Smack: Pettys make news and Pocono was a snooze

By NASCAR.COM
July 16, 2008
11:06 AM EDT

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1. Petty Enterprises has sold a majority of its organization to Boston Ventures, a private equity firm. Will the move help turn the storied franchise around?

David Caraviello: The jury is still out on this one. Boston Ventures is an outfit without much experience in sports, much less auto racing. But they do evidently come with cash, though.

Mark Aumann: Yeah, I think everyone has gotten the feeling the last few years that the business aspect of the sport has passed the Petty Enterprises model by. This may be the only way for Richard and Kyle to survive, which is truly sad. It's telling in a way that the economics of the business are such that teams need an influx of outside cash to operate, even with multi-million dollar sponsors.

Raygan Swan: I have to think it will work as long as Richard Petty stays close to major decision making. An investor seemingly worked for Gillett Evernham. I agree with David in that they have little racing experience but few outside investors who have come on board do.

David Caraviello: But George Gillett was a sports guy. He had something of a track record in hockey and soccer. These Boston Ventures guys are unknowns. They're more like Rob Kauffman, the financier who bought part of Michael Waltrip's team. But I'm sure Petty can use the cash. The merger, hiring Bobby Labonte and Robbie Loomis, moving to Mooresville ... they're all pieces of a puzzle you'd expect to come together eventually.

Raygan Swan: Hockey and soccer are far from racing. And Mark, I think it was funny to hear Brian France say that investors aren't needed to compete in the sport. Then what does he expect struggling teams to do to pay for the rising costs?

Mark Aumann: All of these outside investors have obviously looked at the books and must see a potential revenue stream. So is it a situation where the team owners just aren't financially savvy?

A good move

On Wednesday, Petty Enterprises announced a partnership with Boston Ventures -- Joe Menzer says that's exactly what the organization needed to compete and return to its past glory.

Raygan Swan: I would agree, and hey, A.J. Foyt has turned it around after being stuck in the dark ages. If he can see the light and evolve, so can Petty. Petty is not the only past champion of racing who has fallen behind and is now having to dig himself out of a hole.

David Caraviello: Well, Petty is the only team on the circuit that can not win races yet still have its name everywhere. It's got that kind of cachet.

Mark Aumann: Well, it's always been a case where racing costs cubic dollars -- and you spend every dollar you raise. But we're heading down a different path now, where ownership groups are going to want to see a return on their investment.

Raygan Swan: And fast.

David Caraviello: Right Mark, and we're also getting a point where you're going to have non-racing guys making the decisions that racing guys have always made. That can cause friction sometime. The deal between Evernham and Gillett, it appeared, didn't go as smoothly as it seemed at the outset. But the results certainly are there now.

Mark Aumann: And what is the bottom line at the end of the day? Will it be winning on the track or coming out on the positive side of the ledger? Those can be mutually exclusive.

David Caraviello: Good point. If Petty gets two bang-up sponsors, if the name is everywhere, if Boston Ventures makes a ton of cash, then does it really matter if they win?

Raygan Swan: I can see where a lot of power struggles can occur in these deals. I guess that's why NASCAR is called an entertainment entity as much as a motorsports series.

Mark Aumann: Not that I want to bring stick-and-ball sports into this, but baseball and football teams -- for the most part -- were family ventures. Now, most teams are corporate-owned. And they still exist, and make a lot of money. Perhaps we're just seeing the inevitable evolution of the sport.

Raygan Swan: So with the news of the investors coming on board, is Kyle here to stay?

David Caraviello: He says he's still driving the car. There's no clear successor. I'm sure Petty wants a Petty in the seat as long as possible. For how much longer, we'll see. (Continued)

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