tool name
closeCuts in staffs also reduce normal flow of information
By David Poole
dpoole@charlotteobserver.com
Wednesday, Nov. 19, 2008
Seven-time NASCAR champion Richard Petty (right) Robbie Loomis, head of competition for Petty Enterprises, talk between transporters at Lowe's Motor Speedway in May. JEFF SINER -- jsiner@charlotteobserver.com
NASCAR race teams normally pump out news releases about every aspect of their operation, from one-race associate sponsor deals to weekly paint schemes. But actual news about staff reductions and other cutbacks at the end of the season amid an economic downturn has been harder to come by.
“It's sort of evolving before our eyes,” Andy Papathanassiou, executive director of the North Carolina Motorsports Association, said Tuesday.
The picture that continues to emerge, though, is that there will be fewer jobs in racing when the 2009 season begins and that some of the jobs that do exist will not pay as much as they did in 2008.
Mike Bartelli, chief marketing officer for Petty Enterprises, confirmed Tuesday the team has eliminated 30 positions.
“Like most in the NASCAR (or virtually any) industry, Petty Enterprises is not immune to the current economic downturn,” Bartelli said. “During these tough times, we've had to make some very difficult decisions, including a reduction in staffing levels.
“We regret that we had to eliminate any. …We're focused on weathering the tough road ahead and aggressively marketing the Petty brand and sponsorship assets in the months ahead in preparation for the 2009 season.”
Fox Sports.com reported that Wood Brothers Racing has cut back in its Sprint Cup and Truck Series operations but that the team plans to enter the 2009 Daytona 500. “We will be racing in 2009,” co-owner Eddie Wood told Fox Sports.com. “We're just not sure what that schedule looks like at this time. We're going to do whatever is necessary to survive.”
The Associated Press reported that Hall of Fame Racing said it will not lay off any of its 44 employees until the end of the month as it continues to look for a sponsor for the No. 96 car. But team general manager Tyler Epp told the AP that the team will have some cuts even if a sponsor is found.
Dale Earnhardt Inc. let 116 people go last week when it announced a merger with Chip Ganassi Racing with Felix Sabates. The Ganassi team cut several dozen employees when it shuttered its No. 40 team, but Ganassi and DEI officials agreed not to comment on how the new team will be structured and any further staff reductions until all of the details of merger are finalized.
Papathanassiou said he believes some of the people who lose their racing jobs this winter will eventually find a new place to work – most likely, however, with less pay.
“It's similar to selling a house,” he said. “How long your house stays on the market might have a lot to do with how much you eventually will sell it for. It's the same thing for the cost of labor. How much are people willing to work for? As that cost comes down, more people will be able to go to work. I think people will be able to find jobs in the industry.”
Papathanassiou said he thinks it is important to realize that the end of every season brings changes in racing.
“Every year companies shut down and people have gone without being paid for work they have done,” said Papathanassiou, who has been in the industry for 16 years. “Since everything was trending upward people tended to still have a good feeling about the industry. But now things are trending downward and it certainly affects our industry and sponsors. So when we hear bad news, that seems to give it more weight.”