May 15, 2010
By Brenda Benedict
The opening of the NASCAR Hall of Fame has focused the national spotlight on NASCAR. Even the national networks such as NBC ran stories about the big event. But there was one side story about the opening of the Hall of Fame reported by SceneDaily.com that surprised me. It was mentioned in the press in passing but the story raised several questions for me. The NASCAR Hall of Fame has not secured enough sponsors.
Several large companies have partnered with the HOF including 3M, Goodyear, Mobil 1 and O"Reilly Auto Parts. These companies will pay between $200,000 and $700,000 annually to have their name displayed at the new attraction.
Hall of Fame marketers attribute the low numbers to the economy. "The recession has hampered sales efforts. The banks have told us ‘Don’t panic.’ They don’t want to lower prices and start selling sponsorships for nothing. The economy is coming back and now that the Hall is opening, people will actually see what it is.”
First, it is surprising that the Hall of Fame even has sponsors. I've visited other national sports hall of fame facilities and I don't recall seeing evidence of sponsors anywhere. The Professional Football Hall of Fame in Canton, Ohio, is a frequent stop for our family. I can't recall any commercial displays there.
However, sponsorship is really the lifeblood of NASCAR and the sight of advertising shouldn't shock us. We are accustomed to seeing it everywhere from driver fire suits to every inch of the cars. I even found a list of 'official' NASCAR sponsors for a bevy of products. Do you know that NASCAR has an official bank (Bank of America), an official shaving product (Gillette) or even an official heartburn remedy (Prilosec)?
In the early days, sponsors were mainly related to the automobile industry but this changed in 1972 when R.J. Reynolds bought into the series which they renamed the Winston Cup Series. This began the move to a wide variety of sponsors which now includes many industries unrelated to cars or racing. These will include companies such as Go Daddy or M & M's or the famous Aflac Duck.
NASCAR drivers have long depended on sponsorship and lack of sponsorship has derailed the careers of many good drivers.
Janet Guthrie who was experiencing success on the race track could not continue because of lack of sponsors. In her book, Janet Guthrie: Life at Full Throttle, Guthrie tells how when she was at the pinnacle of her success, she had to stop racing. This wasnot because of discrimination against women or her lack of skill. Guthrie was doing very well on the track and developing relationships in the garages. Many drivers including Junior Johnson, were helpful and encouraging to her. But it was her inability to secure sponsorship money that caused her to hang up her helmet and stop racing.
Tony Stewart faced his own sponsorship trouble this week. Old Spice announced they will not be renewing their contract with Steward when it expires at the end of this year. After 11 years of backing Stewart, Old Spice has decided that their marketing strategy in the future will not include Stewart and his racing team, Stewart-Haas Racing. This leaves Stewart without full sponsorship for next year.
NASCAR fans are known for their loyalty to their drivers and also their sponsors. In studies of fans and their knowledge of sponsors, NASCAR fans always score the highest in the sports industry making sponsorship a viable method of advertising for them.
But only time will tell if changes to the sport will occur because of the tightness in the economy. Even if NASCAR fans give an advertiser a good return for dollars spent, the rising cost of maintaining a racing team seems to be discouraging new and current sponsors.
If sponsorship is really the lifeblood of NASCAR, then it might be time for a transfusion.
You can follow me at Twitter @nascarfaithful
The thoughts and ideas expressed by this writer or any other writer on Insider Racing News, are not necessarily the views of the staff and/or management of IRN.
