The View from Here: The Business of NASCAR

A CHANGE FOR THE BETTER!

2009-11-20T15:46:32Z

With declining numbers of attendance and TV viewership, NASCAR is making some very needed changes. The controversial COT, or better known as car of tomorrow, had been a cause of decline. Fans did not like the fact that all the cars looked almost identical except for a few stickers. This situation posed a problem for new fans since it was not easy to differentiate between drivers.
NASCAR has now addressed this by revealing four new COT's for the Nationwide Series. Fans are very excited with the new designs, and the fact that the cars are a lot more realistic looking. With the new look of the COT cars for Nationwide, NASCAR has announced that the Sprint Cup COT cars will also get a facial uplift to give a resemblence to the newer Nationwide cars.
It seems like a good idea, which is getting a lot of positive feedback for NASCAR. This change is the closest to production looking cars since the late 80's/early 90's. In a bad economy, NASCAR is taking big risks by introducing new cars. Hopefully this time, NASCAR executives listened more to fan feedback rather than worry about cost saving measures.
And that's the view from here.
WA

Should NASCAR Change the "Chase"?

2009-11-19T14:24:38Z

Many NASCAR fans are unhappy with the current format of the Chase for a variety of reasons. Some say it favors one driver in particular, Jimmie Johnson, while others argue that there needs to be a road course included in the Chase. Regardless of the reasoning, it is clear that there is a large percentage of NASCAR fans who are disgruntled by the way NASCAR crowns its champion, and it is becoming apparent in both the television ratings and race attendance.

It can't hurt for NASCAR to listen to the outcries of its core fans. There are a number of remedies suggested to curb the angst fans feel toward the Chase, such as adding more drivers, diversifying the final ten races to include a road course, or changing the points system. Since the inception of the current Chase format in 2005, both television ratings and race attendance have plummeted. One has to ask, "Can NASCAR afford not to listen to its fans for much longer?"

And that's the view from here.

Where is the Diversity?

2009-11-13T14:34:08Z

The NASCAR diversity disparity would make anyone wonder why there isn't a larger percentage of drivers that aren't Caucasian or male.
Could it be that James Brown's song "This Is a Man's World" is the breathing image of NASCAR?" According to About.com, "In 2009 there are no women competing in the Sprint Cup or Nationwide series. The Craftsman Truck Series has had a few female competitors in 2009 including Gabi Dicarlo, Michelle Theriault, Caitlin Shaw and Jennifer Jo Cobb. However none of these women have full-time ride in the series."
I believe that if there were more women drivers more women fans would be attracted. I know women will come out in droves for "girl power". However, my only question is, if there were more women drivers, could a man handle them winning? In the case of more ethnic drivers, I believe that an increase in ethnic drivers will also increase a more ethnic fan base. At some point these disparities will need to be addressed because I believe that if people are going to enjoy a sport they would like to see themselves reflected in some sort of way.
And that's the view from here.
RW

NASCAR in a Rainy Day

2009-11-12T20:19:18Z

Many people just don't like driving in the rain, and they come up with several reasons. First of all, it is hard to see when the rain is coming down on the windshield. Second, the wet conditions of the road affect stopping and turning ability of the car. In other words, it's just not the right time to drive while it rains.
When it comes to safety, one should imagine how much worse it would be if people don't have any windshield wipers at all, or the tires had¬ no tread on them. Thus, there is no doubt why NASCAR drivers aren't reckless enough to race in the rain. Although it's true that other motor sports race in rainy and wet conditions, there are a few aspects of NASCAR racing that make it especially difficult to race in the rain. In order to fully understand why NASCAR doesn't race in the rain, we need to learn about the safety aspect when racing in the rain. Just take a look at how the tires handle in the rain and what happens to the tracks when they're wet; one can see very clearly that racing in the rain is not a good idea. Not only NASCAR tires but also any other type of tire does not respond well when driving on a wet road. Tract condition is slippery and makes it even harder when driving one or two hundred miles per hour. For NASCAR, days of planning go into just one race, the track is tested and the cars are ready.
However, when the rain comes, all of that planning is canceled. Aside from the danger involved, bad weather conditions hurt the overall competitiveness of the sport. In conclusion, NASCAR should not race in the rain for the reasons that it is too dangerous especially put NASCAR drivers' lives in danger.
And that's the view from here.
ST

