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Show Me The Money! 

 

September 28, 2008
Mickey Mills – SCR

 

Money, sports, and sponsors go hand in hand. Whether it’s football, baseball or NASCAR, you can not escape the need for the almighty dollar… Stacks and stacks of the almighty dollar.

 

Were you, like me, appalled when you read that Alex Rodriquez signed a $252 million, ten year contract with the Yankees? How many home runs do you have to hit to earn that? In 1996, the LA Lakers lured Shaquille O'Neal away from the Orlando Magic with the offer of a seven year, $122 million contract. Not too bad for throwing a big orange ball through a metal hoop.

 

Too bad race car drivers don’t do that well… or do they? 

 

I read recently that Dale Earnhardt Jr. earned $20 million last season and is poised to substantially improve that in the coming years on the strength of his association with Hendricks Motorsports (HMS) and the new sponsor agreements with PepsiCo and The National Guard. If I do the math right, just sticking with the twenty million, Junior will bring home 140 million + across 7 years. I never thought of Little E as bigger than The Shaq, but the numbers don’t lie. 

Rumors have it that Hendrick’s new sponsor deal for Junior is in the thirty million dollar neighborhood. That’s the Boardwalk with Four Houses of sponsor deals.

 

Don’t get me wrong, I’m not knocking Junior or Hendricks for getting a great deal like that. If the sponsors are willing to sign up for it, more power to them. No bucks… no Buck Rogers. 

 

My concern is where does it end?

 

NASCAR is all about numbers; speed, RPMs, qualifying times, etc, etc. The number that startled me is winnings and how large that number has gotten. For grins, I took a look at the last ten seasons through 28 races. I compared the winnings of the top twelve drivers in the standings versus the rest of drivers in the standings list for that season (You may have noticed by now I am a data kinda guy.)

 

So far this year, drivers have won a total of just over $153 million, with the Nextel Chase drivers accounting for almost $56 million of that. In comparison the Busch guys have won a measly $33 million and change. Almost half of that was won by Nextel Cup regulars. The truck guys haven’t even brought home $10 million. The Craftsman tools and boxes sitting along pit row are probably worth that.

 

Step back ten years into the 1997 season. Through 28 races, cup drivers won a total of $43 million with $19 million of that being paid to the top twelve. Even then you saw that it paid to score top tens. 

 

Roll back another ten seasons. In 1987, after race 28, drivers had won a little over $10.5 million. The top 12 were well paid, taking home almost 56% of that. That year 118 drivers had at least one start and by race 28, the other 102 drivers had spread around $4.6 million in winnings. Well over half of those guys took home less than $10,000.

 

The sport has come a long way since the 1977 season where 120 drivers shared a little over $3.3 million. Cale Yarborough took home the most; a whopping $364 thousand through 28 races. Paul Dean Holt started one race that year and took home the smallest piece of the pot, $275.

 

What a difference 30 years makes. If the growth rate keeps pace, ten years from now NASCAR Drivers will have a won a whopping $544 million so far. Who’s going to feed the beast then?

  

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