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NASCAR Cup News
Trouble On Wall Street Could Affect Sponsorships
Written by Ray Everett   
Friday, 19 September 2008 09:11

 

It has been proven time and again, hardcore race fans are the most loyal of any bunch in the sports arena. Not only do they root their favorite drivers on at the track and in front of their televisions each week, race fans purchase the products of the companies who sponsor their NASCAR heroes.

 

NASCAR is a sponsor dependent sport. Race teams are addicted to the cash flow a sponsor provides and face peril without it. With the cost of racing on the rise and economic conditions worsening the past couple of years, several teams have found it necessary to seek multiple sponsors in order to stay afloat.

 

The marriage of corporate America to NASCAR and it's race teams has been a successful one. Advertising on the side of a 200 mph racing machine is a viable method in which to move products and this fact is known by CEO's of America's largest corporations.

 

Recent announcements from Wall Street this week could have an adverse effect on this fruitful relationship. With more bad news expected in the coming weeks, the full story of what the movers and shakers on Wall Street have been doing appears yet to unfold.

 

A large percentage of racing's corporate sponsors conduct business daily on Wall Street and some are experiencing significant declines in the value of their stock. Only time will tell if this trend continues, as some analysts are predicting.

 

Hardcore race fans have been hit hard during the 2008 season with high gas and food costs while the economy continues to suffer. The two most recent stops on the Cup Series tour, Richmond and New Hampshire, both enjoyed good crowds despite heavy rains on both weekends. A testament to the loyalty of America's hardcore race fans.

 

When we are at the stores and traveling this weekend, let's remember which products support the sport and we will be doing our part to keep it alive.