Companies like Subway, Dish Network, Dunkin' Donuts and Wal-Mart have reportedly been interested in replacing Busch. However, there is the little matter of the $30 million price tag NASCAR is asking for the series, second only to Nextel Cup in popularity among U.S. race fans.
When you think about it, $30 million is really not all that much money. A primary team sponsorship in Cup these days is creeping ever closer to that level right now, and that's just for one car on a top-flight team. The sticking point seems to be what the company will get for its investment. There's the outlay for the rights to the sponsorship, and then there are related costs like marketing, personnel, signage and more.
To help understand why this is a difficult process, you must first apply the economics against the potential for return. NASCAR's asking price for the Busch Series sponsorship is a little less than half what Nextel pays for the Cup Series, which is an estimated $70 million a year for 10 years. The outlay for the Busch Series sponsorship will likely be around $300 million over a 10-year period. Chances are the terms won't be much less than 10 years -- continuity is a big deal these days to NASCAR.
According to its research, there are 75 million NASCAR fans in North America, and that number has been static for the past six years. That suggests that the sport is maturing, and while it gains new fans every year, the overall number hasn't gone up very much. A company looking to get into the NASCAR arena will look at that and measure potential value against the numbers and come up with the following equation: invest $300 million for the right to market to 75 million fans over 10 years, and add in the associated costs.
The Busch Series, which celebrated its 25th anniversary last season, has grown by leaps and bounds alongside the Cup Series during the past 15 years or so, and is a valuable sports property in its own right. In addition to running many combo events with the Cup Series, the Busch Series has stand-alone events across the country. It also has the only two races on foreign soil, in Mexico City and Montreal. The Busch Series also fills the role of test pilot when NASCAR officials consider expanding the schedule. Mexico City and Montreal are the first steps in that expansion, and a potential race in Asia is probably next on the list.
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