HMS said it has already seen companies express interest in sponsoring Johnson in '19GETTY IMAGES
Hendrick Motorsports was believed to be receiving $20-25M annually from Lowe’s for the home improvement chain's primary sponsorship of Jimmie Johnson’s No. 48 Cup series entry, according to sources, a figure the team likely will find tough, if not impossible, to fully recoup. Lowe’s last week announced it will not return to HMS or switch to any other NASCAR team after this season following a nearly two-decade run as Johnson’s sole sponsor. HMS officials said they have already seen companies express interest in sponsoring Johnson for the '19 season, and HMS Dir of Partnership Development Shannon Hooper said the organization is strongly touting Johnson's social and media reach. She cited data that showed that Johnson’s and HMS’s owned social media channels delivered $5.5M in social media value last year for Lowe’s along with averaging $16M in quality TV value per season over the last three seasons. The sales team at HMS is launching a robust effort to replace the retailer and framing the situation as more an opportunity than a problem. HMS VP/Marketing Pat Perkins: “We’ve never had the opportunity to align a brand on the (No. 48) car in a primary sponsorship format before, so when the news did come out, not surprisingly we started receiving inbound interest. Those are things we’re starting to evaluate, and not running in to just do deals and rush into it. We’re setting up conversations and want to understand what companies’ objectives are, how they want to utilize the team, NASCAR and Jimmie -- and really be smart about how we go into it.” Johnson is already helping pitch in on the hunt by describing categories he would like to work with and providing contacts.
BUSINESS DECISION FOR LOWE'S: Lowe’s first sent signals it might be looking to end its association with HMS and Johnson last year, when it extended its sponsorship only though ‘18. Perkins said the team fully expected to have a chance at keeping Lowe’s in some fashion after this season, but he added that Lowe’s ultimately made a business decision. Lowe’s has dealt with several exec changes in recent years, as well as substantial business headwinds ranging from a new activist investor to stock price drops and a challenging marketshare battle with The Home Depot. Lowe’s also is an NCAA corporate champion among other marketing investments. Some people within NASCAR have privately questioned why HMS announced the move so early in the season, but Perkins dismissed that criticism. “That would be doing an injustice to ourselves and everyone else in the process,” Perkins said. “To announce it and get it out there that we do have this opportunity, it just makes sense.”
