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Open Roads Forum  >  Around the Campfire

 > A question for the NASCAR knowledgeable

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G7ARYM

Somewhere on the road

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Posted: 03/02/12 06:33pm Link  |  Print  |  Notify Moderator

I have an interest in anything that makes noise and goes fast, boats, bikes, planes, cars and have watched NASCAR in person since the early 60’s. Not since the late 60’s early 70’s when race cars were somewhat based on production vehicles have the brands Ford, Chevy, Dodge, Pontiac, Plymouth or Mercury had any meaning. What I would like to know is, what is the factory involvement behind the brand name painted on the front of the car? If I took $10 million or so from my lottery winnings and wanted to put together a back of the pack Sprint cup team I could go to the same parts bins and buy the same components, tube frame, suspension, engine and approved generic body shape as all others on the starting grid. So I line up a primary sponsor to go with a killer paint scheme but now, who pays me and how much and what name do I paint on the front? In addition to Toyota I think Kia, Honda, VW and Hyundai all assemble cars in the US which should qualify them for NASCAR consideration. I can just hear Mike Joy announcing, “And the Hyundai sweeps by to take the lead at the white flag with one lap to go at Darlington”. Again, NASCAR would not allow me to run a Parts Bin Brand car so what is the price of the nameplate and who writes me the check?

bobsallyh

Livingston, TX.

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Posted: 03/02/12 08:17pm Link  |  Print  |  Notify Moderator

It looks like Ford will be writing the "check" in 2013 to Roger Penske to run the blue ovals. Bad timing for Dodge as they are having a big coming out party next weekend at Vegas for the 2013 model for FRANCECAR. Who is going to race it in 2013, somebody is going to get the deal, maybe you!

Mr. Camper

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Posted: 03/03/12 11:34am Link  |  Print  |  Notify Moderator

I can't answer that directly but the next time I see my NASCAR team owner friends I'll ask.


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belfert

Shoreview, MN, USA

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Posted: 03/03/12 04:40pm Link  |  Print  |  Notify Moderator

I believe that Ford, Chevrolet, Dodge, and Toyota pay the teams to put their names on the race cars.

Does NASCAR really have a rule that a team can't run a race car without a car manufacturer's name on it?

rockportrocket

on hyway 77

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Posted: 03/03/12 05:48pm Link  |  Print  |  Notify Moderator

NASCAR defines a production car that has a production run of 500 or more cars that are designated to run in NASCAR. LOL a KIA in NASCAR with what motor? Chevy, Ford, Chrysler, Toyota? I dont think so.

G7ARYM

Somewhere on the road

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Posted: 03/03/12 07:40pm Link  |  Print  |  Notify Moderator

Just for jollies the American made Hyundai Equus and Genesis are rear drive, V8 powered with 429hp. The Impala, Focus and Camry pretend names on the NASCAR clone bodies do not appear to come close to the race car's configuration. Come on guys, a little truth in advertising here. Your trucks are all big hairy chested V8's. The Mustang, Camero and Challenger are all available with more than 400hp motors but the NASCAR named street cars are wimps. I watch for the competition and entertainment value and appreciate the teamwork and dedication required to function at the highest levels. I have no ego envolvement in the big names who own the teams or who is behind the wheel. Just make noise, go fast and give me a good show when I go to Sonoma, Kansas City and Las Vegas. The question remains, what do the factories pay to have their brand name on the front of the cars who only finish in the lower third of the field?

* This post was edited 03/03/12 10:39pm by G7ARYM *

G7ARYM

Somewhere on the road

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Posted: 03/04/12 10:49am Link  |  Print  |  Notify Moderator

Great, thanks for the information and insight into the big business backing that it takes to run a NASCAR team. I am sure my wife will now appreciate how much cheaper it is for me to go to an occasional race than to own a team.

rockportrocket

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Posted: 03/04/12 04:56am Link  |  Print  |  Notify Moderator

In court documents obtained by Jayski and others from GM’s bankruptcy proceedings we learn that Richard Childress Racing was set to get 2,538,750 dollars on June 15th, 2009. We also learned that this was a quarterly payment for his race teams so RCR was set to receive a little north of 10 million dollars in support from GM.

