OT Sponsorship issues (1 Viewer)

[Husky]

I heard that NASCAR gets 70% of it's revenue from sponsorship of various kinds. Much of that revenue is derived from the auto industry and its subsidiaries. Considering the financial crisis the Big Three are facing, it was said, that much of their sponsorship ability will gone, and along with it the very viability of some motor sports, jeopardized.
I know it's a bit doom and gloom, but how does DR compare, in regard to NASCAR's dependency on the Big Three?

 

[The Counterfeiter]

I heard that NASCAR gets 70% of it's revenue from sponsorship of various kinds. Much of that revenue is derived from the auto industry ad its subsidiaries. Considering the financial crisis the Big Three are facing, it was said, that much of their sponsorship ability will gone, and along with it the very viability of some motor sports, jeopardized.
I know it's a bit doom and gloom, but how does DR compare, in regard to NASCAR's dependency on the Big Three?

Many of the larger NASCAR team's sponsorships are not dependent on the auto industry. Roush landed a $72 million deal with Aflac to sponsor Carl for three years and a three year deal with UPS for a rookie! Hendrick has Lowe's, Dupont and Pepsi. Gibbs with FedEx, Home Depot and Mars Candy.
NHRA teams are bringing a knife to a gunfight trying to compete with NASCAR teams' "Business Development" departments. If NHRA could provide teams with some positive demographics, it would help. Unfortunately, MHRA's market share is so bad that including those numbers in a proposal almost guarantees failure.

 

[Husky]

Many of the larger NASCAR team's sponsorships are not dependent on the auto industry. Roush landed a $72 million deal with Aflac to sponsor Carl for three years and a three year deal with UPS for a rookie! Hendrick has Lowe's, Dupont and Pepsi. Gibbs with FedEx, Home Depot and Mars Candy.
NHRA teams are bringing a knife to a gunfight trying to compete with NASCAR teams' "Business Development" departments. If NHRA could provide teams with some positive demographics, it would help. Unfortunately, MHRA's market share is so bad that including those numbers in a proposal almost guarantees failure.

Sorry if I was unclear. The 70% of revenue I mentioned was NASCAR's. IOW's their ability to pay purses will be greatly diminished.

 

[rocketman]

After what I saw in Pomona I think we are finally seeing the effect of the Knoll pull out on top of everybody else leaving. That really was a good ride while it lasted and I'm beginning to think that Mr. Knoll really did want the best for the sport but couldn't say no or stop making deals he couldn't afford. On the Comp Plus forum someone said they saw him walking the street of Paw Paw alone. I hope he gets some help if that was truly the case. As one formally Knoll-sponsored alcohol racer at Pomona told me "we'll all be OK. nobody got hurt more than Evan". On the bright side, maybe the man that will be Knoll's replacement is that sheik from Quatar, now that guy could by the sport! Time will tell. I guess he bought out Dixon's contract with UST according to DRO.

 

[The Counterfeiter]

Mike - sorry i did misunderstand your post. Here's a quote from an article on NASCAR. com -
"The combined TV rights fee for FOX, ESPN and Turner averages $560 million a year through 2014. Additionally, each of the networks has a multimillion-dollar spend with NASCAR Media Group, which manages the TV compound at each venue and provides additional content, such as unique camera angles and audio."
In addition, revenue from ticket sales, licensing fees and "Official (insert industry here) of NASCAR" have to add up to additional hundreds of millions.
If you assume this to be $200 million (which may be conservative) and add in TV revenue, the rumored 70% contribution from auto industry would be
. . .1.75 BILLION dollars. I seriously doubt this is the case. Reported prize money at races adds up to about 225 million, leaving NASCAR about 525 million to run the series (and a small profit) with NO contribution from the auto industry.
In the meantime - the NHRA is paying ESPN to get races on the air. I think NASCAR will probably be OK, not so sure about the NHRA.