YOU BEEN BLINDED

THE U.S. GOVERNMENT WASTING MONEY ON NASCAR

Posted by HG on May 22, 2007

army-nascar-jackets.jpg

The U.S. government is notorious for overspending for items such as hammers and toliet seats. While our troops don’t have the proper equipment to fight a war, and cities such as New Orleans and Greensburg, Kansas struggle to receive federal assisstance after natural disasters, Uncle Sam has found a good way to spend 100 million dollars a year… NASCAR.

The Army, Navy, Air Force, and Marines National Guard all sponsor teams in either the Nextel Cup or Busch Series. Drivers Casey Mears (National Guard), Mark Martin/Regan Smith (Army) and Ken Schrader (Air Force) all race military sponsored cars in the Nextel Cup. Shane Huffman (Navy) races in the Busch Series. No big deal right? Wrong when you consider that the cost of a primary team sponsorhip is getting close to $30mil per year if you believe this article, or close to $20mil per year if you go with this story.

Either way, the United States government shouldn’t be handing out $50-$100mil a year to support Nascar teams. NASCAR gets a ton of eyes focused on it’s products, at the track and on tv, but the declining enlistment rates do more to discourage rather than justify the huge bill being footed by the Gov’t.

The military in Nascar. Courtesy of Military.com

NASCAR Nation’s Big Story: The Cost of Racing. Courtesy of FoxSports.com

Cost vs. return key factor in series title sponsorship. Courtesy of Nascar.com

AP: U.S. Military at Breaking Point, Pentagon Study Shows. Courtesy of the AP via Editor and Publisher

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2 Responses to “THE U.S. GOVERNMENT WASTING MONEY ON NASCAR”

  1. scott said

    $30 million for the entire Busch series. not a team. do your reseach. also, if you look categorically at the cost of reach and exposure ascertained by a NASCAR sponsorhip and factor that ROI into your marketing mix you will see that the US armed forces made a wise choice in advertising here (if not just jumping in during the upward trend of young male viewership).

  2. HG said

    i’m no nascar expert but you’re facts are a little off. please read this carefully

    “When you think about it, $30 million to a company like KFC 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.”

    KFC was in the talks for series sponsorship, 30mil a year for 10 years. the writer of this article points out, it’s a good deal seeing as primary team sponsorship would cost you about the same thing. The quote is from Nascar.com, and is linked in the story above.

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