Philadelphia-based auto parts chain Pep Boys and its
"fight to revitalize its financial results has spurred
rumors that the firm might pull out of its IRL sponsorship,"
according to Bill Koenig of the INDIANAPOLIS STAR-NEWS. The
company "has continued to buy ads, but shifted its
strategy," as more ads now appear "before races, and are
aimed at increasing ticket sales" at IRL events. But IMS
VP/Sales & Marketing John Newcomb said Pep Boys is "not
doing nearly what we hoped for. ... Last year, they were way
ahead of [CART sponsor] FedEx. This year, they're at least
equal." But Newcomb added that Pep Boys "is meeting all
contractual obligations." Koenig writes that Pep Boys is in
the second year of a five-year deal that the IRL terms a
"multimillion dollar annual commitment," although the
company "can opt out after the third year." L.A.-based
Sports Business Group Principal David Carter said that open-
wheel racing sponsors "in general are examining their deals
closely." Janney Montgomery Scott analyst James Meyer added
that Pep Boys' IRL title sponsorship "may not be the best
way to promote" its service operations. Koenig writes that
Pep Boys "refused to comment whether it is satisfied with
the sponsorship" (INDIANAPOLIS STAR-NEWS, 8/25).
