Besides being a fan-favorite sport, NASCAR is also a high-value entertainment business. Hence, money does matter in the arena of NASCAR. In an official Joe Gibbs Racing video, president Dave Alpern shed light on how important sponsorships are in this fast-paced sport.
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Sponsorship in NASCAR is a must-have, while in other sports, it’s good to have. Despite purchasing charters worth millions of dollars, a team could run out of business if it has zero sponsors funding it.
It takes money worth several fortunes for the team owners to get their cars into the rumble. Naturally, all that money doesn’t come from the owner’s purse. Alpern said, “In order for us to compete and win, we have to have corporate sponsorships.” He admitted that a considerable chunk of the team’s revenue comes from sponsorship.
Hence, that amount of attention goes toward making sure the sponsorship is working for the brand and for the team as well. Moreover, the brand that sponsors the driver ultimately becomes the identity of the team itself.
“Denny Hamlin, the FedEx Camry. Martin Truex Jr, he Bass Pro Shops Camry,” said Alpern, “On top of that we have a 38-week season, which means for 9 months out of the year sponsors have a huge audience every week, both at the racetrack and on television.”
“So matter of fact, our audience are second only to the NFL in the number of viewers who watch each of our events. So our sponsors have a very long season that they can either bring customers to the racetrack or have their brand on TV during our races,” he added.
Why are NASCAR teams desperate for sponsorships?
When a brand offers its money to a NASCAR team, the driver of that team becomes the front face of that brand. This means the actions of the driver could potentially decide the running of that brand. Take 23XI driver Bubba Wallace, for example. Anything that Bubba Wallace says or does on camera affects McDonald’s directly. Hence, the corporate sponsors often stand in the way of the drivers expressing themselves freely to the media.
But why is NASCAR so dependent on these corporate sponsors? In an episode of Overtime with Matt Faulkner, the host shed light on the actual reason why the sponsors hold such high importance in the arena of NASCAR.
“The reason for sponsorships in NASCAR all center around going fast,” he explained, “If you have more money coming into your team, typically you’re able to develop at a greater rate or develop more than your competitor, and your car should be faster.”
“Throughout the history of NASCAR, teams have hunted for more sponsorship money to bring that in to hire better people, to test more… to do all sorts of things that make the car faster,” he concluded.
