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Andretti Sponsorship Situation "Not Very Pretty"

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  • Andretti Sponsorship Situation "Not Very Pretty"

    Losing 7-11 doesn't seem so surprising, as the company probably has few Brazilian customers in the USA, but losing Izod for Hunter-Reay seems to have larger implications.

    For one thing, the latter is younger and surely has more future upside, much like Rahal. Penske seems to have survived 2010 with 2/3 of his cars unsponsored, but 1/2 is likely too much for Andretti, who may just have a motorcycle store to fall back on. Perhaps also Go Daddy isn't a sure thing, either.

    There's time of course, and the announcement the recession ended in Summer 2009 will surely help.

  • #2
    It is a bad situation for Andretti Autosport considering they maybe the only team that is trying to invest and help grow the sport instead of just taking and taking like Penske and Ganassi does.

    Either way it is only going to get worse. Fewer and fewer people are attending and watching. Add to that the economy is getting worse. I would not be surprised to see Izod get out early from its contract. How many shirts do you think they are selling with sponsoring the IRL? Not many. There is zero reason why a major company would sponsor a car. It makes no finanical sense. There is no ROI.
    "Paff has been closer to the mark than anyone will give him credit for."

    Richard Kimble 11/18/2010

    "Paff is far more right than any of you will EVER give him credit for.

    As non politically correct and un IndyCar friendly as it is, it's the truth. "

    SeeuInMay 12/29/2010

    Comment


    • #3
      Originally posted by Chris Paff View Post
      It is a bad situation for Andretti Autosport considering they maybe the only team that is trying to invest and help grow the sport instead of just taking and taking like Penske and Ganassi does.

      Either way it is only going to get worse. Fewer and fewer people are attending and watching. Add to that the economy is getting worse. I would not be surprised to see Izod get out early from its contract. How many shirts do you think they are selling with sponsoring the IRL? Not many. There is zero reason why a major company would sponsor a car. It makes no finanical sense. There is no ROI.
      I don't disagree with most of what you said, but with respect to IZOD I don't think they saw IndyCar as a direct way to increase their sales. Instead, it was a platform to clarify/enhance their brand identity. The commercials they have produced certainly have changed my opinion of their image which I'm sure was what they are after.

      Large companies spend millions of dollars on brand management, which is a completely different concept than direct marketing. IndyCar and the Indy 500 are still valuable commodities that are well known by the masses, even if they don't watch or attend races. The history and speed of the sport are attractive for many companies who are trying to use the sport as a platform for brand management.

      As far as AA is concerned, it's been impressive they have been able to run 4+ cars since 2003. They definitely have the best team of attracting sponsors, so I'm not ready to write them off quite yet. IZOD never intended to be RHR's primary sponsor, so that isn't a surprise at all. 7-11 leaving was certainly a shock and a blow to the team & sport, but I'm cautiously optimistic they will bring in a new infusion of cash.

      The bottom line is that we had 25 plus cars the past few seasons, despite a major recession. Improving ROI is at the top of the list of goals RB must accomplish (quickly), but the sport isn't on life support as many would contend.
      "You make one **** of a caucasian Jackie." The Dude Lebowski

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      • #4
        Originally posted by Chris Paff View Post
        It is a bad situation for Andretti Autosport considering they maybe the only team that is trying to invest and help grow the sport instead of just taking and taking like Penske and Ganassi does.

        Either way it is only going to get worse. Fewer and fewer people are attending and watching. Add to that the economy is getting worse. I would not be surprised to see Izod get out early from its contract. How many shirts do you think they are selling with sponsoring the IRL? Not many. There is zero reason why a major company would sponsor a car. It makes no finanical sense. There is no ROI.
        I keep reading this from you but have yet to see an example of what it is, or at least what you think it is.

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        • #5
          Originally posted by MoparsRule View Post
          I keep reading this from you but have yet to see an example of what it is, or at least what you think it is.
          Where is there support of the support series?

          When car counts were an issue, they had the means where were their extra cars to fill the field in 2003? While Panther fielded 3.
          "Paff has been closer to the mark than anyone will give him credit for."

          Richard Kimble 11/18/2010

          "Paff is far more right than any of you will EVER give him credit for.

          As non politically correct and un IndyCar friendly as it is, it's the truth. "

          SeeuInMay 12/29/2010

          Comment


          • #6
            Originally posted by Chris Paff View Post
            Where is there support of the support series?

            When car counts were an issue, they had the means where were their extra cars to fill the field in 2003? While Panther fielded 3.
            Their responsibility lies within their respective organization. They have fully funded cars that put on a great show for fans. Their sponsors have spent millions in activation to promote the series that they race in.

            I see no negatives in any of that. No "taking" as you paint it.

            Comment


            • #7
              Correct, their responsibility is to their teams. But neither does anything extra to support the series. They just compete and rack in the prize money.

              While Andretti gives back by supporting the support series. Both can afford to do that easily but they are not interested in doing that.
              "Paff has been closer to the mark than anyone will give him credit for."

              Richard Kimble 11/18/2010

              "Paff is far more right than any of you will EVER give him credit for.

