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Sponsorship: NASCAR's Evolutionary Miracle
August 15, 2002
This past week could go down as a watershed week in NASCAR history. When Home Depot fined Tony Stewart and placed him on probation it was the first time a sponsor has taken disciplinary action against a driver for an off-track incident. Not NASCAR, not the team owner but a sponsor; the long-range effect of this could be considerable. The role sponsors play is evolving quickly and they are demanding a greater say in day to day team operations, including the hiring and firing of drivers. In the sport’s infancy if a team had a sponsor it was usually a local business. More often than not the sponsor’s contribution was made with car parts or tires instead of cash. Rising costs and unpredictable support by the manufacturers sent teams scrambling for funds. The first nationally recognized companies to support racing were almost exclusively automotive related, that is until Carl Kiekhaefer burst upon the scene. In 1955 Kiekhaefer arrived at Daytona with a wicked fast Chrysler 300 and a brilliant idea. A millionaire in an era of few millionaires Kiekhaefer’s company produced Mercury outboard motors. A shrewd man, he noted that success on the racetrack equated to an increase in car sales for manufacturers. Therefore, Kiekhaefer and Mercury became the first big name sponsor from outside the automotive industry to support a Grand National (now Winston Cup) team. Carl had decided to make his entrance into motorsports rather quickly; he arrived with a super car but did not have a driver. Kiekhaefer found his pilot among the spectators. Tim Flock had "retired" the previous season, however the $40,000 salary Carl Kiekhaefer offered was too good to turn down. The Mercury Outboard Motor Company had a driver for their big, fast Chrysler 300. The Chryslers were indicative of the way Kiekhaefer operated. The 300s were the hottest thing on four wheels, but they were so expensive few teams could afford to run them. This wasn’t a problem for Kiekhaefer; he had a fleet of them. At a time when most racecars were driven to the track, the Mercury team arrived with its many cars loaded into trailers. The equipment was top notch inside and out. The Chrysler’s were professionally painted and lettered when muddy, crumpled fenders and hand painted numbers were the norm. The Mercury operation was also the first "super-team", at times fielding as many as six cars in a single event. Remember this was 1955, the notion that a team represents a sponsor and their product was a revolutionary concept. At least a decade ahead of his time Carl Kiekhaefer demanded his drivers and crews present a squeaky-clean image and conduct themselves in a professional and dignified manner. When most teams were comprised of unpaid friends or relatives Kiekhaefer not only hired full-time crews but also paid them handsomely. The revolutionary teams completely dominated the ’55 and ’56 seasons. However, the following season NASCAR negated the Mercury teams’ edge with rule changes and Kiekhaefer left NASCAR to pursue other forms of racing. For several years NASCAR events had been featured on ABC’s Wide World of Sports. However, racing was seldom shown live. The short taped race segments were alternated with clips from other sports. The 1976 Daytona 500 would change all this. The race was joined in progress and the final laps were shown live. Americans watched enthralled as the greatest finish in NASCAR history unfolded before their eyes. On the final lap Richard Petty and David Pearson wrecked coming out of four. Both cars suffered considerable damage. However, Pearson had managed to keep his car running when he wrecked and the engine in the #43 had died as Petty skidded across the grass. His crippled car limping over the line, Pearson won the race and a new era was born. NASCAR racing was beginning to be recognized for the potential exposure that it offered; as a result sponsors became a bit more diverse. In 1971 the ban on tobacco advertising left the industry with huge advertising budgets and no where to spend the money. Past champion and prominent team owner, Junior Johnson approached R. J. Reynolds about sponsorship for his race team. When he realized the sum of money available Johnson suggested RJR meet with Bill France. The result was one of the most enduring and lucrative of all sports sponsorships. Since the inception of the Winston Cup R. J. Reynolds has pumped in excess of $112 million into the series. When NASCAR and R. J. Reynolds joined forces even the largest Fortune 500 companies sat up and took notice. On February 18, 1979 for the first time a NASCAR event was to be broadcast live, from start to finish. All along the East Coast millions were stranded in their homes by a snowstorm, creating a captive audience for NASCAR’s debut. Donnie Allison led most of the day and his car remained strong in the closing laps. Allison crossed the stripe to take the white flag with Cale Yarborough in his draft. Expecting Cale to make his move off turn four, Donnie protected the bottom. However, coming out of turn two Yarborough got a run on Allison and cut to the inside. With victory in sight, Donnie moved to protect his lead and contact was made. In tandem the cars hit the outside wall and ricocheted across the track. Ultimately coming to rest in the soggy infield, the autos were trash but the drivers were unhurt. As Richard Petty claimed his sixth Daytona 500 victory all hell was breaking lose back in turn four and CBS captured all the action. Donnie and Cale had exited their wrecked vehicles and were having a "discussion" about what had transpired. Bobby Allison joined his brother and Yarborough in the infield, soon a melee followed. Hardly more than a shoving match, "the fight" was seen in over 16 million homes. This single incident catapulted the sport to an unprecedented level of national exposure. NASCAR’s popularity grew in the 1980’s and the demographics of the fan base began to broaden. A wider variety of companies took an interest in primary and associate sponsorships. Companies such as McDonalds, Kellogg’s, Maxwell House and Tide entered the sport and spent millions supporting race teams. These companies wanted a team that presented a wholesome image. Like Carl Kiekhaefer 24 years earlier they wanted drivers and teams to be clean-cut, sober family men. With costs continuing to rise, teams were happy to comply. Soon drivers became celebrities and the demand on them increased. Today some drivers make in excess of a hundred personal appearances per year for sponsors. In addition, they must represent the sponsor in many other venues. Television appearances, interviews, photo sessions and commercials are now part of the job. When team owner Jack Roush landed a lucrative five-year sponsorship for Mark Martin’s car with Pfizer Inc. the familiar red, white and blue Valvoline logo was left homeless in NASCAR. Valvoline had been involved in the sport for over 30 years and had no intentions of leaving. Rather than sponsoring another team and being at the mercy of the owner Valvoline took a bold step. Partnered with MB2 Motorsports they became the first consumer product company to co-own a Winston Cup team. The familiar V-shaped logo found a home in NASCAR on the #10 Pontiac driven by Johnny Benson. Primary sponsorship of a NASCAR Winston Cup team requires a $10-15 million commitment from a company. While this is still considered a bargain for a championship caliber team sponsorship dollars are more precious than ever. Companies are exerting considerable pressure on teams for instant and dramatic results. When Home Depot stepped into the most recent Tony Stewart incident it was not about punishment or damage control. It was a power play, pure and simple. Many other corporate giants have taken notice and the role of sponsor continues to evolve. Keep your eyes open; 2002 is going to be a historic season for the Winston Cup Series.
TO THE WOODSHED:
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. Although we may not always agree with what is said, we do feel like it's our duty to give a voice to those who have something relevant to say about the sport of auto racing.
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