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field Helio Castroneves and Ryan Briscoe’s cars since Philip Morris tobacco money exited at the end of 2010 (livery was withdrawn at the end of 2009).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.
As NHRA closes in on 100 wins by female racers, it all started with one of the greatest, Shirley Muldowney
Apr 24, 2014, 10:01 PM EDT
The NHRA is just two wins away from recording 100 victories by female drivers in the sport’s all-time annals, which could happen in this weekend’s 27th annual O’Reilly Auto Parts NHRA SpringNationals presented by Super Start Batteries at Royal Purple Raceway. And while all eyes this weekend will be on drivers such as Alexis DeJoria and Courtney Force (Funny Car), Brittany and Leah Pritchett (Top Fuel) and Erica Enders-Stevens (Pro Stock) as potential candidates to set that significant milestone, it’s also time to reflect back on who started it all, the legendary Shirley “Cha Cha” Muldowney.
Apr 24, 2014, 9:02 PM EDT
If you like vintage cars, collectors cars, muscle cars — pretty much anything that looks great and is on four wheels — you owe it to yourself to check out some of the fantastic rides that were up for sale Wednesday during the first day of the Mecum Kansas City auction.
Apr 24, 2014, 9:00 PM EDT
The two IndyCar pilots have a blast at U.S. Space Camp before getting down to business this weekend at Barber Motorsports Park (Sun., 2:30 p.m. ET on NBCSN/NBC Sports Live Extra).
Apr 24, 2014, 8:21 PM EDT
Brad Keselowski had a dream season in 2012, winning his first NASCAR Sprint Cup championship. Now Keselowski wants a dream schedule on the Cup circuit – and some of his ideas make sense.
Patrick Carpentier returns to race Quebec’s famed Circuit Trois-Rivieres for first time in nearly 20 years
Apr 24, 2014, 6:34 PM EDT
It has taken him nearly 20 years, but Patrick Carpentier is going back home to race. A veteran of several race series in his career including CART (5 wins), GP3R (2 wins), IndyCar and NASCAR, the Quebec, Canada native will return to the Circuit Trois-Rivieres street course for his first-ever FIA World Championship Rallycross race August 7-8.
Apr 24, 2014, 5:40 PM EDT
Don’t ask Ryan Blaney for directions, period. That’s the message in the latest edition of the Penske Files, in which a Team Penske member asks Blaney for directions to the nearest Discount Tire outlet (Discount Tire is one of Blaney’s primary sponsors in the Nationwide Series this season).
Apr 24, 2014, 5:21 PM EDT
According to driver Aric Almirola, team owner Richard Petty is expected to attend Saturday’s NASCAR Toyota Owners 400 at Richmond International Raceway. It will be the first time that Petty has been at a racetrack since the death of his beloved wife Lynda on March 25.
Apr 24, 2014, 4:00 PM EDT
Steve O’Donnell, NASCAR’s senior vice president of racing operations, says that the process of finalizing the ’15 engine package is underway.
Apr 24, 2014, 3:37 PM EDT
Brandon Davis did all he could to keep Swan Racing afloat. But even a multi-millionaire oil and gas industrialist can only bleed so much money before deciding to throw a red flag on the operation. When anticipated funding and sponsorship failed to materialized, the two-team operation sank so fast that Davis had no other choice but to essentially go out of business.
Apr 24, 2014, 12:44 PM EDT
Improved qualifying will likely yield greater results for RLL Racing at Barber this weekend.
Apr 24, 2014, 11:00 AM EDT
Sebastien Bourdais, Sebastian Saavedra seek their best weekends of the year at the Barber Motorsports Park event.
Apr 24, 2014, 10:15 AM EDT
Dale Coyne’s team, plus a handful of others will need to assemble programs shortly to bring the Indianapolis 500 car count number up to 33, and perhaps beyond.
Apr 24, 2014, 9:30 AM EDT
After Long Beach debacle, Andretti Autosport looks to right the ship, get second straight Barber win this weekend.
Apr 24, 2014, 8:45 AM EDT
Looking for a second straight fast, solid weekend, Josef Newgarden and the SFHR team seek an improvement on P9 in 2013 at Barber.
Apr 24, 2014, 8:00 AM EDT
Round 3 of the Verizon IndyCar Series could be a humdinger at Barber with high drama, high tempers possible after Long Beach.
Apr 23, 2014, 7:00 PM EDT
RPM’s Marcos Ambrose on his start to the 2014 NASCAR Sprint Cup Series season.
Apr 23, 2014, 6:53 PM EDT
John Force is your classic workaholic.
Even when he’s on vacation and supposed to be resting and relaxing and taking things slow, the record-setting 16-time NHRA Funny Car champ never stops working. Force was on vacation with his family last weekend in St. Croix, Virgin Islands, a prelude to his upcoming 65th birthday on May 4.
Apr 23, 2014, 6:00 PM EDT
Swan Racing has restructured its two-car Sprint Cup team, the organization announced Wednesday afternoon. Minority owner Anthony Marlowe has merged his ownership stake in the No. 26 Toyota driven by Sprint Cup rookie Cole Whitt with BK Racing, which now expands to a three-car operation. Meanwhile, the No. 30 team has been sold to John Cohen, owner of XxxTreme Motorsports.
Apr 23, 2014, 5:51 PM EDT
IndyCars confirmed to “roar by the shore” through 2018 after Long Beach City Council meeting.
- As NHRA closes in on 100 wins by female racers, it all started with one of the greatest, Shirley Muldowney 0
- Brad Keselowski: Changes overdue to Sprint Cup schedule; offers his ideas 2
- Richard Petty to return at Richmond, first race since wife Lynda’s death 1
- NASCAR VP: 2015 Sprint Cup engine package to be revealed before All-Star Race 0
- Too much, too fast, too soon: The sad saga of Swan Racing 0
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