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Rock and a hard place

Sponsorship changes leave NASCAR in precarious position

Posted: Monday June 23, 2003 6:43 PM
  Mark Bechtel - Tracking NASCAR

Huge news this week involving a telecommunications giant and the future of the sport. I am referring to, of course, to the decision of AT&T to go on the No. 49 car again as primary sponsor. Unfortunately, they didn't use Carrot Top's mug. I spent the better part of a day with Carrot Top last summer in Daytona. It was like being with the Pope. People absolutely love him. There was a near fistfight when a guy tried to cut in the autograph line, which people stood in for over an hour.

In other news, Nextel has signed on as NASCAR's title sponsor. If you believe everything you read (and if you didn't, why would you be reading this?), they're forking out $700 million over 10 years. The deal is structured so that $30 million a year is for direct sponsorship payments, and the balance is committed to buying ad time. A few things strike me:

  • Nextel is getting a sweet deal. Think about it. The $40 million or so they've committed to ad buys should essentially pay for itself, assuming the time is bought at market value. They're getting something tangible and measurable in return. It's no different than anyone else spending $40 million on ad time; you expect to get your money's worth.

    That leaves the $30 million for the naming rights. Compare that to, say, ALLTEL, which -- if they are spending what most of your other top-level sponsors are spending -- is dishing out around $15 million to sponsor the 12 car. That's one driver. His engine blows up and he's done after 14 laps? Sorry, ALLTEL, your day is over. But by buying the series, Nextel is getting something from all 43 cars, basically for the price of getting everything from two. No matter who wins, they're mentioning Nextel.

    And then there's the length of the deal. Consider what primary sponsorships go for now compared to 10 years ago. It's entirely possible that in 2014 a top-line sponsorship will be $25 million. (Where'd I get that figure? Total guess. But assuming the economy ever recovers, it's not at all unreasonable.) That makes Nextel's position incredibly enviable. They could be paying just a hair more than Soylent Green (or some other future company) will be paying to sponsor Matt Martin.

  • Having said that, there's no guarantee the deal will still be in place in 10 years. NASCAR has gone from one extreme to another in terms of what their sponsor offers. People have been selling tobacco since the beginning of time. There's always going to be a market for it. But a wireless technology company? Three years ago having Lycos as your sponsor would have been a dream. Ask Johnny Benson how that turned out.

    That's why I'm a little surprised NASCAR didn't go harder at someone like McDonald's or Visa, a safe bet that's been around. I know Nextel is profitable and their market share wows analysts, but they're in an ever-changing, volatile and relatively new industry.


     
    Robby Gordon -- Take that, Nextel. Cingular, baby. Cingular.


     
    Matt Kenseth -- Finished behind Junior and lost a few points to him, but he might have bigger problems: Jeff Gordon is now his closest pursuer.

     
    Hideo Fukuyama -- He’s never made a race on time -- in his five starts, he's started 42nd once and 43rd four times. As for finishes: 43, 39, 33, 43, 43.


  • Jeff Gordon vs. Robby Gordon -- Will Robby ever win without irking Jeff? Remember last year at New Hampshire, when Robby did a bump and run with 15 laps left, and Jeff said any self-respecting driver "should be embarrassed to win like that"? Well, now Jeff is peeved the Robby passed Kevin Harvick racing back to the yellow. (Harvick's take: "It was good hard racing except for that chicken move under yellow.")

    Robby has a pretty good defense: He asked three times in the drivers' meeting if it was OK to race back to the flag, and was told yes three times. Jeff, on the other hand, said, "That's a bunch of crap right there. Anybody who races back under caution like that ... I don't know where his mind is. He [Gordon] did a great job. He won the race fair and square [Sunday], except for that move right there. I don't care if they call it a gentlemen's agreement or not -- what he did, especially to his teammate, is absolutely ridiculous. If he can be proud and satisfied with himself to go out there and do what he did [Sunday], and he's sitting over there in Victory Lane because he knows he passed his teammate under caution, then by all means have it." (Next man who says "gentlemen's agreement" should be banned from the sport for life.)

    Asked if he and Jeff would have a discussion to clear the air, Robby said, "He's not big enough to have a discussion with me."


  • Starting with the race in Chicago, teams will no longer be allowed to throw gas cans or catch cans over the pit wall. Sorry. It's a very slow week for news.

