If you’re thinking that having a racehorse stable can make anyone’s credit cards a little bloated you should consider having two NASCAR racers ready for battle and well-hydrated at the start line. Never before has money played such a significant role in the game of auto racing.
To the majority of people, it is a matter of money. The days are long gone where the winner simply gave the crew and driver an amount of money and utilized the remaining funds in the best way he could prepare his car for the following weekend’s race.
Keeping a Car on the Track Is Expensive
Today, the cost of maintaining just two cars at the race track is astonishing. While some owners with big names may only have two vehicles on the track but they typically are able to maintain an average number of 13, 14 vehicles in construction.
It is reasonable, therefore when there are a lot of garages are stocked and that the owner (or the owners) should have a group of experienced mechanics on their payroll to make sure they are prepared to race on time.
In addition to the mechanics on the payroll, but there are also teams who handle the purchase as well as the stocking and inventory of hundreds of items needed for the vehicles. To handle the paying bills, payroll, and all the other things there is an administrative team comprised as well as the logistical team, which arranges the race schedules and transport for the trucks, cars mechanics, drivers along with pit crews.
Additionally, there are public relations personnel and legal personnel, and secretaries, as well as numerous others who assist in the efforts to get the vehicles onto the race track. In reality, a mid-level racing team is comprised of more than 100 individuals.
The costs can vary from team to team, they are all very close to only the one “typical” 2-car Nextel Cup team.
Cars$130,000 each costing $130,000
- Salaries for teams The average is $3 million per year
- Drivers – $400,000 for a newbie driver, up to several million dollars for an overall top 10 driver
- “Travel” – 1 million dollars per year per team
- Tires Minimum $20,000. per race
- Engines – $40,000 each
If you believe these numbers are too high, the cost for the bigger, more well-known teams can be twice or more.
In order to cover these massive expenses, NASCAR owners needed to come up with a method to cover their expenses, in other words, that they had to pay someone else to help their teams. As opposed to the past that prize money earned for winning races isn’t much. The cost of winning a race used to be millions of dollars annually has now risen to at least $15 million annually.
Always seek out opportunities to show their logos in front of American customers, corporations American discovered that, with the estimated 75 million supporters, NASCAR racing was the second most-watched sporting event within the U.S. (Football is the top choice.) In light of the effect that millions of fans could have on their bottom line, These companies swooned at the prospect of supporting NASCAR events.
As a reward, the company’s logos were prominently displayed on vehicles, equipment as well as on the uniforms. Additionally, drivers were required to mix with guests at the tent of corporate on race days as well as make appearances at corporate functions as well as in advertisements, and take part in employee pep rallies in the name of “personal services.”
There are three levels of sponsorship: Major, Associate, and Primary. The Amount of backing for a particular team will differ not only based on the level of sponsorship, but also within that level will be able to include benefits such as the number of appearances of the driver as well as advertising guarantees and most importantly, the place where the logos of the sponsoring company will be displayed on the cars. A typical example of cost for each level as well as the possibilities of logo placement are shown by the following:
- From $500,000 to Million to become an Associate Sponsor Logos are placed or logo on the lower quarter panels of the rear as well as the deck lid on the rear or on a single post.
- $2-$5 million to a major Sponsor Logo prominently displayed on the quarter panels on the rear or the lid to the deck’s rear as well as on the uniforms.
- $10-$20 million for a primary sponsor logo across the entire hood and quarter panels, signs under the quarter panels both posts as well as the equipment, uniforms, and the colors of the uniforms and the car.
The best racing teams can draw sponsors with deep pockets and due to rising costs, several teams have discovered that it is important to contract two sponsors or more simultaneously.
Priority – NASCAR team sponsor
A basic NASCAR sponsorship is comprised of basic elements like your logo being displayed on the hood, back quarter panels and TV panels of the truck or car along with Social Media and PR support, sponsorship seats in the pit box as well as hot passes for 6-8 teams in the garage for every race, hospitality opportunities and appearances by drivers. The minimum price is based on the amount per race.
ASSOCIATE NASCAR T eam sponsor
A partner NASCAR sponsorship is comprised of basic elements like logos on the vehicle or truck at the desired location like the lower quarter panels of the rear B-pillars, C-pillars, and C-pillars deck lids for the rear, at least two garages for the team hot pass per race and so on. The minimum price is determined by the amount of money per race.
SUPPORT – NASCAR team sponsor
A support NASCAR sponsorship may be available on an event-by-race basis. Minor sponsorships are used to cover various costs, such as team travel expenses and tire expenses along with team meals and other logistical duties. They may also include a small logo on the car/truck and one hot pass to the garage for each team. Minimum cost calculated on the basis of the amount of $ per race.