The Frontstretch: Hey NASCAR, Where Did The Extra $100 Million Come From? by Jeff Meyer -- Thursday October 4, 2007

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Hey NASCAR, Where Did The Extra $100 Million Come From?

Voices From The Heartland · Jeff Meyer · Thursday October 4, 2007

 

Barely a week after I wrote about how Anheuser-Busch is severing almost all ties with the sanctioning body of NASCAR after the season – opting instead to focus on its Budweiser sponsorship of Kasey Kahne – a viable replacement has been found for the support series its leaving behind. NASCAR CEO Brian France announced Wednesday that Nationwide Insurance will become the new entitlement sponsor for what is currently known as the Busch Series.

"We are thrilled that we had the opportunity to select a partner in Nationwide Insurance who is as excited as NASCAR about taking the NASCAR Nationwide Series to even higher levels of popularity," said France. "Nationwide Insurance is an ideal partner for NASCAR, advocating safe driving and already serving millions of NASCAR fans with its auto, health, and life insurance. The company has a real passion for NASCAR, which will benefit our fans and all participants in our industry."

While NASCAR PR was essentially mum on the exact price that they were able to extract from Nationwide in their seven-year agreement to sponsor the series, they were quick to spew a lot of other statistics that I am here to pass under my own, somewhat cynical, scrutiny.

According to official NASCAR PR released Wednesday, October 3rd: “Nationwide Insurance, which will generate approximately $200 million in annual media exposure through its sponsorship, is already serving millions of NASCAR fans with auto, home, and life insurance.”

$200 million in annual media exposure? Wait a minute; where have I heard that supposed figure before? Oh, yeah; now I remember. It was from NASCAR spokesman Ramsey Poston, speaking earlier this year…

"The entitlement would provide the eventual sponsor with over $100 million annually in brand exposure, and that, along with the partnership with ESPN2, makes this a very desirable position in sports," said Poston, shortly after Anheuser-Busch announced its pullout.

Wow; can you believe it? Somewhere in the last nine months, the annual media exposure the entitlement sponsor will receive has increased by almost 100%! Gee, I wonder if officials at Anheuser-Busch knew that? Perhaps, when it comes to estimating exposure / dollars, NASCAR uses the same formula my dad used in dealing with my curfew when I was in high school. Back then, I could be ten minutes late; but for the sake of argument, according to dad, it was rounded up to the next hour!

Or maybe, that extra $100 million comes from the astronomical increase of viewership that, according to NASCAR, the NASCAR Nationwide Series has enjoyed over the last few years. Never mind the fact that the “Nationwide Series” has yet to run a race. Again, from official NASCAR PR…

“The NASCAR Nationwide Series, broadcast on ESPN2 and ABC, is stronger than ever. The series is the third highest-rated regular-season sport on cable television. Viewership in 2007 to date vs. 2000 is up 52%, (and) the 2005 and 2006 seasons were the most viewed in series history.”

Golly gee, Beav! Viewership is up 52% in 2007 compared to the year 2000! Do you suppose that may be because the actual televising viewers the “Nationwide Series” reaches have exponentially increased over the years? I mean, you can't view what you can’t see on TV, can you? I suspect the same may be true with the '05 and '06 seasons, as well, when many of the races were televised on FX. Now, I admit that I am just way too unmotivated to actually go back and check the TV listings for 2000 and calculate exactly how many viewers each “Nationwide Series” race was reaching…but I'd bet that the actual segment of the population receiving these races on their TV has increased 52%, too! NASCAR isn't going to mention that fact, though.

The one thing the sport did mention in yesterday’s press release that left me really scratching my head was…

"Additionally, NASCAR fans are more likely to have automobiles, be homeowners, and have children in the household, according to Simmons National Consumer Survey research."

More likely than who? NFL fans? The Chinese Brian France visited earlier this year? Darned if I know. I just fall back on that observation by the great Samuel Clemons (aka Mark Twain)…

"There are three kinds of lies: lies, damned lies, and statistics."

NASCAR is the master of all three.

