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September 14, 2006
Playing musical sponsors pays dividends
By Mike Harper
In 2004, the U.S. Coast Guard enjoyed a win from their Busch Series driver Justin Labonte. The next season, Labonte delivered two top 10 finishes and ended the 2005 season 17th in the Busch Series standings, trailing series champion Martin Truex Jr., by 1,652 points. Even though Labonte delivered a race win to the U.S. Coast Guard during his tenure as their driver, this one of five branches of the U.S. armed forces decided to move to a different race team in 2006. The U.S. Coast Guard joins many other NASCAR sponsors that decided to jump to a different team to improve their position in the sport. In all accounts, the Coast Guard’s move to Richard Childress Racing in 2006 can be viewed as a huge success story. After 28 events this season, the Coast Guard racing team has 19 top five finishes including seven wins. Instead of trailing the Busch Series points leader by more than a thousand points, they lead in the standings by over 600 points. In my opinion, this must be one of the greatest sponsorship turnarounds in history.
While many sponsors struggle at times to find their footing with winning teams in NASCAR, some will make bold moves to change teams. One sponsor that comes to my mind in the Nextel Cup Series that decided to make a change is the Lowe’s Home Improvement sponsorship. Lowe’s at one time called Richard Childress Racing home. They sponsored the No. 31 driven by Robby Gordon before moving their sponsorship to Hendrick Motorsports. Today, Lowe’s enjoys greater success with driver Jimmie Johnson and HMS over their days at RCR. It’s another example of how sponsors can find greener fields in someone else’s garage. Valvoline and M&M’s are other examples of successful moves to other teams in the Nextel Cup Series. In the Busch Series, the Navy is trying their luck by moving to JR Motorsports this season from FitzBradshaw Racing. Also, the Marines have announced that they will be moving their sponsorship next season. Often we hear from NASCAR owners when drivers are released that this is a performance based business and the driver wasn’t performing. In the case of corporations and their high dollar sponsorships, when they decide to move they’re stating the same exact thing except it’s directed towards the NASCAR owner. In not so kind words, the sponsor is firing the owner. This brings me to current sponsorships that I see either leaving the sport or moving to a different team in the future. You can’t tell me that Tide is happy with the continued performance of the No. 32 car. I understand their contract is up at the end of this season with PPI Motorsports and I believe they will leave for a more fruitful garden. Caterpillar is another sponsorship that I believe could find a new racing home at the end of next season. It depends on how Bill Davis Racing does with their new Toyota relationship next season. The McDonalds sponsorship may find new life in the Nextel Cup Series in the future as their main competitor Burger King hits the Cup level next season with Michael Waltrip Racing. Kodak announced at the beginning of this season that they would return next season, but will they? Also, Cingular has a decision to make about their name. NASCAR won’t allow them to use AT&T, so what happens with them? What will happen with the AAA sponsorship with no Mark Martin in the No. 6 and no sign of a bright young driver to take over the wheel? AAA could jump to another car at Roush Racing or jump to a different NASCAR series with Martin. The National Guard is rumored to jump from Roush Racing to Hendrick Motorsports’ No. 25 car next season. It’s hard to believe that this will be a successful move given the recent history of the No. 25 team, but it worked for Lowe’s. In my opinion, there’s a history of success from sponsors playing musical chairs and I wouldn’t be surprised to find some owners the victims of sponsorship hopping at the end of this season. Let’s have some fun! In your opinion, from any time in NASCAR’s history what sponsorship move from one team to another would you consider being the most successful move of them all?
September 14, 2006 | Permalink
Comments
Hmmmm I thought it was Mike Skinner who drove the 31 Lowes car at RCR, and Yes Pennzoil has benifitted greatly by leaving DEI.
Posted by: Tbfka#5 | Sep 14, 2006 8:17:28 PM
#5 Penzoil left and wound up an associate of Rousch. Yes another of 20 or so spomsors who are playing roulette to happen to be on the car when someone wins. That to me is a bad move. The Lowes move was huge. they got lucky. Any sponsor who jumps ship for greener pastures is gambling and we all know it. It is the car owner who asks more than they are worth who ruins it for everyone....need I say Jack Rousch?
Posted by: Mark | Sep 14, 2006 11:02:09 PM
Mike, interesting subject and something I have been thinking about as well.