Essentially we are talking around 2.5 million dollars per race team, and if we take that number a step farther we can get a pretty good idea of how much money GM was spending each year supporting its NASCAR teams. We already knew that GM was supporting RCR as well as Hendrick Motor Sports, Earnhardt-Ganassi Racing, and Stewart-Haas Racing.

Since those four teams were set to field 12 teams in 2009, it is very likely that GM’s budget for Sprint Cup series support was to be just north of 30 million dollars. That number does not include support for Truck or Nationwide series teams. There is no real way to surmise how much more money that entailed. Examiner


Driver contract details are not usually made public, but lawsuits sometimes bring details to the media’s attention.

Mike Wallace’s recent lawsuit against Germain Racing revealed he was paid a $700,000-a-year salary plus half of the car’s earnings. Wallace also got a percentage of any souvenir sales.

Jimmy Spencer had a contractual dispute with Chip Ganassi after the 2002 Cup campaign. “Mr. Excitement” was replaced as one of Ganassi’s drivers with two years left on his contract. Media reports claimed Spencer’s salary was $1.1, $1.2 and $1.3 million for each season. Race winning percentages and performance bonuses were also part of that agreement.

A well-funded Cup team, even if it runs middle to rear of the pack, would pay a driver around a seven-figure mark for a base salary. Race purse money runs anywhere from 20 to 50 percent. A cut of all merchandise sold is factored in. And there are performance bonuses ranging from a few thousand dollars to a seven-figure amount for a championship.

rockportrocket

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Posted: 03/04/12 05:01am Link  |  Print  |  Notify Moderator

­Take one look at a NASCAR Sprint Cup race car and it's clear who's picking up the check for all of that super-engineered beauty. Their names are plastered all over the hood, the doors, the rear bumper -- in fact, every piece of real estate on a NASCAR race car is for sale. These are the venerable NASCAR sponsors, without whom none of this high-speed excitement would be possible.

An impressive 130 of all Fortune 500 companies are NASCAR sponsors [source: NASCAR]. This list includes popular brand names like Budweiser, Craftsman Tools, M&Ms, Office Depot and Tylenol.

Corporations shell out big money to be the primary sponsor of a Sprint Cup race team, between $20 and $25 million or more for long-term contracts [source: Margolis]. Primary sponsorship entitles a corporation to prime advertising spots on the hood of the car, on the front of the driver's and pit crew's uniforms, on the sides of the big rigs that haul the race cars across the country, and most importantly, unrestricted use of the driver and his car for print, radio and TV ads.

Then there are secondary or associate sponsorships. In this case, $2 million or $6 million might buy you space on the lower part of the hood, some of the side panels, and if you're lucky, a primary hood spot for some of the lower-profile races [source: NASCAR].

Corporate sponsors not only pay for the car, but help cover all of the research and development and maintenance costs associated with a big-budget racing team. At Hendrick Motorsports, which employs 500 people, sponsors are estimated to cover 65 to 70 percent of all infrastructure costs. The rest is paid for by race winnings and other endorsement deals

In the early days of NASCAR racing, the relationship between the sponsor and the race team was predicated on winning. The old adage was "Win on Sunday, buy on Monday," especially when the winning car was available at the local Ford dealership. The first NASCAR sponsors in the early 1960s paid about $200 per race [source: NASCAR].

But now the sponsor/racer relationship is a lot more complex. Instead of being purely about winning, it's about giving the sponsor the most bang for his buck -- i.e. the best return on his investment [source: Margolis]. This can happen on the track or off the track. Even if a big-name driver like Jeff Gordon isn't winning races, his image and personality can still sell boxes of cereal or quarts of motor oil. Today, primary sponsors pay closer to $500,000 a race, so the stakes are considerably higher.

When economic times are tough, race teams need to get creative. For example, when gas prices exceeded $4 during the summer of 2008, some NASCAR teams went shopping for special fuel sponsors [source: Smith]. Interestingly, this was to cover the cost of the diesel fuel for hauling the cars around, not the racing fuel (which is free from NASCAR sponsor Sunoco).

Bucky Badger

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Posted: 03/04/12 02:53pm Link  |  Print  |  Notify Moderator

G7ARYM wrote:

Great, thanks for the information and insight into the big business backing that it takes to run a NASCAR team. I am sure my wife will now appreciate how much cheaper it is for me to go to an occasional race than to own a team.


Very wise decision to "go" to the races


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