Team Sponsor Shortages

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Skoalbandit33

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I can't remember what thread it was on but @Allenbaba mentioned the possibility of a couple of higher profile teams disappearing next year due to sponsorship woes and that people in and around Nascar were quite concerned about this.

Do you think that this is just a short term problem that will correct itself once the market for current Nascar product is determined?

If there are teams with a Nascar charter but no sponsor will they start and park to get something instead of nothing?

Do you foresee a time when Nascar ends up revoking a charter due to a team's lack of performance or simply a lack of demand for it?
 
This year more than any with Jr.'s pending retirement,you don't want to miss the Chase.Once the Chase starts,the network's focus only on those cars.
 
Skoalbandit33 said:
I can't remember what thread it was on but @Allenbaba mentioned the possibility of a couple of higher profile teams disappearing next year due to sponsorship woes and that people in and around Nascar were quite concerned about this.
Since then Matt got a new sponsor.

Do you think that this is just a short term problem that will correct itself once the market for current Nascar product is determined? I think the costs of sponsorship will fall to a more realistic level. I believe one factor in Junior retiring was the difficulty in getting someone to pay the asking price.

If there are teams with a Nascar charter but no sponsor will they start and park to get something instead of nothing? Last place charter for 3 years and you lose it so it would take a couple of teams to work together so this doesn't happen.

Do you foresee a time when Nascar ends up revoking a charter due to a team's lack of performance or simply a lack of demand for it?
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That's covered in the rules. You repeated the same question.
 
With NASCAR running short on sponsor money, they resorted to boobs via Monster Energy & the return of Hooters. ;)
 
It's bad enough when a mid-field team like JTG-Daugherty has every race filled.

Yet JGR, RCR, SHR and Roush do not for their respected teams. What we have to consider is exactly how much are teams asking for? I'd like to more specifics behind the amounts that's sponsors are giving. Maybe asking for too much now in days with a 36 race schedule?
 
Simple solution, really, no one watches this stuff after September, none of the 12 two race weekend tracks ever sell out, 36 race sponsorships are harder to find, maybe it is time to wrap everything up in September. Nascar going into November is almost as dumb as hockey and basketball going deep into June.
 
I remember reading somewhere once, and I can't quote the source because I don't remember where I saw it, that ~20 years ago a company could sponsor a car for an entire season for somewhere in the $5-10 million range depending on the quality of the team, and that today that range is more like $20-40 million. In general, things today aren't 4 times more expensive than they were in 1997, so the cost of competition has risen much more sharply than the general rate of inflation. Combine that with the fact that 20 years ago the sport's popularity was on the rise where today it is in decline, and it's pretty evident that the value proposition for sponsoring a Cup team isn't nearly as strong as it once was.
 
The thing that gets me is how the alcohol companies have started to go away

Miller is doing less races, Budweiser opted for Busch instead. Coors Light only does the pole award

I mean I thought beer and NASCAR went hand in hand
 
nickmiles said:
The thing that gets me is how the alcohol companies have started to go away

Miller is doing less races, Budweiser opted for Busch instead. Coors Light only does the pole award

I mean I thought beer and NASCAR went hand in hand
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Race car driving, drinking alcohol and smoking tobacco went out of favor years ago (probably a good thing except for team owners.)
 
nickmiles said:
The thing that gets me is how the alcohol companies have started to go away

Miller is doing less races, Budweiser opted for Busch instead. Coors Light only does the pole award

I mean I thought beer and NASCAR went hand in hand
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Slightly misleading on the Coors front. From 2007 until late last year, they shared a parent company with Miller.
 
nickmiles said:
The thing that gets me is how the alcohol companies have started to go away

Miller is doing less races, Budweiser opted for Busch instead. Coors Light only does the pole award

I mean I thought beer and NASCAR went hand in hand
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It does seem odd not having 2-3 beer cars on track.
 
LewTheShoe said:
They still do. Molson Coors owns 100% of both.
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Its a little confusing, Molson Coors does not own both, there was a joint venture between them and SABMiller, when SABMiller and Anheuser-Busch InBev merged, the DOJ purposed that SABMiller had to spin off all its MillerCoors holdings in the U.S. Coors is majority owned by MillerCoors (a subsidiary of SABMiller) and minority owned by Molson Coors, though internationally it’s entirely owned by Molson Coors, and Miller is owned by SABMiller
 
I think 4 car teams are on their way out. Just seems to hard to fill all those cars with sponsorship. Hendrick really doesn't have a problem but that could change when Jr. leaves. Maybe NASCAR should look into limiting teams to 3 cars.
 
