Forrest Lucas does not rely on focus groups, sports marketing consultants or, for that matter, agencies of any kind. Nope, the owner and founder of Lucas Oil, a self-made success who recently committed to a 20-year, $121.5 million naming-rights deal for the future home of the Indianapolis Colts — Lucas Oil Stadium — operates straight from the gut, always has.
 |
Lucas Oil founder Forrest Lucas stands at the podium
as he outlines the company’s naming-rights deal for
the new home of the Indianapolis Colts. |
“I’m about the most average guy in the world,” said Lucas, 64. “The way I look at things, I figure, should be the way my customers look at things.”
Lucas figured he and his customers would feel great about having the company’s name plastered all over a new NFL stadium. And so Lucas, after two meetings between the Colts and his small executive team in December, decided to go for it in a very big way, ultimately announcing the new stadium naming deal on March 1 after a couple of months of legal back and forth.
“I’ve got total confidence in this,” Lucas said in a recent phone interview. “I have always wanted our products to be cool. People buy products that they believe in and respect. If you are doing something that people respect, they most likely will buy it.”
Perhaps that philosophy might sound a bit naïve or unsophisticated, but Lucas has a long track record of success and growth to back up his confidence and instincts.
| Lucas Oil Products Inc. | | Headquarters: Corona, Calif. | | Financials: N/A | | Sports deals: Naming rights at Lucas Oil Stadium, Indianapolis ($121.5 million, 20-year deal); owner of Lucas Oil I-10 Speedway, Blythe, Calif., and Lucas Oil Speedway, Wheatland, Mo.; sponsor of numerous motorsports series and teams. | |
Lucas founded the company in 1989 with his wife Charlotte after a 20-year career first as a truck driver, then a fleet owner. The company is privately held and based in Corona, Calif., though it has a significant presence in Indiana.
Lucas would not disclose revenue but said, “we are in the financial situation where we can afford this. We do not spend money we don’t have.”
Lucas Oil specializes in truck-stop staples such as additives, fuel treatments, oil stabilizers and lubricants, but this year will launch a consumer motor oil (which it already sells overseas) and views the Colts sponsorship as an important weapon to compete against brands such as Pennzoil and Quaker State.
The company’s name might be new to many, but it has long been big in racing, with multiple vehicle sponsorships and racing event promotions with the National Hot Rod Association, and niche sports with enthusiastic followings such as boat racing, dirt-track racing, off-road racing and tractor pulling. Morgan Lucas, the son of Forrest and Charlotte, drives a Lucas Oil-sponsored NHRA dragster, and the company sponsors Jason Leffler’s car in the NASCAR Busch Series. Lucas also owns and operates large dirt tracks in Missouri and California.
“We reached the pinnacle in motorsports and now we are looking to go up another level,” Lucas said.
 |
Lucas Oil may be an unfamiliar name to many NFL
fans, but the company has a lengthy history of team
and event sponsorship in racing. |
Cutting the dealColts management has found Lucas and his team to be a breath of fresh air.
“It’s taken longer to sell deals one-tenth the size,” said Tom Zupancic, senior vice president of sales and marketing for the Colts. “Forrest is a very interesting and unique individual. If you don’t like him, you better take a look in the mirror because there might be something wrong with you.”
Not that Lucas didn’t drive a hard bargain. After seeing the Colts’ asking price, Lucas asked for and received quite a bit more than his company’s name on the building.
When Lucas Oil Stadium opens for the 2008 season, the entire building will be themed, starting with a massive sign and 300-foot-by-150-foot entrance area that will showcase Lucas Oil products, sponsored race cars and other fan-friendly attractions. The company’s name will adorn all four sides of the stadium and much of the real estate inside, right down to the cup holders.
“A lot of people get to these venues early, so we will create something interesting for them to see,” Lucas said. “Fans will not be able to leave not knowing they were at a Lucas Oil event.”
In addition to the Colts, the stadium also will host many high-profile NCAA events such as future men’s and women’s Final Fours. Lucas Oil will, of course, use a hospitality suite to entertain clients, such as car-parts retailers and fleet owners and managers.
Zupancic said the Colts have already brokered meetings for Lucas with several large fleet managers in the city and state, including the government entities themselves.
