Posts tagged NASCAR
Motorsport sponsorship declines in 09… tell us something we didn’t know!
Sep 3rd
One For The Record Books: Motorsports Sponsorship To Decline In ‘09… but its how the spend is spent that will make all the difference. Sponsorship is entering a new age… just because the fans have octane in their veins doesn’t necessarily mean it’s relevant any longer.
North American-based companies will spend an estimated $3.3 billion to sponsor motorsports teams, tracks and sanctioning bodies this year, a nearly six percent decline from the $3.5 billion spent in ‘08, according to the IEG Sponsorship Report.
The projected decline is a first since IEG SR began tracking motorsports spending in 1985. As automakers and other sponsors look for ways to reduce spending, the big-ticket prices associated with major racing sponsorships have become harder to justify, and many companies have backed away from previous levels of commitment.
The projected spending amount reflects both reductions in spending and elimination of programs from previous sponsors such as Domino’s Pizza, Kodak and others, but also some new sponsor dollars that have served to prevent the decline from being even more severe.
Looking at some of the positive activity: Search engine Ask.com this year will launch a multi-faceted NASCAR program that includes a tie to the sanctioning body and title of a Hall of Fame Racing Sprint Cup Series entry driven by Bobby Labonte. In addition, Mars North America signed a multiyear extension with NASCAR spanning four categories: chocolate, chocolate bar, cheese-filled snack and pet food.
www.sponsorship.com
How Sports Brands Create Brand Fanatics
Aug 24th
A key reason sports brands are so successful is the relationship they have with each of their consumers, or fans. Being a sports fan-and loving a team brand-transcends a person’s job, family or social status. “Fans experience pleasure and satisfaction with successful teams,” writes Baylor University marketing professor Kirk L. Wakefield in his book, Team Sports Marketing, “but, they also experience feelings of delight or excitement that deeply resonates within the identity of the individual fan, such that the effects are likely to be long-term. … Sports teams develop a faithful fanatical following primarily due to high levels of identification…”
It is this identification that professional and amateur leagues in general, and teams in particular, play on (or prey upon). Wakefield points out that a dedicated sports fan has “an enduring involvement with the sport and situational involvement with the event.” A fanatical soccer fan, for example, will have “an ongoing interest or concern with the sport on a day-to-day basis.” That same fan, if dedicated to a particular team, will also watch or attend games, check scores online, follow the team’s star players and buy team merchandise. This is the kind of brand involvement some product brands can only dream about.
Identifying with a particular team brand is a strong fan motivator. “Highly identified fans are likely to Bask In Reflected Glory [BIRG] by doing such things as wearing team-identifying apparel after a team win, describing team wins in terms of what ‘we’ did, and, in general, seeking to enhance their public image by connecting with positive aspects of the team,” Wakefield writes. “The result of BIRGing is enhancing self-esteem in the highly identified fan.” According to Wakefield, the more identified a fan becomes, the higher the level of his or her team involvement.
Incredibly, Wakefield writes, “identification with a sports team seems to shield against the potential consequences of death…evidence suggests that one’s identification and involvement with a sports team in some ways makes the highly identified fan feel immortal.” Now that’s the ultimate in brand loyalty.
There is a hierarchy of sports brand fanaticism. Some fans of a particular sport might identify with a league or association, such as the International Soccer League, the NBA (National Basketball Association) or NASCAR (National Association for Stock Car Auto Racing). Others might identify with different sports under the same umbrella brand, such as the Olympics or the NCAA (National Collegiate Athletic Association). Or fans might be intent on supporting a single team brand, often because of school or hometown affiliation. And then there are the multisport fanatics, supporting several sports, leagues or teams at once. Typically, each of these leagues or teams positions itself as a distinct brand with its own logo, merchandise and marketing program.
This presents a big branding challenge: There are so many sports brands in existence that sports fans in general may be spread thin. In their book, The Elusive Fan, authors Irving Rein, Philip Kotler and Ben Shields say competition among sports brands for market share is increasingly intense because of fragmentation. They believe there are six distinct sports sectors vying for fans’ attention: older sports (such as European soccer and Major League Baseball), reemerging older sports (such as cricket, rugby and golf), school sports (high schools, youth development teams and the like), new sports (extreme sports and paintball, for example), declining older sports (such as boxing and horse racing) and sporting goods (including team merchandise and sports equipment).
That means each sports team needs a multifaceted branding strategy to keep fans loyal. Traditionally, teams hitch their stars to star athletes. But now these brands, say Rein, Kotler and Shields, “must also broaden their star power mix to include facilities, food, teams, places, events, and individuals, such as owners, who have not been a part of the storyline. Star power needs to be redefined to connect with more fans, maximize all the attributes that a sports product has to offer, and ensure a constant flow of sports branding material to convert into star status.”
The authors point to Manchester United as an example of a team that “has been transformed into a highly profitable company and an identifiable global brand.” Manchester United became a megabrand due to developing the best talent, careful attention to managing and growing the business, and an aggressive distribution strategy. Today its arsenal includes branded restaurants, stores, a cable television network, a stadium, the use of new media and unorthodox ways to expand into new markets, such as a marketing partnership with the New York Yankees.
