NASCAR is the subject of a FORTUNE Cover Story by Roy
Johnson with the headline, "Speed Sells!" The series is "as
hot as a piston under the front-runner's hood these days,
and you can argue all day whether it's become so popular
because it has a telegenic, Gen X superstar [Jeff Gordon] or
whether Gordon happens to be the face of a sport whose
moment has finally come. Either way, ... [NASCAR] is
suddenly a thriving $2 billion industry." Retail revenue
alone is expected to top $1B this year, up from "only" $80M
in '90. Johnson adds, "For sponsors, NASCAR may be the best
buy in sports, for a simple reason: Speed sells. Some snobs
still regard race fans as po' trash, but these folks spend
freely to support the companies and brands that back their
favorite drivers." DuPont's Automotive-Finishes Division
President Lou Savelli said in '91, the year before the
company associated with Gordon, the automotive-finishes
group was a $500M business. Last year, revenues exceeded
$1B. Savelli attributes 20% of the growth, or $100M, to the
group's tie to Gordon and said that he "earns" $5 for every
$1 "he spends on the Gordon team." Savelli: "This has been
magnificent for us, absolutely phenomenal. ... In three or
four years, the deal paid for itself." Another example of
NASCAR's appeal: The NASCAR Barbie was Mattel's "hottest
collectible Barbie last year." Johnson: "Maybe the biggest
challenge for the sport is to overcome its stigma as an
unfriendly arena for minorities. A good start would be to
ban the display of Confederate flags, which were hoisted
atop a few motor homes parked in the infield at Daytona."
This "issue is wrenching" for NASCAR President Bill France,
"who hasn't quite come up with a comfortable response to
inquiries regarding the dearth of minority drivers."
France: "Somebody'll get a break" (FORTUNE, 4/12 issue).
$100M IN MEDIA EXPOSURE: BRANDWEEK's Terry Lefton
examines NASCAR's marketing efforts in a "Brand Builders"
special. After its 50th Anniversary in '98, NASCAR is
"revving up this season with new bigtime sponsors such as
Visa and Home Depot and expanded marketing commitments by
incumbents such as Coke and Anheuser-Busch, all likely to
add up to around $100 million in incremental media exposure
on and off NASCAR races this year" (BRANDWEEK, 3/22 issue).