Sports & Entertainment Marketing

SPORTS & ENTERTAINMENT MARKETING

SPONSORSHIP

Sponsorship Sponsorship occurs when a

company supports an event,

activity, or organization.

In return for money, the sponsor is

provided with some type of

advertising at the event.

Sponsorship

Form of Sales Promotion

Most often used in the sports and entertainment industries

is built on sponsorship

The History of Founded in 1948 Annual attendance

exceeds 9 million fans visiting 37 races

N - National

A - Association

S - Stock

C - Car

A - Auto

R - Racing

as a BRAND NASCAR is a “brand”

The second highest rated live sport on TV

Behind the NFL

71% of NASCAR fans are loyal to brands that sponsor the sport

More than any other sport

71%

29%

Loyal Fans

Banking on NASCAR

sales

NASCAR licensed products1990 – $80 Million

2004 – $2.1 Billion

Sales have increased 3000% since 1990

sales

Last year NASCAR made 3 billion in licensed product sales

More Fortune 500 companies sponsor NASCAR than any other sport

fansThe majority of NASCAR fans do not

fit into the general stereotype associated with the sport

78% of NASCAR fans are high school graduates

40% of NASCAR fans attended college

36% are in professional or managerial occupations

70% have full-time employment

fans

33% have annual incomes between $30,000 and $50,000

30% have household incomes over $50,000

53% are over 35

64% are married

fans Women make up almost 40%

of the NASCAR fan base

More than any other sports

Sport Women MenNASCAR 38% 62%

NFL 35% 65%

MLB 31% 69%

NBA 28% 72%

NHL 12% 88%

Brand Future

NASCAR Café:

Themed restaurant

NASCAR SpeedPark:

Go kart tracks○ Vaughan, ONT○ Myrtle Beach, SC○ Concord, NC○ Smokey Mountain, NC○ St. Louis, MO

Brand Future

NASCAR ride at Carowinds Park

NASCAR driving experience

So What’s The Big Deal?1/3 of the Fortune100 firms

sponsor a NASCAR racecar

The BIGGEST Sponsor of All

NASCAR Sponsorship

Who’s missing? Winston sponsored NASCAR for 32 year

Replaced by Sprint in 2003

No tobacco brand sponsors exist anymore

Who’s missing? Hard liquor has not traditionally been a

part of NASCAR

Introduced into the sport in 2004 to bring an influx of cash to the sport

Main Sponsor$5-9 million

Includes hood, driver’s chest and TV panel (back of trunk)

HoodDriver’s chest

TV Panel

B-Post$75,000 - $150,000

Other Sponsorship Options

Trunk$500,000 - $1 million

C - Post$250,000 - $750,000

Front Fender$30,000 - $100,000

Other Sponsorship Options

Rear Quarter Panel$750,000

Front Quarter Panel$750,000 - $150,000

Lower Quarter Panel$25,000 - $75,000

Behind Rear Wheel$200,000 - $600,000

Other Sponsorship Options

Roof and Door panelsCar Number locations

No Ads are permitted here

Why do they sponsor?

NASCAR Sponsors - Why they Invest

Endorsements Any type of advertising

done by a person who

reflects his or her own

opinions, beliefs, findings,

and experiences that are

separate from those

associated with the

product’s company

ATHLETES THAT MAKE MORE MONEY ENDORSING

#1 Tiger Woods

#2 Phil Mickelson

#3 Dale Earnhardt Jr.

#4 Derrick Rose

#5 Jeff Gordon

#6 LeBron James

#7 Jimmie Johnson

#8 Tony Stewart

#9 Kobe Bryant

Controversy of Endorsements

Celebrities must use the products they endorse.

The political opinions of celebrities may have an

adverse effect on the endorsement.

The personal controversies of a celebrity may have

an adverse effect on the way the public views the

endorsed product.

Companies do not want the image of their product

damaged.

Lance Armstrong - Steroid Use

Endorsements Lost Nike Anheuser-Busch

Kobe Bryant – Accused of Sexual Assault

Endorsements Lost McDonald’s Coca-Cola Nutella

Barry Bonds– Steroids

Endorsements Lost Master Card KFC Charles Schwab

Michael Phelps– Marijuana Use

Endorsements Lost Kellogg’s

Tiger Woods– Extramarital Affair

Endorsements LostAccuentureAT&T GatoradeGillette