Sponsorship in NASCAR

T

TooSweet

Guest
In the 80s and 90s, even the Cup drivers and teams that consistently finished at the rear of the field usually had full-time sponsorship from one, or two (at most), companies for the whole year. At most races there were an additional amount of teams with sponsorship that would show up (not start-and-park) that would fail to qualify.

Nowadays even some of the most successful and popular drivers have a hard time securing sponsorship for all of the races. Only a few sponsors (Aaron's, Miller, Lowes, FedEx, etc) even run the whole year. Teams are forced to piece together sponsorship from several companies just to have funding for the whole schedule. A handful of teams are unsponsored or can't even afford to run more than a handful of laps. Tracks rarely see more than 43 or 44 cars show up attempting to qualify.

Obviously there are several factors that play into this as the sport, structure, costs, economy, media, and so on have changed over time. My question is this: what can be done, if anything, to fix it? How can they bring sponsors back to racing? Will we ever again see a time where sponsorship was as plentiful as it was 20 years ago?
 
are the sponsors really getting there money worth? I'm a chevy guy,but the last time I bought a new chevy was 2005. it still looks just like the day I bought it,so it will be a long time before i buy a new.
 
TooSweet said:
In the 80s and 90s, even the Cup drivers and teams that consistently finished at the rear of the field usually had full-time sponsorship from one, or two (at most), companies for the whole year. At most races there were an additional amount of teams with sponsorship that would show up (not start-and-park) that would fail to qualify.

Nowadays even some of the most successful and popular drivers have a hard time securing sponsorship for all of the races. Only a few sponsors (Aaron's, Miller, Lowes, FedEx, etc) even run the whole year. Teams are forced to piece together sponsorship from several companies just to have funding for the whole schedule. A handful of teams are unsponsored or can't even afford to run more than a handful of laps. Tracks rarely see more than 43 or 44 cars show up attempting to qualify.

Obviously there are several factors that play into this as the sport, structure, costs, economy, media, and so on have changed over time. My question is this: what can be done, if anything, to fix it? How can they bring sponsors back to racing? Will we ever again see a time where sponsorship was as plentiful as it was 20 years ago?
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Nascar and world has changed, I think piece meal deals or several sponsors required to finance a team is here to stay.

The cost had grown astronomically, and the sponsors in the 80 and 90s could secure a total season with a lot less money. In the 70s a car dealer or even a guy running a body shop could start up a team. Obvious stuff, I am sure you didnt need me to explain, but a still an almighty reality that has to be appreciated.

The buisness models today are probably presimulated or calculated to suite precise markets, and maybe to perk corporate VIPs to the closet cup track. To get the most bang for the buck.

I wouldn't be surprised to see a car skinned with 15 to 20 seperate sponsors per season in the future. Racing is dependent on corporate backers, and they will always define and own the terms as distasteful as that maybe.

BS Disclaimer, I dont own a buisness and have no facts to base this post upon, it just sounds good to me.
 
Big money stuff now. Sponsors want and get VIP treatment. they use the weekend to impress clients, give perks to employees, and write the whole thing off as a business expense. The car going round with their business on it hopefully sells or makes the public aware of their products. The costs have risen so high that only big money corporations who are making a good profit can afford to sponsor a car for any length of time. There are very few corporations that can afford to do that, so the air is pretty thin up at the top. Don' think there is a "fix", a strong economy helps.
 
IMHO, Nascar has grown too expensive for most Companies considering the "Return on Cost. We may never again see where one Company sponsors a team for the whole year (yes, there are a few teams with full company sponsorship by one company but they are on the decline).
 
sloggie said:
I think you are asking the wrong questions. The right question is "Does NASCAR's 30 year old business model still make sense?"

The answer is no.
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I think this is part of the problem, NASCAR is slow to change and for a business (NASCAR is a business), you can't really afford to be slow to change.
 
Greg said:
Nascar and world has changed, I think piece meal deals or several sponsors required to finance a team is here to stay.

The cost had grown astronomically, and the sponsors in the 80 and 90s could secure a total season with a lot less money. In the 70s a car dealer or even a guy running a body shop could start up a team. Obvious stuff, I am sure you didnt need me to explain, but a still an almighty reality that has to be appreciated.

The buisness models today are probably presimulated or calculated to suite precise markets, and maybe to perk corporate VIPs to the closet cup track. To get the most bang for the buck.

I wouldn't be surprised to see a car skinned with 15 to 20 seperate sponsors per season in the future. Racing is dependent on corporate backers, and they will always define and own the terms as distasteful as that maybe.

BS Disclaimer, I dont own a buisness and have no facts to base this post upon, it just sounds good to me.
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Nailed it.


It all comes down to cost.. Another thing people may not be considering. Which is far-fetched probably. Is teams(atleast top tier teams) are market in their advertising space up. I've heard a lot of 'holding out for the right deal' talk. The fact is.. There were hardly any go-or-go-homers all year. Start and parking used to be a secret. Now it's a part of the sport/BUSINESS.
 
