay you what you are owed, plus have the former sanctioning body stiff you as well has to leave a bad taste in your mouth. Even with TG's generous offers Walker still isn't whole from being shafted by Gore/CCWS. Couple that with an inability to do it on his own and he's done..........at least for this year.
                    "There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt." John Adams 1826
                    Nostalgia isn't what it used to be.
                    www.fairtax.org

                    Comment


                    • #11
                      IIRC, Walker told the world that Gore had not paid him around $1.5 million from 2007. I bet that did not sit well with Gore, so he stuck with his buddy KK.

                      Comment


                      • #12
                        Originally posted by OPMoney
                        IIRC, Walker told the world that Gore had not paid him around $1.5 million from 2007. I bet that did not sit well with Gore, so he stuck with his buddy KK.
                        It's my understanding KK brought Gore into the Champcar series. KK probably thought Walker could use the money more than him, plus it would have been one more team that KK didn't have to support. Now that KK doesn't have to worry about his series(just his team) why not go after the sponsor that is really yours in the first place.
                        We want to relate to Americana. I went to the Indy 500 and that was Americana. I sat in various turns and I didn’t see any champagne drinkers, but I saw a lot of beer drinkers. We appeal to the wine and cheese crowd, but we also appeal to the masses – the beer drinkers.” Randy Bernard

                        Comment


                        • #13
                          It doesn't speak well for Derrick's ability to manage his sponsors (and their expectations), that Gore would walk out on him after he's been paired with Penske to learn the chassis and league. I mean, that's a pretty big leg up, isn't it?
                          ... Since all men live in darkness, who believes something is not a test of whether it is true or false. I have spent years trying to get people to ask simple questions: What is the evidence, and what does it mean?

                          -Bill James

                          Comment


                          • #14
                            "TG's wet dreams of 30 cars grids won't materialize. The IRL will find itself with low 20s car counts at best and there will be no impact on ratings or on the credibility of the sport. Actually, if there is any impact on the credibility it will be a negative impact."

                            You're practicing that thing from "The Secret", aren't you? (You know, that "what we imagine will eventually manifest itself")

                            I'm not sure visualizing doom and gloom is a productive use of your time and mental energy. :kk
                            "You people worry too much. Strive for change. Root for your favorites. Enjoy the racing. Drop the flag." rev-ed, 3/04

                            Comment


                            • #15
                              Anyway, my question is with the free chassis and free engine lease and the 1.2 million dollar payout (tire costs and other things covered in that), where are those 3.5 to 4 million buck numbers coming from? What costs so damn much, with most of that already covered? There is very little testing during the season. There are several 2 day race weekends. There are only 16-18 races on the calendar. Could someone clue me in on what would cost that much money, during a season.

                              Even the IRL teams have said that the TEAMS $1.2MM covered only an engine lease and tire costs. Assuming tire bill is about $200K or so, if Waker was getting a free BASIC engine lease and two "free" chassis that'd leave about $1MM for all team expenses.

                              Partial list of things that cost money during the season.

                              - Personnel salaries (direct car team, PR staff, hospitality staff, shop staff)
                              - Travel expenses
                              - Hauler and tractor lease
                              - Hospitality trailer and hospitality expenses
                              - Spares
                              - Consumables
                              - Engine lease upgrades such as additional trackside support
                              - Shop costs


                              I think it's been mentioned a number of times that the basic equipment costs are only about 30-40% of the full cost of a season of racing.
                              BAN SHREDDED CHEESE! MAKE AMERICA GRATE AGAIN!

                              Comment

                              Unconfigured Ad Widget

                              Collapse
                              Working...
                              X