Sports leagues and teams continue to attract and retain sports fans, as well as commercial sponsors, but for the first time in a long time, the sports world is feeling a money pinch. In fact, a recent study indicates that over half of companies surveyed “plan to cut 2009 sponsorship spending, including sponsorship in the sports world, while almost as many are seeking to get out of current deals…” (”Over half of firms to cut sponsorship spend – study,” Reuters, March 10, 2009).
That may be why sports brands are beginning to look for new and novel ways to generate revenue from their fans. For example, the storied New York Yankees, MLB’s most valuable team, just opened a new Yankee Stadium this season. Soon afterward, the Yankees organization announced it would market its own grass: Yankees Sod. “It may cost a few thousand dollars to cover a large backyard, but the sod comes with a certificate of authenticity from Major League Baseball, complete with the counterfeit-proof hologram, declaring it to be the official grass of the New York Yankees” (”Yankees Grass Is Now a Brand,” The New York Times, March 22, 2009).
Barry Silverstein is a freelance writer/marketing consultant and co-author of the McGraw-Hill book, The Breakaway Brand.
SportsPro ranks the world’s 200 most valuable sports properties
Jun 19th
SportsPro magazine has published the world’s first ranking of sports properties in its July issue. Unsurprisingly, the National Football League (NFL) is ranked as the world’s most valuable sports property, with a value of US$4.5 billion. It is followed at the top of the table by three other American properties – Major League Baseball (MLB) (US$3.9 billion), the NBA (US$3.35 billion) and Nascar (US$1.9 billion).
The newest property in the list is the Indian Premier League (IPL), which is valued at US$1.6 billion – a staggering achievement for a two-year-old property.
The highest ranked European team property is the Ferrari Formula One team (7th) at a value of US$1.55 billion, followed by Manchester United Football Club (8th) at US$1.495 billion. The most valuable American sports club is the Dallas Cowboys (10th), the NFL team, valued at US$1.278 billion.
Tiger Woods (11th) is the highest rated athlete property with a value of US$1.25 billion, followed by Jack Nicklaus (16th) at US$1 billion. Golfers dominate the athletes’ table because of the high earnings from designing golf courses; Tiger Woods is expected to earn over a billion dollars from designing courses in the next decade and will almost certainly eclipse his on-course earnings. David and Victoria’s Beckham Brand Ltd property (88th) is valued at US$375 million.
Many single annual events appear, led by the Wimbledon tennis championships (22nd) valued at US$900 million.
Unsurprisingly, the most valuable competition is the Fifa World Cup (5th) valued at US$1.7 billion, ahead of the Summer Olympic Games (15th) at US$1.04 billion. The Uefa Champions League (13th) is valued at US$1.1 billion, eclipsing the Summer Olympics due to its annual status.
Ends
OVERALL TABLE (200) (Top Ten tables below)
Source: SportsPro Magazine
1 National Football League; 32 NFL franchises Football - US$4.5 billion
2 Major League Baseball; 32 MLB franchises Baseball – US$3.936 billion
3 National Basketball Association; 30 NBA franchises Basketball – US$2.344 billion
4 Nascar France family; Motorsport – US$1.9 billion
5 Fifa World Cup; Fifa Soccer – US$1.7 billion
6 Indian Premier League BCCI (India) Cricket US$1.6 billion
7 Scuderia Ferrari; Fiat Motorsport – US$1.55 billion
8 Manchester United FC; Malcolm Glazer Soccer – US$1.495 billion
9 Formula One; CVC/Royal Bank of Scotland Motorsport – US$1.45 billion
10 Dallas Cowboys Jerry Jones Football US$1.278 billion
11 ETW Corp/Tiger Woods Design Tiger Woods Golf US$1.25 billion
12 New York Yankees George Steinbrenner Baseball US$1.19 billion
13 Uefa Champions League Uefa Soccer US$1.1 billion
14 Real Madrid Club Members Soccer US$1.073 billion
15 Olympic Games (Summer) International Olympic Committee Multi-Sports US$1.024 billion
16 Nicklaus Design and Golf Equipmt Jack Nicklaus Golf US$1 billion
17 Washington Redskins Daniel Snyder Football US$999 million
18 PGA Tour PGA of America Golf US$970 million
19 New York Giants John Mara/Steven Tisch Football US$932 million
20 New York Jets Robert Wood Johnson IV Football US$927 million
21 Arsenal FC Stan Kroenke Soccer US$910 million
22 The Wimbledon Championships All England Lawn Tennis Club Tennis US$900 million
23 US Tennis Open United States Tennis Association Tennis US$880 million
24 New England Patriots Robert Kraft Football US$861 million
25 World Wrestling Entertainment McMahon Family Wrestling US$837 million
26 Miami Dolphins Wayne Huizenga/Stephen Ross Football US$828 million
