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August 09, 2008
The value of sponsorship
By DAVID GREEN
Those of us old enough to remember the classic "Hee Haw" program probably recall the skit where the quartet of ladies sang, "You'll never hear one of us repeating gossip, so you better be sure and listen close the first time."
Gossip, I suspect, is one of the most popular activities among human beings, even those who look down on it. Sometimes we even attempt to euphemize it by saying, "I don't mean to gossip, I'm just commenting about him (or her)." It's particularly rampant in activities in which people tend to be hyper-interested -- such as racing.
I heard the other day from a source about three or four people removed from the supposed observation that there's some dissatisfaction among NAPA store owners about the auto part corporation's NASCAR sponsorship program. The grumpiness is over two issues -- revenues (supposedly the stores are going to pay a little more to support it in the next-generation contract) and Michael Waltrip.
I have no idea about the specific accuracy of any of that information, and don't really have a great deal of curiosity about it, but it did get me to thinking (no small accomplishment) about the matter of sponsorships in auto racing.
My first attempts to get local sponsorship for my own dirt-track racing efforts were often met with concerns that, "If my name is on your car and it comes off the trailer and hits somebody, they'll sue me." This, long before the litigation plague reached today's pandemic proportions. I'm no lawyer , but I believe they were confusing sponsorship with ownership. I could be wrong about that (help me out here, Doug in CA).
Anyway, nowadays big corporations, fortified with lawyers of their own and apparently unafraid of getting sued, spend huge amounts of money to market their products by putting their brands on racecars and the big tractor-trailer rigs that haul them around the country. I think it's pretty well established that there is some value in doing that.
Just how much, is the question.
And just how important is it that the car and driver have competitive success? No offense to Michael Waltrip and his fans, but MW has not had a whole lot of that, as measured by race victories and championship titles.
He's a great, glib salesman, and it isn't as if he can't drive at all. He has won a couple of Daytona 500s, and that's nothing to sneeze at.
This is no new debate. As recently as -- oh, whenever corporate sponsors began to plow big money into the sport -- there have been snide suggestions ("gossip," let's call it) that "so-and-so got his ride because of his good looks, not because he can drive well."
Of course, that has been carried to new levels as drivers from the distaff side have begun to compete (see "Patrick, Danica" for the latest argument on this note).
I'd offer a summation of this, but to be honest I'm not sure how I feel about it. So, I'll sit back and listen to the comments y'all may have to offer.
August 9, 2008 | Permalink
Comments
Well forst and foremost I will stand up for Michael Waltrip (cuz I know he'll get bashed) you don't stay in Cup 23 years without talent, Dale Earnhardt Sr saw it and hired him, It's good enough for me.
I too know the struggles of owning a Winston Racing Series team and attempting to find sponsorships, it was alot of headaches and heartaches, The reawrds where the autograph sessions and the youngfans with their checkered flags saying I saw your car on TV Sunday.
My problem with todays Sponsorships are
#1) Multiteam Owners have enough clout to steal away big sponsorships, If it where my series a 2 car limit...Period
#2) Unlike Myself back in the day Team owners DO NOT SPEND THEIR OWN MONEY...they simply pas it on to the Sponsor Who in turn will pass it down...remember "Stuff" flows down
#3)The Sanctioning Body need to st out of the "Official" sponsorship business, ATT must go, Geico must go brcause of conflict with Title Sponsors
#4)The Top 35 rule is detrimental to Sponsorship on small teams or new teams *see #1
With all the Silly Season gossip of who's going where with who...UPS said it wanted a driver with Rockstar status...and IMO the ONLY driver who commands that is Dale Jr!
One thing I did notice coming up was the only way to advance thru the Nascar ranks was to have a Big Money sponsor, and Big money behind you...Money drives the sport, How fast do you wanna go?
#3
Posted by: Fan #5 | Aug 9, 2008 11:03:39 AM
F5 - Well said. In a perfect world your ideas could make the sport competitive for more owners and drivers. But we live in a society where money talks whether in sports or in our everyday lives.
Posted by: Diane | Aug 9, 2008 11:35:05 AM
Good for Mikey and MWR. The COT was supposed to even out NASCAR, but the sponsorship combined with the terrible economy has made the rich richer and the poor poorer just like our economy. A Hendrick team gets between 20-30 million a sponsor while low level teams get 6-10 million.
Posted by: MikeyFan | Aug 9, 2008 11:39:09 AM
I consider myself a fairly well-versed NASCAR fan, but I must admit my lack of interest, and therefore, lack of comprehensive knowledge of sponsorship issues. I do find it fascinating how certain drivers and brands are intertwined for long periods of time (Jarrett/UPS, Dale Jr./Bud, MW/NAPA and more). From what I observe, this is how most casual fans identify competitors. I was on a table getting a vasectomy just yesterday (yay) and the doc asks me "who's the little guy that drives the Viagra car?".
