Posted on 12/09/2008 10:53:03 AM PST by BurbankKarl
Once-unstoppable Nascar is hitting a wall as its fan base erodes, race attendance declines, TV ratings slip, the auto industry implodes and economically stressed marketers slam the brakes on sponsorships. The pileup is so big that Nascar, long held up as the gold standard in sports marketing due to its followers -- fiercely loyal to the sport and its sponsoring brands -- had to lay off 1,000 employees and is fretting over whether it could actually lose money next year.
CEO Brian France, speaking last week in New York at its big year-end promotional event, Champions Week, said Nascar won't see increased sponsorship revenue in 2009 -- a seemingly unthinkable turn of events for a sport that added $150 million in sponsorship dollars last year. "Next year, we will not obviously make that kind of a gain," he warned, then added, "The question is, are we going to back up?"
Of Nascar's 42 full-time drivers, 12 currently do not have primary sponsors for the 2009 season, which begins in less than 10 weeks with the Daytona 500. Primary sponsors pay $18 million to $20 million to be featured as the main logo for all 38 races on a driver's car, such as DuPont does with Jeff Gordon. Running nearly a third of its cars without a major sponsor is a huge problem, since under its team business model, at least 75% of the budget comes from sponsors.
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Old friends And two Nascar marketing staples have left. Eastman Kodak ended a 22-year relationship, while Sears Roebuck, hard hit by the economic downturn and anemic retail sales, decided to end its 13-year title sponsorship of the Craftsman Truck Series after this year.
(Excerpt) Read more at adage.com ...
Who has the nascar ping list ?
The NASCAR bubble has come to an end?.............
I don’t supose that dropping all the “rinky dink” races in the south/east could have anything to do with the “fan base”?
Ping.
They killed the Golden Goose. Isn’t the first time. Won’t be the last.
Bingo.
Pingading
12 of 42 teams hanging in the wind sponsor-wise.
There is a withdrawal thread I will link this up to.
NASCAR OFFICIAL OFF SEASON WITHDRAWAL THREAD 5
http://www.freerepublic.com/focus/f-chat/2136272/posts
I doubt that Obammy knows or cares, but if asked he will definitely proclaim: BUSH’S FAULT!!
Ping for the nascar list!
Bring back the Rock and North Wilksboro. Honestly I’d like to see fewer of these mid range tracks and put in a few more short track races. Maybe even put in at least one more road course race. I imagine there is probably some COT backlash going on here too since some don’t like the cookie cutter car format that they are forced to run now.
I never would have guessed that NASCAR had 1,000 employees that it could lay off. Now I understand why it cost Remington $11,000,000 to paint their name on a car in 1997.
just pinged the list..
This is tragic. I like NASCAR, say what you will. It is a part of American culture, going back to the Hudson days. I’m sorry they have to be affected...
With the economy the way it is, people are saving their cash. Companies aren’t advertising as much. I cut our advertising off a long time ago.
Obama’s energy plan will have NASCAR racing chariots and stanley steamers.
Bail-out Time. :-]
Please cry me a river. The France family is SINGLE handedly responsible for this mess. They acted like Gods and the sport did not matter one iota to them. It was all about them and THEIR tracks and how they could benefit, fans be darned.
Look at the fuss it took to get a second race to the TMS. The France family only took care of themselves and if they go bankrupt, no tears from this fan.
This isn’t fair. I miss ALL the good bubbles!
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