nat. event title and presenting sponsors (3 Viewers)

[mick]

there was an old thread from '07 with same subject i thought about adding to, but decided to start a new one.
looking for thoughts, opinions, and maybe facts about title and presenting sponsorships for nat. events.
every year there are events with nothing attached. some remain that way, and some add as year starts.
the budds creek event coming up has added jegs as a presenting sponsor, as has epping added bproauto.
i wonder what the difference in cost is (title vs. presenting), and am wondering if you asked chad green about bproauto and epping,
what his thoughts would be. it's sure not the first time we've seen a racer introduce a company, and then suddenly
the same company becomes part of a nat. event ..... hoping brainerd can attract another solid sponsor
after lucas oil's very long run with the event ....... the racers are still independent of the sanctioning body,
it seems like the fight for dollars between the two is still taking place

 

[Butch]

It's like what Shirley once said, NASCAR get the cream and NHRA gets the leftovers.

 

[T.Smith]

It's like what Shirley once said, NASCAR get the cream and NHRA gets the leftovers.

Yeah, because everything she says is worth its weight in gold.

 

[GumbyWVU]

Ever since this upcoming race was titled the Potomac Nationals, all I have ever been able to think of it is the "Pot Nationals", since Potomac State College in Keyser, WV, was always referred to as "Pot State". Maybe then this race could be the "Aurora Cannabis Pot Nationals" or some other pharma company in that field. (sarcasm implied)

But on this idea, though, I wonder how long before the feds restrict those weed companies in advertisement like they did tobacco and alcohol? Probably safe to say those could be passed over when looking for sponsorships.

 

[mick]

....... Probably safe to say those could be passed over when looking for sponsorships.

hemp production supports arguably the most diverse team in drag racing right now.
if someone in that biz wanted to use drag racing to promote their brand, i say go for it, or least until the gov't.
says you can't.

 

[GumbyWVU]

hemp production supports arguably the most diverse team in drag racing right now.
if someone in that biz wanted to use drag racing to promote their brand, i say go for it, or least until the gov't.
says you can't.

I was referring to makers/producers of medical marijuana. Totally different than hemp. One can thank DuPont for the stigma wrongly applied to hemp.

I do agree though, go for the sponsorships of that which you can until the G steps in (which I still have issues with frankly).

 

[Mike]

There is an Indycar race in DC. Could you imagine a pair of funny cars going down Pennsylvania Avenue?

 

[mick]

wondering if american rebel beer might step up and sponsor the brainerd event? i think their distribution came into MN
just last year? i see their product on the shelves. last year besides sponsoring the TSR cars for the BIR race, they got a
lot of mileage for their brand, at the finish line with beer case throne for friday night low Q, and endless cases in the zoo, complete with
hot chicks passing out free beers as you drove by judges.

 

[65 Goatboy]

looking for thoughts, opinions, and maybe facts about title and presenting sponsorships for nat. events.
every year there are events with nothing attached. some remain that way, and some add as year starts.
the budds creek event coming up has added jegs as a presenting sponsor, as has epping added bproauto.
i wonder what the difference in cost is (title vs. presenting), and am wondering if you asked chad green about bproauto and epping,
what his thoughts would be. it's sure not the first time we've seen a racer introduce a company, and then suddenly
the same company becomes part of a nat. event ..... hoping brainerd can attract another solid sponsor
after lucas oil's very long run with the event ....... the racers are still independent of the sanctioning body,
it seems like the fight for dollars between the two is still taking place

Questions: So the Denso Sonoma Nationals presented by Power Edge. Denso is the title sponsor and Power Edge is the presenting sponsor. Speedway Motorsports owns the track so do they get the Denso dollars or the Power Edge dollars or both? Nhra is the sanctioning body, what do they get? And in addition to all of the Nhra's expenses do they pay SMI for the use of the track? They must get some of the sponsorship money too. No matter what the sanctioning body gives the participants the shaft while they fight for pennies in the dirt!!??

 

[none]

Brian,
Each deal is different.

If the sanctioning body owns the track, the deal is simple. If not.......

Some events are a straight track rental. The sanctioning body pays the track $X and puts on the event. Track knows going in they will bank X dollars. the sanctioning body takes all the risk.

