.............An executive who serves 32 years at a company deserves some special commendation. But $890,000 worth of professional race-car driving instruction for his kids?
That’s how much furniture-rental chain Aaron Rents (RNT, news, msgs) paid last year for driving instruction for two sons of William Butler Jr. He is a director and president of sales and lease ownership at Aaron Rents.
Based in Atlanta, Ga., the company sponsors professional race-car driver Michael Waltrip in the NASCAR Busch Series. As part of the deal, Waltrip runs a "driver development program." The program has just two students -- Butler sons William Kenneth Butler III and Brett Cameron Butler.
"This is pretty outrageous," says Michelle Leder, who operates footnoted.org. "I was in shock that they could call this a marketing expense."
The company gets excellent marketing mileage out of the deal, says Aaron Rents finance chief Gilbert Danielson. Local media outlets cover events at stores featuring the Butler brothers before they race in the United Speed Alliance Racing’s Hooters Pro Cup Series. At races, the company has signage, an inflatable storefront and display tents. The driving lessons are part of an overall sports marketing program that will cost the company more than $7.5 million this year.
"Motor sports have been an integral part of our marketing program for a number of years," says Danielson. "The NASCAR fan is a perfect fit for the demographic of our customer base." Aaron Rents believes the marketing program has contributed to the company’s undeniable success in recent years. The stock has risen to $27 from $7 over the past five years
But are the driving lessons paying off? Brett Butler places 28th in USAR’s southern division of the Hooters Series, while Ken ranks 32nd in the northern division.
There's still hope for the Butler brothers though, as they will get close to $1 million worth of training this year, paid for by Aaron Rents.
