What's News In The Franchise Factory?

**GTRMagic** · 23 Mar 2005, 09:52 (Ref:1259591)

Interesting to read the article in MN this week about the AutoBarn group considering their deal with RNR to be invalidated by an inability to run the AutoBarn-backed Alex Davison car for all rounds this season.

If this reporting is accurate, then it sounds a warning to other sponsors and teams in the sport... that the ducks really do have to be in a row before promising a shiny new car with all the sponsor stickers on it, that isnt able to race because the franchise becomes marginalised by the team preparing the car.

I doubt it is an accident that Mr White's BA is painted in the colours of Fujitsu/Adrad etc... admittedly with a couple of personal sponsors on Mr White's car only... to make up for Mr Owen's inability to participate in all rounds of the series.

So where am I headed with this?

Well it was also interesting to read that Mr Burfitt has been reported to have access to the corporate support to purchase a franchise, and preparation facility right about now.

I wonder then... as to the probability of the new sponsors alluded to by the article, and the reportedly discontented Autobarn, into a 2 car Davison Racing team... the 2 brothers racing one another in 2 Holdens or Fords...

Idle speculation as to low flying targets are too easy, and likely wrong... but more than a couple of L1s are for sale... everything is for sale at the right price of course...

Does the silly season regarding franchises continue to generate interest from more corporately aware motorsport patrons?

Imagine a scenario for a minute... say a team that announced a major new sponsor this season, is struggling with the funds coming from that sponsor... as they arent enormous, despite appearances.

Suppose that these two pockets of corporate support come aboard, and take this team out of the marketplace... and integrate the existing sponsorship (at a more realistic branding size...) with these major players...

Then the drivers are reshuffled, the team renamed... all is upside down and back the front....

Would something like that really happen right about now, with the "away" season almost in full swing? Stranger things have happened

Rombles1 · 23 Mar 2005, 10:32 (Ref:1259624)

This and another post recently have me wondering if I have missed something. I thought it was Steve Owen and Paul Dumbrell that were not participating in all rounds of the series. Now you are suggesting that Davison will be sitting a few out, which fits with the other thing that I thought I had heard and misunderstood, which related to Dumbrell driving for the whole series. Has Larry pulled some magic, and given RNR a discount on preparing the car, on the basis that it won't get as much use as it was going to? (ie swapped the Dumbrell and Davison licences?).

And which team are you talking about, struggling with the funds from their major sponsor? Your description of the scenario doesn't seem to fit the usual whipping boy in these discussions, being Mr Wills. Although one of the Davison boys is supposed to have a contractual link to his remaining licence....

**GTRMagic** · 23 Mar 2005, 10:47 (Ref:1259633)

Mr Dumbrell is guaranteed a start at all rounds this year apparently... they played franchise swapperoo....

And there are a pair of Ford teams, and a pair of Holden teams allegedly taking expressions of interest....

Rombles1 · 23 Mar 2005, 11:19 (Ref:1259661)

OK, Ladies & Gentlemen, please start the speculation on which teams GTR Magic is talking about..... now.

Just Do It! · 23 Mar 2005, 19:19 (Ref:1260085)

GTR: Have you been watching a re-run or two of Dallas lately

Dingo · 23 Mar 2005, 22:56 (Ref:1260252)

Supercheap? DJR? BJR?
All of those three have signed new sponsorship deals that may not be as enormous as indicated...

Bimmerhead · 24 Mar 2005, 01:15 (Ref:1260326)

I'll go with HSV/Buick........

Just Do It! · 24 Mar 2005, 06:54 (Ref:1260458)

Supercheap is meant to be pretty good, although......well, we will have to see.

Bedford · 25 Mar 2005, 11:05 (Ref:1261364)

I'd say DJR

Raglanparade · 25 Mar 2005, 11:58 (Ref:1261387)

Id say BJR and DJR are the two on the Ford side of the equation. I dont think Westpoint or BOC are putting the same level of funding into the teams as Shell and Ozemail were.

