Sep 25, 2013, 4:00 PM EDT
The last several weeks have seen sponsor stories take over from on-track ones as the dominant players in the North American racing news.
NAPA, of course, has made the biggest announcement with its decision to leave Michael Waltrip Racing at the end of the year, in the wake of the controversy at the NASCAR Sprint Cup Series regular season finale at Richmond. 5-Hour Energy, additionally, seems displeased with the action the organization has taken in a statement it has released.
Other sponsors are on the move, which is normal in racing, but noteworthy in their timing after Richmond. Valvoline leaves Roush Fenway Racing for Hendrick Motorsports; Jimmy John’s goes with driver Kevin Harvick from Richard Childress Racing to Stewart-Haas Racing.
Castrol made the jaw-dropping decision earlier this year to leave John Force Racing at the end of 2014 in NHRA after 29 years.
And then there is the report this morning that GoDaddy is re-evaluating its role as a primary sponsor in IndyCar with Michael Andretti’s team, citing low television ratings as the impetus for a potential move out of full-time primary sponsorship there.
It all adds up to a fascinating question: Which part of racing do sponsors prefer most? Is it on-track performance, ethics, or ratings?
To borrow a term from NASCAR President Mike Helton, the “ripple effect” of the last few weeks has changed the corporate game in a way we haven’t seen for quite a while. Sponsors often come-and-go from racing but it’s become increasingly apparent the Richmond saga has made a bigger impact on all forms of motorsport than we might have realized in the immediate aftermath.
If it’s on-track performance you crave, ideally, IndyCar would be the best bang for the buck. It costs substantially less – think in the $4 to 8 million range – for a season-long sponsorship (by comparison to $15 to $20 million in NASCAR). A sponsor can advertise itself at the Indianapolis 500, the largest single-day sporting event in North America, and have the chance to win a variety of different circuits.
That said, the marketing and promotional aspect of the variety apparently does not justify the ROI as it stands now. Roger Penske, for instance, has had to put together a consortium of sponsors to field Helio Castroneves and Ryan Briscoe’s cars since Philip Morris tobacco money exited at the end of 2010 (livery was withdrawn at the end of 2009). Elsewhere around the grid, teams have become increasingly reliant on drivers bringing sponsorship to secure a seat. There’s still plenty of talent on the grid, but the days of fully-funded rides without bringing a dollar are drawing to an end.
NASCAR, meanwhile, can offer better TV ratings on the whole, with the performance aspect secondary. It’s why Danica Patrick, for instance – long seen by this writer and others as a good-but-not-great driving talent who has made most of her career via marketing – can afford to run 25th to 30th place every week, but maintain the GoDaddy support for the awareness and buzz she creates off-track.
Now, though, NASCAR faces an ethics crisis the likes of which it has rarely seen. If NAPA’s departure is the tip of the iceberg in terms of corporate America withdrawing its dollars, it could create another “ripple effect” – to borrow Helton’s words again – where more sponsors depart and hundreds of families see jobs go away. That might be an extreme way of looking at it, but it is certainly possible if sponsors don’t see the value in the tens of millions of dollars invested and the PR too damaging to their brands.
A good take from the Sporting News’ Bob Pockrass, linked here, suggests NASCAR needs to implement a “grand plan” to soothe sponsors and their concerns. Pockrass notes there are elements where NASCAR is already involved in direct communication with sponsors – notably via Chief Marketing Officer Steve Phelps – but that needs to expand in the wake of the Richmond controversy.
As a fan, you want to see sponsors – regardless of series – do the job of activating and creating a connection that spurs you to root for said sponsor and buy more of their product. As a sponsor, you ideally want to be successful in all three aspects of performance, awareness and moral standards.
Depending on the fallout the rest of 2013 as it relates to sponsor movement, we’ll see which of the three takes precedence in the motorsports landscape.
Apr 17, 2014, 11:30 AM EDT
Rosberg felt that Hamilton overstepped the mark with one of his moves in Bahrain.
Apr 17, 2014, 10:30 AM EDT
After Stefano Domenicali’s departure, there’s a change in the wind at Ferrari.
Apr 17, 2014, 9:52 AM EDT
Muscle Milk Pickett Racing withdraws from the TUDOR Championship, after previously announcing a temporary hiatus.
Apr 17, 2014, 9:30 AM EDT
The final eastern adventure until October looks to be a Mercedes game once again, but a number of other stories are set to define the weekend.
