NASCAR: the importance of Sponsors

Money makes the world go round, and in the case of NASCAR, it keeps the cars on the track. This has never been so obvious as it has at the beginning of the 2009 racing season. With the economy about as poor as we've seen in years, race teams have been forced to combine and merge with other teams, run a limited schedule, or shut down all together. It hasn't been a pretty time for these racing workers.

Between the end of the 2008 season and now, hundreds in NASCAR were laid off as a result of teams shutting down or merging. The reason is simple. It takes hundreds of thousands of dollars to run a race, which translates toa good $20-25,000,000 a year. Unless you're in the top 35 teams, there's no guarantee of getting in the show, either. You have to race your way in.

Normally, the talk is about drivers looking for a ride, and generally, they find one, but this year, that's been different. A lot of good drivers are on the outside, looking in because they just don't have a sponsor. A few, like Jeremy Mayfield, have started their own teams. In fact, every member of Mayfield's crew are laid off workers from a number of now-defunct teams. Having never worked together before, this group somehow got themselves into the first two races of 2009, which is a pretty impressive fete. However, then there are those like Kyle Petty, a long time veteran who had no plans to retire and had planned to continue racing with Petty Enterprises, but that company merged, and when it came down to sponsorship money, they didn't have enough to field Kyle Petty in a car. He's out, and not by choice.

Even those who have set relationships with sponsors have had to worry. Some of these big sponsors have committed to fewer races, wanting to allow other companies to be the lead on a race. The problem is that nowadays, it's hard to find a company with money to invest. Even Dupont, which has the longest association with a driver than any other NASCAR sponsor, has pulled back with track activities, and for the first time, there's speculation about whether or not they'll sign up for another term when their contract expires with Jeff Gordon in 2010.

When we think of sponsors, it's usually the paint schemes or constant plugs a driver gives for their sponsors during an interview that comes to mind. Those big, bold decals that adorn the cars and a driver's racing suit all say one thing - I have a sponsor, and that's why I'm here. Drivers need to do everything they can to make sure their sponsors are happy. Michael Waltrip is probably the best. Proof of that is just how well he's kept Napa Auto Parts and Aaron's on board, even through some treacherous turns. He gets them publicity, and that's their reward.

However, on the race track, there have been many blank quarter panels in 2009, a sign of just how few those sponsorship dollars are these days. Publicity and resultant sales just haven't equaled the cost i the eyes of price-conscious companies. Unfortunately, they translates into some drastic decisions. David Gilliland's team has run the first three races and will attempt to run the Atlanta race as well, but after that, there is no money. Unless something comes through, that'll be their last race for a while, regardless of race results.

It takes dollars to keep NASCAR's drivers turning left week after week. This year, driving team leaders like Jeff Gordon went to their employers and volunteered to take pay cuts, if it meant keeping the teams together. It's not every day that someone like Gordon or Kevin Harvick will do such a thing, but that's how dire the situation is, and they both recognize it.

It may be rough going for a while, but NASCAR is hanging in there. The organization itself is doing what it can to hep keep cost down, hoping they can weather this financial storm. Without the sponsors, their field of forty-three may dwindle to half that size. It hasn't happened yet, but in these tough times where companies are fighting for their own survival, devoting the millions they have been to NASCAR may not be economically feasible.

Sponsors are needed, and they do indeed have a profound affect on the health of the sport.