Racing sponsors now at a crossroads of performance, ratings and ethics

Leave a comment

The last several weeks have seen sponsor stories take over from on-track ones as the dominant players in the North American racing news.

NAPA, of course, has made the biggest announcement with its decision to leave Michael Waltrip Racing at the end of the year, in the wake of the controversy at the NASCAR Sprint Cup Series regular season finale at Richmond. 5-Hour Energy, additionally, seems displeased with the action the organization has taken in a statement it has released.

Other sponsors are on the move, which is normal in racing, but noteworthy in their timing after Richmond. Valvoline leaves Roush Fenway Racing for Hendrick Motorsports; Jimmy John’s goes with driver Kevin Harvick from Richard Childress Racing to Stewart-Haas Racing.

Castrol made the jaw-dropping decision earlier this year to leave John Force Racing at the end of 2014 in NHRA after 29 years.

And then there is the report this morning that GoDaddy is re-evaluating its role as a primary sponsor in IndyCar with Michael Andretti’s team, citing low television ratings as the impetus for a potential move out of full-time primary sponsorship there.

It all adds up to a fascinating question: Which part of racing do sponsors prefer most? Is it on-track performance, ethics, or ratings?

To borrow a term from NASCAR President Mike Helton, the “ripple effect” of the last few weeks has changed the corporate game in a way we haven’t seen for quite a while. Sponsors often come-and-go from racing but it’s become increasingly apparent the Richmond saga has made a bigger impact on all forms of motorsport than we might have realized in the immediate aftermath.

If it’s on-track performance you crave, ideally, IndyCar would be the best bang for the buck. It costs substantially less – think in the $4 to 8 million range – for a season-long sponsorship (by comparison to $15 to $20 million in NASCAR). A sponsor can advertise itself at the Indianapolis 500, the largest single-day sporting event in North America, and have the chance to win a variety of different circuits.

That said, the marketing and promotional aspect of the variety apparently does not justify the ROI as it stands now. Roger Penske, for instance, has had to put together a consortium of sponsors to field Helio Castroneves and Ryan Briscoe’s cars since Philip Morris tobacco money exited at the end of 2010 (livery was withdrawn at the end of 2009). Elsewhere around the grid, teams have become increasingly reliant on drivers bringing sponsorship to secure a seat. There’s still plenty of talent on the grid, but the days of fully-funded rides without bringing a dollar are drawing to an end.

NASCAR, meanwhile, can offer better TV ratings on the whole, with the performance aspect secondary. It’s why Danica Patrick, for instance – long seen by this writer and others as a good-but-not-great driving talent who has made most of her career via marketing – can afford to run 25th to 30th place every week, but maintain the GoDaddy support for the awareness and buzz she creates off-track.

Now, though, NASCAR faces an ethics crisis the likes of which it has rarely seen. If NAPA’s departure is the tip of the iceberg in terms of corporate America withdrawing its dollars, it could create another “ripple effect” – to borrow Helton’s words again – where more sponsors depart and hundreds of families see jobs go away. That might be an extreme way of looking at it, but it is certainly possible if sponsors don’t see the value in the tens of millions of dollars invested and the PR too damaging to their brands.

A good take from the Sporting News’ Bob Pockrass, linked here, suggests NASCAR needs to implement a “grand plan” to soothe sponsors and their concerns. Pockrass notes there are elements where NASCAR is already involved in direct communication with sponsors – notably via Chief Marketing Officer Steve Phelps – but that needs to expand in the wake of the Richmond controversy.

As a fan, you want to see sponsors – regardless of series – do the job of activating and creating a connection that spurs you to root for said sponsor and buy more of their product. As a sponsor, you ideally want to be successful in all three aspects of performance, awareness and moral standards.

Depending on the fallout the rest of 2013 as it relates to sponsor movement, we’ll see which of the three takes precedence in the motorsports landscape.

