The dog-eat-dog world of Indy racing sponsorship

John Barnes

Fully knowing this won’t do me any favors in the popularity department; likewise requesting that you consider the context which follows before rendering a final verdict, allow me to offer the following.

I sympathize with John Barnes.

Yes, Panther Racing team owner John Barnes. The same John Barnes rumored to have actively poisoned the waters in order to depose immensely popular former IndyCar CEO Randy Bernard. The same John Barnes, who responded to a reporter asking a simple question this past season, that it was none of his business. The same John Barnes, who in recent years has reportedly neglected to pay numerous Panther drivers. The same John Barnes, who had the audacity last fall to ask the red-ink-bleeding federal government for $17 million to sponsor a team that hasn’t won in 8 years or finished on the podium in two, and competes in a series that had less than 200,000 television viewers for some races. The same John Barnes, who reacted to said $17 million bid being rejected in favor of one $4.5 million less, from a more accomplished team with a greater promotional platform, by appealing the verdict. The same John Barnes, who has responded to his unsuccessful appeal by filing what appears to be a laughably desperate and frivolous lawsuit against Rahal Letterman Lanigan Racing, the IndyCar Series, an advertising agency, a member of the National Guard, and Lord knows whoever else.

Fully aware of all the things mentioned above; fully of the belief that the claims made by Barnes and Panther Racing against RLL and everyone else, seem downright absurd; fully aware that public opinion has ruled firmly and unquestionably against the unpopular Barnes and Panther, allow me to reiterate: I sympathize with John Barnes.

Now, let me be clear. Barnes is not some martyr. He is a racing team owner, and by all accounts, an extraordinarily successful man, who will not struggle to find his next meal, because he was not awarded an eight-figure racing sponsorship deal. Also, what I deem “sympathy" for Barnes should not be mistaken as advocacy for him or Panther Racing in their ongoing dispute with RLL. While I suppose some impropriety might have occurred behind-the-scenes, that is a decision a court of law will make. And the fact I agree with the general public in concluding Barnes seems somewhat divorced from anything resembling reality is not relevant here.

Plus, this article is not about Barnes, RLL, or any particular team or sponsor, per se. Rather, the focus here will be on what this RLL-Panther National Guard saga brings to light: the unsavory, rarely discussed, yet incredibly impactful movement of sponsors from team-to-team.

See, we focus overwhelmingly on driver movement. But here’s the thing: quality drivers can be found. In fact, go to any IndyCar race and you will see accomplished drivers walking the paddock looking for work. What you don’t often see is sponsors actively advertising their willingness to write a multi-million dollar check for any team they can convince to take one. Simply put, the support of a heavy-hitting, deep pockets, backer like the National Guard is gold in racing.

Further, because sponsorship dollars are so limited, race teams often compete with others in the same paddock for sponsorship as we saw in the case of Panther/RLL. While I want to be careful to not make any accusation or even implication of impropriety, the simple truth is a sponsor deal such as the National Guard, doesn’t leave room for two. Rather, it’s a cutthroat, winner-take-all, zero-sum game, which historically has greatly improved fortunes for the beneficiary, and at times, been a knockout blow to the party on the short end of the deal.

This brings us back to Panther and Barnes.

Clearly, Barnes is doing himself no favors from a public relations standpoint with appeals, lawsuits and the like. Just know the National Guard sponsorship has been the lifeblood of his business the past six years. And while there are numerous less-than-favorable adjectives many have and will use to describe the less-than-beloved team owner, dumb is not one of them. After all, Barnes has regularly put together eight-figure sponsorship deals in a down economy and a less-than-glorious age for IndyCar racing. He likewise knows this is a cutthroat, bottom-line business, where the backing of a heavyweight sponsor is an imperative for success.

I also imagine Barnes is somewhat familiar with how such situations have played out in the past. And if we use previous situations as a reference, let’s be very clear on this: the future of Panther Racing is probably in the balance. Similar to others, I don’t like the reeking-of-desperation, scorched-earth policy of appeals, lawsuits, and the like Barnes has adopted. However, given the historical perspective outlined below, I do understand it.

Below, we will look at some of the more memorable sponsor-switching-team deals. And let it be noted that in almost all cases the party that ended up with the sponsor, came out ahead in both the short, and long term. Here goes.

Marlboro from Patrick to Penske, 1989:

Driving for Pat Patrick’s team in 1989, Emerson Fittipaldi won the Indianapolis 500 and CART championship. Fittipaldi and Patrick had the preferred Chevrolet-Ilmor engine, backing from Marlboro, and a customer Penske PC-18 chassis that season. Ironically, Fittipaldi beat Team Penske’s Rick Mears, who finished second in the standings that year.

Now, this deal was reportedly consummated long before the end of 1989. Reports suggest that Penske had agreed to supply Patrick with chassis, with the understanding that Fittipaldi and Marlboro would join Penske for the 1990 season. Patrick, again reportedly, wanted to get out of racing, and would sell his team’s assets to Chip Ganassi, who was a co-owner with Patrick in 1989 and would start Chip Ganassi Racing in 1990.