Some are a partnership. If the event is successful the sanctioning body and the track split the profits, or if it's rainout they split the loss.

And some are the track pays the sanctioning body a sanction fee, the sanctioning body knows what they will bank, and the track takes all the risk.

Sponsors help offset the costs, so the event will be more profitable. And again, every deal if different. Did the sanctioning body secure the sponsor. or did the track? And it's a la cart.
Do you just want your name on the event?
Do you want your name on a billboard? Or a scoreboard?
Do you want a VIP suite or two?
Do you want a VIP or customer race?

Power Edge is a DENZO brand. I have ZERO inside knowledge, but it could be extra dollars for the event, i.e. DENZO pays $100 and Power Edge pays an extra $25. Or it could be DENZO pays the $100 and simply takes $25 out of the Power Edge budget but the total sponsor price is the same.

Co-branding could add to the total, or just be internal to the sponsor for their budget allocations. Obviously the higher the total the more benefit for the sponsor. There's WAY more to it than this but just to put it in perspective.
You pay $100 as a sponsor you get 100 tickets. If the presenting sponsor pays $25 more they would get 25 more tickets.
If they are just splitting the deal internally then they get 100 tickets total and they would split them internally. Make sense?

Take Ron Capps deal with NAPA. NAPA has an advertising budget that pays for the sponsorship. But NAPA also separates the budget between it's brands.

Just making up numbers but let's say NAPA dedicates $1000 to the Funny Car.
Internally they take $500 form the NAPA Auto Parts budget
$100 from NAPA Auto Care
$100 from NAPA Batteries
$100 from NAPA Brakes
$100 from NAPA Belts and Hoses
$100 from NAPA Nightvision headlights

The expense to wrap the car for each deal is part of the contract.

Every deal is different.

Alan

 

[GumbyWVU]

There is an Indycar race in DC. Could you imagine a pair of funny cars going down Pennsylvania Avenue?

Would be awesome....would have rattled windows out of the buildings!

When I worked at the Hoover building I used to think the same thing. Capital Drag!

 

[65 Goatboy]

Brian,
Each deal is different.

If the sanctioning body owns the track, the deal is simple. If not.......

Some events are a straight track rental. The sanctioning body pays the track $X and puts on the event. Track knows going in they will bank X dollars. the sanctioning body takes all the risk.

Some are a partnership. If the event is successful the sanctioning body and the track split the profits, or if it's rainout they split the loss.

And some are the track pays the sanctioning body a sanction fee, the sanctioning body knows what they will bank, and the track takes all the risk.

Sponsors help offset the costs, so the event will be more profitable. And again, every deal if different. Did the sanctioning body secure the sponsor. or did the track? And it's a la cart.
Do you just want your name on the event?
Do you want your name on a billboard? Or a scoreboard?
Do you want a VIP suite or two?
Do you want a VIP or customer race?

Power Edge is a DENZO brand. I have ZERO inside knowledge, but it could be extra dollars for the event, i.e. DENZO pays $100 and Power Edge pays an extra $25. Or it could be DENZO pays the $100 and simply takes $25 out of the Power Edge budget but the total sponsor price is the same.

Co-branding could add to the total, or just be internal to the sponsor for their budget allocations. Obviously the higher the total the more benefit for the sponsor. There's WAY more to it than this but just to put it in perspective.
You pay $100 as a sponsor you get 100 tickets. If the presenting sponsor pays $25 more they would get 25 more tickets.
If they are just splitting the deal internally then they get 100 tickets total and they would split them internally. Make sense?

Take Ron Capps deal with NAPA. NAPA has an advertising budget that pays for the sponsorship. But NAPA also separates the budget between it's brands.

Just making up numbers but let's say NAPA dedicates $1000 to the Funny Car.
Internally they take $500 form the NAPA Auto Parts budget
$100 from NAPA Auto Care
$100 from NAPA Batteries
$100 from NAPA Brakes
$100 from NAPA Belts and Hoses
$100 from NAPA Nightvision headlights

The expense to wrap the car for each deal is part of the contract.

Every deal is different.

Alan

Thanks Alan, I knew it wouldn't be simple but it's even more complicated then I would have thought. And it's still working after 75 yrs; although back in the day I bet it wasn't this complicated. A lot more $$$ today.

