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field Helio Castroneves and Ryan Briscoe’s cars since Philip Morris tobacco money exited at the end of 2010 (livery was withdrawn at the end of 2009).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.
The man behind the sculptures: William Behrends’ presence endures for Borg-Warner Trophy, and Giants legends
Oct 24, 2014, 11:09 AM EDT
Statues outside AT&T Park and the faces on the Borg-Warner Trophy share a common thread, in sculptor William Behrends.
Oct 24, 2014, 10:30 AM EDT
Dr. Jean-Francois Payen says that he has noticed some progress in Schumacher’s recovery.
Oct 24, 2014, 9:30 AM EDT
Sauber also complete a test in Spain with Adderly Fong and Roy Nissany.
Oct 24, 2014, 8:30 AM EDT
Just like Arrows and Super Aguri before it, Caterham is on its last legs. However, it is going out in far less dignified fashion.
Oct 24, 2014, 7:26 AM EDT
Finnbarr O’Connell is now in charge at Leafield as the team prepares for a race against time to make the United States GP in Austin next weekend.
Remembering the Hendrick Motorsports airplane tragedy: 10 years later, it still seems like just yesterday
Oct 23, 2014, 11:02 PM EDT
This is a column that should never have been written, about an event that never should have happened.
Oct 23, 2014, 8:24 PM EDT
Legendary motorsports team owner and innovator — and Kentucky native — Jack Roush will be inducted this Saturday into the Kentucky Motorsports Hall of Fame. Roush was born in Covington, Ky.
Oct 23, 2014, 7:55 PM EDT
On Thursday’s edition of NASCAR America, Kyle Petty joined Dave Briggs to mark the 10-year anniversary of the Hendrick Motorsports plane crash and how the team recovered from it.
Talladega mystery: Did missing woman even make it to NASCAR race? Second fan to disappear in 18 months
Oct 23, 2014, 7:37 PM EDT
For the second time in 18 months, police in the area of Talladega Superspeedway are investigating the disappearance of a race fan who had intended to go to the Sprint Cup race at the 2.66-mile racetrack.
Enrique Contreras III, nephew of Carlos Contreras, to make first NASCAR truck race start at Martinsville
Oct 23, 2014, 7:02 PM EDT
Enrique Contreras III, nephew of veteran Mexican racer Carlos Contreras, will make his NASCAR debut in Saturday’s Camping World Truck Race at Martinsville Speedway.
Oct 23, 2014, 4:30 PM EDT
GTSport Racing returns with Jack Baldwin and Buz McCall.
Oct 23, 2014, 3:37 PM EDT
Martinsville preview on tap in Thursday’s NASCAR AMERICA.
Oct 23, 2014, 1:30 PM EDT
Marsh, Cameron on the move to Action Express.
Oct 23, 2014, 1:12 PM EDT
Fernandes claims he didn’t receive full payment for Caterham, the new owners claim they haven’t received their shares, Bernie Ecclestone says he is trying to remedy the situation – but all the while, workers are locked out of the factory, putting the team’s hopes of making Austin in doubt.
Oct 23, 2014, 12:00 PM EDT
Brendan Gaughan back for another year with RCR in XFINITY.
Oct 23, 2014, 11:00 AM EDT
Sergio Perez, Felipe Massa and Esteban Gutierrez signed up for COTA fan forum.
Oct 23, 2014, 9:56 AM EDT
Wurth renews for multiyear deal.
Oct 22, 2014, 11:35 PM EDT
Brad Keselowski is flattered people might compare him with the late Dale Earnhardt, but he’ll be the first to say he’s not the new Intimidator in NASCAR.
Oct 22, 2014, 8:18 PM EDT
Perhaps the greatest collection of original Indianapolis 500 pace cars will soon be on display at an upcoming car show in suburban Chicago.
Oct 22, 2014, 7:36 PM EDT
For most Canadians, their homebrewed beer choice is typically Labatts or Molson. But countryman and IndyCar driver James Hinchcliffe is starting to get some traction with his own beer brand, Hinchtown Hammer Down (HHD).
Video from NASCAR America
- Caterham the latest team to fall foul of the Leafield ‘curse’ 0
- Administrator takes over running of Caterham F1 Team 0
- Remembering the Hendrick Motorsports airplane tragedy: 10 years later, it still seems like just yesterday 3
- Talladega mystery: Did missing woman even make it to NASCAR race? Second fan to disappear in 18 months 11
- WATCH LIVE: NASCAR AMERICA at 5 p.m. ET for Martinsville outlook 0
- Caterham could miss Austin as crisis deepens at Leafield 2
- NHRA stunner: Jimmy Prock out as John Force’s crew chief 10