NASCAR's B2B Model

2009-11-12T14:13:58Z

With attendance numbers steadily declining at the tracks, are corporate sponsors becoming more concerned with where their investment dollars are going or is there more than what we see at the track? This is a question that top-level executives of companies such as Sprint, Aflac, UPS, Best Western, DuPont, and other major corporate sponsors continue to reassess. Over the years NASCAR has become an intriguing place to invest for major corporations not only because of fan loyalty but also because of the potential profitable relationships that can be developed via NASCAR's B2B Model.

NASCAR's B2B Council sets up events quarterly where official sponsors can get together and come up with ways to make their partnerships profitable. This forum for B2B partnerships makes NASCAR even more attractive for investment and keeps its sponsors happy with the valuable relationships they're able to develop. A recent example of NASCAR's B2B model is "NASCAR's Fuel for Business Driving Business Award" winner Aflac. Aflac used NASCAR's B2B event to establish profitable partnerships with companies who can use their services, such as Office Depot, Ford, and Cintas.

As attendance continues to decline, it will be interesting to see how NASCAR is able to continue to provide new avenues of value for its sponsors.

And that's the view from here.

NASCAR APPEALING TO FEMALE FANS: Raising Breast Cancer Awareness

2009-11-11T18:42:19Z

With sponsors like Lowes, DuPont, Budweiser, The Home Depot, Miller Lite, Jack Daniel's, and Red Bull, NASCAR sponsors are more appeasing to the male audience versus the female audience. For the month of October some sponsors chose to put a twist on things and appeal to the female audience.
The month of October is recognized as National Breast Cancer Awareness month. To raise breast cancer awareness and to honor and remember those affected by breast cancer, four NASCAR teams took at least one car and tricked it out in pink. In an effort to contribute to the cause, at Lowe's Motor Speedway near Charlotte, North Carolina, the number 96 car driven by, Bobby Labonte, raced to raise breast cancer awareness to millions of Americans.
The sponsor Ask.com launched a full campaign for the month of October to raise breast cancer awareness among female Americans and all NASCAR fans. Many fans that already have their favorite drivers who they support temporarily chose to root for the "pretty in pink" race car to honor breast cancer awareness also. Among those drivers whose sponsors also tricked their cars out in pick colors to support the cause were Elliott Sadler, Kyle Busch and Bill Elliott.
I think that this promotion was an excellent way to appeal to the female fan base of NASCAR. It shows support for those fighting the battle with cancer and respect for those who lost their lives to the battle of cancer. Breast cancer is the most common form of cancer found in women and is the second leading cause of cancer deaths among women. One in eight women will get breast cancer. I feel that NASCAR's efforts to educate and recognize its female fan base and millions of female Americans were very effective and efficient. I have three breast cancer survivors in my family and as a female I am statistically at risk also, so I truly can appreciate and respect the efforts that NASCAR took to support the cause in raising Breast Cancer Awareness not only to race fans but also to millions of Americans.
Outside of the support NASCAR gave in raising breast cancer awareness, I still feel that there is a lack of female targeting sponsors within the business. I feel that NASCAR should touch bases with this matter and gain more sponsors to reach and appeal to its female fan base. Although the breast cancer campaigns that some sponsors ran during the short thirty one day month of October were successful in the attempt to connect with the female fan base, I still feel that just that alone isn't enough and that there should be more.
And that's the view from here.
CD

Marketing Experts on NASCAR's challenges and opportunities

2009-11-09T14:30:11Z

Article on Examiner.com takes a look at NASCAR's marketing challenges and opportunities. Jon Ackley offers his perspective on some of the sport's major issues.

Should NASCAR Take the Show on the Road Internationally?

2009-11-02T14:27:29Z

NASCAR has undoubtedly become one of the biggest and most popular sports in the U.S. As NASCAR has grown in popularity in this country, the growth of its popularity has also expanded internationally. This growth raises the question of why NASCAR is not expanding further into the international community. Currently, NASCAR races in the Nationwide Series in Canada, and previously in Mexico as well. But NASCAR has not had a points paying race in the premier Sprint Cup series in the modern era outside of the United States. Although there have been experiments with the premier series outside the U.S., specifically Japan in the nineties, it never caught enough attention for NASCAR's liking.

