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NASCAR teams begin layoffs
(Agencies)
Updated: 2008-11-19 09:34 CHARLOTTE, North Carolina _ Hall of Fame Racing, the NASCAR team owned by Arizona Diamondbacks baseball executives, will cut its staff even if it secures sponsorship to run a full 2009 season.
Other teams aren't waiting. Petty Enterprises, The Wood Brothers, Bill Davis Racing and Ernie Elliott's engine shop all reduced their staffs in the two days since Sunday's season finale. Exact numbers are difficult to pin down, but Petty and the Wood Brothers are believed to have let go of more than 20 employees each. The two teams are among the most storied programs in NASCAR. BDR, which has no sponsorship lined up for its Sprint Cup program, has cut its staff to all but a handful of employees. Elliott, who built engines for Chip Ganassi Racing, did the same since it's unlikely Ganassi will use his motors once he completes a merger with Dale Earnhardt Inc. The layoffs come as team owners adjust to the economic crisis, which slowly trickled into NASCAR but is now wreaking havoc on the industry. Just last week, 100-plus employees were released from DEI so the team can move forward with its merger with Ganassi. Ganassi let go of 71 people in July, starting a wave that has hit all teams regardless of their level of funding. Hendrick Motorsports, Joe Gibbs Racing and Roush Fenway Racing all had small staff reductions over the past month, and Roush let additional employees go this week as the organization adjusts to running fewer entries in the Truck Series next season. But it's the smallest teams _ like Hall of Fame _ that are being squeezed the hardest. Sponsorship is extremely difficult to find and operating costs in NASCAR are at an all-time high. Without outside funding or a merger with another team, many small organizations are in danger of shutting. HoF general manager Tyler Epp said on Tuesday employees were told no one will be laid off before the end of November, as team officials search for more funding. But with 44 employees for a single car operation, Epp said the team was overstaffed. Epp said a merger with another small NASCAR team was not likely at this time. The team has partial sponsorship from DLP HDTV for next season. Hall of Fame originally was formed by former Dallas Cowboys quarterbacks Troy Aikman and Roger Staubach, but they sold their interest in the team last year to Diamondbacks executives Jeff Moorad and Tom Garfinkel. Moorad is the Diamondbacks' chief executive officer, and Garfinkel is the chief operating officer. The team had a technical alliance with Joe Gibbs Racing, but Epp said the agreement most likely will not carry into 2009 as the team searches for a new partner. Depending on whom they lease their motors from _ and JGR was still a possibility, Epp said _ the team could also have a manufacturer switch. HoF started in Chevrolets, then moved to Toyotas with Gibbs. J.J. Yeley began the season driving the No. 96, but was replaced late in the year by Ken Schrader. JGR up-and-comer Joey Logano also ran two races in the car. |
