[Quality88]

NASCAR, ESPN join search for title sponsor

By Mark Aumann, NASCAR.COM
December 18, 2006


NASCAR considers the title sponsorship of its No. 2 series to be "a significant opportunity for brand exposure," so it's going to the unusual step of asking broadcast partner ESPN to join in the search to replace Anheuser-Busch at the end of the 2007 season.

Anheuser-Busch officials confirmed Monday that the company will not renew sponsorship of the Busch Series when the contract expires next season, which allows NASCAR to search for a replacement title sponsor at what industry analysts believe is worth between $35-$40 million per year, which is estimated to be at least three times the current deal.
"We didn't feel like we needed to make a big announcement on it, but we felt it was important to alert NASCAR that we were not going to renew after '07 as a courtesy of our long-term relationship," said Tony Ponturo, vice president of global media and sports marketing for Anheuser-Busch. "We wanted to give them time to consider and look for a new sponsor."
With that in mind, NASCAR and ESPN will be doing something unique: they will be combining efforts to replace the Busch brand over the next 12 months, according to NASCAR's director of business communications, Andrew Giangola.
"No one could come up with another example of league and broadcast partner selling a sponsorship," Giangola said. "We will be enjoined to find the right series sponsor to support our efforts and elevate the series."
With the growth of the Busch Series in recent years, coupled with the brand loyalty shown by NASCAR fans, Giangola said it makes sense that NASCAR and its broadcast partner be involved in the title sponsorship process.
"The Busch Series will have more of a presence on ESPN, so we're going to be looking for a national brand that's going to promote the series," he said. "The Busch Series is an extremely strong motorsports property. It's a significant opportunity for a company to gain $100 million in brand exposure. It's a unique situation, because the company is literally branded to the sport."


Giangola said there's no specific timeline to the process, which is in initial stages.
"Clearly, we hope to have somebody in place before 2008," he said. "We'll go out with ESPN and begin meeting companies across a range of categories."
Giangola said there is constant communication between prospective sponsors and NASCAR. In some cases, companies have inquired about future title sponsorship. In others, NASCAR has initiated talks.
For now, Giangola doesn't believe the current economic situation will have any bearing on NASCAR's ability to find a replacement for Busch.
"We don't think that's going to be much of a factor," he said. "You could make the argument that when economic times are tighter, the cream tends to rise to the top. In good times and bad, NASCAR remains a great choice.
"Our fans are very passionate about the sport. There is an extremely high level of awareness about the sport."




There's a good possibility that the new sponsor may not be one traditionally connected to auto racing, like when Sprint-Nextel replaced Winston as title sponsor of NASCAR's premier series in 2003.
The key, according to Giangola, is finding the right fit, especially when it comes to exposing new fans to the sport.
"The Holy Grail seems to about bringing in the casual sports fan, no matter what the property," he said. "When you look at ESPN, it's a gathering place for a lot of casual sports fans, that's for sure."
NASCAR's Late Model Sportsman Division was renamed the Budweiser Late Model Sportsman Series in 1982, with the Busch brand taking over as title sponsor in 1984.


Another good title Sponsor leaves.... I wonder if it was mutual, or if they were pushed out.

[Souporscotty]

Seeing as how the next deal will be worth 35-40 mil, THREE times the worth of the current deal, I'd say AB was edged out. Brian probably needs new shoes.

[wingkey1]

Toyota's bidding.

It'll be the Rice Wine Series.

Winner drinks saki in victory lane.

Victory lap is in a rickshaw.

[SteelPhoenyx]

Originally Posted by wingkey1

Victory lap is in a rickshaw.

Just made me spit my beer on that one.

That's some pretty heavy duty news though. Wow.

[Bob Tanner]

Originally Posted by Quality88

NASCAR, ESPN join search for title sponsor

"The Busch Series will have more of a presence on ESPN, so we're going to be looking for a national brand that's going to promote the series," he [Andrew Giangola, NASCAR Director of Marketing] said. "The Busch Series is an extremely strong motorsports property. It's a significant opportunity for a company to gain $100 million in brand exposure. It's a unique situation, because the company is literally branded to the sport."
.

Maybe I'm wrong but I find it typical that Giangola, a NASCAR spokesman, would re-enforce the contention that NASCAR's BGN Series is looking very good. However, the article I read in the WSJ quoted AB as saying they felt their money would be better spent by reducing their involvement in NASCAR and spreading their advetising money around into different venues. It seems to me that AB 'might" be saying that the value of being a NASCAR Series sponsor isn't what it's cracked up to be at a $30-$40 million price tag. Possibly the ship has sprung a leak and AB thinks it's time to lighten the load and possibly man the life boats?

I haven't heard of AB suffering a financial problem such as what GM and Ford is going through at present (I don't think either Ashai or Kerin beer is a serious challenge to Bud or Busch's hold on the market). Therefore it seems to me that AB's decision is made from not a shortage of money but at NASCAR's asking price of $30-$40 million, a poor business deal. That doesn't smack of a totally healthy racing series to me.

[LSC9901]

Maybe Kerin will be able to sponsor one of the Toyota's. They did well by me for 19 months, although I did tend to go a bit slower when sponsored by them.

[Bob Tanner]

Originally Posted by LSC9901

Maybe Kerin will be able to sponsor one of the Toyota's. They did well by me for 19 months, although I did tend to go a bit slower when sponsored by them.

My personal choice was Ashai (when I wasn't doing Akadama Warclubs, supporting the Suntori distilleries or drinking that Japanese joke on humanity, Absynse.). Kerin always tasted a bit sweet, to my taste. Kind of like Schlitz or Olympia.

That doesn't make Kerin bad, mind you. It's all merely a matter of preference.

[LSC9901]

Ahhhh yes Suntori Gold. Nothing finer or smoother. As for Kerin VS Ashai ... after the first few they all tasted the same. I was young and in need of a good time. I think I had fun !!!!