F5, I agree spot on with the #3 problem on your above list. Confliction only serves to weaken the desired effect that sponsors bring in.
It would be naive to say that aren't some competitors bringing nothing to the sport, only offering their sponsors more exposure. I consider Danica Patrick, in my humble opinion, useless as a competitor. Michael Waltrip, well, like you said it's not like he can't drive. I think the competition has just gotten too stiff. MW has a personality that is good for the sport though. (Although I often wonder to myself, what the hell has happened when Awesome Bill can't qualify for a race anymore?!)
On an off subject, is there anyone else who watched the Olympic opening ceremonies that thinks China raised the bar to freakin' Jupiter with that show? And if there's any history buffs out there, I recommend the HBO DVD miniseries "John Adams". Being on bedrest for three days is getting me some quality TV time.
Posted by: Joe | Aug 9, 2008 7:15:13 PM
One well-known point I wanted to get out there but was distracted by the wife...I do solidly believe that big-name sponsorship, with equal importance of the fans, is the lifeblood of the sport. There is some much needed money there, not as much for the super-teams but for the little guys out there.
Posted by: Joe | Aug 9, 2008 7:28:07 PM
Hey David,
Wide-open. And don't mean the gas pedal! The fuel ain't Sunonco, it's greenbacks. What, just 10 years ago 2-4 million got most of the top teir teams through the season.
The "game" has changed. It seems to me that it was about putting out a quality product, to put butts in the seats. Now, it is corporate and big TV dollars. Most tracks are owned by the Big 2 and they can cover up seats with banners with, you got it, sponsors names on them.
There is not a better "pitch-man" than Mikey. And that has worked for him. In the right place at the right time, and no one should blame him for that. If you land on Boardwalk, you buy it to avoid the hefty rent next time around.
Mikey had
- years of driving experience
- high profile name
- platform with Speed Channel
- 2 Daytona 500 wins
and the hand picked driver of Mr. E.
But, even with all this going for him the clock is ticking. Both, birthdays for his driving career and patience from his sponsors.
My perception of the top 35 rule was to help those who run all year, but had events on qualifying days that could keep them out of the field. It seems that has provided instant franchising which is what many have asked for anyway. Brilliant for Nascar. They have the big stick, while teams are still owned by owners who have no union to answer to. No profit sharing of the tv money, other than the purse. (That I am aware of).
Many times I thought that our favorite sport could grow no more. But each time they pull another sponsor out of the hat and go foreward.
Haas has brought everything to a new level. Putting Tony in front of that organization
has placed value on what could have been an auction for sheet metal! cool.
Does it pay to be a fan? Not sure anymore, but nothing was more refreshing than seeing STP crossing the finish line first.
Posted by: Larry | Aug 9, 2008 7:48:20 PM
Maybe the game has not changed, just my perception of it. But it used to seem like the fans really mattered. Now, they just say "it's for the fans".
Was it ever about the fans?
Posted by: Larry | Aug 9, 2008 7:55:37 PM
Crazy rumor had Google buying Sprint (Sprint is bleeding cash and subscribers BADLY). (Google it)
"Google Cup" hahahah!
Posted by: JWSmoke | Aug 9, 2008 9:29:05 PM
JWSmoke - That would be really funny - "Google Cup". LOL
Posted by: Diane | Aug 9, 2008 9:34:06 PM
The Frances need to be content with the hundreds and hundreds of millions they already have, and quit SELLING THE CUP. Winston, Nextel, Sprint,???
Just chill and make it the NASCAR Cup or the France Cup and LEAVE IT ALONE for a decade or two.
Jeez! Enough already!
(rant off!)
Posted by: JWSmoke | Aug 9, 2008 10:33:26 PM
Ha! What if AT&T buys Sprint and Burton still can't get his sponsor back because NASCAR rules that the Title Sponsor can't sponsor a car? Ha!
Posted by: JWSmoke | Aug 9, 2008 10:37:39 PM
I've always...well since Winston was forced to leave...That it should be The Bill France Sr Cup presented by(insert sponsor du jour)
Posted by: Fan #5 | Aug 9, 2008 11:07:01 PM
Mikey might not be winning races but his NAPA commercials are the best out there. Even if you aren't a fan, you will remember his commercials. NAPA should be pretty happy with the results.
Posted by: Graceann | Aug 9, 2008 11:30:39 PM
So far every post has shown fans around here may disagree on things and all have some pretty good thoughts.
