NASCAR Taking Hit Amid Downturn, Yet Sponsors Still See Value

France Says NASCAR Coming Out Of Tough Economy Better Than Most

No sport "relies on the corporate dollar more than NASCAR," and the "spectacle of it all and the business behind it has taken a hit given the economic downturn," according to CNBC's Darren Rovell as part of an hour-long look at how the sport is coping with the economy titled, "Inside Track: Refueling the Business of NASCAR." There may not be a "better economic gauge for the overall health of America than NASCAR," and the "declining number of company logos on each car and unfilled seats at the speedways indicate just how tough a year it has been." Gaston Gazette reporter Monte Dutton said, "NASCAR has lost a certain trendiness, but I think the argument can be made that given the economy, things are holding pretty well." NASCAR Chair & CEO Brian France: "We're coming out of this tough economy better than most." Still, France said it is "tough right now," because "most CEOs and most commissioners would say that they've never seen more challenges on balance than they do right now." Rovell noted on the "top of France's mind is the health of the U.S. car industry, a business that is intricately connected with the sport."

MAKING SPONSORSHIPS WORK: Rovell noted when sponsors "talk about the value of NASCAR, they often talk about the unprecedented access they receive." Having a primary sponsorship for a driver's car "allows a company to use the driver before every race for big appearances." Aflac VP/Marketing Services Al Johnson, whose company sponsors driver Carl Edwards' No. 99 car, said in addition to utilizing Edwards in marketing, the company is "building relationships with the other sponsors of NASCAR." Johnson: "It's very important to us." Meanwhile, Sprint VP/Sponsorships & Media Tom Murphy said of the company's title sponsorship of NASCAR's Sprint Cup Series, "This is a superior marketing asset and we judge it in the ways any marketer would, no differently than when we buy television advertising and airtime. ... This is a giant, giant ad machine for us."

ADDED VALUE: Pepsi-Cola Energy Drinks VP/Marketing Lauren Hobart, whose Amp brand co-sponsors NASCAR driver Dale Earnhardt's No. 88 car along with the National Guard, said the Earnhardt sponsorship has helped to "drive awareness up to 76% from what had been in the 50s." Hobart: "It was just honestly the perfect storm." Rovell noted Amp is now in fourth place in the energy drink category, "up two spots" from when it first signed on to sponsor Earnhardt, and the brand "got more bang for its buck," as Hobart said over $750M in Amp-branded merchandise was sold at tracks last year. Hobart: "That’s the power of NASCAR. That's the power of Dale" (CNBC, 7/9).