  • We joked about Carrot Top earlier, but the fact that AT&T was on the No. 49 this week as the primary sponsor was significant. When Nextel signed, NASCAR agreed that no more wireless companies would be allowed into the sport. Cingular and ALLTEL were grandfathered, but AT&T was told they couldn’t enter the series full-time next year on another car. (AT&T has been an associate sponsor on the No. 49 all year, and they have been the primary sposnor on the car for a handful of races. They were in talks with Roush Racing about replacing CITGO on Jeff Burton's car and with DEI about replacing Pennzoil on the No. 1 car.)

    Apparently AT&T decided to go back on the No. 49 for an additional race to show NASCAR they weren't going away so easily. Now BAM Racing, which owns the 49, has asked NASCAR whether or not AT&T could serve as their primary sponsor next year, under the same grandfather exception Cingular and ALLTEL were granted.

    You know, either you give Nextel exclusivity or you don't. That's my feeling.


  • "I think the drivers are going to have to start practicing calling it the Nextel Cup instead of the Winston Cup. It's going to be funny to see how many times we mess that up." -- Johnny Benson, who makes me think there might be money in the burgeoning field of "NASCAR driver reprogramming."


    Scott from Boardman, Ohio, takes issue with my stance on whether NASCAR was right to take a race from Darlington and move the Southern 500. "If NASCAR is so steeped in tradition, why can't they seem to put [people] in the seats anymore at The Rock and Darlington? I definitely see why Rockingham lost a race ... they had a race ... and no one came ... no one showed up at the spring race. (I do so love the racing at that place though.) The real question is why are they stamping out cookie cutter racetracks similar to B-O-R-I-N-G Michigan, like California, when they can be creating something a tad more challenging and exciting like Atlanta MS? That's the rub here."

    Points taken -- if they built a track like Darlington in L.A., I wouldn't be arguing as much. Incidentally, the whole reason I used Scott's letter is that he's from Boardman, which is the home of Bernie Kosar, the greatest athlete there ever was.

    Ricardo from Rio asks, "Mark, NASCAR has obviously put a great effort into turning its series internationally known, especially through TV transmissions. At least till the end of the 2003 season, Christian Fittipaldi, Brazilian driver, will have a seat on No. 43. I have heard stories about Mexican and Japanese drivers coming to NASCAR sooner or later. Do you think this is probable future for NASCAR or just a marketing fad?"

    Ricardo, there is a Japanese driver, Hideo Fukuyama, who, as I pointed out above, isn't doing so hot. But I think the trend will continue, not so much because NASCAR wants it to or will try to make it happen, but because drivers will examine their options, see all the money to be made in NASCAR, and decide to give stock cars a chance. Granted, no one races stock cars in Brazil, so it might take a while. And Ricardo, might I add my congratulations on Brazil's 1-0 Confederations Cup win over the U.S. Ronaldinho is the man.

    And finally, Andrew Davies wrote in to say that Kenny Wallace is his favorite underdog. (Tony Raines' sister also wrote in. Strangely, she also picked Kenny Wallace. No, I'm only kidding, Tony. Don't call your sister up and chew her out. She's pulling for you.)

    Andrew is, of course, the guy in State 4, the Minneapolis band who sent me the band's latest CD, Less Than Happy. The band's logo is kind of reminiscent of the logo another Twin Cities guy, Prince, used when he lost his mind and starting going with the symbol, and they also really like to use purple. The similarities end there, though. Prince goes for the sex thing, State 4 goes for the somber thing. Now, to me, there's nothing worse than bad depressing music, or music that's comically over the top in its grimness. (Witness the Bauhaus song Bela Lugosi's Dead.)

    It's a tough genre to pull off -- in my book, no one ever did it better than Joy Division. Anyways, one of my favorite tricks in music of any genre is when something in a band's sound completely contradicts what's going on with the big picture. For example: Summerteeth, by Wilco. Grim, grim lyrics set to great pop melodies. That's sort of what State 4 has to offer. Pretty morose lyrics and a Joy Division sound (maybe a little more electronica-esque), but instead of Ian Curtis' guttural voice (I always thought he was trying to sound like a crooner but he had heartburn), State 4's vocalist (Laura) has a mesmerizing voice that ranges from smoky to silky. It really works well. (So cheer up, already.) If you live in the Twin Cities area, check them out.


    No racin', but the Winston-soon-to-be-Nextel Cup series returns the following weekend in Daytona. It doesn't take a genius to figure out who's going to be strong. Dale Jr. is due, and heaven knows he loves that track.

    Mark Bechtel covers NASCAR for Sports Illustrated and SI.com.
    Click here to send him a question.

     
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