              As non politically correct and un IndyCar friendly as it is, it's the truth. "

              SeeuInMay 12/29/2010

              Comment


              • #8
                Ok... nevermind.

                Comment


                • #9
                  As already stated, Penske is running two of his three cars out of his pocket. That's not helping the sport? Also, when Andretti Green first came over, they got piles of money and technical support as Honda's factory team. Consequently they could afford to suck up sponsors at a lowball rate. This dropped the value of sponsorship and caused grief for all the other teams who needed full sponsorship money, having to charge more. I understand that this made AGR not so popular in pit row.

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                  • #10
                    Originally posted by ArtVandalay View Post
                    As already stated, Penske is running two of his three cars out of his pocket. That's not helping the sport? Also, when Andretti Green first came over, they got piles of money and technical support as Honda's factory team. Consequently they could afford to suck up sponsors at a lowball rate. This dropped the value of sponsorship and caused grief for all the other teams who needed full sponsorship money, having to charge more. I understand that this made AGR not so popular in pit row.
                    The AGR/AA lowball sponsorship rate is an old wive's tale. Perhaps the focus should rather be on teams who have placed sponsors on the cars in hopes of getting paid (i.e. free sponsorship).

                    Andretti has done a better job than any team the past 8 years in attracting sponsorship $. They have been running 4 cars without Honda bucks for quite some time now. If all the other teams could figure out Andretti's secret, the sport would be much off.
                    "You make one **** of a caucasian Jackie." The Dude Lebowski

                    Comment


                    • #11
                      Originally posted by Danny Noonan View Post
                      The AGR/AA lowball sponsorship rate is an old wive's tale. Perhaps the focus should rather be on teams who have placed sponsors on the cars in hopes of getting paid (i.e. free sponsorship).

                      Andretti has done a better job than any team the past 8 years in attracting sponsorship $. They have been running 4 cars without Honda bucks for quite some time now. If all the other teams could figure out Andretti's secret, the sport would be much off.

                      You say the Honda bucks are an old wives tale, then compliment them for running without Honda bucks for some time....so which is it?

                      Why did a couple major sponsors leave the team around the same time the Honda bucks did?

                      Comment


                      • #12
                        Originally posted by Chris Paff View Post
                        They just compete and rack in the prize money.
                        You're serious? IICS stopped paying significant performance based prize money, because Ganassi, Penske, and Andretti won most of it. It was replaced with the TEAM program. AFAIK, the total prize purses available to 'rack in' exc Indy are about $3m. The total TEAM money is about $20m.
                        Racing ain't much, but workin's nothing. Richard Tharp

                        Lying was a no-brainer for me. Robin Miller

                        "I thought they booed [Danica] because she was being a complete jerk, but then they applauded for A.J. Foyt. Now I'm just confused."

                        The real world sucks. Ed McCullough

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                        • #13
                          [QUOTE=Baulz;2439824]You say the Honda bucks are an old wives tale, then compliment them for running without Honda bucks for some time....so which is it?[QUOTE]

                          The old wive's tale is that AGR was giving out prominent sponsorships for minimal benefit.

                          Yes they had XM Radio and others that were there because of Honda, but AGR was directly or indirectly benefitting so I don't see how that devalued sponsorship. It was a B2B deal, similar to what Target does with Duracell, TomTom, etc.

                          When Honda left, no doubt AGR lost cash but they still were able to run 4 cars. If Honda was previously paying most of the bills and the other sponsors paying little (directly or indirectly), one would have expected them to drop to 2 or 3 cars after Toyota and Chevy left.

                          B2B does not mean devalued sponsorship, in fact it should be embraced throughout the paddock. Now if a team is putting a sponsor on the sidepod and getting absolutely nothing in return, directly or indirectly, that is a different story. There are many small teams that have done that through the years.
                          "You make one **** of a caucasian Jackie." The Dude Lebowski

                          Comment


                          • #14
                            Wive's tale....maybe. But I remember reading about it from multiple sources and others did complain about AGR's discounting...perhaps without just reason.

                            4 cars....well let's see. Danica, with her sponsorship package is likely to be self sustaining or even a profit center. Mutoh isn't in his car because he's an open wheel legend. I wonder how much his benefactor contributes....probably a lot. That leaves Tony with 7-11 and Marco with whatever his sponsors pay, though I'm sure dad has him in the car regardless.

                            Comment


                            • #15
                              Originally posted by Chris Paff View Post
                              Correct, their responsibility is to their teams. But neither does anything extra to support the series. They just compete and rack in the prize money.

                              While Andretti gives back by supporting the support series. Both can afford to do that easily but they are not interested in doing that.
                              I simply do not buy into the premise, so... yeah.


                              But, that said, by AA "giving back by supporting the support series" they also receive extra testing at the IICS level amongst other things...

                              - Each FILS driver is eligible to test up to 600 miles with each ICS team.
                              - For every 200 miles that a FILS driver tests an ICS car, that ICS team earns an additional 100 testing miles.
                              - ICS teams that also own FILS teams can earn additional in-car camera opportunities & 12 two-seater rides throughout the season.
                              http://burrismotorsport.com/pdf/Indy...eting_2010.pdf
                              http://www.andersenracingteam.com/In...ide%202009.pdf

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