2009 Outlook

[Redman]

Sponsorship is not cheap. You either believe:

1. There is a return on your investment

2. You just don't care because you love the sport

3. You believe that winning is good and losing is not worth paying for.

4. The sport has upward momentum.

Most corporate sponsors fall into the #1, #3 and #4 categories.

Drag racing is currently on a down cycle. Gas is expensive. Fatalities have forced things to happen (rightly so) that are not fun... ala 1000' races.

I am sure that at some point the cycle will reverse. But for now... times are tough. And I expect them to get worse before they get better.

The only good news about down cycles is that it forces everyone to closely examine their business (or sport in this case) and figure out what to make better.

I am a drag racing optimist in a down cycle. But don't expect more good news than bad for some time. It is just not realistic.

Jim

 

[Toejam]

Joe, lets take a hypothetical situation in which a company like Trojan condoms were to step up to the plate and agree to a 2 or 3 year deal to back a fuel car? As much as you or I would welcome ANY new sponsor, there are plenty of people who post here who would $h!t a purple brick with yellow polka dots if a company that has anything remotely associated with sex advertised. just imagine how conservative America would react. Remember when Big Jim had the Penthouse deal back in 1999, and how many people objected to that?

Mike I know what your talking about, but I'm willing to bet that IF the Trojan Condom Co. wanted to sponsor a Fuel car, that a Parent Company name would be displayed on a car rather than Trojan.

 

[Nitrohaulic]

Come on Buzz,

I know your a smart guy. But in the current state, it wouldn't happen. Your post represents one of living in a dream world. (Not by any means saying you are) But this would be a fantasy for some racers. May be spots, but who's got the money to get the gear together in the first place? Unless the A/Fullers just jumped in... It's not going to happen!!! If it was so simple to fill some spots, then maybe some of the IHRA tour would try take a shot. Not happening! For example...

FC gets 13 cars showing up... Jay Payne thinks "Hmm numbers are low in FC, maybe ill source some gear and go compete"

Sorry Buzz, but even I think you know this is a bit far fetched.

I get your point, that spots will always be filled, but in 2008/2009 life is just not that easy. If only it was...

Regards,

Michael

It used to be profitable for a little guy to one shot qualify and then go up on Sunday to more than likely lose to #1 or 2 qualifier. If you have enough good running, well sponsored cars it's almost pointless for those guys to show up. Why do you think they wouldn't come back again? I'm friends with someone who's putting together a nitro funny to do just that in IHRA. You may have to first have a few races with incomplete fields before you wake those guys up again and they start building and showing. I predict they'd be there. One person's problem is another's opportunity?

As far as tobacco goes, I'd fight for their right to be there but, it wouldn't bother me a bit if people did shun them as far as accepting sponsorship goes. You don't usually see drivers using their products, do you?

 

[kd]

As long as there is still 16 spots open for qualifying, there will be people willing to fill those spots. Teams will step up from TAD, TAFC, and other areas if there is a very good chance they could qualify. And when they get TV time and qualify, someone will step up with smaller sponsorships for those teams. Who knows, maybe a larger one to follow.

Hey Buzzzz.....what color is the sky in YOUR world???

 

[Nitrohaulic]

Hey Buzzzz.....what color is the sky in YOUR world???

I'd say a realistic one since that's what used to happen. Why WOULDN'T it happen again? Maybe you'll see more "little guys" coming up and into nitro instead of those coming in with family/big sponsor bucks right off the bat. I know the former are the ones I'd rather see more of. Which ones seem to stick around longer?

 

[BaldyLochs]

Just remember, all the big guys were once little guys.

 

[davey]

I have read that even Forrest Lucas is looking for outside sponsorship. You can only love a sport for so long before you get tired of spending your own money. I would bet having the Lucas Oil name on the new Colts Stadium is far less money per year than running two top fuel teams. Guess what gets far more exposure? I have also heard that Ken Black has enough money to race forever. I don't know that for sure but I do know that he is willing to park it if he doesn't get sponsorship.

Someone correct me if I'm wrong but doesn't NHRA still have to approve all sponsors? If so, Trojan would never appear on a car. They would have the possibility of being the official condom of NHRA, however. (insert your own jokes here) They'll promote anything that benefits them.

 

[Chili]

I'm have no idea how much money Lucas spends on running Top Fuel, but the Lucas Oil Stadium deal is $30 Million a year for 10 years which is probably more than he is spending racing (or at least I hope).

 

[davey]

I'm have no idea how much money Lucas spends on running Top Fuel, but the Lucas Oil Stadium deal is $30 Million a year for 10 years which is probably more than he is spending racing (or at least I hope).

That's a lot more than other stadium deals I have seen. I would have thought more like $30 million over 10 years. Not per year. $30 mil per year makes no financial sense to me but I don't know how much Lucas Oil is worth.

 

[Roadsters]

Anybody have any good news?

The good news is that even though thousands of people, myself included, have lost interest in almost everything related to the NHRA except for the museum and the Cacklefest, hot rodding is alive and well, and it looks like it always will be.

If you want to see real grass-roots racing, intense competition, a more diverse selection of race cars than you could imagine, truly creative engineering, and real hot rods, take a trip to the Bonneville Salt Flats for Speed Week.

Dave Mann
(602) 233-8400
Roadsters.com

 

[ProNitro Pete]

Sponsorship is not cheap. You either believe:

1. There is a return on your investment

2. You just don't care because you love the sport

3. You believe that winning is good and losing is not worth paying for.

4. The sport has upward momentum.

Most corporate sponsors fall into the #1, #3 and #4 categories.