If Nascar as a sanctioning body is going to make rules restricting auto manufacturers from developing advantages and taking them away with the COT then they better view sponsorship in the same way. The reason for the COT was to stop one team from dominating and making it boring for the fan to have just a few teams successful. Every one of these sponsorships has driven up the cost to the average fan and is now pricing them out of the market. Baseball already went through this with the salary cap. In Nascar, it's going to have to be the advertising cap. Money is King and always will be but Nascar thought the best way to level the playing field was to punish auto manufacturers supporting teams by favoring the hood sponsorship. I have to believe the thought process was that they could keep the money flowing in but limit competition. THEY WERE WRONG.
Posted by: Bob | Aug 10, 2008 9:46:29 AM
Last year when Ginn folded/merged, the drivers (Marlin and Nemechek) sued because they hadn't been paid. It gave us the chance to see a driver's contract, a rarity in this business. As I had suspected, one of the items in the contract was the number of days or appearances that driver would be available for sponsors. I suspect that MW is available a whole lot, while folks like Gordon and Johnson are far less available for meet and greets.
#5, I agree 100% that MW has some talent to last at this level 23 years. I mean, I'm one hell of a nice fellow, and you don't see ME driving a Cup car! And I'll go to four sponsor events per week!
Posted by: Doug in CA | Aug 11, 2008 1:33:51 PM
Doug,
Ya made me spit water (or something cold) out my nose. Waltrip is a mediocre to poor driver. Even his mouth has been diminished with the Daytona cheat. He's the Ginsu knife guy with wheels. Mr. Ginsu has sharp, pretty, knives, but I'm pretty sure I wouldn't pay for a meal he cooked. Waltrip has nice pretty cars and a mouth, but I'm pretty sure I'd never hire him, or pay, to watch him drive anything.
Posted by: Keith | Aug 11, 2008 3:22:26 PM
Doug in CA, If was easy...We'd all drive race cars
Posted by: Fan #5 | Aug 11, 2008 5:06:02 PM
Keith, then he's been fooling a variety of owners for 20 years! They must be pretty dumb.
Posted by: Doug in CA | Aug 11, 2008 10:10:08 PM
Doug,
They bought the mouth. No sponsor ever hires Waltrip with winning in mind. They know the mouth that never stops will get them air time.
Posted by: Keith | Aug 12, 2008 7:18:19 AM
Keith,
Michael Waltrip wasn't pitching much of anything until DEI signed him to drive. He has certaintly turned that oppurtunity into a gold mine as far building relationships with sponsors (Napa, Aaron's) and creating a marketing personna.
As far as the value of sponsorship, their are a lot of smart people who make careers out of studying and tracking the value of a Nascar sponsorship in order to justify the expense to the bottom line.
Everyone is gambling on that right combination of driver performance and personna. Like the magic Hendrick created with Jimmy Johnson, a relatively unknown driver before he set the Cup series on fire. Lowe's spends 1/4 of what Home Depot does annually on advertising across the board, but they have created the same huge brand identity as Home Depot and Tony Stewart.
These companies pay the big budgets to Jeff Gordon, Tony Stewart, Jimmy Johnson, Dale Jr. because they not only get what they pay for on the car and commercials, but they get so much free advertising on all the merchandise that is sold with their logos all over it.
Posted by: Michael | Aug 12, 2008 1:02:28 PM
Michael I'm still xcratching my head over the Johnson deal!
Posted by: Fan #5 | Aug 12, 2008 2:42:17 PM
Fan #5, I'd say Chad Knauss had a whole lot to do with that. Call me crazy.
Posted by: Michael | Aug 12, 2008 4:17:01 PM
On an unrelated note, Roy Clark from Hee Haw is my grandmother's cousin and they grew up in the same small town in VA. He use to come to all of the old family reunions in the 80's (I was just a kid) back when Hee Haw was big. We all use to say there's cousin Roy on TV every week.
Posted by: Michael | Aug 12, 2008 4:21:10 PM
Ya know it's funny, Up north where had and his Dad raced, His last name was pronounced (K)Nauss..silent K I've always wanted toask why it's pronounced Knaus down here
Posted by: Fan #5 | Aug 12, 2008 5:49:21 PM
When Budweiser was sponsoring Jr you would go to a race and see thousands and thousands of people with their red hats, red tshirts and Budweiser coolers. Only prroblem was hardly a one of them was ever drinking Budweiser beer. They all were drinking whatever was cheapest to buy. I guess they couldn't afford a Bud with all the money they spent on all that red stuff!
Posted by: Peter | Aug 13, 2008 7:31:26 AM
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