Another question is raised from this issue of NASCAR being international: why does NASCAR need to expand internationally when there are markets currently in the U.S. that are underserved, such as the Pacific Northwest to the Mecca of sports in the U.S, New York City? Opponents of NASCAR going international feel that the faithful American fans in underserved markets deserve to have a chance of having a track in their market. This belief makes sense to me given the economic situation is so negative at this time; new tracks could create jobs and revenue for Americans in those underserved areas.

As a result, I feel that NASCAR should focus its efforts on serving its loyal fans in their own country first, especially those underserved by the current NASCAR Sprint Cup Series schedule.

And that's the view from here.

DIVERSITY IN NASCAR--or the lack of it!

2009-10-30T13:06:37Z

Diversity has been on e of the biggest issues in NASCAR over the years. As in the past with people trying to be equal depending on race or gender, in NASCAR too there is a big gap of diversityl. Other sports such as basketball, football, and baseball have been making lots of changes to make the environment more diverse and the results of these efforts are outstanding because they have brought more fans to the sports.

NASCAR is usually seen as a predominately white American sport, while most other sports are trying to become more diverse. Juan Pablo Montoya, a Colombian, who is currently a NASCAR driver, has made a difference in NASCAR. He has performed well in many races and he has done a great job overall. Due to his performance in NASCAR, Juan has attracted many Spanish fans to follow and watch NASCAR. The Indy Racing League has Danica Patrick, who has broken the male dominance of the sport and has given women the opportunity to see anything is possible.

So my concern is why is NASCAR is not so diverse? Why there are no African Americans or women involved as drivers in NASCAR at the upper levels? Why can't there be a Tiger Woods in NASCAR? Why can't there be more women like Danica Patrick in NASCAR? All of these are concerns that are very important because I think that by bringing women and other races to the sport a more diverse environment can exist. The biggest result of this diversity would be a more diverse fan base in NASCAR.

And that's the view from here.

WHAT IS GOING ON?

2009-10-29T14:50:09Z

As a brand new NASCAR fan, I am enjoying the array of sponsors and recognizing their specific products in stores. I can see now where the brand loyalty statistics come from because just today I saw Coke Zero in a grocery store and remembered getting a sample of it at the concessions at RIR. However, it has been reported recently that many big brand sponsors are pulling out of the Sprint Cup Series. Jim Beam and Jack Daniels both announced recently that they are not including NASCAR in their marketing plans in the near future. In addition, Lowe's has announced that it will not hold the naming rights for the Lowe's Motor Speedway after an 11-year relationship with Speedway Motorsports Inc. Is the declining economy to blame? Are companies struggling with the high costs of marketing and advertising their products within the Sprint Cup Series? It is really interesting and coincidental that two liquor companies pulled out, one after the other. Are NASCAR fans more likely to buy beer than liquor? What is the future for alcoholic beverages and sponsorship?

I am not sure exactly what is going on with these particular companies but I am assuming it is a combination of issues. It will be interesting to see what happens with the naming rights of the Charlotte Motor Speedway and if any other alcoholic beverage company announces an ending sponsorship.

And that's the view from here.

NASCAR and Its Declining Attendance

2009-10-21T18:27:53Z

For those of us who are and have been dedicated NASCAR fans for years (or even decades) the question we sometimes ask is: Why is attendance declining in NASCAR? I have been wondering the same and and as a result of my curiosity I searched for possible reasons as to why attendance continues to decline in NASCAR.

According to an article on Forbes.com, a few reasons are: high price of gas cutting back travel, cost of hotel rooms and food, bored by lack of drama, and ticket prices at the track. Joe Baumann of Erie, PA "thought that races with boxier and safer cars were not as exciting as they used to be." In response, NASCAR is looking to make improvements to regain interest from those fans who lost interest in the sport.

The Washington Post stated that NASCAR Chief Executive Brian France is looking for ways to make NASCAR's car more "racey after NASCAR mandated a single body shape for all of its cars in 2007." In addition, France recently decided on making the races start earlier and on at a more consistent start time.

