Sometimes its best to be torn apart, because it then means it has to be rebuilt paying close details to the problem areas.

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If NHRA can throw away tradition then I can throw away my tickets.

I say "do away with multi-car teams"

Sorry my post went up about the same time and got merged into this one by somebody.

If that is all Powerade is forking out, sounds to me like Jim Jannard could have sponsored NHRA with his pocket change.

Lance, sometimes you have to tear something down in order to rebuild it. I think it's healthy to have discussions like this. After all, the NHRA is trying to sell the pro side of the sport and we don't even know what that entails. If you understand how we got here, then you might understand the motivation for selling out the sport. I support what Jon is saying about the NHRA because I have been on the receiving end of some of their nefarious actions.

Pat

Is it safe to assume the "NHRA buyout" has no effect on the Powerade sponsorship?

Jon Asher has every right to be negative. He's been in this sport for many years and watched, along with lots of us, NHRA change from a racer run orgainization to bean counters who have no idea what it's all about, and could care less. If you think they avoid Asher, you should go to a meeting between the pro racers and NHRA honchos. (no I've not been, but know those who have) Several times, the NHRA reps have walked out the door before they will try to answer the hard questions. What Jon does is give us the real scoop, behind the doors of what's really going on. More power to him.

With regard to sponsorships, it's been widely know for many years that if you have a new sponsor on the hook, you keep your mouth shut. If NHRA gets wind of it, they will, and have, take them away for their own good. NHRA talks a good game, but don't trust them for a minute. I've seen it too many times.

When NASCAR ads are in the midst of an NHRA race of TV, you know there is a problem. The current Powerade ads are ridiculous. If Powerade really cared about promoting NHRA, they would incorporate drag racing in their advertising. Obviously, NHRA had no clause in the contract for that to happen.

The current crop of those in power at NHRA is very sad. One can only hope someone comes along to take over and do things right.

Marketing PARTNERSHIP - I guess I missed making the point that, Powerade doesn't seem to be getting much from this deal either.
Heck, why should they throw money into the sport (beyond chump change) if they aren't able to point to sales generated by association with the sport? They might be better off keeping their money in NCAA Womens Basketball.

Is this situation -at all- analagous to the situation a few years ago when ONLY NHRA could sell merchandise at the track.
I mean, is NHRA, restricting the sale or givaway of Powerade at the track? After all, it would be competing with Lemonade or the Coke sales and, presummably, NHRA and/or the track owner is getting a piece of that.

Would be interesting to follow-the-money.

I was going to make the same comment. I don't know why so many people think it is the responsibility of the sponsor to promote the sport. In reality, it is the other way around. Sponsors spend their money to buy a marketing vehicle to promote sales of their products, not build awareness of the sponsored sport.

Promoting NHRA drag racing is NHRA's responsibility, not POWERade's. Now, I am not saying that POWERade is doing a good job of taking advantage of the sponsorship. It seems to be doing little and if they deserve criticism, it's for not using the sponsorship they way they should. But the company does not deserve criticism for not promoting NHRA. That's not it's job.

Jim

It’s been an interesting day to say the least.

RE: Pat Barrett’s post, I have no interest in, nor do I have the ability to “blow the lid off” NHRA or anything else.

When I write an editorial that appears to be negative to the NHRA please try to remember that my intentions are never to be completely negative, but rather to point out inefficiencies, iniquities or mistakes the organization makes that could be avoided.

NHRA has done, and continues to do many positive things and is clearly the best organization operating within the sport.

I have also written extensive, very positive stories about NHRA and its events, but at the same time when there is a “problem area” there are many that feel those “black eyes” should be ignored by the media. On the contrary, if those flaws are not pointed out publicly they’ll never be corrected. Trying to work behind the scenes by discussing these perceived negatives with NHRA executives does no good at all, as, historically, the organization is not receptive to ideas and concepts that come from outside the company. If you doubt me on that, just ask any of the dozens of racers and supporting sponsors who have tried in vain to foment change over the years. At best they’re politely listened to and then completely ignored. Again, ask around if you doubt that.

We don’t know for sure what POWERade may have paid NHRA to become the series sponsor, so speculating that the deal should have been worth much more is merely that – speculation.

The point of my editorial was not that the money wasn’t good enough, but that POWERade has done almost nothing to support the sport away from the track, and that’s where Winston was so valuable for drag racing.

Lance Peltier, I have absolutely no aversion to NHRA as a sanctioning organization, and as far as offering solutions is concerned, they aren’t listening – to me or anyone else.

