Subway falls from lead in NASCAR series sponsor stakes

Tom Barlow — Thu, 30 Aug 2007 15:00:00 EST

Filed under: Deals, Rumors, Competitive Strategy, Marketing and Advertising, Allstate Corp (ALL), Anheuser-Busch InBev (BUD), Yum Brands (YUM)

For a sport that just a few years ago was the darling of the blue-chippers, NASCAR has suddenly found love as hard to come by as a meth-addled octogenarian. After Anheuser-Busch (NYSE: BUD) dropped its 25-year long title sponsorship of the race promoter's second-tier series, Subway seemed a lock to take it on.

Now comes news that the restaurant's ardor for the series has cooled, and NASCAR has been forced to revisit formerly spurned suitors such as KFC (NYSE: YUM), Allstate (NYSE: ALL) and Dunkin' Donuts (D'OH!).

Along with the decline in interest has come a drop in price. The value of the sponsorship, once thought to run $30 million a year, has been halved. NASCAR is not the only loser in that drop; the original price included a mandatory ESPN ad buy of around $10 million, a requirement that has been relaxed.

According to Michael Smith in the Sporting News, Subway balked at the lack of exclusivity, a constant source of tension in the race industry where teams, tracks, OEMs and suppliers are also hustling sponsorships for every nut, bolt and beer cozy in the paddock.

NASCAR fans skew 60-40% male, slightly above the U.S. average in the 35-44 year of age category. They are overrepresented in the lower income categories, which would dampen the interest of luxury product companies. One interesting statistic is its popularity among America's fastest growing minority -- Hispanic fans have grown from 3.6% to 8.6% in only a few years. So how about the Taco Bell series? Or The Chipotle (NYSE: CMG) 500?

Subway falls from lead in NASCAR series sponsor stakes originally appeared on BloggingStocks on Thu, 30 Aug 2007 15:00:00 EST. Please see our terms for use of feeds.

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Anheuser-Busch pulls away from NASCAR series sponsorship

Tom Barlow — Sat, 10 Mar 2007 13:10:00 EST

Filed under: Rumors, Wal-Mart (WMT), Marketing and Advertising, Anheuser-Busch InBev (BUD)

The Busch series, the minor-league version of NASCAR's Nextel Cup circuit that usually runs on the same track the day before the NASCAR races, has been titled by Anheuser-Busch Companies Inc. (NYSE:BUD) for the past 26 years. In a surprising turn, given the popularity of the sport, the brewer has decided to drop its sponsorship of the series.

The reasons seem to be twofold. First, the series is struggling for participation. Designed as a venue to showcase up-and-coming drivers, the series has been taken over by teams' A-list of Nextel Cup series regulars. In 2006, all but two of the races were won by big-name drivers. Since these teams already gain a great deal of exposure through their Sunday race participation, some sponsors may question whether racing a second day gains them much additional bang for their buck.

The other factor is an abrupt increase in the sponsorship fees demanded by NASCAR. After signing an eight-year deal with ESPN to televise the series, NASCAR has apparently raised the title sponsorship price from $10 million to $40 million.

Among those corporations rumored to be interested in replacing Anheuser-Busch are Wal-Mart Stores Inc. (NYSE:WMT), Subway, and Samsung.

Anheuser-Busch pulls away from NASCAR series sponsorship originally appeared on BloggingStocks on Sat, 10 Mar 2007 13:10:00 EST. Please see our terms for use of feeds.

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