NASCAR in the Next Decade: The Storylines that will Shape the Future
… of the Cup Series
The elephant in the room is the pending expiration of the sport’s lucrative sponsorship agreement with Sprint as title sponsor of the NASCAR Cup Series. Back in the summer of 2003, when Sprint (f/k/a NEXTEL) agreed to a 10 year agreement with NASCAR, no one expected the rapid decline of fan interest and corporate sponsorship within just a couple of years. Ironically, Sprint too has blood on their hands for the sponsorship troubles of racing teams, which contribute to the …
End of an Era: NASCAR Scene Ceases?
… brink. It’s no secret that after the boom years of NASCAR earlier this decade, advertisers and sponsors have left the sport in droves – but until now the primary victims were racing teams. But on Monday, this time it was NASCAR Scene and its website, Scene Daily.
According to Daly Planet, it’s rumored the title that launched in 1982 lost almost its entire staff on Monday. It is run by the American City Business Journals, which is based in Charlotte. ACBJ is owned by Advance …
Tags: NASCAR NASCAR Scene Sponsors
NASCAR Teams – Take a Stand!
… – Hendrick Motorsports, Joe Gibbs Racing, and Roush Fenway Racing— are seeking complete season sponsorships between $22 million to $25 million. With the going rate per race anywhere from $500,000 to $750,000 – is there ANYONE who believes there is a ROI for sponsors at these prices? I don’t believe so.
Another alarming business trend, is that now, most sponsors want single-year deals. These days, a six-race package for $3 million qualifies as a “big deal” in Sprint Cup circles. …
Tags: Brian France NASCAR Sponsorship
Danica Patrick to NASCAR…Hendrick Motorsports?
… retaining the support of the automakers, IndyCar Racing is poised for a significant rebound in sponsorship demand and automotive support in the coming years. There is widespread speculation that Volkswagen/Audi, and possibly Toyota, BMW and Mercedes-Benz may join the IndyCar series in 2012. This is the result of IndyCar’s long-term vision and planning to strategically position itself as a “green” marketing platform for the automakers. A few of years ago, a move to NASCAR may have …
Chrysler Bankruptcy: The Future of NASCAR Teams Hang in the Balance
… started to become a rapidly growing mainstream sport in the early part of the decade and corporate sponsors rushed into the sport with their large marketing budgets looking to tap into this brand-loyal demographic, NASCAR lost sight of the value proposition and ROI required to keep the Big 3 involved in NASCAR. In the next couple of years, many will ask, why didn’t NASCAR do more to keep the Big 3 involved? The answer is quite simple, NASCAR and their Teams have a huge disconnect, and …
NASCAR’s Business Model Hits the Wall
… them withstand the current economic crisis. As we are all aware, NASCAR teams rely on corporate sponsorship to fund the majority of their operating budgets, which is substantially different than any other major sport. Whereas, NFL, NBA, NHL and MLB teams participate in higher levels of revenue sharing as a result of a franchise business model.
“We’re trying to do more with less. That’s the difficult part of this economy,” France said following his state-of-the-sport address to …
Is NASCAR Preparing for Their Post Automaker Future?
… instead of focusing on reinventing themselves, NASCAR is anticipating a future without automotive sponsors. Is this an omission from NASCAR that they lack a value proposition? Regardless of the poor economy or slump in automotive sales – if NASCAR sponsorship has a positive ROI, automakers would not be consider jumping ship. The reality is simply the ROI for the automakers are far below most other mediums and NASCAR may finally be getting the message. But unfortunately, it may be too late …
NASCAR’s Statements Require a Willing Suspension of Disbelief
… challenges is cause for great concern. NASCAR’s value proposition for automakers and corporate sponsors is decreasing rapidly and they must act not only to increase their value proposition; but act to immediately cut costs and increase teams’ participation in the television revenues.
Without describing my complete cost reduction plans, the key areas that MUST immediately be changed by NASCAR are the following:
• Length of the race weekends – two day shows instead of three days at …
Ad Sponsors Peeling Away From NASCAR, Too
Ad Sponsors Peeling Away From NASCAR, Too
Looking to catch a NASCAR wreck? Here’s one: The racing association’s sponsors are pulling out, NASCAR CEO Brian France told a Reuters summit . France insists he’s talking to potential new sponsors, but wouldn’t name names.
NASCAR saw a $150 million gain in sponsorship revenue in 2008, a gain France says won’t be repeated. “The question …
Tags: Brian France NASCAR Sponsorship
NASCAR Solutions: STOP rewarding Mediocrity – Start rewarding Winners!
… the end all solution – it would significantly improve teams’ ability to attract more corporate sponsors. At the same time, increasing fan viewership alone will not fix the sponsorship depression and teams’ ability to finance their operations. NASCAR needs resurgence – and if fan viewership is a MUST to reverse the current trend to drive more sponsor interest – then HOW do they make it happen?
