Tire Leasing Causes Problems
Designed for new team owners, the old guard balks at the plan
by Stan Creekmore

"You can’t mandate frugality in racing,” Steve Hmiel said on the day before the 2006 running of the Daytona 500. “Our job is to spend every dollar we have to go as fast as we possibly can.”

The implementation of Goodyear’s “Tire Leasing” program is not a mandate from NASCAR for frugality. It is not meant to save current teams money; at least not on a short-term basis.

That said, Brian France has a mission and the Goodyear “Tire Leasing” program is one of many ways to a means as France moves his mission forward. The CEO of NASCAR wants to ensure “cost” does not become an absolute obstacle to participation in NASCAR NEXTEL Cup Series competition.

Goodyear’s leasing program, coupled with NASCAR’s new testing policy, is designed to encourage, not discourage, individuals looking to become car owners.

Car owners with the largest investment in the sport aren’t thrilled with the new program.

“The tire leasing program, right out of the box cost Roush Racing 1.1 million dollars more than the purchasing program that existed last year,” Geoff Smith, President of Roush Racing, said. “And, on top of that we are still being required to yield very valuable and substantial marketing rights which prevent us from recovering some of that incremental increase in costs.
         
“From a business side it’s very disappointing to us.”

The bulk of the money Smith mentions comes from the deletion of Goodyear tire deals eliminated upon the implementation of the leasing program. Goodyear had a long-standing policy of providing free sets of tires based on performance. With five teams making the Chase in 2005, Roush Racing was receiving a hefty dividend from Goodyear that no longer exists.
         
Why did Goodyear cut out the tires deals?

“NASCAR requested we do it,” Stu Grant, General Manager Global Race Tires Goodyear, “as a way to ensure every team is on a level playing field. Does that hurt the major operations? Yes, it does. Is it necessary? Yes, it is.”
         
The teams hurt the least by the new program are the startups like Hall of Fame Racing.
         
“It has always been our policy that a new team was not eligible for any tire deal. When Dale Earnhardt Jr., moved up after winning the Busch Series Championship, Dale Sr. came to us and ask for a deal. We said no. That was our policy and it didn’t matter who you were,” Grant explained.

Now every team on the circuit pays the same price for tires. Any team turning in an unused tired is issued a $125 credit against the $407 original purchase price, which includes mounting, balance and the inner shield (liner) required at tracks one mile or longer. Used tires have a hole drilled into the sidewall rendering them unusable.
         
Dismounted unused tires returned to inventory, will only be resold to Busch or Craftsman Truck Series teams at a reduced price, $259 each.

At the end of the season, Goodyear will send out a $20 per tire rebate for every tire purchased, effectively reducing the cost per tire to $387. Goodyear considers the rebate a payment for the Goodyear patches and decals gracing the driver uniforms and cars.

And, if you happened to be one of the teams who didn’t stockpile any of the 10,000 plus extra tires purchased last year, you can still buy a few tires leftover from 2003 and 2004 to go testing.    

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