27 Liverpool FC George Gillett/Tom Hicks Soccer US$801 million
28 Arnold Palmer Design Arnold Palmer Enterprises Golf US$800 million
29 Great White Shark Enterprises Greg Norman Golf US$800 million
30 Uefa European Championship Uefa Soccer US$800 million
31 FC Barcelona Club Members Soccer US$793 million
32 AC Milan Silvio Berlusconi Soccer US$774 million
33 National Hockey League 30 NHL franchises Ice Hockey US$760 million
34 Rugby World Cup Rugby World Cup Ltd/IRB Rugby Union US$750 million
35 The Masters Augusta National Golf Club Golf US$750 million
36 Michael Jordan Michael Jordan/Nike Basketball US$725 million
37 Houston Texans Robert McNair Football US$725 million
38 Philadelphia Eagles Jeffrey Lurie Football US$723 million
39 FC Bayern Munich Club members Soccer US$721 million
40 ICC World Cup International Cricket Council Cricket US$700 million
41 ATP World Tour Assoc. of Tennis Professionals Tennis US$700 million
42 Indianapolis Colts James Irsay Football US$699 million
43 Chicago Bears McCaskey Family Football US$692 million
44 Baltimore Ravens Stephen Bisciotti Football US$690 million
45 Denver Broncos Patrick Bowlen Football US$689 million
46 Tampa Bay Buccanneers Malcolm Glazer Football US$685 million
47 Carolina Panthers Jerry Richardson Football US$676 million
48 Cleveland Browns Randy Lerner Football US$673 million
49 New York Mets Fred Wilpon Baseball US$665 million
50 Green Bay Packers Shareholders Football US$664 million
51 Kansas City Chiefs Hunt Family Football US$660 million
52 Pittsburgh Steelers Rooney Family Football US$659 million
53 Seattle Seahawks Paul Allen Football US$657 million
54 Boston Red Sox John Henry/Thomas Werner Baseball US$651 million
55 Chelsea FC Roman Abramovich Soccer US$634 million
56 Cincinnati Bengals Michael Brown Football US$612 million
57 New Orleans Saints Thomas Benson Football US$608 million
58 St Louis Rams Chip Rosenbloom/Stan Kroenke Football US$603 million
59 Detroit Lions William Clay Ford Football US$597 million
60 Arizona Cardinals William Bidwell Football US$594 million
61 Team McLaren-Mercedes; Mercedes/Mumtalakat/Ron Dennis/Mansour Ojjeh Motorsport – US$580 million
62 San Diego Chargers Alexander Spanos Football US$577 million
63 Buffalo Bills Ralph Wilson Jr. Football US$574 million
64 Tennessee Titans Kenneth Adams Jr. Football US$569 million
65 Atlanta Falcons Arthur Blank Football US$567 million
66 San Francisco 49ers Denise DeBartolo York Football US$561 million
67 Oakland Raiders Allen Davis Football US$559 million
68 Minnesota Vikings Wilf Family Football US$545 million
69 Monaco Grand Prix; Automobile Club de Monaco Motorsport – US$520 million
70 Olympic Games (Winter) International Olympic Committee Multi-Sports US$504 million
71 America’s Cup Société Nautique de Genève Sailing US$500 million
72 Golden Boy Promotions Oscar de la Hoya Boxing US$500 million
73 Ryder Cup PGA of America/PGA European Tour Golf US$500 million
74 Jacksonville Jaguars Wayne Weaver Football US$497 million
75 Internazionale Massimo Moratti Soccer US$481 million
76 Juventus Agnelli Family Soccer US$476 million
77 Los Angeles Dodgers Frank McCourt Baseball US$469 million
78 Chicago Cubs Tom Ricketts Baseball US$455 million
79 Commonwealth Games Commonwealth Games Federation Multi-Sports US$450 million
80 New York Knicks Cablevision Systems Basketball US$405 million
81 Australian Open Tennis Australia Tennis US$400 million
82 LeBron James LeBron James Basketball US$400 million
83 Six Nations Six Nations Rugby Ltd. Rugby Union US$400 million
84 Chicago Bulls Jerry Reinsdorf Basketball US$399 million
85 Phoenix Suns Robert Sarver Basketball US$381 million
86 WTA Tour Women’s Tennis Association Tennis US$380 million
87 Los Angeles Lakers Jerry Buss/Philip Anschutz Basketball US$379 million
88 Beckham Brand Ltd. David Beckham/Victoria Beckham Soccer US$375 million
89 Detroit Pistons Karen Davidson Basketball US$374 million
90 Boston Celtics Wycliffe Grousbeck Basketball US$353 million
91 Major League Soccer MLS Soccer US$350 million
92 Tour de France Amaury Sport Organisation Cycling US$350 million
93 Hendrick Motorsports; Rick Hendrick Motorsport – US$335 million
94 AS Roma Sensi Family Soccer US$331 million
95 FC Schalke 04 Club members Soccer US$331 million
96 MotoGP; Dorna Sports Motorsport – US$330 million
97 Los Angeles Angels of Anaheim Arturo Moreno Baseball US$330 million
98 Toronto Maple Leafs Ontario Teachers’ Pension Plan Ice Hockey US$325 million
99 Philadelphia Phillies William Giles Baseball US$322 million
100 St Louis Cardinals William DeWitt Jr. Baseball US$315 million
101 Roush Fenway Racing; Jack Roush/John Henry Motorsport – US$313 million
102 Asian Games Olympic Council of Asia Multi-Sports US$310 million
103 Indianapolis 500; Tony George Motorsport – US$310 million
