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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.




Related Pictures

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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
Kevin Harvick, driver of the #4 Busch Beer Chevrolet, Brian Vickers, driver of the #14 Mobil 1 Chevrolet, Matt Kenseth, driver of the #20 Dollar General Toyota, Joey Logano, driver of the #22 Shell Pennzoil Ford, and Jamie McMurray, driver of the #1 McDonald`s Chevrolet, race during the NASCAR Sprint Cup Series Sprint Unlimited at Daytona International Speedway on February 13, 2016 in Daytona Beach, Florida.
Jimmie Johnson, driver of the #48 Lowe`s Chevrolet, leads a pack of cars during the NASCAR Sprint Cup Series Sprint Unlimited at Daytona International Speedway on February 13, 2016 in Daytona Beach, Florida.  (Photo Credit: Photo by Jeff Zelevansky/Getty Images)
Austin Dillon, driver of the #3 DOW Chevrolet, Clint Bowyer, driver of the #15 5-hour Energy Chevrolet, Brian Vickers, driver of the #14 Mobil 1 Chevrolet, and Danica Patrick, driver of the #10 Nature`s Bakery Chevrolet, practice for the NASCAR Sprint Cup Series Sprint Unlimited at Daytona International Speedway on February 12, 2016 in Daytona Beach, Florida.  (Photo Credit: Photo by Sarah Crabill/NASCAR via Getty Images)
Jimmie Johnson, driver of the #48 Lowe’s Chevrolet SS, holds his daughter, Lydia Sunday, November 22, 2015 before final race of the 2015 NASCAR Sprint Cup Series season at Homestead-Miami Speedway in Homestead, Florida. Johnson and other Jeff Gordon teammates at Hendrick Motorsports wore tribute hats to honor the retiring Chevy driver prior to the start of the race. (Photo by Alan Marler/HHP for Chevy Racing)
Jeff Gordon, driver of the #24 Axalta Chevrolet SS, races to a sixth place finish Sunday, November 22, 2015 in the final race of the 2015 NASCAR Sprint Cup Series season at Homestead-Miami Speedway in Homestead, Florida. Gordon finishes third in the Chase for the Cup Championship. This was Gordon`s last race as a NASCAR Sprint Cup driver. He has made 796 consecutive Cup Series starts, earned 93 wins, and 81 poles - all behind the wheel of Chevrolets. (Photo by Andrew Coppley/HHP for Chevy Racing)
Defending Sprint Cup Champion Kevin Harvick, driver of the #4 Budweiser/Jimmy John’s Chevrolet SS, races to a second place finish, Sunday, November 22, 2015 in the final race of the 2015 NASCAR Sprint Cup Series season at Homestead-Miami Speedway in Homestead, Florida. Harvick finishes as the runner-up in the NASCAR Sprint Cup Championship. (Photo by Andrew Coppley/HHP for Chevy Racing)
Defending Sprint Cup Champion Kevin Harvick, driver of the #4 Budweiser/Jimmy John’s Chevrolet SS, races to a second place finish, Jeff Gordon, driver of the #24 Axalta Chevrolet SS finishes in sixth place, and Martin Truex, Jr., driver of the #78 Furniture Row/Visser Precision finishes in twelfth place Sunday, November 22, 2015 in the final race of the 2015 NASCAR Sprint Cup Series season at Homestead-Miami Speedway in Homestead, Florida. This Chevrolet drivers finished 2nd, 3rd and 4th (respectively) in the Chase of the Cup Championship. (Photo by Harold Hinson/HHP for Chevy Racing)
Ryan Blaney and the Motorcraft/Quick Lane Racing Team battled back from a bad re-start after the first caution of the race to finish 17th in the season-ending Ford EcoBoost 400 at Homestead-Miami Speedway. (Photo Credit: Campbell Marketing)
Series championship contenders Jeff Gordon, driver of the #24 AXALTA Chevrolet, Kevin Harvick, driver of the #4 Budweiser/Jimmy John`s Chevrolet, Martin Truex Jr., driver of the #78 Furniture Row/Denver Mattress Chevrolet, and Kyle Busch, driver of the #18 M&M`s Crispy Toyota, take part in pre-race ceremonies for the NASCAR Sprint Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 22, 2015 in Homestead, Florida.  (Photo Credit: Chris Trotman/NASCAR via Getty Images)
Former racing driver Mario Andretti, Jeff Gordon, driver of the #24 AXALTA Chevrolet, and Formula One World Champion Lewis Hamilton pose during pre-race ceremonies for the NASCAR Sprint Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 22, 2015 in Homestead, Florida.  (Photo Credit: Jared C. Tilton/Getty Images)
Joey Logano, driver of the #22 Shell Pennzoil Ford, and Kyle Busch, driver of the #18 M&M`s Crispy Toyota, race during the NASCAR Sprint Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 22, 2015 in Homestead, Florida (Photo Credit: Chris Trotman/Getty Images)
Jeff Gordon, driver of the #24 AXALTA Chevrolet, pits during the NASCAR Sprint Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 22, 2015 in Homestead, Florida. (Photo Credit: Jared C. Tilton/Getty Images)
Kevin Harvick, driver of the #4 Budweiser/Jimmy John`s Chevrolet, Kyle Busch, driver of the #18 M&M`s Crispy Toyota, Jeff Gordon, driver of the #24 AXALTA Chevrolet, and Martin Truex Jr., driver of the #78 Furniture Row/Denver Mattress Chevrolet, race during the NASCAR Sprint Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 22, 2015 in Homestead, Florida. (Photo Credit: Chris Trotman/NASCAR via Getty Images)
Kyle Busch, driver of the #18 M&M`s Crispy Toyota, celebrates winning the series championship and the race with a burnout after the NASCAR Sprint Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 22, 2015 in Homestead, Florida. (Photo Credit: Chris Graythen/Getty Images)
Kyle Busch, driver of the #18 M&M`s Crispy Toyota, celebrates winning the series championship and the race in Victory Lane after the NASCAR Sprint Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 22, 2015 in Homestead, Florida. (Photo Credit: Sean Gardner/NASCAR via Getty Images)
Kyle Busch, driver of the #18 M&M`s Crispy Toyota, celebrates winning the series championship and the race with his team after the NASCAR Sprint Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 22, 2015 in Homestead, Florida. (Photo Credit: Chris Trotman/NASCAR via Getty Images)
Chris Buescher, driver of the #60 Fastenal Ford, and Regan Smith, driver of the #7 TaxSlayer.com Chevrolet, race during the NASCAR XFINITY Series Ford EcoBoost 300 at Homestead-Miami Speedway on November 21, 2015 in Homestead, Florida. (Photo Credit: Sarah Crabill/NASCAR via Getty Images)

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