November 2nd, 2008 
T.C. As we close in on the end of the 2008 season and look ahead to 2009, the sponsor landscape for the Cup Series will be vastly different next season. Some sponsors have left the sport completely, while many have moved from one team to another. One sponsor move in particular stands out to me, and I think it illustrates an interesting problem in the sport today.
The announcement came in 2007 that after a nearly 25 year career, Dale Jarrett would retire following a five race farewell tour during the 2008 season. After those five races Jarrett’s sponsor, UPS, would then move over and sponsor David Reutimann’s car at MWR for the remainder of the year. But with UPS’ contract running out with MWR at the end of 2008, most in the sport believed UPS would move on after the season.
All through the summer, rumors swirled about where ‘Big Brown’ would end up. I heard everything from them joining RCR and Clint Bowyer, to Martin Truex moving to Penske with UPS, and them replacing Office Depot on Carl Edwards’ #99. Towards the end, even Chip Ganassi Racing was in the mix to land the shipping company. When the dust settled though, it was Roush Fenway Racing that won out, having convinced UPS to take over from departing AAA on the hood of David Ragan’s #6 Ford for 2009 and beyond.
The deal is reportedly worth somewhere just shy of $20 million a season.
When their search for a new driver and team began, UPS targeted drivers like Edwards, Tony Stewart, and other big names. They, being one of the better sponsorships in NASCAR, wanted a marquee driver to take over the Big Brown Truck from Jarrett. They discovered though, that their approach and sponsorship budget wasn’t enough to land one of the sport’s superstars. Just to give you an idea of the competition they faced, they lost the Carl Edwards sweepstakes to Aflac who signed on at $26 million a season.
It’s very interesting to me that even with such tough times facing the world’s economy, that a Fortune 500 company with $20 million to spend on a sponsorship can’t get the driver they want. I think, to some extent, that they settled with Ragan because they were running out of options, and he was what they could afford, given their budget. He is certainly a young driver with potential, but he is far from the championship caliber driver they were seeking.
So while we continue to hear stories of drivers and teams who can’t find sponsorships, there are actually some companies out there who can’t seem to find a team to sponsor. Something seems very wrong with this picture…
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TC, you’ve swerved into something both interesting and important. Far too many drivers have a sense of entitlement, thinking they’ve reach the Cup level and good rides and big sponsors necessarily follow. I’m no Carl Edwards fan (I subscribe to Tony Stewart’s characterization) but quite a few drivers could learn from his hard work and approach. His efforts, both on and off the track, pays dividends for those companies involved with his racing teams.
Many drivers may be competent on-track, but they’re as interesting as watching paint dry. Decisions to sponsor a driver and/or team at this level of financial commitment are made at Board of Directors level, not by the ad director. Think of watching a clip of a driver interview on a big screen while seated around a conference table with 8 to 12 other people, and ask yourself “this guy represents our company?”
I think that UPS may win out in the end with David Ragan. He is becoming a force in the upper crust of Cup drivers, has most if not all of their respect, and is only getting better. Mark Martin reccommended this guy, and not for any dumb reason. So UPS, be glad, because you got a real bargain.
So….if the Democrats win the White House, will the teams with top sponsorships be required to “spread the wealth” and divide their sponsor $ amongst the lesser teams? Hmmmm!
Let’s not forget that sponsorships are all about giving NASCAR fans exciting entertainment in return for “selling more products”. That’s why the CEO of Camping World said they are picking up the sponsorship of the truck series starting in 2009.
Great quote Neon, Zieke, the 44 car has finished ahead of the 6 the last two races, maybe UPS pulled the plug too soon, they were only paying 18m to MWR