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 30-race 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

Annual revenue from licensed products 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 Front Quarter Panel $1 million 90 95 99 04 09 Front Fender $75,000

Class Activity Create Your Own Car