Sponsorship Dollars

[oak]

Is there a way to find out how much a company pays to be a primary sponsor on a car? I took a temporary, seasonal job with UPS as a driver's helper and the driver I'm working with is a NASCAR fan as well. Yesterday the subject came up and I told him I would try to find out what UPS pays to be on the 6 car. Neither of us are Regan fans, but it just came up and would be interesting to know.

[Nostradamus]

well my guess is that it would be big buck$ but it probablyvaires from driver to driver and the odds of them in winners circle and things like that as well. On thing you can be sure of, at least 6 digits to play in that game

[oak]

well my guess is that it would be big buck$ but it probablyvaires from driver to driver and the odds of them in winners circle and things like that as well. On thing you can be sure of, at least 6 digits to play in that game

I'm sure 6 digits wouldn't even be close for a full-time primary sponsor in today's world. Eight would be more like it. Like $10,000,000 to $40,000,000? Any ideas where to look?

[fonger]

a little old article (2004)

http://i.cnn.net/nascar/2004/kyn/nascar_101/05/20/team_costs/384x256_storycar.gif
The cost and value of team sponsorships
May 20, 2004
4:05 PM EDT (2005 GMT)
While owners in the NASCAR garage typically won't divulge the specific dollar figures involved, it's been reported that Nextel Cup teams get between $10 million to $20 million from sponsors for the primary spots on their cars.

Richard Childress, who fields cars in all three of NASCAR's national series, has stated that even beyond primary sponsorship, some associates may put up $500,000 to $1 million for secondary spots on the car.

"Putting your name on the car is a part of the deal, but how you activate the program and how you get the sponsor to stay involved -- promotions, sweepstakes, hospitality -- there's so many ways that even an associate sponsor can get their dollar value," Childress said.

Roush Racing president Geoff Smith calls his sponsorship packages a "platform of rights."

"This isn't just about paying $10 million to put your logo on the hood of a car," said Smith. "You have to realize that this goes beyond just the car -- it includes uniforms, transporters and the rights to use the drivers for company marketing purposes."

According to Smith, in today's sponsorship environment it is all about the packaging.

For example, a $10 million-sized primary sponsorship of a team may only include the upper hood area, the quarter panels, part of the TV panel, and some of the B-post and deck lid.

In that scenario, Smith said a smaller package for an associate sponsor could potentially be constructed for $2 million to $6 million. This package might include the lower part of the hood, the rest of the B-post and panels, and perhaps the primary sponsorship of the car for a handful of races.


Sponsoring a team gets you more than just a car
And what about the total package? A $15 million-ish deal?

"You have bought the car," stated Smith.

In a primary sponsorship package of that size, Smith said a typical team will give the sponsor all of the hood, all of the quarter panels, the signage below the quarter panels, the entire TV panel, and most of the B-post and C-post.

Beyond that, the sponsor also would receive the rights to use the driver's image (and time for appearances), and they get to choose the colors for the paint scheme and team uniforms.

To put sponsorship costs into perspective, back to the early 1960s, Fred Lorenzen, who was one of the first drivers to stumble upon the idea of signing up a car sponsor, brokered a package with a Fayetteville, N.C., Ford dealer, to pay $6,000 for the 29-race season (about $200 a race).

By the late 1980s, Junior Johnson estimated he needed around $3 million in sponsorship dollars to break even over a 30-race season (about $100,000 a race).

When UPS announced its primary sponsorship of the Robert Yates No. 88 team driven by Dale Jarrett in November of 2000, it was estimated that the deal was in the range of $15 million a year. That would breakdown to around $400,000 per race.

[fonger]

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