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Nationwide Is On Your Ride

 

October 5, 2007

Mickey Mills – SCR

 

NASCAR made it official Wednesday; Nationwide Insurance will be taking over the series sponsorship of number 2 series for the 2008 season. Sources familiar with the specifics say the seven year agreement was penned at $10 million dollars a year.

 

NASCAR initially started out seeking new sponsorship for the series in the $30 million annual range. With no corporate interest at this level, NASCAR continued to drop the price, ultimately bottoming near the level Anheuser-Busch is paying today.

 

This agreement seems to be a good fit with the NASCAR racing community and series competitors. Currently NASCAR has an agreement with Allstate as the official insurance of NASCAR; however Nationwide will take over that role in the new season.

 

The announcement Wednesday comes amid a flurry of corporate movement and sponsorship agreements shifting, renewing, or ending. Think of it as the Corporate Silly Season. Everyone is slicing up the dollars they will spend and where they will spend them.

Notable among these are:

 

Mars candy announcing they will sponsor the No. 18 Gibbs Racing Toyota next season driven by Kyle Busch. This is the M&M banner currently driven by David Gilliland on the No. 38 Robert Yates machine.

 

Budweiser is leaving DEI and partnering with Kasey Kahne and Gillett/Evernham Racing for next season on the No. 9 Dodge. The Budweiser logo already sits proudly on Kahne's official website.

 

Speaking of the King of Beers, there has been a dethroning. Coors Light will become the official beer of NASCAR starting next year. This is a five year deal worth $20 million.

 

Advanced Micro Devices (AMD), the official technology partner of NASCAR, has obtained a release from their commitment and will leave the sport in the very near future. AMD is credited with many of the technology improvements related to timing, scorekeeping and communications over the past few years. NASCAR is seeking a new partner to assume this role.

 

You need a scorecard to figure out the dynamics of the Pepsi vs. Coca-Cola arrangements with the sport. In 2008, Coca-Cola, the official soft drink of NASCAR, will become the official soft drink of International Speedway Corporation, which means Daytona, Talladega, and ten other speedways on the racing circuit will be pouring only Coca-Cola brands in their concessions. Coca-Cola will also become the new sponsor of the July race at Daytona. Pepsi has been the sponsor of the summer race since 1984. Coca-Cola will maintain it's sponsorship of the 600 mile race at Lowe’s Motor Speedway.

     

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I don't have to discuss the Pepsi involvement with Dale Earnhardt Jr. That story has dominated the news for weeks.

 

J.C. Penny has expressed interest in joining the ranks of corporate sponsors next season. Several teams have rolled out mock ups to show Penny's marketing team. Some scientific guessing by knowledgeable insiders has Penny's leaning towards arrangements with either Joe Gibbs or Michael Waltrip. This has not been confirmed.

 

With sponsor deals ballooning into multi-million dollar arrangements I'm sure the dance of the sugar daddy sponsors will continue well into the off season. Sponsor dollars is the life blood of every race team out there. Pray your driver gets his slice of the corporate pie.

 

Questions, Comments;

Email Mickey 

 

The views and opinions in this article are that of the writer(s) and not necessarily that of SCR

 

 

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