I think BJR could be the most realistic option. Brad and John arent really competitve in the sprint series races anymore (except when they are the only ones on slicks), Davison and Davidson in Autobahn BOC Falcons come 2006. The team remains BJR with Brad Jones stepping back to take a team management role with his brother. Both Brad and John could be retained for the enduros, or Bowe could try and find a new team at age (late forty something).

On the Holden side, i think GRM might be a target.

pete55 · 25 Mar 2005, 13:28 (Ref:1261449)

I think the speculation is a long way off reguarding which team it is.

cavvy · 25 Mar 2005, 14:35 (Ref:1261519)

Wasnt it suggested the SuperCheap deal in 04 was a contra based around SuperCheap stores selling Castrol - any money came from Castrol not SuperCheap.

That suggests the SuperCheap deal is effectively the K Mart deal following Murph.
I am speculating, I know nuthink!!!

**GTRMagic** · 25 Mar 2005, 20:20 (Ref:1261747)

Quote:

Originally Posted by pete55

I think the speculation is a long way off reguarding which team it is.

Not necessarily, I think two of the 4 teams have been mentioned here.. and Larko's makes 3....

Just Do It! · 25 Mar 2005, 22:15 (Ref:1261935)

That's a lot of teams. It must be a buyer's market, which makes a change for this category

Placebo · 25 Mar 2005, 22:22 (Ref:1261939)

Gatorz spend HUGE money on sponsorship in the US. They are obviously looking to get into the Australian market. If things continue as they've started for this year for Gatorz Racing, DJR may have another main series sponsor in the wings for next year.

**GTRMagic** · 25 Mar 2005, 22:32 (Ref:1261949)

Quote:

Originally Posted by Just Do It!

That's a lot of teams. It must be a buyer's market, which makes a change for this category

Its not really a buyers market... there is only one of them that may have a forced compulsion to sell... the others juat want to maximise the profit from something that cost them 4/5ths of stuff all in the first place..

Just Do It! · 25 Mar 2005, 22:38 (Ref:1261950)

Forced compulsion? Interesting phrase.......based on?

**GTRMagic** · 25 Mar 2005, 22:48 (Ref:1261960)

Motorsport is usually structured on a partnership, where a few people are shared owners in a particular venture. When one of the owners doesnt want to play any more, and wants to cash out, and the other owners arent in the position to pay out the exit cost... then it may be a forced sale... not a fire sale... but a forced one nonetheless

Gaz170 · 25 Mar 2005, 22:53 (Ref:1261962)

Quote:

Originally Posted by Just Do It!

Forced compulsion? Interesting phrase.......based on?

Doesn't that usually mean the creditors call in their debts???

**GTRMagic** · 25 Mar 2005, 22:58 (Ref:1261964)

Quote:

Originally Posted by Gaz170

Doesn't that usually mean the creditors call in their debts???

Creditors, long suffering wives... same thing really

And arguably as ferocious as each other....

Just Do It! · 25 Mar 2005, 23:03 (Ref:1261968)

That wouldn't be a shareholder in a team that runs out of QLD selling out to buy a particular team that runs out of Adelaide? The same shareholder is the manager of the Adelaide teams driver too, for memory.

**GTRMagic** · 25 Mar 2005, 23:07 (Ref:1261969)

Anything is possible

All that is confirmed for now is the franchise market is scheduled to go into overdrive (again... or is it still?) within weeks....

Also a Believer · 26 Mar 2005, 02:06 (Ref:1262043)

Correct me if I am wrong GTR but by my cound another 4 could change hands or identity.

**GTRMagic** · 26 Mar 2005, 04:01 (Ref:1262077)

They could... if someone has enough sponduli to afford them all....

But unless the investment in the team beyond the purchase price is around the value of the purchase price, to upspec equipment and infrastructure, then the team being sold will either maintain position, or fall backwards....

The teams under consideration have not had major capital spent on them for a number of years....

Just Do It! · 26 Mar 2005, 09:15 (Ref:1262144)

How sound are the said teams' naming rights sponsors? Surely that must be a big factor?

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