Did you know that you can sponsor a NASCAR Cup Series race team for $300k? What if I told you that yes, this is possible, and provided some insight into what an investment of that level might yield? Does this change your perception of how “expensive”, or not, NASCAR sponsorship can be? Let’s look to see what an investment of this size will provide for a sponsor.
How Far Will $300K Go?
As you are probably aware by now - if you have been reading along with our blog posts - each sponsorship engagement is different. There are differences in price, assets, activation methods, expectations, results and more. Each race team has a different way of deciding how much value to place on their sponsorships. Many variables come into play such as timing, inventory and other factors that can determine what price tag is placed on a certain asset at any time of the year. In short, what you pay, and what you get can vary widely from partner to partner.
For the purposes of this post, we will focus on the amount of $300k. For some teams, this amount will buy a sponsor a primary paint scheme for a single race, for others this amount might yield 2-3 primary paint schemes and yet for other teams, this amount might be a 3-race associate sponsor with limited branding on the car. Each team is different in their valuation of sponsorship.
If a team is performing at a high level and running up front, often winning races or finishing in the top 5 consistently, then $300k will not go as far as it might for a team running in the middle or back of the field each week. Keeping in mind, this isn’t an absolute, as on-track performance may not be as important for certain sponsorship deals.
You Get What You Pay For
Still, the adage is still true “you get what you pay for”. I have known some sponsors to get a great deal on a race car sponsorship, only to find out what was promised is not what they received. This is very unfortunate as the decision to invest in NASCAR can be a major ordeal for a company and to feel like they didn’t receive the value or even the assets they were promised is terrible. When this happens, I can’t help but think “you get what you pay for” still rings true. To avoid this pitfall, it is crucial to fully vet the property (or properties) with which you are looking to align your brand.
So yes, it is possible to sponsor a NASCAR race team for $300,000. The caveat is that, depending on the team, the package of assets that come along with your investment will look different. Many folks often ask me “how much does it cost to get started in sponsoring a race team?”. I often reply that each team is different and there is no cookie cutter package. I want to hear what is going on with the prospect, why are they considering a sponsorship, what challenges are they looking to solve. I might have a solution that could help them, and it really doesn’t have much to do with sponsoring the race team in a traditional sense.
To illustrate this point, our team was speaking to a potential prospect recently and at first it sounded like the prospect was interested in sponsoring our race team. As we had more dialogue together with them and learned more about their business, we both realized that our team could help the prospect’s business outside the racetrack. The cost to do business became more of us acting as an extension of their outbound sales team and serving as an agency for them. The result of how we structured the partnership was very different than how it looked after the initial conversations. This is typical. I always like to have multiple calls or meetings with prospects to learn more about their business and educate them on how we operate and the tools we can provide depending on the situation.
Cost is dependent on the solution provided in my opinion. Race teams have budgets they operate from and it is very expensive to run a race team at the premier level in NASCAR. Our sport is heavily dependent on sponsorship dollars and I believe the properties looking for those sponsorship dollars must be creative with the assets, tools and overall solutions offered in return for the investment in the property.
Getting to the Point
If you are reading this and believe that you want to sponsor a NASCAR race team, but don’t have a $300,000 budget to spend towards it, there are other options. Perhaps you start small as an associate sponsor or provide a product trade with a team. Sometimes it might make more sense to place a radio or digital buy in the sport to get started before you become an Official Partner of NASCAR or a race entitlement sponsor at a track.
If you are ready to get started or have any questions about cost of a NASCAR race team sponsorship, I encourage you to download our latest eBook – Anatomy of a NASCAR Sponsorship or reach out to us directly. We are more than happy to talk with you about your goals and business opportunities within this sport that might make the most sense for you.