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August 29, 2007
NASCAR running into troubles with Busch sponsorship replacement
It seems that what they thought would be an easy deal, isn't so easy. Talks seemed to have stalled with Subway, the front runner in the search for a new title sponsor of the now, Busch Series.
In the beginning, NASCAR was talking a $30 million a year deal, but now, the price has dropped. According to articles, they don't mention a specific amount, but say it's now nearly half of that asking price and that NASCAR is talking to brands that were considered not in the running anymore. The other sticking point seems to be exclusivity. Obviously, the lawsuit with AT&T over the sponsorship of the #31 of Jeff Burton in the Cup Series has had an impact and I think that's one of the reasons for the price drop.
Subway was in serious talks with NASCAR about series sponsorship, but exclusivity seems to be an issue here, they want exclusivity for spending all that money, but their brand and industry already has quite a few competitors as sponsors in the series now, Arby's, McDonald's, Jimmy John's and Domino's are already in the series. If Subway was to make this deal, they would either have to grandfather (like they did in the Cup Series) or just say these teams need to find new sponsors. No word on what actually happened in the breakdown of talks, but exclusivity was a major part of it and also the way money was spent, one-third of that money was suppose to be spent on ESPN and it's platforms.
Now NASCAR is talking to others that they had talked to earlier, but time is ticking. The price has dropped, the required amount to spend on ESPN has changed. NASCAR has currently been revisiting KFC, Dunkin' Donuts and Allstate for possible sponsorship deals and I'm sure has been in contact with others, but according to everything I've read, exclusivity is going to be a sticking point, how much depends on who they go with.
What NASCAR thought would be a fairly simple process has not been as easy as they thought and time is running out. They still hope to be able to announce a sponsorship deal by the end of the Busch Series season in mid-November, which is not that far off, so these stalled talks did not help.
Your thoughts?
August 29, 2007 in NASCAR, NASCAR Busch Series | Permalink
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Comments
I think the whole Sprint/AT&T fight is stupid. Any company with the desire and money should be able to sponsor a car. NEXTEL changed to Sprint....so what's the big deal about any other company doing the same?
If NASCAR signed with Subway and no longer ran McDonalds, KFC, etc., they'd be making a mistake. I say let the drivers drive, the sponsors spend money, and the fans enjoy the races.
NASCAR needs to quit trying to make all the cars, drivers, and sponsors look and act the same. Let go of all this B.S. and get back to what the sport is about...racing.
Posted by: Kristy | Aug 29, 2007 12:12:59 PM
Cant the France's or MH get it right and quit selling out and all these naming rights BS??
Its the NHL, the NFL the NBA and MLB with their respective championships its not "The Viagara Keep it HARD, NFL Super Bowl"
okok i know the stadiums names are sold!! But still why not then just franchise the individual cars and have the mc d , home depot bud ect franchise car ect at 25 million per year and have IROC racing and what limit it to 1 car per business sector??
Its just nuts to me how they do business with sponsorships and the whole NASCAR business model.
They try and be big league but then say “hey were the dictators here and we want some $$$$$$” so you have that Vince Mac WWE iam the owner mentality and iam doing things my way!!and if you don’t like it bub bye see u in ARCA!!
NASCAR wants to be a big time sports and they just keeping doing this Mickey mouse name sponsorship games .....step up to the 2000's and run it like a real sport.
I want to be a race fan and not have to think about sponsorships and names ect
to me
It’s cup. car cup, cup driver, (or my fav driver or team) and a cup team and the 2007 champion………….who cares about the other bs if you’re an everyday fan, itsr racing to me first and foremost.
Posted by: aggie | Aug 29, 2007 1:07:45 PM
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