IBJ: Mixed Results for IRL; CCWS

[Turn13]

(IRL) Television ratings soared 53 percent from 2004 to 2005, attendance increased 9 percent, merchandise sales were up 75 percent, and Web traffic on the series' site rose 162 percent. According to Joyce Julius and Associates, an independent Ann Arbor, Mich.-based media research firm, sponsors got 57 percent more exposures during 2005 IRL telecasts than in 2004.

While IRL teams are struggling to find sponsors, sponsorship revenue in sports and entertainment is on the rise, according to William Chipps, editor of IEG Sponsorship Report, a Chicago-based publication that follows the sponsorship industry.

"We're projecting overall sponsorship spending to be up 11 percent in 2006," Chipps said. "This is the biggest increase in sponsorships since the dot-com boom."

Motorsports sponsorships are holding their own against the NBA, NHL and even powerhouse NFL, Chipps said. The IRL is simply losing out to NASCAR and other forms of racing, Chipps added.

Champ Car, the IRL's chief open-wheel rival, is in even worse shape.

"Champ Car right now simply doesn't register with most corporate sponsors," Chipps said. "The IRL is at least on the radar screen."

http://www.ibj.com/topstories.asp?A=17863

[Doc Austin]

Champ Car, the IRL's chief open-wheel rival, is in even worse shape.

It's but a mere shadow of it's former self.

[Chitownfan]

"Champ Car right now simply doesn't register with most corporate sponsors," Chipps said.

Wow.

[Z28]

It's informative to hear someone not directly involved in either series comment on how each is doing busiinesswise.

Former NASCAR champion Wallace, who retired from racing in 2005, could be a bridge to a new audience for the IRL. Wallace will be the lead announcer for ABC/ESPN, covering the 2006 IRL season.

"We think Rusty Wallace is going to be the John Madden of motorsports," IRL's Griffin said.

Wallace's exposure to the IRL has been limited, industry experts said, and winning him over could be a big coup for the series.

"Rusty Wallace is an American racing icon who gets an awful lot of exposure from the mass media," Brown said. "If Rusty shows a strong interest in Indy car racing, he could be a very powerful ambassador for the sport."

At least someone else sees the benefit of this. I'll say it made nearly no sense to me at first, Rusty removing himself from the middle part of the NASCAR season, yes he's getting some color commentary experience for 2007 but the upside seems very much to the IRL than to Rusty. Then some other things happened like HE was the one asking Danica Patrick to be a part of the Rolex 24 team, he bought 10% of the Iowa track where the IRL is rumored to be going for 2007. Rusty has his personal services contract with Miller beer. Miller beer shows up on Tony Kanaan's uniform, probably due to the 7-11 connection like the many other products AGR has.

So how much of a stretch is it to think that Rusty took the TV gig not just for the TV experience but as a scouting effort as well. Come 2007 he becomes a NASCAR announcer but maybe Miller beer is looking to make a move to the IRL. They need a talented driver sure but also one that does well with the media and fans so there's Rusty on the inside of the series all year finding a candidate. Rusty starts a team with Miller as the sponsor, the series goes to the Iowa track for the Miller 250. A year from now Rusty broadcasting the 2006 IRL season might make a lot more sense.

[Tooonces]

"We're projecting overall sponsorship spending to be up 11 percent in 2006," Chipps said. "This is the biggest increase in sponsorships since the dot-com boom."

How'd that dot com spending work out for everyone last time?

"Motorsports sponsorships are holding their own against the NBA, NHL and even powerhouse NFL, Chipps said. The IRL is simply losing out to NASCAR and other forms of racing, Chipps added.
http://www.ibj.com/topstories.asp?A=17863

When a single agreement to be a recognized sponsor in Nascar or the NFL, it moves the meter. An 'official' sponsor in any other league/series, wouldn't cause it to waver.

Sports sponsorship is, for the most part, a zero sum game; if someone is getting something, it is less than another entities can receive. Much like some companies that feel they have to make the big splash, so they blow a huge chunk if not their whole ad load on a SuperBowl ad (see previously MasterLock, more recently GoDaddy.com, etc.). The risk may or may not be worth the chance that the ad gets views, let alone the right views. Nascar has taken on this magnet/gotta be there deal in recent years. There are companies dropping big dollars to be apart of the deal. Again, it works for some, others may get some exposure/expansion with other biz partners, and others will just enjoy a day or two at the races. It wouls seem to be necessary to spend enough to get some driver priority in order sell you wares - Wrangler/Dale, Jr. - or a cherry business partnership to value it out.

MLB, NBA, IndyCar, most PGA tour members (Tiger, Phil, Daly, a few others), USTA, MLS, USOC aren't going to draw the big contracts for partnering.

Interestingly, the NFL is making bank, but the individual teams run the gamet as well as the number of players who are getting national contracts is very limited. Nascar is getting paid at the top, team as well as many if not most drivers.

For the same reasons MLB instituted revenue sharing to protect the teams that can't generate the big cash in smaller markets (NYC vs. Milwaukee), the smaller sports aren't going to be able to attract the big checks like the big sports.

Much like broadcasting has transitioned to narrow/specialty-casting, smaller sports need to find a niche and exploit it.

[bkeske]

Much like broadcasting has transitioned to narrow/specialty-casting, smaller sports need to find a niche and exploit it.

Absolutely.

Which is why the 'my series is bigger than your series' (especially with attendance) is bull if the series is marketed correctly...to the right niche' folks.

Which is why the two US sportscar series are doing just fine, thank-you...they found their niche' and have worked on exploited that niche' with good partners.

...and no need for big compromises....like...ah....street 'festivals of speed'...unless that is the niche you want to create; but eventually, if not, there may be no turning back

[indycool]

Agree, Z28.....good post.......

I often wonder why Schuette always goes to Zak Brown for opinions and comments in these pieces. Not to put down Brown, really, but why would his comments be as important or pertinent as those of open-wheel sponsor packagers, like Ralph Hansen of Newman-Haas or the guys at AGR?

[Grinder-Tank]

I just hope those empty bleachers at Homestead don't make Rusty Dizzy,

I hope they fill up a bit.

[comfortably numb]

"We think Rusty Wallace is going to be the John Madden of motorsports," IRL's Griffin said.

Man, talk about a curse...

[Indycarjunkie]

"We think Rusty Wallace is going to be the John Madden of motorsports," IRL's Griffin said.

Man, talk about a curse...

Maybe he thinks Rusty will draw the racing line on the screen for us.

[numrounofan]

"We think Rusty Wallace is going to be the John Madden of motorsports," IRL's Griffin said.

Man, talk about a curse...

I agree that Madden's schtick is getting old.....but when he came on the broadcast scene back in the day he was a breath of fresh air and the networks that didn't have him played catch-up for many years.........if Rusty has that kind if impact.......INDY Car is looking at another banner year.......