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Saturday, July 04, 2009

NASCAR sees slow revenue growth in the ongoing economic recession

(This entry was originally posted in this blog on December 5, 2008 and the information is based on that time.)

The National Association for Stock Car Auto Racing, also known as NASCAR, has taken the hit of the ongoing recession. As many companies are incurring losses, NASCAR’s sponsorship revenue growth slowed down. On December 2, 2008, Brian France, Chairman, NASCAR, announced the slow growth of revenue.

Many of the companies such as Ford Motor Company (NYSE:F), Chrysler LLC, General Motors Corporation (NYSE:GM), Toyota Motor Corporation (TYO:7203), E.I. du Pont de Nemours & Company (NYSE:DD), The Coca-Cola Company (NYSE:KO) were major sponsors of the largest car race in USA. Reuters reports:

NASCAR’s sponsorship revenue rose this year by about $150 million — or in the low single-digit percentage range — growth that will not be repeated in 2009, France said.

“Next year, we will not obviously make that kind of a gain. The question is, are we going to back up?” he said.

NASCAR gained some new sponsors but France did not reveal the names. General Motors is in a critical condition. Few days ago, the company even canceled its endorsement contract with famous golf player, Tiger Woods. Executives of the three auto makers asked for a $25 billion financial aid but the congress did not accept their proposal on the ground that the industry is in a poor condition and the money would be wasted. They asked them to reshape their proposal.

Brian France told journalists that he wants the three automakers to succeed not because he would get sponsorships but the employees of these companies are big supporters of the NASCAR racing. Brian also said that the failure of the US auto industry will also affect hosts of other businesses and put people out of job.

Related article:

Reuters

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