Tag Archives: bankruptcy

The Effect of Chrysler Bankruptcy on NASCAR

With the global economic crisis in full swing, we are starting to see some pretty big players starting to fall.  It’s no surprise that the American auto industry has been facing difficult times. It was just a question of when the ..uuhm..sludge would hit the fan.  Well it has in the auto industry, in spades.  We’re now seeing Chrysler in chapter eleven bankruptcy with GM almost certain to follow shortly.  So what impact will this have on the NASCAR circuit which is dominated by cars provided by the big three?

Currently, Chrysler/Dodge represents seven NASCAR teams, most notably with Kyle Bush driving a Dodge.  While Dodge hasn’t been much of a performer in the last few years, Kyle could have been the light at the end of the tunnel Dodge was looking down.  To understand the impact these bankruptcies could have, we need to look at a couple of factors. Firstly, what is under the hood and secondly, what exactly does it mean to enter bankruptcy?

The cars these guys drive may have the Chrysler, Dodge, GM or Ford labels on them, but these cars didn’t come off the assembly line yesterday.  For the most part, they resemble an assembly line vehicle on the outside, but that is, for the most part, where the resemblance ends.  These cars take the term after market to the extreme.  They are stripped down by expert mechanics and pretty well rebuilt into a new car built entirely for high speed with upmost safety in mind.  From suspension, to engines, to seats and steering wheel, that ain’t your daddy’s Chevrolet so to speak.  Even the tires are made exclusively for NASCAR.  So even if one or all of the big three disappeared tomorrow, as long as someone can provide and aerodynamic shell, they will have a car to drive.  Toyota for example has been a major contender in NASCAR for many years now.

Next we look at the bankruptcy process itself.  Without getting too technical, In the US, there are six type of bankruptcy, chapter eleven being one of the most common, and the type which Chrysler filed for.  In Chapter eleven, the debtor retains ownership.  This type of bankruptcy protects the owner from creditors and allows time to develop a plan, acceptable to creditors, in order to continue on with normal operation once they come out from bankruptcy protection.

The reality is, that there is likely going to be little impact on NASCAR of any of the big three automakers going into bankruptcy. Even while in chapter eleven, the exposure it receives from being associated with NASCAR far outweighs the cost of it.  The relationship is a net gain for automakers so this isn’t something they aren’t going to let go of lightly.  Should one of the three completely disappear, there are plenty of other options for NASCAR teams. There’s just something patriotic and American about dominating the field in car racing tough isn’t there?  No one is going to let that go away.

Robert Collins is publisher of http://www.Newsfromthepit.com website. Bringing you the very latest NASCAR racing news and rumors, these are all brought together in one place, gathered from all the top Sports sources Robert also contributes to http://www.Wii-mii.com – Everything Wii.

The Effect of Chrysler Bankruptcy on NASCAR

With the global economic crisis in full swing, we are starting to see some pretty big players starting to fall.  It’s no surprise that the American auto industry has been facing difficult times. It was just a question of when the ..uuhm..sludge would hit the fan.  Well it has in the auto industry, in spades.  We’re now seeing Chrysler in chapter eleven bankruptcy with GM almost certain to follow shortly.  So what impact will this have on the NASCAR circuit which is dominated by cars provided by the big three?

Currently, Chrysler/Dodge represents seven NASCAR teams, most notably with Kyle Bush driving a Dodge.  While Dodge hasn’t been much of a performer in the last few years, Kyle could have been the light at the end of the tunnel Dodge was looking down.  To understand the impact these bankruptcies could have, we need to look at a couple of factors. Firstly, what is under the hood and secondly, what exactly does it mean to enter bankruptcy?

The cars these guys drive may have the Chrysler, Dodge, GM or Ford labels on them, but these cars didn’t come off the assembly line yesterday.  For the most part, they resemble an assembly line vehicle on the outside, but that is, for the most part, where the resemblance ends.  These cars take the term after market to the extreme.  They are stripped down by expert mechanics and pretty well rebuilt into a new car built entirely for high speed with upmost safety in mind.  From suspension, to engines, to seats and steering wheel, that ain’t your daddy’s Chevrolet so to speak.  Even the tires are made exclusively for NASCAR.  So even if one or all of the big three disappeared tomorrow, as long as someone can provide and aerodynamic shell, they will have a car to drive.  Toyota for example has been a major contender in NASCAR for many years now.

