NASCAR »

Money's tight as contract renewals loom

In all, Roush Fenway Racing has four major sponsors whose deals were up for renewal at the end of this season: re-signing 3M takes care of one of those, but there are still three to go. Matt Kenseth is backed by whisky maker Crown Royal (who are also one of the title sponsors of this weekend's Sprint Cup race at Richmond International Roadway) while David Ragan has sponsorship from international logistics giant UPS.

"Let's be honest: the world has changed a lot since the economy crashed," said UPS's director of sponsorship Ron Rogowski. "NASCAR has had a few setbacks. The numbers haven't been where they used to be. You have this economic impact and the state of the sport. You sit down with teams, and there's a very active discussion to make an investment work harder."

Amazingly, Roush Fenway's other driver, Carl Edwards - who currently leads this year's Sprint Cup championship, after finishing in fourth place in 2010 - is one of the drivers whose contracts expires at the end of the year and who has not yet agreed an extension with the team or so far signed an alternative deal elsewhere. His #99 has been sponsored by medical insurer Aflac, and by Scotts Miracle-Gro (the world's largest seller of lawn and garden products) for the past eight years, which has previously praised Edwards as "a great representative [for Scotts] with integrity, passion and a winning attitude."

But as much as companies like Aflac and Scotts may like Edwards, can they justify and afford to keep him on the books? It's reminiscent of the moment when Ford Motor Company's global board suddenly asked, "Who is this Eddie Irvine?" when they found out that the Jaguar F1 driver was one of their most highly paid employees. From that moment, Ford's involvement in the sport was doomed and they pulled out shortly after.

"We're seeing a lot of discussions around measurement and showing how [sponsoring teams] in NASCAR generates greater sales, greater exposure and greater brand awareness," said Steve Newmark, Roush Fenway's senior vice president of business operations.

"The type of money the marketplace was commanding a few years ago isn't there anymore," pointed out Dave Grant, head of sports and events specialist marketing agency Team Epic. "The pricing has maxed out. Teams are recognising the new reality, and that's part of it."

"Three years ago you saw deals in the $18 to $22 million range and today we're probably in that $13 to $17 million range," agreed Tamera Green, a vice-president at GMR Marketing.

Where previously NASCAR and the teams held the whip hand in negotiations, now the boot is firmly on the other foot and teams are having to add more value, accept "performance related" deals dependent on triggers such as qualifying for the Chase, or simply be more flexible in negotiations if they want to keep their sponsors on board. Even the formidable US Army is trimming its marketing budgets: it has reduced its sponsorship of Stewart-Haas Racing down to 15 races from 23 last year and negotiated a lower price per race, "to take into account audience, TV ratings and where the market is moving." The Stewart-Haas team is having to make more promotional appearances for the Army, and even sweetened the deal by making Tony Stewart's suite at the Indianapolis Motor Speedway available for their corporate sponsors' use during the Indy 500 and Brickyard races.

Similarly, Roush Fenway Racing's renewed deal with 3M is also reported to be for fewer races from 2012, reducing the company's overall expenditure - but at least the flexibility is keeping the sponsor on board for the majority of events and securing Biffle's position in NASCAR.

Among the drivers with no deal in place beyond the end of the season is Earnhardt Ganassi's Juan Pablo Montoya, who despite not having anything like the level of race-winning success of Edwards, Harvick, Biffle or Busch is still one of NASCAR's top stars and most recognisable and bankable names, thanks to his time in Formula 1, IndyCar and ChampCar. Montoya is yet to win on an oval track in NASCAR, but has won twice on the series' road courses at Sonoma and Watkins Glen. Montoya's #42 is sponsored by US retailing giant Target, which also sponsors the Ganassi cars of Dario Franchitti and Scott Dixon in IndyCar.


Page 2 of 3
« 1 2 3  »


