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 …
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 …
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?
… 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 for NASCAR to adjust and to keep the financial support of the Big 3 and Toyota, but surely it’s worth a more concerted effort to evolve their …
Ad Sponsors Peeling Away From NASCAR, Too
… 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 is, are we going to back up,” he said.
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Tags: Brian France NASCAR Sponsorship
NASCAR Solutions: STOP rewarding Mediocrity – Start rewarding Winners!
… 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 basically, under the current points system – you could finish second in every …
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 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.
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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
The Future of the NASCAR Truck Series
… Channel and received international attention which created a cycle of vital media interest to fuel sponsorship demand and ROI for all of the Truck Series teams.
However, the Truck Series is a different animal today. Over the course of the last few years a lack of interest and dwindling financial support from the Big 3 – has morphed the series into nothing more than Toyota versus the independents. This one-sided competition is apparent in the absence from corporate sponsors and the lack of …
NASCAR Sponsorship 2.0
… which provides measurable customer acquisition with a recognizable ROI. Today, current NASCAR Sponsorship programs are structured much like Old Media, which fails to present corporate marketers with the value presented through “new media” channels. Now there are some who will say – sports marketing isn’t Old Media or New Media but Sports Media. While Sports Media does present a unique value proposition – at the end of the day, it does not provide corporate marketers a measurable …
Tags: Atlanta Journal-Constitution Bang Racing Digital Media eBay Hendrick Motorsports Joe Gibbs Racing Michael Waltrip NASCAR NASCAR Corp NASCAR Corporate NASCAR Sponsorship NASCAR Sponsorship 2.0 New Media Old Media RaceWorld Roush Fenway Racing Sports Toyota Motorsports Web 2.0 YouTube
Atlanta Journal-Constitution Bang Racing Digital Media eBay Hendrick Motorsports Joe Gibbs Racing Michael Waltrip NASCAR NASCAR Corp NASCAR Corporate NASCAR Sponsorship NASCAR Sponsorship 2.0 New Media Old Media RaceWorld Roush Fenway Racing Sports Toyota Motorsports Web 2.0 YouTube
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The Navy Sets Sail
… by Dale Earnhardt Jr. and driven by Brad Keselowski.
“We were informed last week that our sponsorship with the U.S. Navy will not renew at the end of the year,” said Mike Davis, director of communications for JR Motorsports. “It has been an exceptional partnership since 2005, and we look forward to a strong finish to the season.”
Brad Keselowski is currently second in the Nationwide Series champion standings and won at Nashville earlier this year. This announcement is …
The Reality of an IndyCar Champion
2007 Indy 500 Champion – Check, 2007 IndyCar Championship – Check, Superstar Actress Wife - Check, NASCAR Sponsor – Only in his Dreams .
In 2007 Dario Franchitti was one of the most accomplished drivers in American motorsports. When he moved from IndyCar (IRL) to NASCAR in 2008 he was full of hopes and dreams for an exciting future – and yet now he finds himself without a “ride” …
Tags: Dario Franchitti Dodge economy IndyCar NASCAR Sponsorship
U.S. Army Redeploying its NASCAR Sponsorship
… the past several days there have been rumblings in the garage about the future of the U.S. Army sponsorship program. The U.S. Army, who has sponsored Mark Martin’s Dale Earnhardt Inc. (DEI) #8 Chevy for the last two seasons, is evaluating their alternatives to DEI – even though DEI insists they are still in the running to retain the deal.
“We are talking to them on a regular basis,” John Story, VP DEI said of the U.S. Army.
According to multiple sources, Army …
Car of Tomorrow (COT) – Friend or Foe for the Nationwide Series?
… #21 team would be reducing its schedule in 2008 for the Nationwide Series due to a lack of sponsorship.
It’s undisputed that the COT provides enhanced safety for the drivers – which are undeniably priceless. However, compensation for improved safety should be at the forefront of NASCAR’s economic model and NASCAR should provide assistance for the teams’ through financial allowances to ensure that drivers and crew members are safe; while at the same time, enabling team …
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