‘Snowball effect’ led Bob Leavine to sell Cup team

Seeing the “snowball effect” of a lack of sponsorship, cost for additional cars next year and the COVID-19 pandemic’s impact on the economy, car owner Bob Leavine said Tuesday that it was clear that he needed to sell Leavine Family Racing. The team announced Tuesday that it has been sold. […]

Seeing the “snowball effect” of a lack of sponsorship, cost for additional cars next year and the COVID-19 pandemic’s impact on the economy, car owner Bob Leavine said Tuesday that it was clear that he needed to sell Leavine Family Racing.

The team announced Tuesday that it has been sold. The buyer has not been revealed.

Leavine said Tuesday that the team had 11 races available for sponsorship on rookie Christopher Bell‘s car before the coronavirus pandemic suspended the sport in March for 10 weeks. The team’s biggest sponsor, Leavine noted, was his construction company, which also has been impacted by the economic downturn brought on by the virus.

“We haven’t really sold anything and probably won’t sell anything going forward this year,” Leavine said Tuesday of sponsorship.

Leavine also cited a business model that he has been critical of, including the charter system.

Leavine Family Racing was not granted a charter but merged with Circle Sport Racing, which had a charter, for the 2016 season. The partnership ended after that season. Leavine Family Racing bought Tommy Baldwin Racing’s charter in Nov. 2016.

We definitely did not get out of our charter what we put into our charter,” said Leavine, who has not publicly revealed what was paid for the charter. “So, from our standpoint, it is very difficult to say that it was a great investment. It just allowed us to run full time for the five years after we bought it. That’s the best thing I can say for the charter system.”

Another challenge was NASCAR’s move to push back the debut of the Next Gen car from 2021 to 2022. Leavine Family Racing has an affiliation with Joe Gibbs Racing this season for chassis and support but Leavine said the plan was not to continue that next year.

“We had a whole lot of things banking on the Next Gen coming in,” Leavine said. “Our deal with JGR, our affiliation required us to do certain things. We were looking forward to being a standalone team with one or two cars. So, the pandemic, and sponsorship and how it affected (his construction business), our major sponsor, and then having to come back and buy all the cars again for next year, because we had planned on not needing cars next year.

“It was a snowball effect on multiple things. We saw no way out. We could not afford the affiliation, and what we did this year, next year. That’s what we banked on. Okay, we will do this one year, run good, get our charter value up, and we had a plan. That plan came tumbling down with the pandemic. Then you take a bad business model; it doesn’t work for us.”

Leavine said he lobbied NASCAR and owners in the spring for particular changes, which he did not reveal. When those ideas were rejected, Leavine said he was “very disappointed in what came out of that meeting. I knew that was probably going to be the straw that broke our back. I had to start looking for how best do we protect our team. How best do we keep people employed. A lot of things went into that decision.”

Leavine Family Racing has competed in NASCAR since 2011, making its debut with David Starr at Texas Motor Speedway on April 9. The organization didn’t run a full schedule until 2016 with Michael McDowell and Ty Dillon splitting the ride. Others who have driven for the team include Kasey Kahne, Regan SmithMatt DiBenedetto and Bell.

I really gave it all I had for the 10 years and the last five primarily when we went full-time, and I committed, and I thought we could make a difference and be a good team,” Leavine said. “A responsible and respected team in NASCAR. To walk away and not have completed that, I’ve never had to do that before and give up on anything. But I could not let it destroy our business – a 41-year old business – in Texas during these times, so you have to protect something and that’s a profitable organization.”

‘Snowball effect’ led Bob Leavine to sell Cup team originally appeared on NBCSports.com

Source Article

Stoller

Next Post

I flew on 2 leading low-cost airlines to see what budget flying looks like in a pandemic and found some cheaper carriers are doing a better job keeping you safe than their full-cost competitors

Tue Aug 4 , 2020
Flying on JetBlue Airways and Spirit Airlines during the COVID-19 pandemic. Thomas Pallini/Business Insider Low-cost airlines are offering extremely discounted fares as they recover from the impact of the pandemic making them attractive to budget travelers looking to fly following months of lockdown. They don’t all have the best reputations […]