Sponsorship  Sponsorship occurs when a company supports an event, activity, or organization.  In return for money, the sponsor is provided with some type of advertising at the event.

Sponsorship  Form of Sales Promotion  Most often used in the sports and entertainment industries

is built on sponsorship

The History of  Founded in 1948  Annual attendance exceeds 9 million fans visiting 37 races N - National A - Association S - Stock C - Car A - Auto R - Racing

as a BRAND  NASCAR is a “brand”  The second highest rated live sport on TV Behind the NFL Behind the NFL  71% of NASCAR fans are loyal to brands that sponsor the sport More than any other sport More than any other sport Banking on NASCAR

sales  NASCAR licensed products 1990 – $80 Million 1990 – $80 Million 2004 – $2.1 Billion 2004 – $2.1 Billion  Sales have increased 3000% since 1990

sales  Last year NASCAR made 3 billion in licensed product sales  More Fortune 500 companies sponsor NASCAR than any other sport

fans The majority of NASCAR fans do not fit into the general stereotype associated with the sport  78% of NASCAR fans are high school graduates  40% of NASCAR fans attended college  36% are in professional or managerial occupations  70% have full-time employment

fans  33% have annual incomes between $30,000 and $50,000  30% have household incomes over $50,000  53% are over 35  64% are married

fans  Women make up almost 40% of the NASCAR fan base  More than any other sports SportWomenMen NASCAR38%62% NFL35%65% MLB31%69% NBA28%72% NHL12%88%

Brand Future  NASCAR Café: Themed restaurant  NASCAR SpeedPark: Go kart tracks ○ Vaughan, ONT ○ Myrtle Beach, SC ○ Concord, NC ○ Smokey Mountain, NC ○ St. Louis, MO

Brand Future  NASCAR ride at Carowinds Park  NASCAR driving experience

So What’s The Big Deal? 1/3 of the Fortune100 firms sponsor a NASCAR racecar

The BIGGEST Sponsor of All NASCAR Sponsorship

Who’s missing? Winston sponsored NASCAR for 32 year Replaced by Sprint in 2003  No tobacco brand sponsors exist anymore

Who’s missing? Hard liquor has not traditionally been a part of NASCAR  Introduced into the sport in 2004 to bring an influx of cash to the sport

Main Sponsor $5-9 million Includes hood, driver’s chest and TV panel (back of trunk) Hood Driver’s chest TV Panel

B-Post $75,000 - $150,000 Other Sponsorship Options Trunk $500,000 - $1 million C - Post $250,000 - $750,000

Front Fender $30,000 - $100,000 Other Sponsorship Options Rear Quarter Panel $750,000 Front Quarter Panel $750,000 - $150,000 Lower Quarter Panel $25,000 - $75,000 Behind Rear Wheel $200,000 - $600,000

Other Sponsorship Options Roof and Door panels Car Number locations No Ads are permitted here

Why do they sponsor? NASCAR Sponsors - Why they Invest

Endorsements  Any type of advertising done by a person who reflects his or her own opinions, beliefs, findings, and experiences that are separate from those associated with the product’s company

#1 Tiger Woods

#2 Phil Mickelson

#3 Dale Earnhardt Jr.

#4 Derrick Rose

#5 Jeff Gordon

#6 LeBron James

#7 Jimmie Johnson

#8 Tony Stewart

#9 Kobe Bryant

Controversy of Endorsements  Celebrities must use the products they endorse.  The political opinions of celebrities may have an adverse effect on the endorsement.  The personal controversies of a celebrity may have an adverse effect on the way the public views the endorsed product.  Companies do not want the image of their product damaged.

Lance Armstrong - Steroid Use Endorsements Lost  Nike  Anheuser-Busch

Kobe Bryant – Accused of Sexual Assault Endorsements Lost  McDonald’s  Coca-Cola  Nutella

Barry Bonds– Steroids Endorsements Lost  Master Card  KFC  Charles Schwab

Michael Phelps– Marijuana Use Endorsements Lost  Kellogg’s

Tiger Woods– Extramarital Affair Endorsements Lost Accuenture AT&T Gatorade Gillette