Why NASCAR is still money on wheels

Corporations are plowing less money into motorsports this year, but the stock-car circuit isn't too worried

The economic crisis may continue to bring leaner times for NASCAR in the next year or two, but the stock-car series remains the favourite to come out of the downturn ahead of the pack.

While a report released last month by sponsorship experts IEG found that North American companies would spend about 6 per cent less in motorsport-related activities than in 2008, NASCAR's teams should keep motoring along at the expense of many other sports.

"NASCAR is the major player in the U.S. when it comes to motorsports and they draw by far the most sponsorships than anything else," said William Chipps, senior editor of the IEG Sponsorship Report, which tracks and analyzes corporate sponsorship.

"Companies always flock to the biggest and the best sports property. For the most part, NASCAR's competition from a sponsorship sales perspective isn't in the motorsports space, it's almost like other sports properties.

The report found that North American companies earmarked an estimated $3.3-billion (U.S.) for racing sponsorships this year. While a significant amount, the 2009 figure represents a $200-million drop from last year, marking the first time the study has predicted a dip in sponsorship in almost two decades.

With some softening expected as many companies continue to look for ways to reduce costs and ensure return on investment in sponsorship, those series that can't deliver top value may be left behind. Read the rest...