Stay off the wall,

Jeff Meyer

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Mark
10/04/2007 10:09 AM
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I really can’t think of one reason to take what PR folks say as being the truth . And that goes doubly so for Poston . NASCAR had to take a huge cut in money to replace Busch . In fact they have had to settle for much less on each sponsor change they have made . It looks like corporate America is catching on to the wildly over inflated numbers that NASCAR spews out .

Mark Rubley
10/04/2007 10:28 AM
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…..I still call it the Winston Cup….. I just can’t guess how long it’s gonna take for me to get the “Busch” out of my system. And for the $100 million, NA$CAR makes up numbers to fit the story… that’s nothing new… it’s kind of like the rule book… “yeah that fits, nope throw that one out we used it last week, wait a minute, let me think of one………”

Steve Cos
10/04/2007 10:37 AM
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Today I would like to announce that I am fining Mr France 25,000 for violating rule 12-4, actions detrimental to stock car racing for making up dollar figures the way they make up their rules.

Jeff
10/04/2007 10:55 AM
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It must suck to hate NASCAR that much. I think I would be looking for another profession.

douglas
10/04/2007 12:12 PM
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“Viewership up 52%”??

Just rememebr, the DOUBLE OF NOTHING IS STILL NOTHING!

In my estimation the 52% now viewing equals about
200 homes total! Yep, up 52% from last year!!!

Sgee
10/04/2007 12:41 PM
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Geez….
All NASCAR did was grow a product that started in the South and take it..dare i say..Nationwide….
Yet, even though 100’s of thousands of people love NASCAR, there are like 4 sites that want to bash it to pieces. YET, those sites aren’t F1 sites or IRL sites…they are sites dedicated to covering NASCAR.
What gives?
If you don’t like it, there is so much else out there. Stop cluttering up Jayski’s editorial page with all the negative stuff.
And no, I will not read it again…if I don’t like something, I leave.

walt gruner
10/04/2007 12:42 PM
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maybe nascar should have checked with fans along the gulf coast and seen what nationwide hasn’t done for them in the wake of that disaster. but, then again who cares about a few ripped off fans when you can put a few million in your pocket? i hope these new to nascar drivers bring a big following with them,they and nascar just might need them.

Denis
10/04/2007 01:21 PM
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NASCAR is getting all this money, and wheres it going? All the small teams are packing up because they can’t compete with the Cup teams in the series. It’s all about the money. Yes, it is a business. Yes, every business wants to make money. It just seems like they’re not putting money back into the sport. They are pissing off fans and team owners just to line their pockets even more, while long time team owners are out of business. They may run the races with an iron fist, but I bet that foot doesn’t feel too well on the backsides of the old timers.

Marty C
10/04/2007 01:33 PM
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Look out all you people in hurricane prone staes (at least the ones that Nationwide hasn’t already dropped). Your rates are about to go up again!

Michael
10/04/2007 01:57 PM
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Sgee we would like to thank you for your input . Employees of the NASCAR PR dept. don’t often participate on these sites .

Ron
10/04/2007 05:55 PM
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Great article on how PR and Advertising affect this sport! The negative comments I’m reading here are great as most deal with the fact that the small teams are struggling and getting forced out of the sport while the proceeds of the series sponsorship is making a one way trip to the NASCAR corporate office. Most of those dollars should make it back directly to the actual teams and drivers that make this sport turn not the administrators on the sidelines. NASCAR has even blundered by giving GEICO a two year Sundown provision to move to another series. They are actually preventing a sponsor from being able to advertise on a team that has been visible in the series for many years. This is particularly sad because, many events this year didn’t even have a full entry list during some of the tough times the last few years. GEICO should be able to stay as long as they like, as long as they are with Mike Wallace, period. I can already smell another type of NEXTEL/AT&T lawsuit ensuing because of this one. I guess NASCAR just wants them to go quietly away into the sunset! Every time I turn around I keep seeing NASCAR making blunders with their bullying behavior. Unless, you consider giving back by putting Brett Bovine in the pace car! I think a walker would have been a more appropriate type of gift!

Joe
10/04/2007 09:51 PM
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NASCAR suits SUCK!!! Brainless Brian is killing the sport with all the changes, ask Coca-Cola about “NEW Coke”!!! He should run for a federal office, he’d fit right in with the scum!!!

 

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Driver Review : Kyle Petty
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