104 Cleveland Cavaliers Daniel Gilbert Basketball US$310 million
105 San Francisco Giants William Neukom/Susan Burns Baseball US$305 million
106 Houston Rockets Leslie Alexander Basketball US$304 million
107 Dallas Mavericks Mark Cuban Basketball US$304 million
108 Copa America Conmebol Soccer US$300 million
109 French Open French Tennis Federation Tennis US$300 million
110 PGA European Tour PGA European Tour Golf US$300 million
111 Ultimate Fighting Championship Zuffa LLC Martial Arts US$300 million
112 Chicago White Sox Jerry Reinsdorf Baseball US$292 million
113 New York Rangers Cablevision Systems Ice Hockey US$291 million
114 Atlanta Braves Liberty Media Baseball US$289 million
115 Houston Astros Robert Drayton McLane Jr. Baseball US$288 million
116 Seattle Mariners Nintendo Baseball US$277 million
117 San Antonio Spurs Peter Holt Basketball US$269 million
118 Washington Nationals Theodore Lerner Baseball US$264 million
119 Texas Rangers Tom Hicks Baseball US$262 million
120 Singapore Grand Prix; Ong Beng Seng/Singapore Government Motorsport – US$261 million
121 Baltimore Orioles Peter Angelos Baseball US$260 million
122 Cleveland Indians Lawrence Dolan Baseball US$260 million
123 San Diego Padres John Moores Baseball US$260 million
124 Toronto Raptors Ontario Teachers’ Pension Plan Basketball US$260 million
125 Panathinaikos Giannis Vardinagiannis Soccer US$254 million
126 Arizona Diamondbacks Ken Kendrick Baseball US$253 million
127 The Open Championship Royal & Ancient Golf US$252 million
128 Tottenham Hotspur FC Daniel Levy Soccer US$250 million
129 Colorado Rockies Charles Monfort/Richard Monfort Baseball US$241 million
130 BMW-Sauber F1 Team; BMW Group Motorsport – US$240 million
131 Detroit Tigers Michael Illitch Baseball US$240 million
132 Philadelphia 76ers Comcast Spectacor Basketball US$234 million
133 Utah Jazz Miller Family Basketball US$233 million
134 Minnesota Twins James Pohland Baseball US$232 million
135 Toronto Blue Jays Rogers Communications Baseball US$229 million
136 Washington Wizards Abe Pollin Basketball US$229 million
137 Sacramento Kings Maloof Family Basketball US$227 million
138 Orlando Magic Richard DeVos Basketball US$226 million
139 Milwaukee Brewers Mark Attanasio Baseball US$225 million
140 Cincinnati Reds Robert Castellini Baseball US$222 million
141 Renault F1 Team; Renault Motorsport – US$220 million
142 Sachin Tendulkar Sachin Tendulkar Cricket US$220 million
143 Golden State Warriors Christopher Cohan Basketball US$217 million
144 Montreal Canadiens George Gillett Ice Hockey US$217 million
145 Denver Nuggets Stan Kroenke Basketball US$213 million
146 Tampa Bay Rays Stuart Sternberg Baseball US$208 million
147 Oakland Athletics Lewis Wolff/John Fisher Baseball US$207 million
148 Kansas City Royals David Glass Baseball US$204 million
149 Manchester City FC Abu Dhabi United Investment Group Soccer US$202 million
150 Australian Football League AFL AFL US$200 million
151 English FA Cup English Football Association Soccer US$200 million
152 FC Porto FCPorto SAD Soccer US$200 million
153 Atlanta Hawks Atlanta Spirit Basketball US$199 million
154 Portland Trail Blazers Paul Allen Basketball US$199 million
155 Miami Heat Micky Arison Basketball US$196 million
156 Detroit Red Wings Michael Illitch Ice Hockey US$196 million
157 Indiana Pacers Herbert Simon/Melvin Simon Basketball US$196 million
158 Los Angeles Clippers Donald Sterling Basketball US$195 million
159 Aston Villa FC Randy Lerner Soccer US$195 million
160 Minnesota Timberwolves Glen Taylor Basketball US$195 million
161 Oklahoma City Thunder Clay Bennett Basketball US$195 million
162 Memphis Grizzlies Michael Heisley Basketball US$191 million
163 New Jersey Nets Bruce Ratner Basketball US$191 million
164 Werder Bremen Werder Bremen and Co. Ltd. Soccer US$190 million
165 Fenerbahce Fenerbahce S.K. Soccer US$190 million
166 Toyota Racing; Toyota Motor Corp. Motorsport – US$190 million
167 Volvo Ocean Race; Volvo Event Management UK Sailing – US$190 million
168 Pittsburgh Pirates Robert Nutting Baseball US$188 million
169 Charlotte Bobcats Robert Johnson Basketball US$184 million
170 New Orleans Hornets George Shinn/Gary Chouest Basketball US$184 million
171 Milwaukee Bucks Herbert Kohl Basketball US$180 million
172 Florida Marlins Jeffrey Loria Baseball US$179 million
173 Philadelphia Flyers Comcast Spectacor Ice Hockey US$178 million
174 Dallas Stars Tom Hicks Ice Hockey US$177 million
175 Celtic FC Dermot Desmond Soccer US$172 million
176 VfB Stuttgart Club members Soccer US$171 million
177 Boston Bruins Jeremy Jacobs Ice Hockey US$170 million
178 Hamburger FC Club members Soccer US$165 million
179 Galatasaray Galatasaray SK Soccer US$160 million
180 Vancouver Canucks Francesco Aquilini Ice Hockey US$153 million
