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field Helio Castroneves and Ryan Briscoe’s cars since Philip Morris tobacco money exited at the end of 2010 (livery was withdrawn at the end of 2009).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.
Jul 31, 2014, 5:48 PM EDT
More analysis on Dale Earnhardt Jr.’s new crew chief, Greg Ives, took center stage on Thursday’s NASCAR AMERICA on NBCSN.
Jul 31, 2014, 4:59 PM EDT
Thursday’s NASCAR AMERICA lineup…
Jul 31, 2014, 4:00 PM EDT
Malaysian FIA Formula E round moves from October to November to accommodate prime minister’s wishes.
Jul 31, 2014, 2:32 PM EDT
Ryan Hunter-Reay and Simon Pagenaud look to make headway on Team Penske teammates, while Chip Ganassi Racing seeks a six-pack of Mid-Ohio wins this weekend.
Jul 31, 2014, 1:45 PM EDT
Anthony Richardson bills himself as the Bad British Commentator, and it definitely shows through here with his malapropisms and complete lack of understanding of the sport and world of NASCAR.
Jul 31, 2014, 1:00 PM EDT
There may not be wholesale changes, based upon what NASCAR chairman Brian France said recently, but next year’s Sprint Cup schedule will look different. Based upon various sources and things we’ve heard and/or read, we’re going to chime in with our ideas and why we think that way.
Jul 31, 2014, 12:00 PM EDT
With six qualifying races left, a total of 10 more spots remain to be clinched to fill out the expanded 16-driver playoff field for this year’s 10-race Chase for the Sprint Cup.
Jul 31, 2014, 11:54 AM EDT
Legendary NASCAR driver Mark Martin is returning to Roush Fenway Racing. But don’t expect Martin, 55, to get back behind the wheel any time soon.
Jul 31, 2014, 11:01 AM EDT
If you collect NASCAR memorabilia and someone approaches you in the coming days with a deal that seems too good to be true – especially if it involves merchandise related to either Dale Earnhardt Sr. or Dale Earnhardt Jr. – it probably is.
Jul 31, 2014, 10:50 AM EDT
Ferrari’s head of Engine and Electrics, Luca Marmorini, has left the team ahead of the second half of the season.
Jul 31, 2014, 9:59 AM EDT
NBCSN will present live coverage of the IndyCar Honda Indy 200 at Mid-Ohio this Sunday at 3 p.m. ET, highlighting more than 30 hours of motorsports coverage across NBC and NBCSN this weekend.
Jul 31, 2014, 9:52 AM EDT
If at first you don’t succeed, try, try again. That’s the case for the new design of the Toyota Camry for the 2015 Sprint Cup season.
Jul 31, 2014, 8:57 AM EDT
Ed Carpenter says he’d like to expand to two cars, but it remains to be seen if this can actually come to fruition.
Jul 30, 2014, 7:12 PM EDT
Personal care brand will serve as primary backer for Stenhouse in multiple 2015 races plus work in a season-long associate role.
Jul 30, 2014, 5:38 PM EDT
NASCAR AMERICA on Wednesday includes a Denny Hamlin interview, a recap of the Hamlin penalties and Dale Earnhardt Jr. new crew chief news.
Jul 30, 2014, 5:00 PM EDT
Nelson Piquet Jr. shows Kristen Kenney how to wakeboard, on the day after Piquet bagged a podium finish in Red Bull Global Rallycross at Charlotte.
Jul 30, 2014, 4:45 PM EDT
Coming up today: Full coverage of Brickyard penalties against Joe Gibbs Racing, including reaction from driver Denny Hamlin; interview with Eldora Truck Series winner Darrell “Bubba” Wallace Jr.
Jul 30, 2014, 4:30 PM EDT
Next year, Ives will have deal with an amount of fan and media attention that dwarfs anything he’s ever encountered in the sport.
Jul 30, 2014, 4:06 PM EDT
The livery notes going into this weekend’s Honda Indy 200 at Toronto.
Jul 30, 2014, 2:39 PM EDT
Ives currently serves as crew chief for Nationwide Series points leader Chase Elliott and also worked as a race engineer for Jimmie Johnson during his run of five Sprint Cup titles from 2006-2010.
- NASCAR AMERICA: Thursday round-up (VIDEO) 0
- IndyCar: A crucial weekend to commence at Mid-Ohio 0
- Mark Martin returning to Roush Fenway Racing in unique role 0
- NASCAR AMERICA: Wednesday Round-Up Includes Denny Hamlin Interview (VIDEO) 3
- Greg Ives to become crew chief for Dale Earnhardt Jr. next season 12