As far as turning away a sponsor is concerned, PJ (Sapienza), you have unintentionally hit the nail on the head. The organization seldom turns down a dollar, which is the very reason that the title rights to events like Englishtown are sold at fire sale rates.

In the short term turning down a five or even low six figure title rights offer is the smart thing to do because it tells that potential sponsor, as well as others, that you value that event at, say, $400,000, and you’re going to stick to your guns. If you accept a lower offer this year you are never going to get that same company to step up to the value level you’ve placed on that event next year. Simply isn’t going to happen.

It’s like the racer who naively accepts $1 million when he needs $2.5 and thinks he’s going to get a raise from that $1 million to $1.75 million the second year and then $2.5M the third. That just doesn’t happen in the real world of business.

It works the other way, too. By refusing to sell that race at fire sale rates the potential sponsor realizes how valuable the event might be and can then step up, or decide to walk away.

But once he buys it at the bargain basement price he’s going to fight tooth and nail to keep that price low.

I couldn’t have said it better than Pat Barrett’s “When presented with constructive criticism, the elite management types blow you off.”

Joe Sherwood’s points about individual team sponsorship are interesting. In the beginning NHRA let the racers know that POWERade would indeed get into team sponsorships just as Winston did.

We’re still waiting.

Dean Murdoch, why must an editorial promote the sport? The articles I write do that (do I need to include links?). An “article” is supposed to be factual, reporting both sides of whatever the subject is. An editorial is the writer’s opinion, and does not need to meet that requirement. The suggestion that Bobby Bennett mandate’s my editorial slant and/or reporting is humorous, as anyone who knows me also knows I wouldn’t be working with him were that the case.

I have an on-going argument with management types who don’t like what I write. My response is to ask them if it’s true. If something’s blatantly false I’ll do everything possible to make corrections, but if someone simply takes offense to something simply because they personally don’t like it or don’t think I should report it, that’s their problem. NHRA might prefer that everything written be absolutely and always positive, but that’s not the real drag racing world. There are serious problems involving this sport, and if they aren’t exposed to the light of day they’ll never be corrected.

Dave Murphy (I wish knew a better way of replying than naming everyone like this), you are absolutely correct when you suggest the sport needs to be marketed in ways to pique the interest of potential new fans. But NHRA and IHRA are distinctly different businesses operated in distinctly different manners, and your suggestion that they work more closely together is like believing that Coke and Pepsi should work together. Not happening.

Thank you Greg Stanley.

Jim Gunther, if there was a serious marketing plan in effect that had been agreed to in advance by NHRA and POWERade they’re the only ones who know about it. Unlike the Winston days, when some marketing plans were openly discussed with the competitors, to my knowledge such has never happened with POWERade.

Jim, as to your later post, I disagree in that when it comes to sponsorships it’s the sponsoring company that needs to “activate” the program, not the entity being sponsored. For example, your suggestion could be taken to mean that Brandon Bernstein should be producing and placing the Bud ads, Greg Anderson should be advertising his affiliation with Summit, etc.

Sorry, Mr. Samuel, your basic point is incorrect. Yes, NHRA should absolutely be working as hard as possible to promote the sport, and to a great extent they’re doing that. But why would a sponsor get involved without providing more than financial support? Imagine Company X paying (any racer’s name here) $2 million and then saying, “Okay, now go get us some publicity beyond what you do at the track. Call around and set up your own personal appearances at our stores. Buy some national ads featuring your car and our logos.”

The current estimates are (I believe) that in a perfect world a sponsor will spend three to ten times in sponsorship “activation” (promotion) dollars what they will in the actual funding of the team.

Kurt Leinenkugel (that green type face is almost impossible to read on my screen), when you mention the existing fan base you should know that one of NHRA’s senior marketing executives has been widely quoted as saying “We promote the sport to our fan base.” In other words, we’re going after our already sold fans because we don’t know how to market the activity to newcomers.

Hope I haven’t offended anyone with these responses.

Jon Asher

Sorry Jon, but I do not agree with what you have written above. Your basic premise is not correct. A sponsor is not providing financial support. A sponsor is paying for the use of a marketing vehicle. They are not paying to support the sport. In the same manner, a company that buys television air time is not paying to support the program it advertises on and it has no responsibility to increase ratings of that program. Newspaper advertisers are not responsible for building circulation.