181 Borussia Dortmund Borussia Dortmund GmbH Motorsport US$150 million
182 Colorado Avalanche Stan Kroenke Ice Hockey US$150 million
183 Olympique Lyonnais Jean-Michel Aulas Soccer US$150 million
184 New Jersey Devils Jeffrey Vanderbeek Ice Hockey US$144 million
185 Olympique de Marseille Robert Louis-Dreyfus Soccer US$141 million
186 Earnhardt Ganassi Racing; Teresa Earnhardt Motorsport – US$140 million
187 Minnesota Wild Craig Leipold/Philip Falcone Ice Hockey US$140 million
188 Los Angeles Kings Philip Anschutz Ice Hockey US$136 million
189 Everton FC Bill Kenwright Soccer US$133 million
190 Ottawa Senators Eugene Melnyk Ice Hockey US$133 million
191 Chicago Blackhawks Wirtz Family Ice Hockey US$132 million
192 Anaheim Ducks Henry Samueli/Susan Samueli Ice Hockey US$131 million
193 Calgary Flames Calgary Flames LP Ice Hockey US$131 million
194 Tampa Bay Lightning Oren Koules/Len Barrie Ice Hockey US$130 million
195 Glasgow Rangers FC Sir David Murray Soccer US$126million
196 Pittsburgh Penguins Mario Lemieux/Ronald Burkle Ice Hockey US$126 million
197 Newcastle United FC Mike Ashley Soccer US$120 million
198 Kobe Bryant Kobe Bryant Basketball US$120 million
199 San Jose Sharks Kevin Compton/Greg Jamison Ice Hockey US$116 million
200 Penske Racing; Roger Penske Motorsport – US$115 million
Source: SportsPro Magazine
TOP TEN LEAGUE PROPERTIES
Rank Property Owner/Majority Shareholder Sport Value
1 (1) National Football League 32 NFL franchises Football US$4.5 billion
2 (2) Major League Baseball 30 MLB franchises Baseball US$3.936 billion
3 (3) National Basketball Assoc. 30 NBA franchises Basketball US$2.344 billion
4 (4) Nascar France family Motorsport US$1.9 billion
5 (6) Indian Premier League BCCI (India) Cricket US$1.6 billion
6 (9) Formula One CVC/RBS/Ecclestone Motorsport US$1.45 billion
7 (13) Uefa Champions League Uefa Soccer US$1.1 billion
8 (18) PGA Tour PGA of America Golf US$970 million
9 (33) National Hockey League 30 NHL franchises Ice Hockey US$760 million
10 (41) ATP World Tour Association of Tennis Prof Tennis US$700 million
Source: SportsPro Magazine
TOP TEN TEAM PROPERTIES
Rank Property Owner/Major Shareholder Sport Value
1 (7) Scuderia Ferrari Fiat Motorsport US$1.55 billion
2 (8) Manchester United FC Malcolm Glazer Soccer US$1.495 billion
3 (10) Dallas Cowboys Jerry Jones Football US$1.278 billion
4 (12) New York Yankees George Steinbrenner Baseball US$1.19 billion
5 (14) Real Madrid Club Members Soccer US$1.073 billion
6 (17) Washington Redskins Daniel Snyder Football US$999 million
7 (19) New York Giants John Mara/Steven Tisch Football US$932 million
8 (20) New York Jets Robert Wood Johnson IV Football US$927 million
9 (21) Arsenal FC Stan Kroenke Soccer US$910 million
10 (24) New England Patriots Robert Kraft Football US$861 million
Source: SportsPro Magazine
TOP TEN INDIVIDUAL ATHLETE PROPERTIES
Rank Property Owner/Major Shareholder Sport Value
1 (11) ETW Corp/Tiger Woods Design Tiger Woods Golf US$1.25 billion
2 (16) Nicklaus Design Jack Nicklaus Golf US$1 billion
3 (28) Arnold Palmer Design Arnold Palmer Golf US$800 million
4 (29) Great White Shark Enterprises Greg Norman Golf US$800 million
5 (36) Michael Jordan Michael Jordan/Nike Basketball US$725 million
6 (72) Golden Boy Promotions Oscar De La Hoya Boxing US$500 million
7 (82) LeBron James LeBron James Basketball US$400 million
8 (88) Beckham Brand Ltd David and Victoria Beckham Soccer US$375 million
9 (142) Sachin Tendulkar Sachin Tendulkar Cricket US$220 million
10 (198) Kobe Bryant Kobe Bryant Basketball US$120 million
Source: SportsPro Magazine
TOP TEN ANNUAL TOURNAMENT PROPERTIES
Rank Property Owner/Major Shareholder Sport Value
1 (22) The Wimbledon Championships All England Lawn Tennis Club Tennis US$900 million
2 (23) US Tennis Open United States Tennis Association Tennis US$880 million
3 (35) The Masters Augusta National Golf Club Golf US$750 million
4 (69) Monaco Grand Prix Automobile Club de Monaco Motorsport US$520 million
5 (81) Australian Open Tennis Australia Tennis US$400 million
6 (83) Six Nations Six Nations Rugby Ltd. Rugby Union US$400 million
7 (92) Tour de France Amaury Sport Organisation Cycling US$350 million
8 (109) French Open French Tennis Federation Tennis US$300 million
9 (120) Singapore Grand Prix Ong Beng Seng/Singapore Government Motorsport US$261 million
10 (127) The Open Championship Royal & Ancient Golf US$252 million
Source: SportsPro Magazine
Smaller sponsors finding ‘new economy’ in today’s NASCAR
May 6th
Green and yellow die cast stock cars wrapped in the Sun-Drop logo line his shelves reminding him of a period when small, locally-owned companies could afford to sponsor a car in NASCAR’s premier series and the partnerships were forged through friendship.