Next we look at the bankruptcy process itself.  Without getting too technical, In the US, there are six type of bankruptcy, chapter eleven being one of the most common, and the type which Chrysler filed for.  In Chapter eleven, the debtor retains ownership.  This type of bankruptcy protects the owner from creditors and allows time to develop a plan, acceptable to creditors, in order to continue on with normal operation once they come out from bankruptcy protection.

The reality is, that there is likely going to be little impact on NASCAR of any of the big three automakers going into bankruptcy. Even while in chapter eleven, the exposure it receives from being associated with NASCAR far outweighs the cost of it.  The relationship is a net gain for automakers so this isn’t something they aren’t going to let go of lightly.  Should one of the three completely disappear, there are plenty of other options for NASCAR teams. There’s just something patriotic and American about dominating the field in car racing tough isn’t there?  No one is going to let that go away.

Robert Collins is publisher of http://www.Newsfromthepit.com website. Bringing you the very latest NASCAR racing news and rumors, these are all brought together in one place, gathered from all the top Sports sources Robert also contributes to http://www.Wii-mii.com – Everything Wii.

Manage to run another NHL team into bankruptcy

 

Hartford was not the smallest market in the league when it left; any relocation/expansion plan would need to be approved by the NHL Board of Governors, and you’d better believe that the Bruins and the Rangers would definitely do their best to throw a wrench in any plan to bring a team to Hartford again and would likely hold enough sway to get enough teams to agree to block any such move. The same would likely be the case if a team tried to move into Hamilton or even Quebec City, as you’d better believe that the Leafs and the Habs view their respective provinces as their turf as well, even if both cities are further away than 50 miles away from their cities. Heck, the Maple Leafs are likely the main reason why Jim Balsillie wasn’t allowed to buy the Coyotes as he wanted to move them to Hamilton, which is something that the Leafs absolutely do not want. Buffalo is much smaller. Quebec City and Winnipeg are also much smaller. Raleigh is around the same size, and only when expanded to include other cities in an area the size of Connecticut does it exceed Hartford. If Hartford is combined with Springfield, Mass and New Haven, it’s a market of about 2 million people. The Whalers just never really tried to enter the New Haven and Fairfield County markets as they should have.

The wealth of a market is also important, and the Hartford area is one of the wealthiest in the country, A lot of people talk about the “original six”, well for me, it will always be about the “amazing 21”, when the divisions had cool names, and all the teams looked great. As a kid I enjoyed drawing all the team logos, and the Whalers were a favorite to do. Just a brilliant logo that looked every bit as timeless as the other Adams Division teams. along with a strong corporate base. The population and companies of Fairfield County also await some wooing, as the New York teams are all City, Westchester, Long Island, and NHL premier cheap jersey oriented. The market isn’t to blame; the league just doesn’t want a team there. omeone is right about Hartford not being within the territorial rights of New York or Boston. And don’t ever question Baldwin’s wish to have another NHL team. He reportedly has bent over backwards to get control of the Wolf Pack’s off-ice actitivites but has been thwarted on several fronts, most notably Gottesdiener, who has proven to be a disaster for hockey in Hartford. Even Whalers Booster Club members have told me they saddled up to the wrong horse during the bidding for Center and Rentschler Field control three years ago. I think that’s something that is lost on teams: if a logo is not simple, it is hard to recognize and worse, hard to reproduce for fans. You have to think of the signage, the face paint, the little things. It would be great if the “Hartford Whalers” could live on in another league, I wouldn’t see it as a demotion, but a resurrection. The Moose should also be called the Jets.

The state of conn. has the per capita income in the country,look it up. Hartford,newhaven,are the 30th largest tv market in the country look it up. so according to my calculation, As a hockey fan from Des Moines, I’ve held the impression for several years that Howard Baldwin is a terrible owner, mostly thanks to his sale of the Iowa Stars to the Schlegel group. four years of mismanagement and outright collusion later, the Iowa Stars became the Texas Stars, and the DM area may never get AHL hockey again. it is a suitable home for an nhl team,wich I remind you,there is no pro team in any sport there. and like the other person stated,Hartford was and is its own market and don’t news approval from the Cheap Wild NHL Jerseys or rangers.we will be back in the nhl.

 

Hartford was not the smallest market in the league when it left; any relocation/expansion plan would need to be approved by the NHL Board of Governors, and you’d better believe that the Bruins and the Rangers would definitely do their best to throw a wrench in any plan to bring a team to Hartford again and would likely hold enough sway to get enough teams to agree to block any such move.