HOT TOPIC June, 1999   By Staff Writer  Cordelia Anderson

A Case Study of Crisis Response:   Lowe's Motor Speedway and the Michigan Speedway  Accidental death is one of the most formidable crises that a sports organization must overcome. It poses a menacing threat to both the sport and those business entities involved. In addition to the near-certain probability of lawsuits, there's also the risk of irreparable damage to the image of the sport, its competitors, and the event facility. Every crisis goes away, it's how an organization makes it go away that determines the success or failure of a crisis response. Whether faced with the death of an athlete, a coach, a fan, or staff member, an organization must respond quickly and carefully, with gravity and concern for those affected – both directly and indirectly.   The recent Lowe's Motor Speedway tragedy represents one type of response; the Michigan Speedway accident of July 1998 represents another. In both cases, fans were killed and injured after wreck debris sprayed into the stands. However, the reactions of the officials were notably different and the steps taken afterwards represent vastly different approaches to crisis management.      May 1, 1999 – Lowe's Motor Speedway  After three fans were killed and several others injured, Speedway Motorsports Inc. (SMI) president Humpy Wheeler quickly discontinued the race and refunded attendees' money. His decisive action conveyed the organizations' concern for the affected people over the bottom line. This decision was crucial, because organizations like SMI have perceptual as well as concrete assets to protect.   Commentators are already comparing Wheeler's response to that of Gene Haskett, president of the Michigan Speedway.      July 26, 1998 – Michigan Speedway  After three fans were killed and six injured, track security and medical personnel were on the scene almost immediately. They were later commended for their quick response and calm management of the situation. However, that should have been only the beginning of the speedway's crisis response. Officials should have immediately assessed the gravity of the situation, and taken appropriate action.  Instead, the race continued despite the tragedy, with 75 laps to go and most of the drivers and teams unaware of what had happened. Greg Moore, the day's victor, was interviewed afterwards. "People came here to watch us race and put on a good show, which we did today, but that tragedy definitely puts a damper on it," he said. Obviously, it was not enough of a "damper" to call off the race.  Many felt that Haskett's failure to end the race showed poor judgment, and that the gravity of the incident should have been enough incentive to end the race. Instead, the race continued, with the covered bodies of the victims visible in the stands because authorities couldn't remove them.   The continuance of the race also resulted in a strange irony: coverage of the deaths was mixed with coverage of the day's wins and losses. News articles discussed the details of the accident alongside descriptions of record-breaking lead changes, showing a perceived lack of respect for the deceased, or concern for the injured.   The day following the accident, Greg Penske, president of Penske Motorsports Inc. said: "To say how high a fence would have to be to keep debris from going over would be impossible because it's impossible to say how high something would bounce or fly over." The long term result was that the fence was raised 2 1/2 feet, for a total of 17 feet. No other changes were made to the track or cars.      Two Approaches to Crisis Management  SMI had contingency plans for various kinds of crises, which had been in place for years. Shortly after the accident, Wheeler said:   "We have plans on just about everything we can possibly predict that could happen. You make these plans and you want to think that you'll never need them. But I'm extremely proud of the way that everyone reacted." They also had the benefit of foresight, due to the fact that they were the second track to face such a crisis within a year. However, because they had the added pressure of a major event in a few weeks, they had to act quickly. This upcoming event was drawing attention to their track, which would add complexity to the crisis.   Wheeler's decision to cancel the race and refund fans' money was the first in a series of steps taken to deal with the crisis. The following day, officials pulled the plug on an ad campaign whose message was "you never know what to expect at the races." Despite the financial losses that would result, officials realized that the message of the campaign would take on a new and chilling meaning in the wake of the accident.  They also launched an immediate investigation into the accident, with an emphasis on prevention. Two weeks after the tragedy, three safety proposals were already being considered.      Raising the protective fence around the track to 21 feet. Tethering the wheels to the frames of the cars, to prevent tires and suspension from flying into the stands. Installing energy-absorbing barriers along the side of the track, to lessen the impact of crashes and reduce the speed of debris.    All of these proposals have their drawbacks, and all will be costly. They may not be perfect solutions, but they demonstrate concern for fans' safety and a desire to prevent tragedy from occurring again. "We've got to do whatever we can to make sure it doesn't happen again anywhere in America," says Wheeler. "Any safety situation like this you want to look at real hard and come up with something that's right."  Consequently, SMI and Wheeler are being commended for their quick response, crisis management, and long-term commitment to safety. This may not prevent families of the victims from filing lawsuits, but it will protect the image of the company and the sport. The third party whose image is on the line, of course, is Lowe's. They committed $35 million dollars for naming-rights of Charlotte Motor Speedway in February, and have suddenly found their investment and name linked to a tragedy. Fortunately, Lowe's response has been sympathy for the victims and concern for the human impact. That, linked to SMI's commitment to safety, will positively reflect on Lowe's image.   The crisis management still isn't over, and the need for it will exist as long as people remember the tragedy. The sport, the racing league, and the speedway will all be in a chronic crisis stage for a long time. However, if SMI continues to be vigilant and public in its search for answers and solutions, it will continue to enhance its reputation in the eyes of IRL (and all) racing fans, the media, and the larger auto racing family.