Dec 14th, 2009 by T.C.
The single biggest problem facing NASCAR teams that want to continue being NASCAR teams is the search for, acquisition of, and retention of sponsors. Without them, we don’t get to go play on the weekends. But as the economy continues to struggle, this proposition has become much more difficult.
Just this year alone we’ve lost longtime sponsors like DeWalt Tools and Jack Daniels. With more companies pulling out and the case for investment in motorsports more difficult to make, teams must find new places to look for potential sponsors and new ways to keep them happy.
One tactic some teams have employed through the years is to lure sponsors away from their competition. An example of this is Discount Tire. The national tire store chain first appeared in the NNS Series on a Chip Ganassi Racing entry; they later moved to Roush Fenway Racing. Now for 2010, Discount Tire is moving from RFR to Penske Racing with Brad Keselowski.
When a deal like this happens, often times it’s because a team promises similar exposure for a smaller investment. But in other cases, it could be the opportunity to work with a specific driver or the hopes of better performance. Either way, it can be an ugly situation.
I’ve seen some discussion over the past few days about Miccosukee moving from Billy Ballew Motorsports to Kyle Busch’s new truck team. To say that KBM stole the sponsorship from BBM or to suggest that it is somehow not right or fair for this to happen is wrong. Racing is a business and teams must do what is necessary to survive. In this instance, obviously KBM did a better job selling their team to Miccosukee, and the Indian tribe made the conscious decision to move. On the flip side, Miccosukee found better value for their money at KBM. As I see it, no blood, no foul.
The successful sponsorship formula has never really stopped changing or evolving since racers first started asking businesses for money. As we progress and move forward, expect teams to continue being creative with their marketing and sales plans. As we’ve seen in recent years the multiple sponsor approach is becoming the new standard.
Right now is as difficult a time to find sponsorship as any in the sport’s history. It’s a cutthroat atmosphere for teams and the team who can offer the most for the least is likely to come out on top.