True Americana with a racing twist: Martinsville Speedway once again hosts high school prom after-party
Apr 16, 2014, 8:40 PM EDT
What do Martinsville Speedway, New York’s Central Park and a prom after-party have in common? They’re all one-in-the-same – kind of. For over a decade every April, NASCAR’s oldest racetrack has played host to Martinsville (Va.) High School’s prom after-party.
Apr 16, 2014, 8:30 PM EDT
A few days after a wild Toyota Grand Prix of Long Beach, 18 car/driver combinations turned laps at Texas Motor Speedway this afternoon.
Apr 16, 2014, 8:09 PM EDT
Sunday’s win in the Four-Wide Nationals at zMAX Dragway held special significance for NHRA Pro Stock Motorcycle rider Andrew Hines. The three-time NHRA PSM champion earned his 33rd national event win, tying him for third in Pro Stock Motorcycle’s wins list with the late John Myers.
Apr 16, 2014, 8:00 PM EDT
Schmidt Peterson driver Luiz Razia posts photo of the Long Beach podium to inspire him to get better.
Apr 16, 2014, 7:29 PM EDT
Marcus Jadotte, one of the leading forces behind NASCAR’s Drive for Diversity program over nearly the last decade, announced Wednesday that he’s leaving as the organization’s vice president of public affairs and multicultural development.
Apr 16, 2014, 6:38 PM EDT
Steve Letarte, Ricky Rudd offer insights on Wednesday’s NASCAR AMERICA.
Apr 16, 2014, 5:00 PM EDT
Sebastian Saavedra fined $10,000 for yellow-flag infraction in Long Beach.
Apr 16, 2014, 4:40 PM EDT
Bentley confirms Pirelli World Challenge GT program with Dyson Racing, to premiere later in the year.
Apr 16, 2014, 4:09 PM EDT
Jeff Gordon has said several times that if he were to win a fifth Sprint Cup crown, that he likely would retire after that championship season and go out on top. Some of his competitors may be looking forward to that day coming – and some hope it comes as soon as after this season so Gordon won’t continue to confound them in coming seasons as he has for the last 21 seasons. But ever the kind of guy who plays his cards close to the vest, Gordon may be getting ready to throw his fellow drivers and NASCAR fans a curve ball.
Apr 16, 2014, 3:41 PM EDT
NASCAR’s birthplace, the Streamline Hotel in Daytona Beach, Fla., is going to be – well, streamlined. According to Wednesday’s Daytona Beach News-Journal, the hotel where NASCAR was formed back in 1947, will soon undergo extensive renovations to bring back some of the hotel’s luster of days gone by.
Apr 16, 2014, 3:35 PM EDT
Relive the drama from Sunday’s Toyota Grand Prix of Long Beach.
Apr 16, 2014, 3:17 PM EDT
Scott Bloomquist just keeps motoring along in the National Dirt Racing League. Bloomquist is coming off a strong weekend performance where he was runnerup Saturday at Virginia Motor Speedway, and then for an encore won Sunday’s main event at Winchester (Tenn.) Speedway.
Kentucky Speedway June Nationwide Series race to promote program encouraging use of designated drivers
Apr 16, 2014, 2:42 PM EDT
It’s rare that someone is happy to get or pay a traffic ticket from a state trooper. But thousands of NASCAR fans will gladly fork out their hard-earned money for a different kind of ticket, and one that carries the same kind of meaning as many of the tickets that police across the U.S. issue countless times each day.
WATCH LIVE: NASCAR AMERICA at 5 p.m. ET — Rudd, Letarte, Hollywood Armstrong and why good restarts are key
Apr 16, 2014, 2:08 PM EDT
While much of NASCAR may be on its version of spring break, the NASCAR AMERICA team is hard at work to bring you some intriguing content. Rick Allen and Kyle Petty hold down the fort at the anchor desk on Wednesday’s show at 5 p.m. ET on NBCSN and NBC Sports Live Extra for your online or mobile device.
Apr 16, 2014, 1:46 PM EDT
NASCAR may have the upcoming weekend off for the Easter holiday, but that doesn’t mean its crack team of statisticians is on vacation like most of the drivers and teams. Even without a race, they’re still pumping out numbers that fans love to devour. So for an appetizer prior to next week’s countdown to the April 26 race at Richmond International Raceway, here’s some food for thought and to munch on
- Cooler heads prevail as IndyCar drivers test at Texas (VIDEO) 0
- Jeff Gordon has bad news for his rivals: He’s thinking of racing for 10 more years 2
- NASCAR’s birthplace, the Streamline Hotel in Daytona Beach, to get significant makeover 0
- IndyCar remix: Toyota Grand Prix of Long Beach (VIDEO) 0
- Ten with Townsend: Long Beach Debrief 2
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