30th January 2007

NASCAR Busch: At Twice the Price

posted in NASCAR, NASCAR-nomics |

According to ESPN, and the ever unpopular un-named sources, the new sponsorship deal in the works for NASCAR’s second tier series will command twice the cost Anheuser-Busch shelled out for naming rights.

Anheuser-Busch, who will be leaving after the 2007 season, served as the Series’ primary sponsor for 26 years and paid an estimated $15 million per year.

“I can confirm that there has been great interest from a number of multinational companies that are interested in this sponsorship,” NASCAR spokesman Ramsey Poston said.

Previous speculation has centered on Wal-Mart, Samsung and Subway as in the running and Poston said nothing to dispel those rumors, in fact ESPN’s “sources” (As opposed to Poston who actually has a name) added to the list of possibilities.

You can add the names of Dunkin Donuts and Allstate Insurance that may be willing to cut a check for #30 million per year. Allstate being problematic because all the Speedway Motorsports tracks are sponsored by the insurance company Nationwide.

Poston also claims the deal provides “the eventual sponsor over $100 million annually in brand exposure.” I have no way of disputing that and in comparison to other sponsorship deals it’s not far out of line.

Examples: The Washington Nationals of MLB looks to sign a sponsor for their new stadium for between $16 million to $18 million in annual sponsorship fees.

Barclays PLC agreed to pay a reported $20 million per annum for a 20-year deal for the new basketball arena in Brooklyn.

According to trade publication Street & Smith’s Sports Business Journal, 2006 was the most active year since 1999 for new naming-rights deals.

Several of the most expensive deals ever were signed in 2006 as well - with the $400 million, 20-year deal by Citigroup to name the New York Mets’ new baseball stadium CitiField topping the list.

Given that as background you’d have to say NASCAR is in the drivers seat, no pun intended, when looking for an Anheuser-Busch replacement.

I’ve already gone on record and proclaimed Wal-Mart to be the eventual winner. However as a kick in the pants to the xenophobes having a Samsung Cup in 2008 wouldn’t be a bad thing.

I will also admit the 2008 Dunkin Donuts Cup has a certain appeal. The 2008 Cruller Cup would have a nice ring to it as well.

I mean, think of the trophy design possibilities! Anything would be better than the hideous NEXTEL Cup, that isn’t a cup.


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This entry was posted on Tuesday, January 30th, 2007 at 8:10 pm and is filed under NASCAR, NASCAR-nomics. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

There is currently one response to “NASCAR Busch: At Twice the Price”

Why not let us know what you think by adding your own comment! Your opinion is as valid as anyone elses. (Except mine, it takes precedence over all!)

  1. 1 On January 31st, 2007, Gvav1 said:#

    For the price and exposure, it seems like a good deal!

    I love it….the Donut Cup!!!

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