Unlike any other major American sport – NASCAR rewards consistency over victory. So …
Need More Clarification? – NASCAR in Crisis
… with inquiries about a variety of topics that I have discussed about the state of NASCAR and the sponsorship crisis. I feel compelled to address and clarify some of my previous statements and respond to a recurring theme of certain readers’ comments.
Many of the NASCAR faithful have repeatedly stated: “the sky is not falling NASCAR has a larger television audience today than in 2001”. While this may true – it has little to do with the enormous problems facing NASCAR today. The …
Tags: Brian France NASCAR Sponsorship
NASCAR for Sale – Is “Change” Coming?
… all built. This new structure would eliminate the sanctioning body from competing with teams for sponsors and create a more healthy sport to ensure its long term future.
2008 has been the year of “change” – Americans want “change”, NASCAR Fans want “change”, NASCAR Teams want “change”. If the France Family provides the opportunity for “change” in the leadership of NASCAR – let us all hope that it is the “right change” that comes to Daytona Beach.
Share …
The Failing NASCAR Economy: A Time for Action!
… & the death of Dale Earnhardt Sr., NASCAR experienced unprecedented interest from corporate sponsors; and growth was fueled by new television contracts with Fox and NBC. Because of NASCAR’s unique business model, which is vastly different than other sports, the industry flourished from 2003 until recently, gathering new teams, with investors and manufacturers flocking to the industry.
As a point of reference, NASCAR is the ONLY major US sport without a franchise model including …
NASCAR Must Embrace New Media: Proposal Attached
… innovate to stay competitive in the corporate boardrooms. In my posts NASCAR 2.0 and NASCAR Sponsorship 2.0, I discussed opportunities to generate revenues and exposure through digital media.
My unique perspectives are a result of “one of kind” experiences which are vastly different than any other thought leader in the NASCAR industry: a web 1.0 entrepreneur, NASCAR Team Owner (Bang Racing), and today, an executive in the current social and digital media industry. While there …
Survival of the Fittest? – NASCAR Teams Look to Consolidation
… to Yates Racing. However, NASCAR may reverse or postpone plans to prevent any additional sponsorship deflections.
With primary sponsors becoming increasingly elusive and operating costs continuing to soar, the benefits of team consolidation may be the only way for the NASCAR teams to have a fighting chance of survival. The fact is clear: The economies of scale and integrated marketing advantages are vital to remaining competitive on the track and attractive to the few remaining …
Dodge Exits the NASCAR Truck Series
… the other manufacturers – the answer is part of the problem for NASCAR – with unprecedented sponsorship deflections in the Sprint Cup Series, the Truck Series is a low priority for NASCAR.
As the former owner of Bang Racing, Toyota’s first NASCAR Team to compete in the Truck Series and the leading competitor of Dodge Motorsports, it is a sad day for the entire NASCAR community. As I have predicted, it is only a matter of time before all of the Big 3 reduce their involvement in …
NASCAR Sponsorships’ Unraveling
… have in subsequent years cut ties with Chip Ganassi Racing and ultimately vacated NASCAR team sponsorship. The association and sponsorship of these two industries – Beer and Gasoline/Oil companies with NASCAR have by far the greatest value proposition; and yet they are leaving NASCAR? What is going on here? Even for someone like me who has been writing about the difficult NASCAR sponsorship market is surprised and concerned with Texaco pulling the plug on its storied NASCAR sponsorship …
Tags: Chevron Chip Ganassi Racing Coors Brewing Coors Light Dale Earnhardt Jr. Defunt NASCAR Teams Havoline Juan Pablo Montoya NASCAR NASCAR Sponsorship Sprint Cup Target Texaco
ESPN Expands its Global Digital Media Presence
… and with the super teams becoming more self-sufficient and less reliant on vendors to support the sponsorship development process; it is likely that Jayski’s sources will be minimized at best and rumors and the like will become less prevalent.
With that said; don’t expect to see ESPN exporting the Jayski business model over the pond; but maybe expect to see Racing-Live expanding into mainstream American motorsports.
Share and Enjoy: …
A Dream Turned Realty – Making History with Toyota
… the Line-X 200, a race event sponsored by Line-X Spray-On Bedliners, one of our team’s primary sponsors.
We didn’t disappoint our sponsors or racing fans that day; our trucks combined to dominate the entire event finishing 1st and 3rd and bringing Toyota a victory in the backyard of the Big 3 American Carmakers. Much was noted in the press about this precocious internet whiz kid who came out of nowhere to lead Toyota’s flagship racing team and become the youngest NASCAR team …
NASCAR 2.0 – Online Advertising Soaring
In my posting NASCAR Sponsorship 2.0, I previously discussed how teams have a real opportunity to leverage their “content” through digital channels creating supplemental advertising revenue to offset their losses in traditional on-the-car sponsorship. Some may ask, is there really an opportunity in digital advertising for NASCAR teams? A recent report from eMarketer, projects online advertising for sports …
Tags: Bang Racing eMarketer Hendrick Motorsports Joe Gibbs Racing NASCAR NASCAR Sponsorship 2.0 Roush Fenway Web 2.0
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