Another car bites the dust... (1 Viewer)

[Alan]

bummer ! but my money is on team $humacher making dave the 2nd driver taking ritchies place.

If Schumacher had sponsor dollars, I think Richie would still have the ride. And if Dave had dollars to offer, Cagnazzi would still be getting him ready for this year without worrying about parking him.....

 

[TOOLMAN]

JEGS!
They had two cars out of their camp in pro stock. Surely they could fund the car to start the season. It would be a waste to let one of the best to set idle.
Hope Jeg is reading.
NHRA needs to catch up with the racing industry and pay LARGER PURSE FOR ALL CATAGORIES.
Hope everybody has a great year!

 

[T-Bone]

...and this is the problem with one company sponsoring too many teams and races.

I've seen this soooo many times in the business of advertising and promotion. DIVERSITY is the best thing. You want as many different revenue streams as possible. One BIG sponsor is ultimately a very risky proposition.

Great post!! Hopefully this will be looked at by other teams...I mean it's not a pretty picture to think about but imagine if Castrol or Ford decided to bail(not that they ever would- but as an example)...I can think of one team that would all but be shut down.

T

 

[Whipster]

...and this is the problem with one company sponsoring too many teams and races.

I've seen this soooo many times in the business of advertising and promotion. DIVERSITY is the best thing. You want as many different revenue streams as possible. One BIG sponsor is ultimately a very risky proposition.

But if you're looking for sponsorship money and you find someone who was willing to give it to you, would you say "no" because he sponsors 10 other teams?

 

[yoda]

Great post!! Hopefully this will be looked at by other teams...I mean it's not a pretty picture to think about but imagine if Castrol or Ford decided to bail(not that they ever would- but as an example)...I can think of one team that would all but be shut down.

T

Do you really think that team would really shut down if one (or both) of those sponsors bailed? First, the marketing team would have the jet warmed up to fly in the dozens of name corporations that they could impress with one visit to Yorba Linda.

And the rumble through the SPORTS world would have D.D. working harder than a one armed man in a canoe just answering calls from potentials that would want to get on board/ increase their current exposure... Have you seen all the smaller branding on one of those Fords? Given the opportunity, I bet some of the wealthier ones would love a chance to increase their advertising exposure on a proven winner in exchange for monster TV time...

Shut down? Far from it. That's not even mentioning his own personal wallet....

 

[HEMI6point1]

Big bummer for Dave.

Here's my question though. From what I saw on ESPN a while ago Victor Cagnazzi sold his computer company a while ago for close to $600M, so it's not like he's hurting for cash. Can't he just fund it himself?

 

[T-Bone]

Do you really think that team would really shut down if one (or both) of those sponsors bailed? First, the marketing team would have the jet warmed up to fly in the dozens of name corporations that they could impress with one visit to Yorba Linda.

And the rumble through the SPORTS world would have D.D. working harder than a one armed man in a canoe just answering calls from potentials that would want to get on board/ increase their current exposure... Have you seen all the smaller branding on one of those Fords? Given the opportunity, I bet some of the wealthier ones would love a chance to increase their advertising exposure on a proven winner in exchange for monster TV time...

Shut down? Far from it. That's not even mentioning his own personal wallet....

Read the post after yours about Cagnazzi...why can't he fund it himself? Again...why won't Jegs.com fund him until they can secure another sponsor? I was using Castrol/Ford as an example..as much as John is a hardcore..would he fund all 4 teams himself? What if Army pulled out..would Shoe fund everything himself? When it comes down to dipping into their own funds..I think the tune changes a bit.

Just my observations....

T

 

[Johnny Mopar]

Read the post after yours about Cagnazzi...why can't he fund it himself? Again...why won't Jegs.com fund him until they can secure another sponsor? I was using Castrol/Ford as an example..as much as John is a hardcore..would he fund all 4 teams himself? What if Army pulled out..would Shoe fund everything himself? When it comes down to dipping into their own funds..I think the tune changes a bit.

Just my observations....