As for your example of Company X, I have been on the sponsor side of NASCAR sponsorships and what happens at the track is one of the least important parts of a sponsorship. Rather, the most important parts are the hospitality events at tracks, the public appearances by drivers, the ability to use drivers and show cars at trade shows and customer meetings, and the ability to use the driver and cars in advertising and other promotional efforts.

Should drivers and teams take some initiative and set some things up on their own? I can tell you that some of the teams I've worked with came to the sponsor before the start of each season with a complete plan for what the team was going to do to help increase the value of the sponsorship. Those teams were not waiting for the sponsor to provide financial support...they were creating what has come to be called a marketing partnership.

Yes, I agree with the point that POWERade does not take advantage of the sponsorship they are paying for. But I do not think that promoting NHRA is part of their responsibility.

There's a reason that the value of NASCAR sponsorships have grown so much over the past 15 years of so. That reason is that NASCAR and the teams involved in it put out a lot of effort promoting their sport to make it more valuable to sponsors. NASCAR made itself more valuable to Winston, and then to Nextel. Jeff Gordon and RCR made Gordon more valuable to DuPont and were able to increase the money they get from Dupont as a result. Dupont did not turn Gordon from a rookie to one of the sports biggest stars.

If you're disappointed with the way NHRA drag racing has been promoted, place the blame where it belongs. But don't blame a sponsor for not promoting the marketing vehicle. The sponsor buys the vehicle....the owner of the vehicle is the one responsible for making it a valuable product.

Jim

The problem i see if everyone on both sides of the fence compares Powerade to Winston.. there is no way they can be compared.... the main reason.. which kills all other arguements.. First and formost Winston and its exec's LOVED auto racing ..... all forms.... thats what made the differince.... they saw away to advertise in an area that they truely loved.... they believed that if the motorsports area grew and they were part of it .. it would help their growth and strength as well.....

RJR not only provided paint to tracks oval an strait..but in some cases helped with landscaping and other areas to make the fans feel more comfortable and enjoy their experiance at a track or strip....

they , RJR.. knew the fans were the key to growth and longevity.....

Powerade.. appears to be concerned with the fans wallets and pocket books....."We are here suport us no matter what" ..type mentality...

IMO... Powerade only stepped up to keep PepsiCo/Gatorade out of the market....they tried to step into the oval market and were smashed into submission by Gatorade... anyone remember the cup drivers tossing the powerade bottles off their cars in the Gatorade victory lanes?

Make a note of what i am saying here...... Expect the Powerade suport to get even harder to notice soon... not for the reasons listed in the article but it may be a factor as well.... but.. Coca-Cola America just signed a HUGE deal with the Frances for Daytona International Speedway and several other ISC tracks.....i know for a fact Daytona alone was worth more money than is spent on the NHRA ...total... don't blame them... sales at consessions alone for two events will pay back the amount easily...( 500 in febuary and 400 in July)

NHRA says they do not want to be like or copy NASCAR in anyway..If half of what the article is true they are already there.. and will soon surpase NASCAR in constant double standards and truths...

Also Anyone find it interesting that the extention of the Powerade deal was signed and done before the HD partners deal was done?


Billy

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Geez, I hate it when some young punk takes the thoughts outta my head and says them better n I could! Well said Brian.

Actually, Winston did quite a bit of both.

Jim i agree with what you said expect half of this.... Powerade should be responsable to their investment... to a certin degree.... NEXTEL has assumed the duties to a large degree in the NASCAR deal..not as much as Winston did..but they have assumed some of them.... Many Track/race sponsorships agrements do include a certin amuont of promotion left to the said sponsor... while some pay extra money to not assume those responsabilities..

Personaly i believe that it would be in Powerades best interest to assume some of the responsibility of extra needed promotion in order to answer to their stock holders that all avenues are covered for the moeny being spent.... Don't realy see how productive it would be to answer to shareholders .."its not our problem.. we give them money we can't help what they do with it"....

Billy

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They may have but 1) that was several years ago and the business environment was not the same as it is now and 2) that's not how most sponsors work.

No company is going to spend money to support drag racing -- or any other sport -- unless it believes it will get more money back in return. That's the value of a sponsorship.

Now, looking back on everything Winston did, I wonder what the company's ROI was for the money it spent in drag racing. Ten years ago, few companies actually measured ROI for advertising and marketing. Now, if you can't measure and demonstrate adequate ROI for an marketing expense, it's cut from the budget. I wonder how Winston's expenditures would be viewed by company executives and shareholders today.

Jim