Drag racing is currently on a down cycle. Gas is expensive. Fatalities have forced things to happen (rightly so) that are not fun... ala 1000' races.

I am sure that at some point the cycle will reverse. But for now... times are tough. And I expect them to get worse before they get better.

The only good news about down cycles is that it forces everyone to closely examine their business (or sport in this case) and figure out what to make better.

I am a drag racing optimist in a down cycle. But don't expect more good news than bad for some time. It is just not realistic.

Jim

Jim,
I see you as a # 1,2 & 4 type sponsor in the racing game, and in being realistic the 4 will get outweighed by the 2 most everytime when challenged ( slow market movement)

As a sponsor and a businessman, (as well as a drag fan) do you think that the Leadership is taking all this in, and exploring strategies in how to keep the game up?
Do they fully utilize the marketing experience that they partnered up with?
Do they realize that they too, must make changes and adjustments with their strategy as do the owners and sponsors?

Change is good, as are growing periods or periods of retrograde. But the need for change and alterations need be made not only by the racers , but by the organization.

How strong is a kingdom, if the king is wealthy but his subjects are dying or captured to another kingdom.

 

[Nitrohelper]

but the Lucas Oil Stadium deal is $30 Million a year for 10 years.

That is incorrect , around 6 million a year for 20 years.
About the same budget to run two fully funded Nitro cars for the championship per year.

 

[Nitrohelper]

Anybody have any good news?

Sure, the price of oil is coming down,
and the N/FC movement is getting more cars & match race dates every year.
Many "grass roots" tracks are planning Nitro shows next year now that they don't have to pay $10,000 per run for fire & thunder.
Twenty or more Nitro runs on a Saturday night for a $20 ticket works.
Cordova had more than 30 Nitro laps with jets & wheel standers, plus "Benny the Bomb".
Alcohol cars and pro-mods too,at $33 dollars for one day & night,they packed the place.

 

[Toejam]

Sure, the price of oil is coming down,
and the N/FC movement is getting more cars & match race dates every year.
Many "grass roots" tracks are planning Nitro shows next year now that they don't have to pay $10,000 per run for fire & thunder.
Twenty or more Nitro runs on a Saturday night for a $20 ticket works.
Cordova had more than 30 Nitro laps with jets & wheel standers, plus "Benny the Bomb".
Alcohol cars and pro-mods too,at $33 dollars for one day & night,they packed the place.

No Offense Jerry, but if the Nostalgia scene has to rescue Professional Drag racing, then the Sport is Truely DEAD! The Over 50 crowds won't be going to the track forever, and I don't see N/FC's being much of a sell in the year 2025! Just my opinion...

 

[d'kid]

Joe,

Fifteen years from now, I don't believe there will be Nitro or Alky (at least as we know them today) cars at National Events. I see Top Electric and Top Hydrogen. No Long Smoky Burnouts because of air quality issues, No un-muffled engines, no yellow clouds in the pits... not even pit access for fans...

I believe the sport we grew up loving is in it's death rattles now, the patient has died doctor, we just haven't told him yet. There will still be Nitro cars at 'Outlaw' tracks in the middle of the night.

Personal transportation will have no relation to what we have today... more than likely little two passenger, three wheel runabouts.

d'kid

 

[clwill]

Mike I know what your talking about, but I'm willing to bet that IF the Trojan Condom Co. wanted to sponsor a Fuel car, that a Parent Company name would be displayed on a car rather than Trojan.

Why would they sponsor the car if not to advertise their product?

 

[Nitrohelper]

.... if the Nostalgia scene has to rescue Professional Drag racing... ... I don't see N/FC's being much of a sell in the year 2025!....

No rescue for the "Big Show" intended, it can die as it now exists as far as I'm concerned.
You are confusing the crowds with the reunions, the young folks come to local Saturday night Nitro shows.
There are several mid thirty age people that I have been advising on building new N/FCs. More tuning jobs for "seasoned veterans" (geezers)
I just hope that Nitro is still available to be burned in 2025,and I'm still able to pour it in a fuel tank.
I started with a front engine Nitro dragster in 1963, and they are still racing today.

 

[Redman]

Jim,
As a sponsor and a businessman, (as well as a drag fan) do you think that the Leadership is taking all this in, and exploring strategies in how to keep the game up?
Do they fully utilize the marketing experience that they partnered up with?
Do they realize that they too, must make changes and adjustments with their strategy as do the owners and sponsors?

I think these are stressful times for the NHRA. Times that deserve a good look at all options and ways to make things better. While I think the management has done many things recently, there is more work to do... just like any business.

Times are not just difficult for drag racing. Try selling your home right now. Or buying one and getting a loan. This economic situation has everyone scrambling to "re-think" their situation. Sponsorships, advertising, product development and spending of any kind is under scrutiny like never before... well, not like the last several years anyway. I would expect to see sponsorships lost and difficult to replace. Dark clouds on the horizon. But I also believe that the sport has value and staying power. Things will get better, but the economy will need to turn. I am old enough to have seen all this stuff before. Fear and greed. Were are in a fear-phase right now. They always pass.

Jim

 

[davey]

That is incorrect , around 6 million a year for 20 years.
About the same budget to run two fully funded Nitro cars for the championship per year.

Thanks Jerry. That's more like it. That's still a pretty hefty price tag for a naming rights deal but the Colts are a hot deal and there is a ton of exposure to be had from it.

 

[davey]

Why would they sponsor the car if not to advertise their product?

What Joe is saying us that the NHRA wouldn't let them put the name "Trojan" on the car. They would have to use the name of their parent company.