“Dale used to buy around 10 cases of Sun-Drop a week and he became friends with John King and his family, a local bottler in Concord, N.C. That’s how it all started,” said Falls, president of Choice USA Beverage, Inc. who today bottles the citrus soda for the Southern regions of South Carolina, North Carolina and Tennessee.
Dale Earnhardt and Sun-Drop had a five-year endorsement agreement that was terminated when Coca-Cola came into the sport.What began as a small agreement between Earnhardt and the local Sun-Drop bottler in Concord grew into a five-year personal endorsement agreement and associate sponsorship of Earnhardt’s No. 3 car making Sun-Drop one of the first major beverage sponsors in the sport. Although the company’s tenure that began in the early 1990s would not survive.
Since then, NASCAR’s sponsorship game has evolved tremendously and today’s economic landscape and recession is forcing smaller companies looking for viable fits to find new and innovative strategies.
“We couldn’t compete with Coke when they arrived,” Falls explained. “Dale [Earnhardt] got pressure to join the Coca-Cola racing family and he was never allowed to renew that five-year contract. We were left out of the sport because we couldn’t afford to compete with Coke and Pepsi’s resources and the money they were willing to spend.” Through the years, Sun-Drop and its regional bottlers would be approached with new opportunities to rejoin the sport, but none of the sponsor pitches were affordable or worth the expense.
But a recent cold call from a marketer at JD Motorsports, a small-tier Nationwide Series team, has changed all that. Sun-Drop is making a return to the sport in nostalgic fashion this summer and is becoming one of NASCAR’s growing examples of how smaller companies are creating unique, outside-the-box ways of either maintaining what sponsorship presence they have or creating new ones to increase their brand exposure in an affordable manner.
NASCAR teams cognizant of the economy and shrinking sports marketing budgets are starting to look to these smaller companies for support knowing that the larger companies have either left the sport entirely or can no longer afford to write multi-million dollar checks to cover a team’s entire season.
“The door is opening now and teams are willing to talk to companies like us and work with the smaller players in light of the economy,” said Scott Hunt, CEO of Hunt Brothers Pizza, who recently purchased six primary races from Richard Petty Motorsports to sponsor the No. 44 car.
“We’ve been cooking pizzas inside the garage area and feeding the teams. A.J. [Allmendinger] has handed out free T-shirts and our brand recognition has increased. Last year at our first race in Talladega everyone asked ‘who are you?’ That was not the case this year.” SCOTT HUNT, Hunt. Bros. Pizza”If the pricing was what it was three or four years ago, we couldn’t have done it,” Hunt added. “It’s made everyone a little more humble.”
To be more efficient with its sponsorship budget, State Water Heaters revamped their strategy and approach. The company chose to put their resources into a hospitality program created by a Charlotte, N.C.-based marketing agency where driver Ward Burton acts as a trackside tour guide of sorts. Instead of sponsoring a low-level team with a car that gets little television exposure, State Water Heaters decided to employ Burton as the company’s race day representative to entertain the company’s guests and most important customers.
Teams and companies are learning to reinvent the sponsorship sale so that both sides are happy. Value for the sponsor can have several different meanings in today’s NASCAR. Hunt said he discussed sponsorship options with several different Cup Series teams in order to increase brand awareness for his growing pizza company located in rural areas and convenient stores.
His first foray into the sport was brief and came in 2008 with Haas Automation. The company sat out at the beginning of the 2009 season to see what the economy was going to do. While the economy didn’t really improve much, the sponsorship opportunities and hood space among NASCAR teams did.
The pizza chain decided to go with Richard Petty Motorsports and its new driver A.J. Allmendinger, because the team was willing to accommodate the company’s goals.
It could afford to buy six races, but not the costly activation programs required to further reach NASCAR’s loyal fans. Therefore, the Petty team helped Hunt with a greater credentialing system that allowed Hunt’s larger distributors and potential clients to attend the Cup races.
Meanwhile, Hunt and Allmendinger have used low-budget grassroots activation methods to get the pizza into the mouths of many. “We’ve been cooking pizzas inside the garage area and feeding the teams,” Hunt said. “A.J. has handed out free T-shirts and our brand recognition has increased. Last year at our first race in Talladega everyone asked ‘who are you?’ That was not the case this year.”
Some economists and marketers note longtime and wealthy sponsors are still pulling out of NASCAR, but there are still a percentage of companies who are spending and even increasing their sponsorship budgets.
Kyle Busch helped push sales for NOS Energy drink through a case-by-case sales incentive program and a $5,000 personal services agreement that started in 2007.
Through NASCAR exposure and Busch’s success on the track, the partnership has grown into a $4 to $5 million Nationwide Series sponsorship agreement this season, according to his Motorsports Management team.