“We are the No. 1-selling additive in retail automotive and retail truck stops, and we want to compete for larger contracts with fleets and municipalities,” said Lucas Oil executive vice president Bob Patison. “We’re hoping that this stadium naming-rights sponsorship will give us that status and consideration.”
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Said Forrest Lucas: “We reached the pinnacle in motorsports
and now we are looking to go up another level.” |
Building the brandSaid David Carter, principal of Southern California-based Sports Business Group, “The Lucas Oil deal reinforces that lucrative and compelling naming-rights opportunities exist and that, when properly crafted and positioned, they can attract corporations that otherwise may not have been traditional targets.”
Buffalo-based M&T Bank found itself in a somewhat similar position to Lucas Oil a few years ago when the company surprised many by signing a 15-year, $75 million deal for naming rights to the Baltimore Ravens’ home field, now M&T Bank Stadium. At the time M&T also was entering new markets, geographically speaking, having just purchased AllFirst Financial, which had a large presence in the Mid-Atlantic.
Bill Mabee, an M&T Bank senior vice president who manages the stadium relationship, said his company benefits from the relationship not just through branding and signage, but through banking relationships with the team and players, hospitality, retail promotions, community events with players, and widespread media and public awareness.
“We were a brand new name in the Baltimore market and no one knew who we were,” Mabee said. “Absolutely we would do it all over again.”
Greg Abel is a writer in Baltimore.
| Sports sponsorships held by major oil companies |
|---|
Amerada Hess Corp.
Headquarters: New York
2005 Sales: $22.7 billion
Major sports sponsorships: New York Jets; Jacksonville Jaguars; Tampa Bay Buccaneers; United Speed Alliance Racing |
BP America Inc.
Headquarters: Naperville, Ill.
2005 Sales: $249.5 billion
Major sports sponsorships: ARCO Arena in Sacramento; Milwaukee Brewers; Kansas City Royals; Los Angeles Clippers; San Diego Chargers |
Chevron Corp.
Headquarters: San Ramon, Calif.
2005 Sales: $184.9 billion
Major sports sponsorships: Chevron: Seattle Seahawks; San Francisco Giants; Taco Bell Arena, Boise State University; Iditarod Trail Sled Dog Race. Texaco: NASCAR Nextel Cup team No. 42, driver Casey Mears |
Citgo Petroleum Corp.
Headquarters: Houston
2004* Sales: $32.0 billion
Major sports sponsorships: Bassmaster Tournament Trail (includes title of Bassmaster Elite Series and Bassmaster Northern and Southern Tours); National Baseball Hall of Fame and Museum; Boston Red Sox; two teams on the Grand American Rolex Sports Car Series; Circle K/Citgo Kids’ Park at Whataburger Field, Corpus Christi, Texas; National Thoroughbred Racing Association |
ConocoPhillips Co.
Headquarters: Houston
2005 Sales: $162.4 billion
Major sports sponsorships: ConocoPhillips: Houston Astros; USA Swimming; ESPN Golf Challenge; ESPNU. Conoco: Colorado Avalanche; Denver Nuggets. Phillips 66: Big 12 Conference; St. Louis Cardinals. 76: Portland Trail Blazers; San Diego Padres; Los Angeles Dodgers; Pac-10 Conference; athletic programs at the University of Oregon and Oregon State University |
ExxonMobil Corp.
Headquarters: Irving, Texas
2005 Sales: $328.2 billion
Major sports sponsorships: ExxonMobil: The Masters Golf Tournament/Augusta National Golf Club; Phil Mickleson. Mobil1: NASCAR Nextel Cup; NASCAR Nextel Cup team No. 12, driver Ryan Newman |
Shell Oil Co.
Headquarters: Houston
2005 Sales: $41.5 billion
Major sports sponsorships: PGA Tour Shell Houston Open; World Golf Village and World Golf Hall of Fame; NASCAR Craftsman Truck Series team No. 85; Scuderia Ferrari Formula One racing team; MotoGP Ducati Corse racing team; World Superbike racing team |
Sunoco Inc.
Headquarters: Philadelphia
2005 Sales: $31.2 billion
Major sports sponsorships: NASCAR; ASA Racing; Grand American Road Racing Association; USAR Hooters Pro Cup Series |
* Latest available
Sources: Companies and Sports Business Resource Guide and Fact Book