But I was looking at one particular sponsor in a different way - Federal Express.
FedEx joined Joe Gibbs Racing in 2005, and had a miserable "rookie" season.
Jason Leffler started the '05 season in the 11 and was replaced with Terry Labonte, who joined his brother, Bobby, at JGR in August. J J Yeley debuted in the fall race at Fontana and shared the 11 with Terry, until Denny Hamlin took over at Kansas in October, who finished out the season.
With all that going, their finishes lead them to a 41st place in points.
FedEx stuck it out, and now are the only JRG team in The Chase; are the sponsor of the 2006 Rookie of the Year; and could be a championship team before too long.
I applaud the execs at FedEx for staying with JGR. It was well worth the wait!
Posted by: Shirley | Sep 15, 2006 8:43:33 AM
I'm pretty sure that that guy/gal in charge of the advertizing revenue for a major sponsor has more than a little info to go on before just changing teams. They also have a higher authority to answer to for their choices. Psst, btw, they could care less if driver A wins...driver A needs TV time, sponsor awareness and sponsor commitment. Mikey is a prime example (I'm not hatin' on Mikey, Shirley, so don't get the panties in a wad). Mikey couldn't (IMO) race his way out of a soggy paper bag...But that boy WILL get his sponsor TV time; He WILL make us painfully aware who his sponsors are and he IS totally committed to said sponsor...That's why he still has a ride and that's why Toyota wanted him.
TV and advertizers have taken control with their money. Heaven forbid a truely talented young driver have acne or stutter. As it is we get Nsync/Back Street Boys clones, and most have some talent, but I can't help wondering who got left behind.
Posted by: Keith | Sep 15, 2006 9:36:51 AM
Yep Keith, there's no doubt those Waltrips, especially Michael, can make a sponsor proud. However, I haven't heard Mikey say the word "Dodge" very many times this season, which doesn’t surprise me one bit. But he's giving Toyota everything they paid for.
I have a feeling I know a couple drivers you're thinking of when you mention the “boy-bands.’ Too bad we'll never know who could have made it in Cup, but were passed by because the sponsor may not have approved.
As in David Reutimann. I read that he was "approved" by Domino's to drive the MWR 00, and was to meet with Burger King this week to get their approval. I can’t think of a more deserving person, AND family, to be a part of Nextel Cup. If he doesn’t get the ride because Bill Elliott does, that I can understand, and would make me just as happy. But if he gets pushed aside for a boy-band “clone” I will be very upset with. . . someone. . .I just don’t know who yet!
There are also sons of past champions that, for some reason, have not been given a chance in quality rides in Nextel Cup. Turn 3’s own Jason Jarrett and Justin Labonte are the first that come to mind.
Steven Wallace is working his way through the ranks, along with Steadman Marlin and Matt Martin. I wonder if they will be lucky enough to follow in their father’s foot steps; or will “the new kid on the block” get in their way? Okay. . .maybe not Matt! ;-)
Posted by: Shirley | Sep 15, 2006 1:03:01 PM
I remember when deals were made around the
sponsor,and we as fans were informed.
Like when STP signed Richard Petty and they
wanted to repaint the "Petty Blue" to the
traditional STP red,and a compromise was
made.
Posted by: trucker | Sep 15, 2006 1:10:14 PM
Ron, I remember that as well. Too bad we didn't get to see it very much at Richmond.
Posted by: Shirley | Sep 15, 2006 1:42:25 PM
Righton Shirley
do youremember who Lowes sponsored b/4 going to RCR,it was JRJohnson and Brett
Bodine.
Posted by: trucker | Sep 15, 2006 3:34:51 PM
The Coast Guard joined RCR and may win a BGN title - but they're still leaving the team after this year.
I wouldn't call Valvoline's move from one team to another all that successful. They left Mark Martin after years of success to the Morton-Bowers team and managed one win, then after five years went to Evernham.
Andy Petree won races with Oakwood Homes and Square D sponsorships, but both left after 2001; Square D hung around until the end of 2002.
Sponsors move for reasons often unrelated to performance, and oftentimes they need to be told beforehand that moving from team to team is so hit-or-miss they're more often better off sticking it out with who they signed with at the beginning.
Posted by: Mike Daly | Sep 20, 2006 11:59:47 PM
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