Should Sponsors Own Race Teams?

The various postings about Red Bull's future plans got me to thinking about whether racing sponsors should own race teams. I'm not particularly in favor of it, but that is how I was trained very long ago when I managed the Wrangler Jeans NASCAR programs. During a particularly trying period late in 1983 when we were trying to move Dale Earnhardt back to Richard Childress and were negotiating at the same time with Tim Richmond about going to Bud Moore's ride I was called into the office of Bob Odear, then Wrangler's President of Domestic Operations. He knew I had gotten pretty frazzled over the various wheelings and dealings. His comment to me that day was this, "Remember, Dave - we are NOT in the racing business, we are in the business of manufacturing and selling blue jeans. Dale Earnhardt, Bud Moore and Richard Childress are in the racing business." I think when you are out there in the middle of it day in and day out it may become easy to forget exactly what business you're really in. As a sponsor, it seems to me that you could really paint yourself into a corner by owning the team.

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"Any Day is Good for Stock Car Racing"
updated by @dave-fulton: 12/05/16 04:02:07PM

Intriguing question and business decision to be certain. From a sponsor's perspective, they likely have to rationalize it just as with any other business decision. What are revenues, costs, impact on market strategies & core competencies, etc. If a company like Red Bull gets into the sport but then bails later, they simply do lay-off, shut down, and recover costs where they can. Right or wrong, don't businesses do this all the time with plants, production facilities, sales channels, etc.?

But if you are the sanctioning body, then yes - I think you ARE more concerned. And yes - they have painted themselves into a corner. With the way costs to race have exploded the last 20 years, a corporate presence is almost required to participate. We all know the days of a reasonably competitive independent are all but gone.

Humpy Wheeler has speculated that MEDIA companies may one day own the teams. Perhaps a Rupert Murdoch owned FOX network would acquire the teams, contract the drivers and crews, sell the advertising/sponsorships, and air all the races. Without trying to draw too close an analogy, isn't this what Vince McMahon did with his WWE wrasslin' ?

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Schaefer: It's not just for racing anymore.

...or PKL, when they win/buy/whatever their championship.


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Founder/Creator - RacersReunion®