Miller from Patrick to Rahal/Hogan:

Of course, Patrick had a change of heart after the deal went down with Marlboro, Fittipaldi and Penske. Despite selling his team, along with the coveted Chevrolet lease deal to Ganassi, the old Wildcatter returned in 1990 with Alfa-Romeo factory engines and driver Roberto Guerrero. The season was miserable, as Guerrero finished sixteenth in the standings and recorded a best-finish of 5th. Danny Sullivan would bring Miller beer sponsorship the following year, but the results were equally unspectacular.

Following the 1991 season, Patrick would sell the second incarnation of his team to ironically, Bobby Rahal. One of the motivating factors behind the deal was the fact heavyweight sponsor Miller had no interest in continuing with a program without a coveted Chevrolet lease deal. Of course, Patrick had poisoned the waters with Chevrolet two years earlier by secretly shipping a Chevy engine to Alfa Romeo to assist with their development. For his part, Rahal was interested in acquiring his own team, and had the prominence to secure the Chevrolet lease deal Miller wanted. These factors resulted in the formation of Rahal/Hogan Racing, the organization which has become RLL Racing.

Patrick, for his part, had lost a second major sponsor in two years. This time he would head to the sidelines for three seasons, before returning to competition in 1995.

And what prompted Patrick’s return to the sport? You guessed it: a lucrative deal with a major sponsor, when Firestone enlisted Patrick Racing as the primary test team for the tire giant’s return to Indy car racing in 1995. But as we will see Patrick surviving the loss of two major sponsors in such a short-time period and returning to have success in the sport is something of a rarity.

Tasman Motorsports loses Tecate and LCI in back-to-back seasons:

The Steve Horne led Tasman Motorsports enjoyed some success in the mid-1990s. The team’s best season was 1996 when Andre Ribeiro won twice, and Adrian Fernandez once.

However, a disastrous 1997 season with the Lola chassis, encouraged both Fernandez and Ribeiro to seek greener pastures. The Mexican took his Tecate and Quaker State backing to get this, Patrick Racing, while Ribeiro moved to Team Penske.

Horne continued with rookie Tony Kanaan in 1998, but lost the LCI backing after that season. All told, Horne lost the backing of two major sponsors in a two-year span, and Tasman Motorsport was suddenly no longer.

As for Patrick, he remained a two-car effort in 2001, after Fernandez left to form his own team with partners Tecate and Quaker State. After fielding an unsponsored effort that year for Jimmy Vasser, Patrick dropped down to one car for the 2002 and 2003 seasons. He briefly fielded an IRL effort in 2004, but has been out of open wheel racing since.

Robert Yates loses UPS and M &M’s in back- to-back years:

For over a decade-and-a-half Robert Yates Racing was one of NASCAR’s top teams, scoring 58 race victories from 1989-2005, and two series titles.

But after the 2005 season, UPS moved with Dale Jarrett to the then-new Michael Waltrip Racing. Yates would lose M&M’s the following season, when they switched to Joe Gibbs Racing upon the arrival of Kurt Busch.

RYR never saw victory lane after 2005. And after the 2009 season, the racing operation closed for good, citing, guess what: an inability to secure sponsorship.

Walker Racing loses Aussie Vineyards to Craig Gore and KV Racing

Derrick Walker and Craig Gore formed Team Australia in 2005. The two were all set to go for a fourth Champ Car season in 2008 before an early-February shotgun wedding between Champ Car and the IRL unified the long-divided world of American Open Wheel Racing. Gore, who controlled the Aussie Vineyards funding, took driver Will Power to KV Racing, leaving Walker behind without the sponsorship to field a team.

Walker threatened to sue Gore, and it’s unclear exactly what became of the dispute. But we do know this: Walker hasn’t fielded a car of his own in top-level Indy car racing since losing the Aussie Vineyards backing. He is of course, now the IndyCar Series president of competition and operations.

Conclusion:

As we can see, losing a major sponsor is undoubtedly a hit to a team’s on track performance. Some team owners like Patrick have been able to weather storms, reinvent themselves and continue on with success. Although, it should be noted Patrick never returned to his team’s 1989 form.

More often, however, the teams become like Walker, Tasman, and RYR, as the loss of major funding results in not just a drop in form, but an inability to continue. Barnes finds himself in what may ultimately be a similar situation.

Now, the drawn out nature of the conflict, the money in question, and the personalities involved with the current Panther/RLL National Guard saga will undoubtedly go down as one of racing’s most memorable sponsor-team defections. And history tells us Barnes is likely not only fighting for an incredibly lucrative sponsorship deal right now, but quite possibly the future of his team.

Yes, his actions may be petty. They undoubtedly reek of desperation, arrogance and entitlement. They also lend credence to many of the suspicions and rumors indicating he is a less-than-sterling individual. But desperate times call for desperate measures. Judging by history, and speaking in terms of Panther Racing’s future, the measures Barnes has adopted are not the least bit incongruent with the times.

Brian Carroccio is an IndyCar columnist for AutoRacing1.com. He can be contacted at BrianC@AutoRacing1.com.