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Phone jack NASCAR hits paydirt playing the tele marketPosted: Tuesday June 24, 2003 12:41 PM
Pundits are openly questioning NASCAR's 10-year, $700 million agreement with Nextel, citing the instability of the telecommunications market as the major hurdle to overcome if the deal is to last. The crux of their contention is that another company -- McDonald's, Visa, Coca-Cola -- with an established bottom line would have been better suited to fill the R.J. Reynolds void. Others couldn't care less if it's Nextel or Coke or Joe's Muffler Repair. The drivers are still going to race the cars. The fans are still going to show up to see the drivers race the cars. In the end, who cares what company sponsors the sport? If the deal with Nextel falls through, there will be another company that will come calling, checkbook in hand. If the deal with Nextel goes south, it won't be the first sponsorship to sour. There have been plenty of other deals that have gone the way of the Studebaker:
The benchmark for naming rights, however, may be Gillette Stadium, home of the New England Patriots. Before the facility was built, its naming rights were bought in 2000 by CMGI for $7.6 million annually for 15 years. Less than two weeks before the Patriots' 2002 preseason opener -- the first football game at the new digs -- CMGI backed out of the deal and Gillette eventually took over. NASCAR did what it does better than any other sport -- sold itself for the most money right now. It's that same "get while the gettin's good" mentality that has motivated the sport from its moonshine roots to the current branching out on Madison Avenue. And no matter if it's a telecommunications company or a fly-by-night, ambulance-chasing law firm, NASCAR is going to get top dollar for its product. In light of the tobacco industries troubles, RJR's decision to step down as the primary sponsor for Winston Cup racing will be a boon for NASCAR. Teaming with Nextel, NASCAR can advertise to every age group -- from the tikes who need to stay in touch while riding their trikes to the elderly who need to phone home for directions from the Wal-Mart. One thing you cannot fault NASCAR for -- they didn't phone it in when they went looking for a sponsor. B. Duane Cross is a senior producer for SI.com.
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