Nascar Roundup - 3/26/2009

Companies know you have to spend money to make money, and the best way to spend money is marketing. Nascar's Cup Series has been a climbing source for companies to gain millions of viewers as they watch their billboards and logos zoom around racetracks at 200 MPH. Nascar drivers are the face for many companies like Lowe's, Home Depot, Dupont, Crown Royal, Jim Beam, M&M's, Miller, Budweiser, UPS and FedEx.

When you visit the tracks, large exhibitions are on hand for fans to get up close looks at comapny products and hospitality tents to cater, wine & dine clients.

These sponsors are needed for teams to compete at the highest level of American Auto Racing, but many eyes are watching these companies from congress and even fans. It's hard to see Citifinancial asking for bailout money when they spend millions on sponsoring a race car, catering clients weekly and providing tickets to races. It's a catch 22, Nascar teams need the sponsors and it's one of the best profits in marketing, but cangress looks down on corporations who participate. "It's hard to hang out with clients, give free tickets, sit in a corporate suite and feed approximatley 500 every race week knowing back home we had to let go of 30% of our workforce. We know it's a good investment to be involoved in Nascar, but we're looking at scaling back on our exhibits, tickets and hospitality participation," said one CEO. "We don't feel it's necessary to leave the sport, but we do need to be mindful of how we spend our corporate dollars." When asked about how much his company spent last year in Nascar, he simply smiled and said, "A whole lot more than we will this year." It's estimated that most companies that invite an average of 250 guests, spends close to $400 per guest at $100,000 a race. Then add a corporate suite, exhibits and the your team/or track sponsorship and it can get close to $500,000 + per race for the Top tier sponsors.