Sponsorship
What Is A Sponsor?
• A sponsor is a person,
organization, or business that
gives money or donates
products and services to
another person, organization,
or event in exchange for
public recognition.
Reason For Sponsorship
• Increase sales
• Introduce a new product or service
• Compete where potential customers are in
one place
• Identify an event with a target market
• Earn the goodwill of the audience
• Show community commitment
• Enter new markets
• Entertain clients, employees, or potential
customers
• Enhance the companies’ image
NASCAR
• #1 sport for fan loyalty
• Receives extra publicity when team/driver
wins
• Value is added to sponsors when
product/brand name is mentioned during
the race
• Sponsors get the recognition they want
with their logos on the drivers’ uniforms,
helmets, and cars
Richmond International Raceway
Fun Facts
• 1 in 3 U.S. adults, or 75 million people,
are NASCAR fans
• The sport has become the No. 1
spectator sport
• 17 of the top 20 most attended
sporting events in the United States
are NASCAR events
• The sport is broadcast in 150 countries
• The second-most-watched sport on TV
(after the NFL)
Fortune magazine referred to the new world of NASCAR as "the fastest-growing,
best-run sports business in America -- with the emphasis on business."
NASCAR is more than a sport; it is a lifestyle.
Who Is NASCAR
• Contrary to what one might think,
NASCAR appeals to a very wide target
market
• Fans are overrepresented among those 18
to 54 and with incomes $30,000 to
$100,000
• 40% are female (up 17% in the past three
years)
• 21% are minorities (also up dramatically)
• More than half of young people age 7 to 17
say they are NASCAR fans
Why NASCAR?
• Dupont, Fed-Ex, Home Depot, DLP, UPS, and
many other companies have invested millions of
dollars to link themselves to NASCAR
• 72% of NASCAR fans claim that they almost
always buy brands that sponsor NASCAR
• Simmons Market Research reports that 40% of fans are
willing to switch brands to buy NASCAR-linked products
• One-half of NASCAR fans say they consider buying
sponsors' products as their contribution to the sport's
well-being
• Sponsors must carefully decide which events
they will sponsor since they are limited by
budgets
There are reasons
for NASCAR's
success and the
actions NASCAR
has taken can be
used by any
business to achieve
similar results. So,
start your engines
and race for
success.
NASCAR Numbers
• Nextel Cup teams get between $10 to $20 million
from sponsors for primary spots on cars
• RCR stated that some associates put up to
$500,000 to $1 million for secondary spots on
cars
• NASCAR has educated fans about the sports'
economics. For example, a team can spend up to
$1 million a year just on tires.
• As a result, 76% of fans agree with the statement that
without sponsors, this sport would not exist
• 1980 – Junior Johnson paid $3 million for the 30race season package & 2000 – Robert Yates
Racing (Dale Jarrett’s #88 UPS car) paid $15
million for the 37-race season package
Hall Of Fame Racing Team (partner with Joe Gibbs Racing & Arizona Cardinals)
Official Blue Angels fly over to start the race – May 3, 2008
With revenue topping out at over $3 billion a year, NASCAR is
the hottest marketing vehicle in sports today. Sponsors are
using stock cars as moving billboards, strategically placing
logos on them for maximum TV exposure. But does the value
out weigh the cost?
Hood - $8 million
Across hood of car, drivers
chest and TV panel
Top of Trunk
$1 million
Roof and Doors
Car’s number
No ads permitted
Annual revenue from
licensed products
B – Post
$125,000
$3 B
$2 B
C – Post
$500,000
$1 B
$700
M
$80 M
Rear Quarter Panel $750,000
Lower Quarter Panel
$50,000
9
0
9
5
9
9
0
4
0
9
Front Fender
$75,000
Front Quarter Panel
$1 million
Class Activity
• Create Your Own Car