Having a single sponsor for the whole season is probably a thing of the past. There was a very small footnote in the Jayski post on Miller renewing with Penske for the long-term. Miller wanted to continue to sponsor the #2 for all 36 races, but Penske would only sell them 24 races or whatever and plan to sell the other 12 to somebody else.

I too liked it when there was a single sponsor on the whole year, but those days are gone. A sign of the times. Paul Menard and family situations like that will probably be the last exemptions. Lowe's will probably be the final non-family whole year sponsor.
 
KevinWI said:
Having a single sponsor for the whole season is probably a thing of the past. There was a very small footnote in the Jayski post on Miller renewing with Penske for the long-term. Miller wanted to continue to sponsor the #2 for all 36 races, but Penske would only sell them 24 races or whatever and plan to sell the other 12 to somebody else.

I too liked it when there was a single sponsor on the whole year, but those days are gone. A sign of the times. Paul Menard and family situations like that will probably be the last exemptions. Lowe's will probably be the final non-family whole year sponsor.
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As long as Johnson keeps running up front and winning Championships, Lowes will keep forking over the cash.
 
SpeedPagan said:
As long as Johnson keeps running up front and winning Championships, Lowes will keep forking over the cash.
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For now. Like I said, Miller wanted to sponsor Brad K for the whole year and Penske turned them down. When HMS thinks they can make more money off JJ by offering multiple sponsors a piece of the pie, they will. Lowe's is a giant corporation, but they don't have an unlimited marketing budget. There will be a day when they can't afford to be the sole sponsor on the #48. Or Johnson retires or becomes sucky. Whichever comes first.
 
Sponsoring NASCAR just doesn't influence me in any way.

Mark Martin drove the Mobil 1 car but I have always and will always buy Castrol GTX.
Kevin Harvick drives the Budweiser car but I don't drink it.
Only time I've eaten at Jimmy John's was at the Baltimore Grand Prix. The fact that they sponsor Harvick never entered my mind.
Kyle Larson drives the Target car but I usually shop at Walmart and Kroger.
I usually shop at The Home Depot because they usually have what I need and usually at lower prices.

This stuff has no impact.
 
AndyMarquisLive said:
Sponsoring NASCAR just doesn't influence me in any way.

Mark Martin drove the Mobil 1 car but I have always and will always buy Castrol GTX.
Kevin Harvick drives the Budweiser car but I don't drink it.
Only time I've eaten at Jimmy John's was at the Baltimore Grand Prix. The fact that they sponsor Harvick never entered my mind.
Kyle Larson drives the Target car but I usually shop at Walmart and Kroger.
I usually shop at The Home Depot because they usually have what I need and usually at lower prices.

This stuff has no impact.
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No impact on you or me, no. In the professional racing world it's ridiculous and tacky.
 
AndyMarquisLive said:
Sponsoring NASCAR just doesn't influence me in any way.

Mark Martin drove the Mobil 1 car but I have always and will always buy Castrol GTX.
Kevin Harvick drives the Budweiser car but I don't drink it.
Only time I've eaten at Jimmy John's was at the Baltimore Grand Prix. The fact that they sponsor Harvick never entered my mind.
Kyle Larson drives the Target car but I usually shop at Walmart and Kroger.
I usually shop at The Home Depot because they usually have what I need and usually at lower prices.

This stuff has no impact.
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I don't know why any of the major companies sign up for nascar I can't see where they are getting their moneys worth.
 
BOWTIE GUY said:
I don't know why any of the major companies sign up for nascar I can't see where they are getting their moneys worth.
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I can't either. For the record, commercials don't do a thing for me either. Sprint is my favorite - there isn't a chance I'll ever get a Sprint phone ever again.
 
AndyMarquisLive said:
I can't either. For the record, commercials don't do a thing for me either. Sprint is my favorite - there isn't a chance I'll ever get a Sprint phone ever again.
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'Nananananapa we're the cheapest' works for me but generally advertising just annoys the hell out of me.
 
There is something to be said for name saturation, like Lowes being all over the screen for a couple hours because Johnson is leading. And while it doesn't affect everyone it does have an impact. Any idea on what some of these companies are paying to be the primary sponsor on a car for a race?
 
AndyMarquisLive said:
Sponsoring NASCAR just doesn't influence me in any way.

Mark Martin drove the Mobil 1 car but I have always and will always buy Castrol GTX.
Kevin Harvick drives the Budweiser car but I don't drink it.
Only time I've eaten at Jimmy John's was at the Baltimore Grand Prix. The fact that they sponsor Harvick never entered my mind.
Kyle Larson drives the Target car but I usually shop at Walmart and Kroger.
I usually shop at The Home Depot because they usually have what I need and usually at lower prices.

This stuff has no impact.
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I feel the exact same way.
 
shark77 said:
There is something to be said for name saturation, like Lowes being all over the screen for a couple hours because Johnson is leading. And while it doesn't affect everyone it does have an impact. Any idea on what some of these companies are paying to be the primary sponsor on a car for a race?
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i'm sure it has to do subliminal mind control.
 