Until the price of sponsorship falls to the point it reflects the reality of the sport's declining fandom, teams will struggle moving all their inventory. Since the top tier teams charge the most, they have the most adjusting to do.
 
Charlie Spencer said:
Until the price of sponsorship falls to the point it reflects the reality of the sport's declining fandom, teams will struggle moving all their inventory. Since the top tier teams charge the most, they have the most adjusting to do.
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I agree as when Mars/M&M's tells Joe Gibbs that they will spend 12 million a year for 36 races instead of 24 (or whatever the actual amount is) and they can take it or leave it it will have a big impact. Normally your employees are your greatest expense so over the course of the next year or so I think we will see a lot of teams laying people off. Everyone from drivers to tire technicians will likely take pay cuts if they wish to retain employment and we will likely see some teams drop their car count and others amalgamate.

There may be some more subtle changes with employees being cross trained so not as many people have to travel with the team and things like pit stops may take a little longer. I think racers will always want to race regardless of compensation but over the course of time less people will want to work for race teams as they will benefit more from choosing another field. I can't remember how much money JGR spent trying to improve the efficiency of the air gun but you would have to think endeavors like that would fall by the wayside.

Less may mean more for the fan as many of the employees laid off by the top teams will migrate to smaller teams replacing inferior employees. Between the smaller teams getting more talent and the money being spent getting closer between the haves and have nots it could signal greater competition.
 
When I saw the prerace feature with Bucky Brad Keselowski going to a race in his own personal jet I knew then that things are out of control.
 
kk5fan said:
When I saw the prerace feature with Bucky Brad Keselowski going to a race in his own personal jet I knew then that things are out of control.
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I agree to a certain extent but you cannot blame the drivers for getting what they can get in the contract. All professional athletes are overpaid, especially MLB, NBA and elite NFL players but the free market dictates their contracts. They are entertainers more than they are athletes these days and as long as people keep watching and the broadcast and cable networks keep shelling out the big bucks for eyeballs, they will get their share of the revenue pie. In the very near future, the pie may be vastly smaller in all sports but especially NASCAR. The more people who cut the cord and shun cable, the less money that will exist to pay all these "performers/athletes."
 
turnerairplane.jpg


Curtis_Turner_planeCharlot.jpg
 
kk5fan said:
When I saw the prerace feature with Bucky Brad Keselowski going to a race in his own personal jet I knew then that things are out of control.
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What's "in control" and what's "out of control" is pretty hard to judge from the peanut galley, IMO. Did you hear the comment in that piece that Brad travels by air ~220 days per year? How much less promotional/sponsor work would he have to do if he traveled commercial? A lot less, for sure. I'm pretty certain he pays that cost from his own pocket, as do other drivers who have private planes. Essentially all of the A-list drivers have planes, and for the same reasons.
 
NJJammer said:
I agree to a certain extent but you cannot blame the drivers for getting what they can get in the contract. All professional athletes are overpaid, especially MLB, NBA and elite NFL players but the free market dictates their contracts. They are entertainers more than they are athletes these days and as long as people keep watching and the broadcast and cable networks keep shelling out the big bucks for eyeballs, they will get their share of the revenue pie. In the very near future, the pie may be vastly smaller in all sports but especially NASCAR. The more people who cut the cord and shun cable, the less money that will exist to pay all these "performers/athletes."
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I agree as if someone is going to throw stupid money at me I will take it as often as they are throwing it my way. It will be interesting to see how big a haircut some of the drivers pocketbooks will end up getting and what ramifications it has.
 
StandOnIt said:
beat me to it, some of them were flying their own planes in the 60's, Hell, Petty had a shuttle


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17,500 MPH would set the pole pretty much everywhere! Too bad that looks like the Enterprise, which was only used for flight testing and landing sims in Earth's atmosphere and not built to fly in orbit.
 
LewTheShoe said:
What's "in control" and what's "out of control" is pretty hard to judge from the peanut galley, IMO. Did you hear the comment in that piece that Brad travels by air ~220 days per year? How much less promotional/sponsor work would he have to do if he traveled commercial? A lot less, for sure. I'm pretty certain he pays that cost from his own pocket, as do other drivers who have private planes. Essentially all of the A-list drivers have planes, and for the same reasons.
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Which is my point Lew. Drivers are going to have to cut back on luxuries like private JETS in the very near future.
 
I almost wanted to start a thread on this but I think I will just ask it here.

Should NASCAR consider going to 2 teams max per owner?

I think it would make room for a new generation of owners.
 
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