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Team Consolidation on the Horizon

Robert Kauffman is the billionaire hedge fund manager from Fortress Investment Group who last year purchased and secured control of Michael Waltrip Racing (MWR) looks now to be leading a movement of NASCAR Sprint Cup Team Owners to survive through consolidation. Personal friendships may even play a significant part in the boardroom discussions. The likely first deal will be the merger of Chip Ganassi Racing and MWR. Both teams currently field 3 Sprint Cup teams and the merged entity would likely be a 3-4 team Sprint Cup organization – a net loss of 2-3 full time teams.

Oh yes, and here is the friendship part of this deal – Chip Ganassi has had a long standing relationship with Lee White, the newly appointed President of Toyota Racing Development (TRD) – and with the financial uncertainty of Chrysler (Dodge), this would provide Chip Ganassi the ability to leave Dodge and become part of the Toyota Motorsports umbrella. Secondly, the “Waltrip” brand no longer has the luster that once existed and it’s unlikely that any new prospective primary sponsor would consider aligning itself with the MWR organization. However, MWR does have a coveted deal with Toyota and with the merged resources of the two organizations; a talented driver like Juan Pablo Montoya should perform far better in 2009 than any of the organizations’ current teams and drivers.

In early 2007, I recall many NASCAR insiders suggesting that the 43 car field needed to be expanded to accommodate all the “new” teams and the “growing” enterprises which make up the Sprint Cup Series. Boy, haven’t the times quickly changed? In 2009, 43 competitive cars in the field will only be a sweet memory.

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