With NASCAR sponsorship costs "escalating and the
returns diminishing, some companies are looking to change
their involvement" in Winston Cup racing, according to
Dustin Long of the Greensboro NEWS & RECORD. Lowe's and
Kmart are "looking for other companies to fulfill their
sponsor contracts." Kmart VP/Merchandise Presentation Ken
Kramer said that while the company has two years left on its
deal to sponsor the Travis Carter-owned Winston Cup teams,
company execs "believe" that the $15-20M per year spent on
the sponsorship "can be used in better ways." Kramer: "We
feel that the money we're spending on the tracks and the
cars, that if we take that money and put it into our stores
with NASCAR programs, we can get a lot more return for our
investment" (Greensboro NEWS & RECORD, 11/12). But in
Dallas, Richard Alm cited Interstate Batteries execs as
saying that its sponsorship of Winston Cup champion Bobby
Labonte is "worth it," as company consultants say that its
NASCAR tie brings in $38M a year in publicity. Interstate
VP/PR & Advertising Charles Suscavage estimates that
Labonte's championship season "could inflate the value of
that publicity to" $50-60M. Interstate Chair Norm Miller,
on the exposure the company received from promos around
Labonte by other sponsors including Coca-Cola, Food Lion,
Chef Boyardee, Pontiac and Denny's: "It's amazing what they
do for you when you win" (DALLAS MORNING NEWS, 11/12).
TELL YOU ABOUT THIS DRIVER: ESPN2's Bill Weber examined
the image making of several NASCAR drivers, as "image can
provoke reaction -- positive or negative. It's that
personal connection to the fans that generates interest."
Driver Jeff Gordon said the "type of fans that we're drawing
into the sport are totally different now." Weber: "It's not
enough to just have an image. That image has to be sold and
accepted and that's where the lucrative choices are made --
finding the right match between a driver's image and a
potential endorsement." Gordon: "You have no idea the
things I've been approached [with]. We turn down ten times
as many things as we accept" ("RPM 2Night," ESPN2, 11/10).
