Izod ready to promote IndyCars in tough market

New IndyCar Series CEO Randy Bernard walked into the perfect situation in February.

The longtime open-wheel feud was over. The constant quest to find a title sponsor was resolved when Izod signed on. There was momentum from last season's dramatic championship chase and hope for a bright future.

Four months later, the future has taken a back seat to the present.

Television ratings continue to lag, there are still too many empty seats at races and Bernard is trying to devise a marketing strategy to put IndyCars back in auto racing's fast lane.

``We've said many times that you need to build more stars. That's easy to say, but we have to build story lines that engage fans,'' Bernard told The Associated Press. ``It can't be that they're just channel-surfing and see the race. We have to deliver a product that fans can't wait to turn on and watch Sunday afternoon.''

Bernard understands how the game is played. During 15 years as head of the Professional Bull Riders Association, he presided over an era of increased ticket sales and television audiences. Even during two recessions.

But in some ways, the new gig will be tougher.

Bernard must win back fans who left IndyCars during the devastating 12-year split and develop the kind of rivalry - such as Mario Andretti-A.J. Foyt or Jeff Gordon-Dale Earnhardt - that can captivate the American public. Oh, and he needs to fix the league's marquee event, too.

Tickets for the Indianapolis 500, once the toughest in town, are often available during race week and last month's television rating was a depressing 3.6 - a 10 percent drop from 2009. That despite Helio Castroneves chasing a record-tying fourth Indy win and Danica Patrick, the series' highest-profile star, bickering with her team and the fans at Indianapolis.

Just 4 million households tuned in to ABC's broadcast, the lowest number since 1986 when the race was first broadcast live.

Bernard knows it can't continue this way.

``We must keep our television numbers up,'' he said. ``Sponsors buy off television, and I think if you watch it on television, you become a big fan. But I think the television number determines the future of the sport.''

Some key players in the series remain hopeful that things will improve.

Mike Kelly, executive vice president of marketing for Izod's parent company, Phillips-VanHeusen, explained the number of Internet viewers increased by about 500,000. He contends that nearly offset the decline of 600,000 television viewers. Kelly also notes Versus, the cable network carrying most of this season's races, reaches about 30 percent more households than it did a year ago and the demographics are showing more interest among younger viewers.

Not surprisingly, the networks that hand out big-dollar contracts aren't buying the explanations. They need ratings to sell advertising, and a 3.6 isn't good enough.

``We need to determine what's causing viewership to fall off,'' said Dan Ochs, ESPN's manager of programming and acquisitions.

Bernard is trying to give the series, once the heart of American racing, a power boost.

Next year's schedule will include two races on the East Coast, in Baltimore and New Hampshire, and he wants a mixture of short-track ovals, super speedways and road and street courses to demonstrate the versatility of IndyCars. Over the next week, the committee advising the series on its chassis and engine packages is expected to approve a new chassis that could give the series a futuristic look by 2012, though Bernard does not anticipate making an official announcement until mid-July.

Bernard does have time to get it right.

ABC and ESPN are in the second year of a four-year pact to broadcast races and have no intention of bailing early.

``We made a decision to keep the Indy 500 and for good reason,'' said Ochs, who manages the relationship with IndyCar officials for ESPN and ABC. ``We need to see the league, the series, succeed as a whole. I think a lot of things you've heard from the new leadership are going that way, and we continue to support that.''

Izod is in the first year of a six-year contract and is intent on making celebrities chic again at IndyCar events. During race week in Indy, the clothing company held a series of parties with stars ranging from NFL Hall of Famers Anthony Munoz and Paul Krause to Hollywood types such as Mark Wahlberg, Adrian Grenier and the Kardashian sisters.

And Kelly insists his company is around for the long haul.

``Sometimes you have to break a few eggs to make a cake, so we went in with our eyes wide open and we're dealing with all the things that matter to us,'' he said. ``It's not like the product suffered. It's an amazing product. We are trying to create compelling messages.''

But Bernard needs more fans and new sponsors to recast the IndyCar image, and he is making progress.

Last month, series officials announced Sunoco, APEX-Brasil and UNICA, the Brazilian Sugarcane Industry Association, will team up to provide the series' 100 percent fuel-grade ethanol. Bernard said more deals could be announced soon.

Kelly notes that Verizon and Virgin Interactive, a video game company, are becoming more prominent players in the series, too, and could appeal to a younger generation of IndyCar fans.

Izod officials also believe the continued presence of Andretti and Foyt alongside the stars of today and the cars of tomorrow could create a winning combination.

``We like when brands are underdeveloped, when stories are underdeveloped, that's what we do,'' Kelly said. ``The World Cup will not be around next year, the Olympics will not be around next year, and I think there will be more money in the marketplace for IndyCars.''

But Bernard knows what it will take time, patience and a winning strategy to make it all go as expected.

``We haven't changed the product, and until we change the product, we have to be very realistic on this,'' Bernard said. ``I don't think we saw any major (TV) numbers on our event at Kansas, our event at St. Pete was rained out. You never want to see numbers continue to decrease, but I think we have to connect with our fan base. In this day and age, you're only as good as your last day, and I think you always have to make sure that your product is out there and promoted well.''