At the end of the day, companies know how valuable the loyal NASCAR fan base can be to their bottom dollar.
In Gaffney, S.C., this week, employees at the Sun-Drop bottling company are celebrating their return to the sport with JD Motorsports and are hoping to grow with young driver Danny O’Quinn Jr. in the Nationwide Series No. 01 car this season. And the sponsorship agreement with Sun-Drop, which begins at Lowe’s Motor Speedway with a paint scheme similar to what Dale Earnhardt Jr. ran on a Late Model car in Myrtle Beach, S.C., also came to be with a cold call and a face-to-face meeting at the bottling company.
“I told them if you want someone in the top 10, that’s not us. But we will qualify for every race and we will get your apparel and merchandise program off the ground and into the stores. They just couldn’t find a home where they didn’t have to spend millions of dollars,” Priscaro said. “We are just honored Sun-Drop chose us, chose our team to make their return to NASCAR racing.”
Everyone is leery of the economy and tightening their budgets, but when teams and companies look outside of traditional practices and markets, lucrative partnerships are formed. www.nascar.com
Athlete + Brand = Relevance to the fan!
Feb 20th
If NASCAR fans wanted more proof that Dale Earnhardt Jr. has become an icon who can eclipse his sport, there was plenty during Sunday’s Daytona 500 telecast. In a 15-second spot for primary sponsor Amp Energy – Earnhardt and six buddies are seen racing go-karts, firing paintball guns and shooting pool. “We think we’re breaking new ground with an athlete and how we use him in the creative process,” says Lauren Hobart, vice president of marketing for Pepsi-Cola North America Beverages.The campaign is another indicator of Earnhardt’s endorsement clout as a six-time most popular driver. “Bud did a hell of a job making that identity,” Earnhardt says. “They were this big damn brand in NASCAR, and I rode shotgun for eight years. We’ve got to do the same thing now in reverse. I said to Amp, ‘Instead of snazzy commercials that are fiction, why don’t we do it like Bud?’ The things we preached were real, and that sincerity came across to fans.”
Earnhardt’s legions of followers already seem convinced. Amp’s sales are up more than 70% in the past year. “Dale Jr. was a critical piece of what drove our sales,” Hobart says. “It was a catalyst for 5 million new consumers to try the brand.” Marketing data suggest Earnhardt has no peers as a Cup spokesman. In polling of avid NASCAR fans after the 2008 season for the Davie-Brown Index, which quantifies an athlete’s relevance to consumer behavior, Earnhardt ranked first in all eight categories (including trust, awareness and appeal). Ken Cohn, vice president for the Millsport marketing agency conducting the survey, says fans are 20% more passionate about Earnhardt than about other drivers. “Junior can do no wrong in the eyes of the fan,” Cohn says. “He can solidify a brand because he embodies it. When you transfer the affinity fans have for Junior to a brand, that can be powerful.”
Go Daddy, which also began running commercials last weekend shot on Earnhardt’s property, aligned with the driver partly because he was a customer who had used the company’s domain registration and website hosting. The ads by Go Daddy, which sponsors JR Motorsports and Hendrick Motorsports in Nationwide and Cup, were scripted but with input from Earnhardt. “He’s extremely hands-on,” says Barb Rechterman, executive vice president of marketing for Go Daddy. “He likes to do things he calls ‘the real deal.’ If it’s something he wouldn’t say or do in real life, he likely won’t do it on a commercial.” www.usatoday.com
Nuts and Bolts activation
Feb 17th
Craftsman has added branded entertainment before Fox’s broadcast of the Daytona 500. Craftsman was the “presenting sponsor” of a special focused on the pit crews. The one-hour “Craftsman Presents: Road to Daytona” featured Fox analyst Larry McReynolds hosting from a set at a NASCAR research facility surrounded by the brand’s signage.Craftsman, the “official tools of NASCAR,” was attracted to the sponsorship opportunity largely because the show finds story lines off the track and inside the NASCAR garages. “It’s really about before you get your race car on the track–and that’s where Craftsman lives,” says Erik Rosenstrauch, director of marketing for the Sears brand. Craftsman’s NASCAR relationship in 2009 has opted in favor of opportunities that provide a more direct connection between the brand and the nuts and bolts of the sport… strategically reallocating it. www.mediapost.com
Current thinking on sports sponsorship
Feb 13th
Sports sponsorship spending is likely to dip in Europe in 2009 after years of growth, according to a survey published by Italy’s sport marketing group StageUp, stating the European sports sponsorship market is expected to fall by 11.3% at 4.7bn euros ($6bn) in 2009.The European sponsorship market, which is second only to the US in terms of investment, predicts Britain will be the most affected, while Germany and Italy will be respectively helped by long-term naming rights deals and soccer sponsorships. “The market will suffer from the lack of high-visibility events such as the Olympic Games or the World Cup, which are true detonators for communication,” said Giovanni Palazzi, president of StageUp, Sports&Leisure Business.
Hartmut Zastrow, executive director at Sport+Markt sports marketing group, predicts a 5-10% drop in sponsorship income in 2009, but top sports, especially soccer, may even gain 5-10%. “Times will be difficult for trend sports such as kite surfing, skateboarding, etc,” Zastrow added.
