National Guard Says Out of NASCAR & IndyCar... When??? Hendrick Says He Has Contract Thru 2015

Comes news this evening that The National Guard says it is again out of NASCAR and IndyCar Racing. That group has changed its mind so often and waffled over its sponsorship decisions it ought to have an alliance with Waffle House.

But wait.... Rick Hendrick says he has a contract through 2015 and this is news to him. Let the games begin!

AP News
National Guard to pull out of NASCAR and IndyCar

Posted: Wednesday, August 6, 2014 9:37 pm

Associated Press

CHARLOTTE, N.C. The National Guard said Wednesday it will end its sponsorship of NASCAR driver Dale Earnhardt Jr. and IndyCar's Graham Rahal, but it is not clear when that goes into effect.

Hendrick Motorsports said in a statement it has a contract through 2015.

"We have not been approached by the guard about potential changes and plan to honor our current agreement," the team said.

Bobby Rahal, co-owner of Rahal Letterman Lanigan Racing, said in a statement he learned of the guard's decision on Wednesday. He called it disappointing news "given the significant incremental brand exposure we have worked to produce for the National Guard in our first season together, including various off-track marketing and advertising programs focused on supporting the mission set forth."

The guard said in a statement posted on its web site it spent $32 million on its NASCAR sponsorship and $12 million on its IndyCar sponsorship this year, and noted that "sports sponsorships have played an important role in helping the guard build strong brand awareness." But, the guard statement said its sponsorship contracts in NASCAR and IndyCar "are set to expire at the end of the current season," which contradicts the Hendrick claim.

"Significantly constrained resources and the likelihood of further reductions in the future call for more innovative and cost-effective ways of doing business," Maj. Gen. Judd H. Lyons, acting director of the Army National Guard, said in the statement.

Military funding has come under increased scrutiny in Congress as Sen. Claire McCaskill, D-Mo, has called the sponsorship "wasting a bunch of money on a very expensive sports sponsorship."

The guard said in its statement that motorsports is not the only marketing arena to suffer under reduced budgets.

"Since 2012, the Army Guard has reduced sports sponsorships from six including professional fishing and motorcycle racing to just the NASCAR and IndyCar sponsorships," the statement said. "In fiscal year 2015, the Army Guard's marketing budget is expected to be about half of what it was just three years ago in fiscal year 2012."

The guard has been with Earnhardt since 2008, when he joined Hendrick Motorsports. NASCAR's most popular driver has won three races this year including Sunday at Pocono when the guard was on the No. 88 and his uniform as his primary sponsor and is second in the Sprint Cup standings.

Rahal only landed the guard this season after a prolonged battle with Panther Racing, which had the sponsorship in IndyCar from 2008 through 2013. Although the sponsorship was originally awarded to RLL late last year, Panther owner John Barnes appealed and the review dragged on for months.

The U.S. Government Accountability Office eventually denied Panther's appeal and RLL said in February the guard would be the primary sponsor for Rahal's No. 15 Honda.

Panther Racing has since filed suit against RLL, IndyCar and Document Packaging Brokers, an Alabama-based company known as Docupak that is involved in administering the guard sponsorship agreements. Panther alleges it lost sponsorship valued at $17.2 million a year because of bid-rigging and other improprieties

I have serious doubts that The National Guard can be held to any contractual obligations. Could be wrong but I'm betting there is a clause in any such contract that gives them "at will" termination for any reason. If that doesn't work, "Executive Orders" seem to work well these days.

Taking politics out of it, ALL companies/organizations would be smart to review advertising / marketing programs to measure their spend against their objectives - sales growth, new product launches, brand awareness, employee productivity, new customers, whatever. Compared to the value it once was, NASCAR is now a ridiculously expensive venue for advertisers. I constantly ask my buds the rhetorical question "How in the world can Company X spend $20-30 million to advertise through just one channel and sometimes for just one brand or product?"

In the Guard's case - and as a taxpayer - I agree someone should be reviewing the spend vs. stated objectives.

But I also get that you CAN'T take politics out if. It's quite obvious the cancellation of the racing deals is politically-driven first and foremost.

I agree with Tim. HMS can protest they have a contract with the government. If so, HA. Good luck on enforcing that one. The Feds appropriate funding on an annual basis. Easy come, easy go. It's a risk HMS has taken by signing a Federal agency as a sponsor.

The news while stunning to some didn't surprise me at all. Actually, I continue to be MORE stunned by the continuing sponsorship of Jeff Gordon's car by AARP. I'm not a member of AARP - though I'm guessing I'll get my invitation over the next year or two. But it stuns me this 'non profit' has rallied up several millions of dollars to advertise for hunger. Talk about someone needing to do a risk-reward analysis.

My cancellation of my AARP membership coincided with the Hendrick Hunger sponsorship. In retrospect, I can't think of one single thing my AARP membership ever brought to my table. My daughters gave me my first membership at age 50 as a joke and I kept renewing it. Dumb me. Wonder if AARP will ever get involved with "The Hunger Game" movie series?

By the way, out of curiosity I looked up the resume of the Guard Acting Director, Maj. Gen. Judd H. Lyons to see what his experience was. It seems limited to service in the Nebraska National Guard and heading that agency. Not exactly a hotbed of auto racing. Hmmmm, perhaps we'll soon see the Corn Huskers wearing camouflage.

And while the guvment is killing these sponsorship programs, maybe one of our esteemed Senators or Reps can explain exactly who these 3 guys in Alabama are who run Docupak and how it is they seem to control all of the service agency ad expenditures? There's been some serious palms being greased from that little hamlet Alabaster south of Birmingham says my small inner voice.

There seem to have already been some really stinky things going on with programs put together by this outfit as reported in February of this year:

As far back as 2004, these marketing wizards in Alabama were pulling in $100 million per year from the Guard for recruiting sponsorship of Jack Roush and The Biff.

If only RR could get a military contract, it'd be rolling in the $$$!