T

Good point Terry. I believe the reason wealthy (smart) business people don't fund these deals out of their own pocket is because there's little to no return on investment. The purses are ridiculously low and the costs are ridiculously high. It's very difficult to become (or stay) wealthy if you invest your money on ventures with little or no return.

Go to NHRA's site and revisit the payouts. NHRA.com: 2007 POWERade championship fund, Top 10

Several months back Greg Enders identified the cost of going to EACH national event as $100,000.00. Given the 24-race schedule this year, a top level team will spend $2,400,000.00 just to attend the events for a class that only pays $250,000 to the season champion. I can't imagine a worse investment given those numbers!

 

[HEMI6point1]

Good point Terry. I believe the reason wealthy (smart) business people don't fund these deals out of their own pocket is because there's little to no return on investment. The purses are ridiculously low and the costs are ridiculously high. It's very difficult to become (or stay) wealthy if you invest your money on ventures with little or no return.

Go to NHRA's site and revisit the payouts. NHRA.com: 2007 POWERade championship fund, Top 10

Several months back Greg Enders identified the cost of going to EACH national event as $100,00.00. Given the 24-race schedule this year, a top level team will spend $2,400,000.00 just to attend the events for a class that only pays $250,000 to the season champion. I can't imagine a worse investment given those numbers!

You hit on one of the reasons why teams have trouble finding sponsors - I mean really, Hot Rod was the freakin' points leader for much of the year yet no major sponsor!

To a potential sponsor, this is what happens when they investigate NHRA drag racing:

First, they see the accessibility to the fans and the friendliness of the drivers, and "only" 2.5-3mil to sponsor a top fuel car which is a LOT cheaper than NASCRAP. But then...
1. Purse is only $40K to win a race and $500K to win the championship.
2. Low TV ratings.
3. ESPN2 often feels the need to pre-empt us with things like women's volleyball and bass fishing.
4. Most suits think drag racing is just "driving in a straight line." Even if you bring the suits to a race, only 3 or 4 out of ten will "get it."

Hate to be negative but I'm just calling it as I see it....

 

[The Counterfeiter]

Read the post after yours about Cagnazzi...why can't he fund it himself? Again...why won't Jegs.com fund him until they can secure another sponsor? I was using Castrol/Ford as an example..as much as John is a hardcore..would he fund all 4 teams himself? What if Army pulled out..would Shoe fund everything himself? When it comes down to dipping into their own funds..I think the tune changes a bit.

The OPM (Other People's Money) theory of operation is almost universal!
And you are exactly correct . . . the tune changes very rapidly -

 

[Professor Dave]

From what I saw on ESPN a while ago Victor Cagnazzi sold his computer company a while ago for close to $600M, so it's not like he's hurting for cash. Can't he just fund it himself?

Victor didn't get all that money by spending it foolishly-I doubt he is going to pay the operating expenses out of his own pocket.

 

[TOOLMAN]

Good point Terry. I believe the reason wealthy (smart) business people don't fund these deals out of their own pocket is because there's little to no return on investment. The purses are ridiculously low and the costs are ridiculously high. It's very difficult to become (or stay) wealthy if you invest your money on ventures with little or no return.

Go to NHRA's site and revisit the payouts. NHRA.com: 2007 POWERade championship fund, Top 10

Several months back Greg Enders identified the cost of going to EACH national event as $100,000.00. Given the 24-race schedule this year, a top level team will spend $2,400,000.00 just to attend the events for a class that only pays $250,000 to the season champion. I can't imagine a worse investment given those numbers!

Great point, $250,000 is about 1/2 the winners purse in one regular Sprint Cup race. Something wrong with this picture.

 

[Nitrohelper]

Big bummer for Dave.

Here's my question though. From what I saw on ESPN a while ago Victor Cagnazzi sold his computer company a while ago for close to $600M, so it's not like he's hurting for cash. Can't he just fund it himself?

How about if the company was leveraged out at $598M,then would he fund it himself? Maybe he had venture capital investors to start the company, and they want their 80%. Maybe he wants a bigger boat and nicer plane instead of two gas & money burners!