Why does every NASCAR driver have multiple corporate sponsors?

Question

Has there ever been a driver who funded his own operation and managed to save some dignity and race in a car that wasn't a moving billboard?

Do NASCAR drivers NEED sponsors? Do they sign really long contracts or what?

Keep in mind that nearly every race has a prize of $5 million. Imagine how much money someone like Jeff Gordon has.

Answer 1

Here's something you should keep in mind. Jeff Gordon is racing in his 16 Season. His "earnings" total $86,373,448.

The budget for his team this year is probably close to 40 million. Sixteen years at 40mil per year equals $640,000,000.

His average annual "earnings" for 15.5 years is $5,572,480. He has never won enough money in any season to cover the cost of operating the team for that season.

As you can see, if he was paying for all of it himself, he would be a very famous, very, very poor man.

Now, if you spread that cost of 40 mil a year across 30 or 40 people or companies willing to underwrite what you want to do, it becomes feasible.

A racer can do what he loves to do and make a good living at it. Bet you wish you could get 30 or 40 people or companies to underwrite you in order for you to pursue your life's passion.

I bet you're asking yourself why would people or companies be willing to spend millions of dollars per year in order to sponsor a team or driver.

Because they want to get their names in front of millions of savvy, affluent, educated fans; their target market, the preferred consumer.

Lucky for us NASCAR fans that since day 1, sponsors have been willing to support the drivers, especially in the early days.

When one thinks of men like Dale Earnhardt, who often couldn't rub 2 nickels together in his pocket, he could have never pursued his passion without men like Rod Osterland, his team owner and Mike Curb, the primary Sponsor.

Without those 2 men and all the asscociate sponsors, we all would have missed what to many of us, was the best "ride" of our lives in sports and to some, the worst.

The man who couldn't rub together 2 nickels, well, he died a very wealthy man, and not just monetarily.

Answer 2

Sponsors make the sport go round, and without them there wouldnt be prize money and everything and sponsors are what makes everything happen. It takes money to do everything. Also Jeff Gordon is his entire career has made somewhere close to $83 Million dollars, from the races he has won, and the speciality events like the All Star Race, Bud Shootout, and all the big tracks with lots and lots of money from the winner, the $1 Million dollar bonus at the end of the year, up until this year, and then the Championship money that they get at the end of the year if they win a championship. The list goes on and on. The drivers and owners and sponsors sign long contracts so the teams have money to pay people, build cars, and hire the best of the best, that's why teams like Hendrick are really successful.

Answer 3

At anywhere from 15 to 30 million dollars to put a car on the track for a season, they need the sponsors. Sponsors are a part of racing at all levels. Like anyone, they try to negotiate the best deal for them which may or may not mean a long term contract.

The last driver who did it pretty much on his own successfully was Allen Kulwicki, but even he had sponsors.

Nothing wrong with being a billboard. I'd put that stuff all over my car and wear the clothes too if they want to throw money at me to do it.

Answer 4

Have you thought about how expensive it is to run a car in these races? There are the basic materials fees for car - parts, pieces, fuel, etc., the labor - pit crew, other crew, administrative staff, etc., the entry fees - thousands, then there's uniforms, care and feeding of driver and staff, transportation, vehicles to do the transporting, sometimes there's fees for transporting all the hazmat materials like oil and fuel for the cars, the list goes on. Do you really think a single person who wasn't independently wealthy in a huge way would be able to foot the bill? And still have fun and be able to hone their skills?

Multiple corporate sponsors make sure the equipment is up to snuff, there's less chance of not making entry fees and it's great advertising for these companies in a specific niche market.

Answer 5

Money, money, and more money. While some races do pay a lot, the purse is for all 43 drivers not just one. It cost a lot to run a NASCAR team. Just look at Bobby Ginn. He is a multi billionaire and didn't want to spend all that money.

Answer 6

Money. You need lot of money to run those cars and support the team. It's not only a driver and a car, but a whole team behind the car.

Well, if the face you look in the mirror is Bill Gates, probably you have enough money to finance it, but otherwise, you'll need lot of money even to start.

Answer 7

NASCAR was 50 years ahead of their time. corperate sponsorship is taking over professional sports, pal, if you would pull your head out of your *ss you would see that. baseball and football statiums around the country are now being named after corporations, as are college bowl games, ect. also, more and more corporate logos are showing up on players uniforms every year. nice to see the ball stick sports are realizing now what NASCAR figured out back in the 1950s.

Answer 8

yes Nazca drivers need multiple sponsors so they can get better wheels and engines and etc...

Answer 9

because they can and they need the extra money. to pay essentials like crew and pions.. hehehe

Answer 10

follow the money, thats what allows them to have the equipment they need