NASCAR threatened by Detroit's problems

December 1, 4:28 PMCharlotte Political Buzz ExaminerCaleb Howe

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NASCAR to face tough times?

When it comes to the automotive bailout question, Detroit isn't the only city with something to lose. NASCAR personalities and experts are pushing hard for the bailout, suggesting that without it, the sport could be set back more than thirty years. If the sponsorship money stops flowing in NASCAR, already hard-hit banking city of Charlotte will suffer another major financial blow.

Anyone who lives here knows instinctively how important NASCAR is to the economy. Even if you don't know it by sense, you certainly should have gained some understanding during the discussions and debate surrounding the Hall of Fame, or when Concord nearly lost the speedway. Now we're looking at another big racing-related issue. Jobs have already been lost and sponsorship money is already being cut. Some experts and analysts, though, suggest that without a major Detroit bailout, things will get much worse.

Dr. David E. Cole, chairman of the Center for Automotive Research, even stated that  "NASCAR in general is at risk with a broad bankruptcy in the industry, and I think [not bailing out the Big Three] would just frankly take out NASCAR."

Of course, not all predictions are quite so dire. According to Fox News, Dr. Larry DeGaris of Sponsorship Research & Strategy is confident that at the very least Ford and Chevy will maintain good relationships with NASCAR. "NASCAR fans know who the sponsors are and they appreciate them and they act on it,"  he says, indicating that even without a bailout the car giants couldn't afford to pass up the kind of intense marketing they get through sponsorship.

Still, is it reason to support another gigantic expenditure from the public coffers?

With the banking industry collapse and the continuing credit and housing crises, Charlotte is in choppy financial waters. A serious blow to the racing industry would be a significant additional layer to the problem. Even so, some sports experts in the area see a silver-lining. NASCAR Examiner Greg Engle suggests that, after the dust settles, "what may emerge when the economic storm clears is a closer-matched, more-watched, bigger and better NASCAR." When it comes to arguing about massive bailouts with taxpayer money, that may be one of the most important observations there is. When businesses and industries fail, sometimes from the ashes rise leaner, sharper, hungrier, better companies; companies that will be nimble enough to compete going forward, rather than trailing their baggage behind them. Sometimes a forest just has to burn down in order to renew itself.

One thing is clear: in the years ahead, NASCAR will undergo changes and, as a result, so will Charlotte. We don't know yet what those changes will be. But like NASCAR, the people of Charlotte will get through and we'll get by, even without a government handout. That's just how we do it in the South ... and in the sport.