2010 NASCAR Sponsorships & How Economy is Affecting Sponsors

Pit Road

Ever wonder how much money companies spend to sponsor a NASCAR team? It can be quite a bit depending on how good the team is. With the economy in such a downturn it’s getting harder and harder for NASCAR teams to find companies that will pay the millions it takes to sponsor their car. Let’s take a closer look at the amount of money it takes to sponsor a team, what some teams are doing to lure sponsors, and some of the deals that have been made for the 2010 season.

The best teams in the sport (Hendrick, Joe Gibbs, Rouch Fenway) can charge up to $25 million dollars for a full year sponsorship. That’s about $500,000 – $700,000 per race! The lower-tier teams ask for about $8 million to $10 million for a full season, which is still a good chunk of money. Today, companies are getting scrutinized for spending excess money on advertising/sponsorships, like NASCAR, when the companies are struggling financially and laying workers off. Rightfully so, the companies are tightening their budgets and don’t want to pay as much to sponsor a car.

Compare this to just a year and a half ago when they were actually bidding to be Carl Edwards’ primary sponsor. Aflac won that battle with a three year, $26 million/year contract. In November Aflac announced a partnership with Scotts Miracle-Gro, giving them primary sponsorship for six Sprint Cup races in 2010. This move basically reduces the amount of money that Aflac will spend on sponsorship in 2010 since it looks like the original $26 million/year was a bit too much for them.

Some teams are now trying to get inventive to lure sponsors and have them pay the $20 million to $25 million price tag. They are working with the race tracks, TV networks, and others to get a package deal; placing advertisements throughout the venues, more mentions of their product on TV during the race, etc.

Think it’s only the mid to lower-tier teams looking for sponsorship dollars? Think again. Jeff Gordon, Matt Kenseth and Ryan Newman are just a few of the drivers that are looking for more sponsorship dollars in the 2010 season. Kenseth is looking to get a sponsor for ½ of the season, and it’s rumored that Jeff Gordon may also be looking for a ½ season sponsor since DuPont is scaling back their commitment to him.

Others are still looking for sponsors as well. Joe Gibbs Racing needs additional sponsors for Denny Hamlin and Joey Logano to complete the 2010 needs. Kasey Kahne needs more sponsorship dollars, and the 07 car owned by Richard Childress doesn’t have a sponsor yet.

With all of this bad news has anyone secured new sponsorship for the 2010 season? Luckily, some have. Here’s a quick list of some of the new/renewed sponsor deals for the 2010 season.

• Go Daddy is spending well into eight figures to sponsor Mark Martin’s No. 5 Sprint Cup car for a majority of the 36 races in 2010.
• Michael Waltrip Racing has 100% sponsor renewal from the 2009 season.
• Michael Waltrip Racing also has a new primary and associate sponsor in TUMS. They will be the primary sponsor for David Reutimann’s No. 00 car for the 2010 and 2011 season.
• Richard Petty Motorsports moved Best Buy to the No. 43 car to be driven by A.J. Allmendinger.
• Stanley will be the primary sponsor for Elliot Sadler.
• After merging with Yates, Richard Petty Motorsports now has Paul Menard as one of their drivers. His father’s hardware store will probably stay with him as the primary sponsor.

A Look Into 2011
Things don’t look to be getting better in the near future either. After the 2010 season Allstate, DeWalt, Jack Daniel’s and Jim Beam will not sponsor NASCAR teams and spend their money elsewhere. Allstate is also dropping it’s sponsorship of the Brickyard 400, and not renew its contract with Kasey Kahne and his TV commercials. They will focus on College football.

Another thing to consider for 2011 is the driver contracts that expire after the 2010 season. Kasey Kahne, Kevin Harvick, Kyle Busch, Kurt Busch, and Greg Biffle lead that list. It will be interesting to see what teams can afford to sign them, and how their sponsorships are handled. Will the drivers be able to retain their current sponsors, or will the team that signs them have to find new sponsorship deals? If that’s the case, then there could be some good drivers worried about finding a ride in 2011.

With all of the uncertainty for future sponsorship dollars what can be done? Should NASCAR implement more changes to reduce the cost to run a team full-time? Is there anything that can be done? Let me know what you think.