I just find it concerning that there seems to be less sponsored teams, and as a result, less competition. There used to be teams that would DNQ, but come back the next week and actually run in the top 20 because they had the funding to compete. These days you have the same 10-15 teams always at the back, several of which are unsponsored and as a result, underfunded start and parks.
 
keep in mind many of the multi sponsor deals aren't because the team wants it that way. I think there are 2 motivations one is a super popular driver and wanting more money, brad k and juniors deal with the national guard and amp come to mind. the other is just trying to piece together the money, lets say it this way if a driver has more than 2 main sponsors its a piece meal deal and the sponsors that are doing 2,3,6,7 or whatever races those sponsorships are likely sold at a discount. think ricky stenhouse, think ryan newman,

also race sponsorship does make a difference, for example I tried eating at jimmy johns because they were on harvicks car and I am not really a harvick fan, jimmy johns is a squared away operation BTW. I prefer lowes because I like JJ. there are other examples where a companies involvement with nascar has swayed my decision. if the choice comes down to 2 companies one has a nascar presence and the other doesn't, I choose the one that does. I am surprised nascar doesn't make more of this logic and advertise it with commercials.
 
Sponsorship never has had an impact on what I buy. I just want the best quality for the lowest price.
 
Keep in mind that in the 80's everybody and his brother went for a MBA, IOW a bean counter.
That 20+ million expense to sponsor a car has to be justified by a even greater return to satisfy the bean counters and shareholders.
A long time ago Folgers coffee dropped the #6 with Mark Martin driving. Their sales plummeted especially in the south east. They tried but couldn't find another team to take them on as a sponsor.
 
Someone asked Jeff Burton who was the most important person on the team. His answer was the sponsor, nothing happens without a sponsor. It wasn’t the answer I wanted to hear but I knew it was true. I have made purchases based on racing sponsorship. But I’ve noticed the roll of the sponsor is changing. Instead of just having their name on the car it seems they are grooming the driver to recite their names whenever they do an interview. Even some of the announcers have to say a sponsor name while covering the race. (I noticed the pit reporters are identifying the brand of fuel while calling a pit stop). Sometimes it seems a bit much. Sponsors need to realize we are tuning in to see a race and that we know who sponsors the teams.
 
these are no longer race teams as in the past. they are multi-division racing corporations with layers and layers of employees, many who never see or touch the race car. accountants, travelling secretaries, and engineers cost money, and lots of it.

when the popularity of nascar started to skyrocket, many studies suggested the fans of the sport were extremely brand loyal. that fact coupled with expanded television coverage brought addition sponsor dollars, unlike the race teams had ever seen before. and the biggest money went to the best teams. then the best teams expanded. and the small teams were squeezed out of the money loop. and couldn't compete.

now 30-40 years later, with nascar popularity stagnant or declining, those same race dollars are looking for the next "new" thing. and the teams continue to expand. so they take a new driver who brings his own sponsorship in, even if it's as an associate sponsor.

where does it end? in my fantasy.....

the money dries up, the mega-teams contract, and the sport becomes accessible to one car operations again.

i said it was MY fanatsy:D
 
I go to NAPA because It's close by and a friend owns the franchises around here.
 
The fact that most of us would rather fire off an angry letter to the company president than buy the product , says it all.
 
I try to buy products that sponsor our sport but like most of you I don't make a special trip if I can avoid it.

as for the future, I too hope one day you'll see one car teams, the driver and his crew working on the car together, and they win races.( uh.. wait a minute , if that's the case it most likely won't be seen on TV due to lack of funding..Never mind strike my post from the record. I could edit it but they already seen it. LOL
 
Johali said:
I go to NAPA because It's close by and a friend owns the franchises around here.
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I go to NAPA because I'm tired of buying krap parts from Auto Zone, Pep Boys, Auto Palace etc.
 
the only time sponsorship in nascar worked on me is when I saw AMP energy on dale jr's car back in '08....and that's it....
 
I saw Ritz crackers on a car when I was packing to go to the hunting club and had to stop and get some to go with the Vienna Sausages. :D
 
Johali said:
I go to NAPA because It's close by and a friend owns the franchises around here.
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I used to buy Napa for the same reason, a freind owned the store. The store is no longer open, I am not even sure of the next nearby location.
 
I think one reason the sponsors have dried up vs. the 80's and 90's is because the cost to sponsor one of these cars has risen so sharply since then. Back in the 80's and 90's, $3m-$5m could get you on a car for the entire season, maybe $7m-$8m for one of the top flight teams. Now that number is more like $25m-$40m. That's probably why we see so many piecemeal sponsorships now.
 
I don't go to NAPA because I'm cheap. I either go to AutoZone or order from RockAuto.com. Both of my side mirrors were smashed on my Ford Explorer (long story). The same part at NAPA vs. RockAuto.com was like $90 vs. $50.
 
With the top 35 cars being "locked in" for starting spots, and half of the positions that are left are for provisionals, would you sponsor a car that has almost no chance of making the race even if it is faster than some of the top 35? Since the 25 through 40 point positions are always changing, sponsors don't want to put up the money and then not have their car make the race, maybe for multiple weeks. That rule was implemented to help secure sponsorship for the lower tier teams. It would seem that it is having the opposite effect. If cars had to qualify for the race on speed, if your car didn't make the race this week, at least you would have a chance to make it next week.
 
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