Andretti Autosport endures tough Road America outing

Photo: IndyCar
Leave a comment

All four of the Andretti Autosport drivers encountered significant problems during the Kohler Grand Prix, and none of them were able to salvage finishes inside the top ten as a result.

Most notably, Takuma Sato endured the most difficult weekend of the four-car armada after suffering a pinched nerve in his neck on Saturday, which forced him to miss the morning warmup.

And things didn’t get any better during the race, as a lap 28 spin exiting the Kink saw him lose a lap and forced him to play catchup even more than he already was. Although Sato managed to finish the race, hardly insignificant given his neck injury, he did so in 19th after starting 20th in what proved to be his worst race since winning the 101st Indianapolis 500 presented by PennGrade Motor Oil.

“It was a tough weekend and tough race,” lamented Sato. “I injured my neck during practice Saturday morning. We started in the back row, tried to make a push up, but I caught an accident. The engine was stalled and I wasn’t sure if we could continue, but the safety crew came and fired up the engine, so I came back to the pit, buckled again and I was able to keep going. In the end we made the finish, but we need a better weekend.”

His teammates did not fair much better. Alexander Rossi, who qualified a disappointing 15th, ran a four-stop pit strategy, and while he cycled into the top five at one point, an issue with the front wing saw him fall to 13th at the finish.

Alexander Rossi was fast Road America, but an issue with the front wing dropped him back in the field at the end. Photo: IndyCar

“I think we started with a good strategy, going for a four-stop race after starting 15th, but it all caught up to us on that first yellow,” Rossi explained. “Luckily, we had already gained track position and speed running on open track. We had an issue with our front wing, which ironically or not, is the same issue we finished the race with here last year, so we definitely need to figure out exactly what happened and make sure it doesn’t happen again.”

Ryan Hunter-Reay, too, had strong pace, even leading the Sunday morning warmup and running inside the top ten late in the race. But, contact with Charlie Kimball while battling for sixth broke the front wing on the No. 28 DHL Honda, and Hunter-Reay languished in 14th at the checkered flag.

Ryan Hunter-Reay was was 14th at the checkered flag after battling inside the top ten late in the race. Photo: IndyCar

“Charlie (Kimball) made a late block and took off my front wing. I had a good race going until Charlie moved out late like that, it’s just really unfortunate,” Hunter-Reay said of the incident.

Meanwhile, Marco Andretti battled a litany of problems, ranging from throttle issues to a broken pit speed limiter, which resulted in a drive-penalty for speeding during a round of pit stops. Andretti was a lowly 18th at the finish.

Marco Andretti battled a host of problems during the Kohler Grand Prix. Photo: IndyCar

“We started eighth, but ran into throttle problems. We went off track on the first stint because the throttle stuck wide open. We came into the pits to try to fix it and got hit with a pit lane speed violation because my pit lane limiter wasn’t working. We still weren’t getting full throttle – I was barely hitting sixth gear,” he lamented afterward.

Sato remains in the top five in the championship, now sitting fourth, 56 points behind leader Scott Dixon. Rossi sits ninth, with Andretti and Hunter-Reay 13th and 15th respectively.

 

Follow Kyle Lavigne.

Kimball, Chilton quiet but solid at Road America

Photo: IndyCar
Leave a comment

While Scott Dixon scored victory for Chip Ganassi Racing, two of the team’s other drivers enjoyed quietly solid days at the Kohler Grand Prix at Road America.

Charlie Kimball, in need of a strong finish after being stricken with bad luck so far in the 2017 Verizon IndyCar Series season, scored his best finish of the year with a fine run to sixth place. While he was never a part of the battle for victory, he was “best of the rest” for most of the day and enjoyed a solid, mistake-free run.

“Overall a really solid day for the Novo Nordisk Chip Ganassi Racing team,” Kimball said afterward. Though he admitted tire management in the race’s third stint hampered his efforts, he was more than pleased with the end result.

