A big part of the revenue injection that NASCAR teams get is from their sponsors. By the traditional rule of things, brands pay the promotion or the teams big dollars in exchange for being featured on cars, driver suits, and other such real estate. The teams would then use the money to carry on operations and win. However, this hasn’t been the only way of bartering in recent times.
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With NASCAR trying to align itself with the world in terms of modernization on certain fronts, it has gone towards accepting professional services from sponsors instead of the dollar. One of the first examples of this was the introduction of Microsoft products and software in the garage after the tech giant signed on as NASCAR’s official technology partner.
This way of life has found more affinity in recent years and the sizes of the checks from sponsors have steadily gone down, according to a report from Forbes. The nature of these technical alliances expand beyond just technology and software. D3O, a company that makes products used to protect against hard automotive impacts and dampen vibrations, partnered with Legacy Motor Club recently.
For the Jimmie Johnson co-owner racing outfit, this means using the company’s products to devise driver safety solutions in exchange for brand exposure. D3O’s roster of partners include the Depart of Defense, NASA, Formula 1, and now NASCAR.
Noting these changes in sponsor dynamics, Joey Cohen, VP of Race Operations at Legacy, says, “Ten, fifteen, twenty years ago, we barely had computers in the garage. Barely had Excel spreadsheets; if anything, it was Microsoft Excel (that) would’ve been the main technical partner. But that’s just changed a ton. We’re just following the ways of the world really.”
How the NASCAR Next Gen car helps attract technical alliances from other motorsports avenues
The Next Gen car that was introduced in 2022 is built on the same platform as a GT3 sports car. This new line of engineering has exposed NASCAR to a range of vendors who weren’t on the radar three or four years ago. Companies that were already present in other motorsports series are relishing the opportunity of exploring new grounds too.
D3O’s partnership with Legacy to improve driver safety doesn’t end with receiving brand exposure as compensation. The NASCAR team sends racing data to D3O’s external partner that will use it to make improvements to products used in industries like defense.
Teams are always looking to find the slightest of performance advantages that they can in NASCAR today. With companies like D3O offering that to teams, the new way of sponsor-team relationship is ultimately beneficial for all the stakeholders involved. As Cohen puts it, “It just all feeds the ecosystem.”