NASCAR is aware of the declining attendance and is working on making changes to address the issue. We will not find out whether these changes will be successful until racing starts next year. However, for those who have decided to attend fewer races or not to attend any races at all, it may be difficult to pinpoint the exact reasons as to why each person has made that decision. On the other hand, for those of us who remain NASCAR fans, we can only hope that these changes will bring about a positive effect for the future and for the betterment of the sport.

And that's the view from here.

NASCAR's Sponsorship Slump

2009-10-20T18:06:21Z

As drivers continue to qualify for the upcoming races, many teams are scrambling to secure sponsors to even finish out the season. With the economic downturn, many of the sponsors are rethinking contracts and wondering if NASCAR is still a good investment.

Jimmie Johnson told the Richmond Times-Dispatch in May, "The economy has changed the way a lot of companies do business, but most of our sponsors are confident that NASCAR is a solid investment."

Although the bigger companies still think NASCAR is a great investment, anxious shareholders are simply seeing stock values decline.

Andrew Glangola mentions that race fans are consciously loyal to the sponsors on the cars. Some sponsors are becoming part-time, but even this is better than nothing. About 400 sponsors are involved with NASCAR in some level because they know it works. Being affiliated with this sport brings in revenue.

Though some of the sponsors are backing out, most know that NASCAR still is a solid investment and that is enough to at least be somewhat involved with the sport.

And that's the view from here.

Dale Jr.: Best-Selling Driver

2009-10-14T14:41:52Z

Darren Rovell, CNBC sports business expert, asks "when does Dale Earnhardt Jr. become unmarketable?" Despite struggles on track, Dale Jr. remains No. 1 best-selling driver.

NASCAR Hall of Fame - Nothing to sneeze at!

2009-10-09T15:26:05Z

The much-anticipated NASCAR Hall of Fame is set to open in May 2010 in Charlotte, North Carolina. In addition to bestowing honor upon those featured in the Hall of Fame, the 130,000 square foot hall will house a museum and entertainment attractions. It will serve as a tribute to the drivers, crew members, team owners, and other contributors to the sport.

The complex will also include a new ballroom and the NASCAR Plaza Office Tower.
Perhaps most exciting for the fans, however, are the multitude of attractions being considered for inclusion in the Hall of Fame. Among those are a racing simulator and "A Week in the Life" (a behind the scenes look at a NASCAR team and race day preparation), and about ten other interactive activities! For more on those, visit www.nascarhall.com.

So what kind of impact will a facility of this magnitude have on the city of Charlotte?

According to John Connaughton, University of North Carolina--Charlotte economist, the economic impact will be roughly $62 million annually! In light of the recent economic downturn, the NASCAR Hall of Fame also may be just the thing to boost revenues for NASCAR in terms of admissions sales and souvenirs. Regardless, it will surely boost Charlotte's economy, bringing jobs and tourists alike to the city.

I, for one, look forward to learning the exciting new plans still in the making for NASCAR's first Hall of Fame and Charlotte's own "Crown Jewel", as coined by Charlotte's mayor Pat McRory.

And that's the view from here.

WHY HAS TV VIEWERSHIP DECLINED LATELY?

2009-10-08T13:33:59Z

NASCAR is one of the most famous sports besides the NFL that people like to watch on television whenever they have spare time. Surprisingly, the number of people who watch car racing on television has decreased in the past few years. If the viewership keeps decreasing, car racing may soon cease to be one of the most popular sports.

We are said to be the generation of technology. Younger people can watch sports on their Mac book or little net book while they do other things such as write an essay, play games, or search the web at the same time. There are also too many unnecessary commercials during the race telecast, and this advertising could make some viewers lose interest and change to another channel very quickly. Sometimes the quality of the racing on television is not exciting enough to keep the fans tuned in.

Overall, most people just want to save money since the economy is currently in a slow state; and attending an actual NASCAR race could cost at least $45. If the cost of the tickets is too high, it will be hard for the fans to go to the race track. However, what is the point of wasting time to watch a race on television if you could go to the actual race? Unless ticket costs become more affordable, fans won't show up for the races and may be turned off to watching on television.

And that's the view from here.