Related Pictures

Click on relevant pic to enlarge
3M is the primary sponsor of the #16 Roush Fenway Racing Ford driven by Greg Biffle. 3M, Biffle and RCR just signed a three-year extension to their ongoing collaboration. Photo credit: Jared C. Tilton/Getty Images for NASCAR
Dale Earnhardt, Jr., driver of the #88 National Guard Chevrolet SS finished 2nd, Jeff Gordon, driver of the #24 Drive To End Hunger Chevrolet SS finished 7th Saturday, April 12, 2014 in the NASCAR Sprint Cup race at Darlington Raceway in Darlington South Carolina. Earnhardt Jr. is 4th, Gordon is 1st in the NASCAR Sprint Cup Series (NSCS) standings. Teammate Kevin Harvick, driver of the #4 Budweiser Chevrolet SS won. (Photo Credit: HHP/Alan Marler for Chevrolet)
Kevin Harvick, driver of the #4 Budweiser Chevrolet SS finished 1st, Kasey Kahne, driver of the #5 Great Clips Chevrolet SS finished 37th Saturday, April 12, 2014 in the NASCAR Sprint Cup race at Darlington Raceway in Darlington South Carolina. Harvick  is 22nd, Kahne is 23rd in the NASCAR Sprint Cup Series (NSCS) standings. Teammates Dale Earnhardt, Jr., driver of the #88 National Guard Chevrolet SS finished 2nd and Jimmie Johnson, driver of the #48 Kobalt Tools Chevrolet SS finished 3rd.(Photo Credit: HHP/Christa L. Thomas for Chevrolet)
Kevin Harvick, driver of the #4 Budweiser Chevrolet SS celebrates his win Saturday, April 12, 2014 in the NASCAR Sprint Cup race at Darlington Raceway in Darlington South Carolina. Harvick is 22nd in the NASCAR Sprint Cup Series (NSCS) standings. Teammates Dale Earnhardt, Jr., driver of the #88 National Guard Chevrolet SS finished 2nd and Jimmie Johnson, driver of the #48 Kobalt Tools Chevrolet SS finished 3rd. (Photo Credit: HHP/Tami Kelly-Pope for Chevrolet)
Kevin Harvick, driver of the #4 Budweiser Chevrolet SS celebrates his win Saturday, April 12, 2014 in the NASCAR Sprint Cup race at Darlington Raceway in Darlington South Carolina. Harvick is 22nd in the NASCAR Sprint Cup Series (NSCS) standings. Teammates Dale Earnhardt, Jr., driver of the #88 National Guard Chevrolet SS finished 2nd and Jimmie Johnson, driver of the #48 Kobalt Tools Chevrolet SS finished 3rd. (Photo Credit: HHP/Christa L. Thomas for Chevrolet)
Kevin Harvick, driver of the #4 Budweiser Chevrolet, races during the NASCAR Sprint Cup Series Bojangles` Southern 500 at Darlington Raceway on April 12, 2014 in Darlington, South Carolina. (Photo Credit: NASCAR Via Getty Images)
Kevin Harvick, driver of the #4 Budweiser Chevrolet, celebrates in Victory Lane after winning the NASCAR Sprint Cup Series Bojangles` Southern 500 at Darlington Raceway on April 12, 2014 in Darlington, South Carolina. (Photo Credit: NASCAR Via Getty Images)
Kevin Harvick, driver of the #4 Budweiser Chevrolet, celebrates in Victory Lane after winning the NASCAR Sprint Cup Series Bojangles` Southern 500 at Darlington Raceway on April 12, 2014 in Darlington, South Carolina. (Photo Credit: NASCAR Via Getty Images)
Kevin Harvick, driver of the #4 Budweiser Chevrolet, celebrates with a burnout after winning the NASCAR Sprint Cup Series Bojangles` Southern 500 at Darlington Raceway on April 12, 2014 in Darlington, South Carolina. (Photo Credit: NASCAR Via Getty Images)
Kevin Harvick, driver of the #4 Budweiser Chevrolet, takes the chequered flag to win the NASCAR Sprint Cup Series Bojangles` Southern 500 at Darlington Raceway on April 12, 2014 in Darlington, South Carolina. (Photo Credit: NASCAR Via Getty Images)
The front right tire of the #27 CertainTeed/Menards Chevrolet, driven by Paul Menard, catches fire during the NASCAR Sprint Cup Series Bojangles` Southern 500 at Darlington Raceway on April 12, 2014 in Darlington, South Carolina. (Photo Credit: NASCAR Via Getty Images)
Aric Almirola, driver of the #43 Richard Petty Motorsports Ford, and Ricky Stenhouse Jr. in the #17 Roush Fenway Racing Ford tangle during the NASCAR Sprint Cup Series Bojangles` Southern 500 at Darlington Raceway on April 12, 2014 in Darlington, South Carolina. (Photo Credit: NASCAR Via Getty Images)
Cars race during the NASCAR Sprint Cup Series Bojangles` Southern 500 at Darlington Raceway on April 12, 2014 in Darlington, South Carolina. (Photo Credit: NASCAR Via Getty Images)
Joey Logano, driver of the #22 Shell Pennzoil Ford, and Kevin Harvick, driver of the #4 Budweiser Chevrolet, lead the field to start the NASCAR Sprint Cup Series Bojangles` Southern 500 at Darlington Raceway on April 12, 2014 in Darlington, South Carolina. (Photo Credit: NASCAR Via Getty Images)
Chase Elliott, driver of the #9 NAPA Auto Parts Chevrolet, celebrates with a burnout after winning the NASCAR Nationwide Series VFW Sport Clips Help A Hero 200 at Darlington Raceway on April 11, 2014 in Darlington, South Carolina.  (Photo Credit: NASCAR Via Getty Images)
Chase Elliott, driver of the #9 NAPA Auto Parts Chevrolet, celebrates in Victory Lane after winning the NASCAR Nationwide Series VFW Sport Clips Help A Hero 200 at Darlington Raceway on April 11, 2014 in Darlington, South Carolina. (Photo Credit: NASCAR Via Getty Images)
Chase Elliott, driver of the #9 NAPA Auto Parts Chevrolet, celebrates in Victory Lane after winning the NASCAR Nationwide Series VFW Sport Clips Help A Hero 200 at Darlington Raceway on April 11, 2014 in Darlington, South Carolina. (Photo Credit: NASCAR Via Getty Images)
Kyle Busch, driver of the #54 Monster Energy Toyota, leads the field to start the NASCAR Nationwide Series VFW Sport Clips Help A Hero 200 at Darlington Raceway on April 11, 2014 in Darlington, South Carolina. (Photo Credit: Sean Gardner/Getty Images)

Start the conversation - Add your comment

Please login or register before adding your comments.

Although the administrators and moderators of this website will attempt to keep all objectionable comments off these pages, it is impossible for us to review all messages. All messages express the views of the poster, and neither Crash Media Group nor Crash.Net will be held responsible for the content of any message. We do not vouch for or warrant the accuracy, completeness or usefulness of any message, and are not responsible for the contents of any message. If you find a message objectionable, please contact us and inform us of the problem or use the [report] function next to the offending post. Any message that does not conform with the policy of this service can be edited or removed with immediate effect.




© 1999 - 2014 Crash Media Group

The total or partial reproduction of text, photographs or illustrations is not permitted in any form.