Sponsorship is one of the key things that makes the racing world go round. Whether it be tracks, series, or drivers, sponsors are key in helping fund any of these. Tracks use sponsorships in many ways to help keep things profitable on their part. They can range from money sponsoring a division that is racing to food companies cutting promoters breaks on pricing in return for getting their name out there to the fans. They also help to pay point funds to the drivers at the end of the year. Driver sponsorship dollars go a very long way, especially at the local level, all the way up to the touring series, to helping keep the operation afloat. They aren't strictly just names on the car, this is $$ that buys things such as tires, motors, spare parts, and so on. Touring series use $$ nowadays to pay points funds, purchase television time so the series can get noticed in the national market, and to pay the daily expenses associated with running a series.
At the national and global level, sponsorship doesn't change much in principal. The idea is still the same. The $$ goes to support drivers, series, and tracks to help pay the bills. The big difference is the amount of money sponsors pay out. In NASCAR for example, an average sponsorship per year for a large corporation can range from $20-45 million. In Formula 1, a sponsorship can be $150 million or more. These companies don't pay this out just to help people out. This is a form of global advertising to them. They hope and expect to see returns on their investments.
We as fans come into the equation in this way. We have a driver we like. To support him, we buy products from their sponsors. We know those sponsors are helping keep our driver on the track. This is why sponsors use racing to advertise. They realize we are willing to buy products if they support our favorite drivers. For them, as well as the driver, it is a win-win situation.
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Very good article. Fans don't realize how much it costs to maintain a race team and how much preparation it takes before a race. I had the opportunity to visit a local racer's shop and saw all the preparation it took just to go racing for a week and how much money is spent. All fans should take an opportunity to thank their favorite drivers and do anything they can to help support them.
ReplyDeleteKaren, you are absolutely right. There is a lot of preparations and even costs before a team ever even hits the road. You have to feed the crew, fuel the hauler, fuel the generator, and the list goes on. It can be mind blowing at times, even to the fan who does follow along and knows the sport.
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