“That third stint, I don’t think I managed the Firestone alternates as well as some of the guys around me,” Kimball revealed. “You saw that with (Will Power) with a better in and out lap. That was disappointing, because I think we could have maybe had a shot at a top five. Overall though, to fight off some competitors for that last stint after the final yellow felt good and it felt good to bring it home in sixth for the guys. Kind of a semi-trouble free weekend and pretty happy with it.”

Teammate Max Chilton, too, scored a solid ten finish, the Briton finishing ninth. However, unlike Kimball, Chilton lamented not being able to finish higher on a circuit where he feels very comfortable.

Max Chilton during qualifying for the Kohler Grand Prix. Photo: IndyCar

“It’s not how we wanted it, especially after how quick we were (in the morning warmup),” said Chilton, who started seventh and was second fastest in the morning warmup. Like Kimball, he struggled with tire management, and an untimely caution when he was on the primary black tires put paid to his chances of a better finish.

“Something just wasn’t working for us. On a set of reds, we were struggling massively and then we went to the blacks, which would’ve been alright, but then the safety car came out and everyone else had longer life on the reds and I was struggling again.”

With the Kohler Grand Prix in the books, Chilton currently sits 11th in the championship, three points behind tenth-place Ed Jones, while Kimball remains 18th, 72 points outside the top ten.

Mahindra to give M4Electro Formula E car public debut at Goodwood

Spacesuit Media
Leave a comment

Mahindra Racing will debut its new car for the fourth Formula E season, the M4Electro, at the famous Goodwood Festival of Speed later this week as part of a bid to beat the existing open-wheel electric record for the hillclimb.

As part of its preparations for season four of Formula E, set to start in Hong Kong at the beginning of December, Mahindra has already hit the track with the M4Electro in private testing.

Full-season drivers Felix Rosenqvist and Nick Heidfeld have both completed running in the car, while Indian actress Gul Panag has also taken part in a test.

Heidfeld will give the M4Electro its first public outing at Goodwood and look to become the first driver to hold two records at the hillclimb.

The German driver holds the overall hillclimb record of 41.6 seconds at Goodwood, set back in 1999 in a McLaren MP4/13 Formula 1 car.

“We’re excited to bring Nick and the M4Electro to Goodwood in a bid to set the fastest open-wheel electric record on the hillclimb,” Mahindra team boss Dilbagh Gill said.

“We are always looking to push the boundaries as a team and we couldn’t think of a better way to introduce the season four challenger to fans and automotive enthusiasts alike than at the Goodwood Festival of Speed.”

Qualcomm named title partner for New York Formula E race

Formula E
Leave a comment

FIA Formula E has announced that technology company Qualcomm will be the title partner for the upcoming New York City ePrix as the all-electric series gears up to hit the United States in three weeks’ time.

New York City will play host to its first motorsport event in Red Hook on July 15-16, acting as the penultimate round of Formula E’s third season.

Qualcomm has been a key partner for Formula E since the series’ inception in 2014, and will now act as the New York race’s title partner after acquiring the naming rights, as announced on Monday. The event will be formally called the ‘Qualcomm New York City ePrix’.

“As one of our founding partners – and now for the first time a race title partner for one of the most anticipated races of the season – Qualcomm Technologies’ continued support and commitment to Formula E has been instrumental,” Formula E CEO Alejandro Agag said.

“We share many of the same values in the field of innovation and technology transfer, which we’ve already seen with unique wireless charging concepts.

“I’m looking forward to making history in New York by bringing Formula E to the Big Apple for the first time – it’s going to be an unmissable event.”

Derek Aberle, president of Qualcomm Incorporated, added: “Qualcomm inventions enable widespread innovation, just as motorsport fuels the evolution of the automotive industry.

“Formula E, including this Qualcomm ePrix race in New York City, is a great testbed for our automotive breakthroughs such as wireless electric vehicle charging.

“We look forward to continuing our collaboration with Formula E to promote the benefits of the latest vehicle technologies as cars become more connected, autonomous and electric.”