Valvoline formally announced this weekend its agreement
to become part-owner of MB2 Motorsports' No. 10 Winston Cup
Pontiac driven by Johnny Benson. The deal, effective in
2001, renames the team MBV Motorsports and marks the first
time a consumer products company has become an owner of a
NASCAR team. Valvoline also signed a three-year deal as the
primary sponsor of the team. Valvoline Senior VP/Worldwide
Marketing Steven Kirchner said, "We're doing something
different here. But the marketing philosophy mirrors what
we've been doing for years with our brands. ... Newly formed
broadcast alliances, new race tracks in major markets and
expanded marketing opportunities all but guarantee a new
growth curve for the sport. That's why Valvoline wanted a
bigger stake in Winston Cup racing. What better way to be
more involved than by becoming an owner?" (Valvoline).
REAX: In Charlotte, David Poole wrote that Valvoline's
deal "could be a coming trend in NASCAR." Benson said the
deal "brings stability to both the race team and the
sponsor" (CHARLOTTE OBSERVER, 8/20). The AP wrote the deal
"could be a trendsetting move." Valvoline President Jim
O'Brien: "We looked at other team ownerships in baseball,
football and Formula One. Over time, economics of the sport
drive you to the point of getting more of an equity stake
than what it is you're trying to do" (AP, 8/19). The
SPORTSBUSINESS JOURNAL's Andy Bernstein cites Kirchner as
saying, "By having a bigger stake in the sport we feel it
will open up more opportunities for [the company]."
Meanwhile, the SPORTSBUSINESS JOURNAL's Mel Poole reviews
the deal and lists a "few benefits of equity investment in a
property": the sponsor "buys a controlling voice in the
enterprise and a stronger share of the sport's governance,"
and the sponsor also "gains reasonable control over its
category protection and the opportunity to open productive
business-to-business relationships." But on the "other side
of the coin, ... just because a company is good at marketing
detergent doesn't mean its good at running a sports
property" (SPORTSBUSINESS JOURNAL, 8/21 issue).
OTHER NEWS FROM MI SPEEDWAY: In addition to its Benson
equity deal, Valvoline also launched a new Valvoline Racing
brand, whose logo will be introduced via an advertising,
marketing and licensing initiative (Valvoline)....Kellogg
officially announced a three-year extension of its
sponsorship deal with Hendrick Motorsports' No. 5 Chevrolet
and driver Terry Labonte (CHARLOTTE OBSERVER, 8/21).