In Formula One, one of the world’s most marketable sports, Renault’s title sponsor ING said it would reduce its spending and Credit Suisse will not renew its sponsorship of BMW-Sauber. A more consumer-based approach, along with a case-by-case evaluation, are also leading companies to sign deals. European banking group Unicredit has became an official partner of the UEFA Champions League through 2012. Royal Bank of Scotland (RBS), which also backs the Williams Formula 1 team, renewed its sponsorship of the Six Nations rugby competition last month, only 10 days after reporting the biggest loss in British corporate history! “Executives are focusing on events whose impact on consumers is clearly measurable,” explained Colin Grannell, executive vice president, partnership and marketing at Visa which backs the Olympic Games.
Spending on sports sponsorships in the United States will also fall this year as companies look to trim costs in a recession that has hurt most sports. “Look, we’d all like to see spending in (sports) sponsorship grow, but that’s not the environment that we’re living in,” said David Abrutyn, a senior vice president with sports, entertainment and media company IMG, whose clients include Coca-Cola Co (KO.N), Kia Motors Corp (000270.KS), Visa Inc (V.N) and Allstate Corp. (ALL.N) – “I would definitely say we’re seeing a belt tightening,” he added. “To say whether it’s 5 or 10 percent, I’m not sure I’d feel comfortable with a blanket characterization. It’s fair to say that companies are definitely looking at spending as little as they can.”
North American companies are expected to increase their spending on sponsorship, including sports, by just 2.2 percent this year to $16.97 billion, according to IEG, a research firm owned by advertising giant WPP Plc(WPP.L). Corporations are looking for ways to get their message out to consumers while reducing spending. “With NASCAR, if you’ve got a car that’s running toward the front of the pack every week, maybe it enables you to spend a little bit less in some other marketing functions,” Abrutyn said. Coke, for instance, has special NASCAR packaging designed exclusive to Kroger Co (KR.N) stores in January and February in celebration of the Daytona 500. Making the sponsorship relevant and engaging with the consumer is key. www.reuters.com
Sports Sponsorship 09 Growth Report
Jan 28th
According to an IEG Sponsorship Report companies will spend $11.6 billion this year on sports marketing, a 1.8 percent increase from 2008. That’s the least amount of growth since 2002 – Sports deals rose 14.7 percent last year to $11.4 billion.
General Motors Corp., MasterCard Inc. and Anheuser-Busch InBev NV are among the companies that are trimming sports sponsorships to curb costs although sports will still account for 68 percent of the $17 billion North American sponsorship market. GM’s Buick division ended its deal with golfer Tiger Woods one year early and Caterpillar Inc., Sprint Nextel Corp. and Home Depot Inc. were among the companies that have announced at least 72,500 job cuts because of a worldwide recession which impacts on their moral and commercial decisions regarding NASCAR sponsorships for 09. www.bloomberg.com
Mars – integrated activation with NASCAR
Dec 31st
Mars North America announces that it will extend its contract as official NASCAR partner. The multi-year sponsorship commitment allows multiple Mars brands to connect with racing fans and includes four designations:Official Chocolate of NASCAR (M&M’S(R) Brand)
Official Chocolate Bar of NASCAR (SNICKERS(R) Brand)
Official Cheese-Filled Snack of NASCAR (COMBOS(R) Brand)
Official Pet Food of NASCAR (PEDIGREE(R) Brand)
“The relationship between Mars and NASCAR is a win-win,” said Suzanne Beaudoin, vice president, Sponsorships and Sports Marketing, Mars North America. “Mars wants to be part of every race experience. Being an official NASCAR partner illustrates our dedication to the fans, our drivers and the sport, while driving brand affinity and excitement for our brands.” The multi-year partnership aligns Mars with its existing contracts with Joe Gibbs Racing. For 2009, Mars will continue to develop programs that build relationships directly with NASCAR fans, including:
M&M’S “The Most Colorful Fan of NASCAR Contest” will launch at the Daytona 500 and run for 24 weeks.
Mars’ COMBOS Brand will also leverage its NASCAR sponsorship with the new “Man Zone” on-pack promotion, visiting ten race tracks during the 2009 NASCAR Sprint Cup Series.
SNICKERS Brand will promote its sponsorship at retail stores nationwide.
All trademarks acknowledged. http://www.mms.com/us/racing
Jim Beam® and TOYOTA partner Robby Gordon in 09
Dec 29th
Jim Beam® Bourbon announces that it will continue its partnership with Robby Gordon Motorsports (RGM) as a primary sponsor of the No.7 driven by Robby Gordon during the 2009 NASCAR Sprint Cup Series.Brian Gallagher, Motorsports Marketing Manager, Jim Beam said, “We are proud to continue our support of Robby and his race team as they demonstrate true character and achieve success on the track.” The deal marks the company’s fifth year of partnership with RGM. Jim Beam will utilize its sponsorship to reach race fans both on and off the track and Gordon will be spokesperson for Beam Global Spirits & Wine reminding legal age consumers to drink responsibly.
Robby Gordon Motorsports also announced that they will partner with Toyota in the 2009 NASCAR Sprint Cup Series. Lee White, President of TRD, U.S.A. said, “It will be exciting to see how the association between Robby, his team, Toyota and TRD will develop in 2009. I promise you that it will not be boring.” www.robbygordon.com