When people talk about companies that sponsor sports, the focus is often how it affects the bottom line and whether it attracts consumers. But reaching consumers is just one goal in an overall strategy involving sports sponsorship. Today’s New York Times has a great story on how NASCAR sponsors have found ways to generate more business by working with other NASCAR sponsors. It’s not a revolutionary idea; it’s what other sports leagues - including the NFL, NBA, MLB and NHL - have done when they host annual sponsorship forums. The Times story sheds much-needed light for the public, shareholders and maybe even Congress on why spending on sports is not always a “misuse of funds” or a “boondoggle” for corporate executives.

It’s an opportunity to take off the suit, get out of the boardroom and interact with other Fortune 500 brands in a casual setting that can potentially lead to new business relationships and more revenue. NASCAR does a great job of taking this to the next level by creating more opportunities for its sponsors to interact with one another in quarterly meetings. The story points out that, as a result of its NASCAR relationship, Best Western generated $16.7 million in revenue through deals with other sponsors. Best Western also buys from other NASCAR sponsors, including Office Depot for their office supplies and UPS as their shipping carrier. UPS points out that when they first became a NASCAR sponsor in 2000, they conducted business with 40% of other NASCAR sponsors. Today, they conduct business with 90% of NASCAR sponsors. It’s opportunities like this that make sports leagues like NASCAR look smart and responsive to sponsor needs, making it that much easier to sell the next sponsorship.

It’s also a way for agencies involved in sports to help their clients develop B-to-B platforms to generate additional revenue.

Read the New York Times piece here.

Posted by Jason Howarth | Share: Twitter, Facebook, Del.icio.us, LinkedIn

Tagged: NASCAR, sponsorship, sports