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  • Funding sources

    I have no doubt that teams are trying their best to get adequate funding and just because something looks or sounds easy doesn't mean that it is.
    But if we assume that a company can afford one half of one percent of their sales, there are over 1000 companies in the U.S. that could fully fund a 5 million dollar IRL team. And there are probably 5-10 times as many that could afford 2.5 million. Let's say that 50 of those companies have already tied up resources in Winston Cup and another 30 or so in F1 and CART. That still leaves 900. And many of those sponsoring Cup or CART cars could easily add an IRL team to their marketing mix. For example Home Depot, has sales in excess of 45 Billion dollars. Let's say they are spending 12 million on Tony Stewarts Cup team, would still have over 200 million available using that formula. That would fund 40 IRL teams. Not that I would suggest that they do that by any means, but does seem that it wouldn't be that big a stretch for them to do a one or two car team.
    As I have mentioned before, all sports including racing are just niche markets, they are still rather large niches. If only 5% of the decision makers in these companies are either racing fans or understand the value of marketing through racing, we still have 45 of those first 1000 and 290-580 of the next tier companies. I know it's been said that rich people are rich because they hang on to their money. But they also are rich because they are able to recognize a good deal and have the ability to go for it when the opportunity presents itself. It just doesn't seem out of the realm of reasonable possibilities to have full fields of well funded teams.
    Some people will do nearly anything in order to be able to not do anything.

  • #2
    There are very few Fortune 1000 companies that spend anywhere near that percentage of sales for their entire advertising budgets, You'd be closer, but still high if you applied that percentage to their net profits pretax.

    BTW, in 2000 NASCAR reported that over 450 of the Fortune 500 were in some way involved with NASCAR's various series and tracks.

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    • #3
      The more I think about it, at least locally,the more I think the pole winner does more for his sponsor that the race winner. I guess that is just part of the mistique of Indy.
      Natural Born Cynic

      What irks me (maybe its too soon for the truth), DW was a 16-oval WIN specialist, yet the vast majority those boohooing for him, hardcarders & fans, alike are the same ones trying to kill anything with more than 9 deg banking & 4 corners, where Dan ultimately made his home...

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      • #4
        Fueler, I was hoping you would help set me straight on this. It's an area where I know a little about, but not nearly enough.
        Some people will do nearly anything in order to be able to not do anything.

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