Bill Davis Racing

Friday 5: Furniture Row Racing’s demise is a fate others know too well

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SPEEDWAY, Ind. — The names have changed but the stories haven’t when it comes to the tale of Furniture Row Racing and all the teams before it that faded away.

The concern about costs, the dependence on sponsorship and the volatility of it all is not something that is new to NASCAR (or even motorsports). That those issues contributed to Furniture Row Racing announcing this week that it would cease operations after this season only added that team to a long list. That Furniture Row Racing won the Cup championship last year only makes the story more powerful.

But not unique.

Go back in time and look at what other car owners were saying and how their concerns were repeated.

In 1999, Ricky Rudd closed his race shop and sold his cars and equipment at auction because he was unable to find a sponsor to continue a team that had won six races in six seasons, including the 1997 Brickyard 400.

Rudd told motorsport.com the day of the auction: “I’ll probably get a little sad when I see those race cars loaded up on trucks and rolled away. That’ll bother me a little. The hardest day was the day before I signed with (Robert) Yates. I walked into the shop and told the guys that the sponsorship deal wasn’t working out, and that I was sorry but I was gonna do something else next year.”

In 2007, Ginn Racing and Dale Earnhardt Inc. merged during the season because Ginn needed help after it was unable to find funding for two of its three cars. Car owner Bobby Ginn explained to The Associated Press that had he not merged: “We would have had to continue to cut costs, and that is disgraceful to me. I am proud of the merger. I would not have been proud of putting a car out there that couldn’t compete.”

Ginn went on to say: “Even if the sponsors had come in, we probably would be talking about something like this anyway. This is just going to be the way teams operate going forward, and we needed to be invited to the party before it was too late.”

In 2009, Bill Davis Racing — a team that won the 2002 Daytona 500 with Ward Burton — was sold after what The Associated Press described as a “fruitless search for sponsorship.”

In 2013, car owner James Finch sold Phoenix Racing to HScott Racing. Finch told NASCAR.com at the time: “I’ll come to races and all. I just wasn’t going to go broke doing it. Sponsorships are really tough to come by and stuff like that.” HScott Racing announced in December 2016 that it would not field a team, citing lack of sponsorship as a reason.

In 2015, Michael Waltrip Racing announced it would cease operations after the season. Clint Bowyer was a playoff team for that organization that year.

The organization was a three-car team in 2013 but then lost sponsor NAPA after the season in response to the Richmond scandal that year when NASCAR penalized MWR for team orders in the final regular-season race of the year and removed Truex from the playoffs.

Last month, a bankruptcy judge approved the sale of BK Racing to Front Row Motorsports. Court documents showed that BK Racing, which struggled to find sponsorship, lost $29.5 million from 2014-16. The team also owed a bank more than $9 million in unpaid loans and the IRS more than $2.5 million.

“It’s a tough business,” Devine said in February at Daytona when asked why he never aligned with another team to help defray costs. “I think it’s an expensive learning curve. I also think … you’ve got to decide where you are taking the company and I took it down a very independent route, which probably wasn’t the smartest (thing).”

Just in recent years, the sport has seen Richard Childress Racing contract from three to two teams and Roush Fenway Racing, which had five full-time teams in 2009 downsize to four teams in 2010, three teams in 2012 and two teams in 2017.

Furniture Row Racing cut from two teams to one this season and then suffered a fatal blow when 5-hour Energy announced in July it would not remain in the sport after this year. It is to serve as a co-primary sponsor for 30 races this year. Forget that the 2019 Daytona 500 is 164 days away, the need to have sponsorship secured for next year had already passed for Furniture Row Racing.

Although their lifespan may be recalled more often by fans, its demise falls in line with what has happened to many teams through the years.

2. Similar refrain

This is becoming too familiar for Martin Truex Jr.

For the second time in his career, an organization shut down with him as a driver. Two other times, an organization Truex drove for merged to remain in the sport.

In 2007, Truex was with Dale Earnhardt Inc. when it merged with Ginn Racing, creating a four-car operation. Then that organization later merged with Chip Ganassi Racing.

Truex then left for Michael Waltrip Racing only to see his ride disappear after the 2013 season when NAPA left the team. The fallout was from the Richmond team orders scandal NASCAR penalized MWR. Now, Truex will be heading elsewhere after Furniture Row Racing closes shop after this season.

3. What’s next?

One of the things to watch for with Furniture Row Racing is who buys its charter.

The value of a charter, just like anything, is based on what someone is willing to pay. If there’s only one interested party, the price won’t be as high. If there are more, that can raise the price.

Don’t take what the BK Racing charter (and team) sold for in bankruptcy court last month as an indicator. The team, including the charter, sold for $2 million last month. After a minimum price was set for the charter and team, there was only one bid, leading to a sale that many in the court called disappointing.

One thing that should make Furniture Row’s charter is its recent performance. There’s a historical element to charters that have weighted payments based on the performance of the team that held that charter. With Furniture Row Racing’s championship last year, this charter will have a larger payment to the next owner.

4. Unique attraction

The NASCAR weekend at Indianapolis Motor Speedway began with a USAC National Midget race on Thursday night.

A quarter-mile dirt track was built inside Turn 3 and more than 100 USAC midgets entered the event.

Holding races leading up to a NASCAR weekend is not a new thing but showing this dirt track series is. With a push toward grassroots racing, such options could be good tie-ins with race weekends — as long as fans show up. If fans don’t attend, they won’t happen.

The grandstand was full for the midget race, which was won by Brady Bacon and saw Christopher Bell finish fifth and Ricky Stenhouse Jr. place 11th.

Many fans were already looking forward to this event returning next year.

5. Special promotion

You might have missed it but Pocono Raceway announced this week that children 12 and under will receive free gate admission while accompanied by an adult to its two Cup races and its IndyCar race in 2019.

Children 12 and under already could attend NASCAR Camping World Truck Series and Xfinity races for free but this is a step up for the sport.

It provides another avenue to reach out to a younger generation with the hope that those in that group become life-long NASCAR fans.

Admittedly, it’s not something that can be done everywhere. Watkins Glen sold out its grandstands again this year. Darlington Raceway did not announce a sellout for last weekend’s Southern 500 but the stands were close to capacity.

At other tracks where there are open seats, it might be something to consider in the future even if only on a year-to-year basis.

Could be the start of something for Cup races.

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