It's like what Shirley once said, NASCAR get the cream and NHRA gets the leftovers.

I think Shirley is right in a way but Nascar is much much bigger and richer. Wonder if those in the Nhra Ivory Tower and PRO ever think about the "business model"? It's really complicated but especially in nitro the purse's are not keeping up with the costs resulting in to many short fields which doesn't help attendance (revenue). I don't have the answer but Alan I bet you and some others have some idea's. Would be great to see are favorite sport a little more stable like Nascar is.

 

[GumbyWVU]

Permit me to insert this question, at this juncture - regarding sponsorships and business models and such:

So we know that NHRA is a non-profit organization (I think that's what has been said, please correct if wrong). What type of organization is NASCAR? Does NASCAR have a different organizational status, and if so, does that allow financial advantages that NHRA simply isn't allowed to do as currently?

On that same note, I wonder how IHRA is now set up/structured?

Something to think about I suggest. Any Wall Street people on here or any MBAs?

 

[65 Goatboy]

Permit me to insert this question, at this juncture - regarding sponsorships and business models and such:

So we know that NHRA is a non-profit organization (I think that's what has been said, please correct if wrong). What type of organization is NASCAR? Does NASCAR have a different organizational status, and if so, does that allow financial advantages that NHRA simply isn't allowed to do as currently?

On that same note, I wonder how IHRA is now set up/structured?

Something to think about I suggest. Any Wall Street people on here or any MBAs?

Nascar is privately owned by the France family, founded by Bill France Sr. and incorporated in 1948. It is not a non-profit and I would think being privately owned gives them financial advantages. One way I can think of is the charter system agreement between the teams and Nascar. Unlike the Nhra they have a huge TV revenue, which a percentage of is shared equally among the chartered teams. That's what the big lawsuit was about during the off season. I think the business model is probably much simpler then the Nhra's though.

 

[Ponyhntr]

NHRA is “Not For Profit”, which is different than “Non-Profit”.

IHRA is privately owned.

 

[Rich D]

NHRA is “Not For Profit”, which is different than “Non-Profit”.

IHRA is privately owned.

Although there is a distinction between "Not for profit" vs "Non-profit", it doesn't have a tremendous impact on how an organization is run. NHRA being a 501(c)(6), versus the traditional non-profit 501(C)(3), has some minor tax and regulatory differences. I don't think there is anything underhanded about this. As a professional organization/club with members, 501(c)(6) is the expected classification of NHRA.
This goes back to the intention that Wally Parks had in the early days. He saw it as a collection of like-minded enthusiasts, rather than a profit-motivated venture.

 

[GumbyWVU]

Nascar is privately owned by the France family, founded by Bill France Sr. and incorporated in 1948. It is not a non-profit and I would think being privately owned gives them financial advantages. One way I can think of is the charter system agreement between the teams and Nascar. Unlike the Nhra they have a huge TV revenue, which a percentage of is shared equally among the chartered teams. That's what the big lawsuit was about during the off season. I think the business model is probably much simpler then the Nhra's though.

Great info, and I agree, their set-up likely gives them great advantages that NHRA likely can't copy.

 

[GumbyWVU]

NHRA is “Not For Profit”, which is different than “Non-Profit”.

IHRA is privately owned.

Thanks, I couldn't remember at that time which it was.

 

[GumbyWVU]

Although there is a distinction between "Not for profit" vs "Non-profit", it doesn't have a tremendous impact on how an organization is run. NHRA being a 501(c)(6), versus the traditional non-profit 501(C)(3), has some minor tax and regulatory differences. I don't think there is anything underhanded about this. As a professional organization/club with members, 501(c)(6) is the expected classification of NHRA.
This goes back to the intention that Wally Parks had in the early days. He saw it as a collection of like-minded enthusiasts, rather than a profit-motivated venture.

Again, great info.....right, nothing underhanded believed either.

So it sounds like there might not be much NHRA could copy from NASCAR due to these restrictions. Marketing, on the other hand possibly so, but it sounds iffy regarding other aspects.

It will be interesting to see if IHRA, now being privately owned, will be helped as such for its survival.