If NASCAR gets their Nextel/Sprint Wish, Does US OWR Benefit?

[Insomniac]

As some of you know, when Nextel signed on with NASCAR, there was an agreement that grandfathered existing telecom/wireless providers and banned any new ones from sponsoring cars.

After SBC (owners of Cingular) acquired at&t and decided to keep the at&t name, they wanted to change the Cingular car to at&t but Sprint/Nextel and NASCAR objected. at&t sued, and won the right to change the name.

Now NASCAR has sued at&t and are requesting that the at&t sponsorship be removed and want a ban on all telecom/wireless providers starting in 2008. This would mean at&t and Alltel will be out in the cold.

My question is, could this benefit US OWR? Would they consider moving some of that money (I'd imagine a significantly smaller portion) to US OWR (Obviously, I'd prefer it go to ChampCar, but I'm trying to be realistic)?

[Sean O'Gorman]

Uh, no.

They'd probably like to sponsor cars in races that people watch.

[Wabbit]

Uh, no.

They'd probably like to sponsor cars in races that people watch.

You're right.

If the cell companies wanted to sponsor OW cars, I'm sure their marketing budgets already have enough money to accommodate them. If their were one strong series, they might. Be we all know that it will never happen.

[Jag_Warrior]

Uh, no.

They'd probably like to sponsor cars in races that people watch.

Haven't you heard, Champ Car's TV viewership is up 100% over last year? I know it must be true... cause Steve Johnson says so. :gomer:

[manic mechanic]

The other thing you have to take into consideration is that when NASCAR allows a sponsor in, there are usually provisos by which they have to abide (Tide Canada was on Ranger's car, but P&G USA was with Cal Wells' group and no cross-promotion was allowed).

With Sprint/Nextel trying to be the only cell provider in NASCAR, it opens up a few avenues to other companies to go elsewhere with those marketing dollars (I personally have been after T-Mobile's CEO about taking a good look at ChampCar as a marketing platform because the demographics are very similar and both organizations offer superior value per dollar).

Verizon jumped onboard as a sponsor for LBGP this year, and I hope to see other telecom companies to look at the opportunity as well.

It couldn't hurt, that's for sure!

manic

[Insomniac]

Uh, no.

They'd probably like to sponsor cars in races that people watch.

Is there something in ratings between NASCAR and US OWR?

[Sean O'Gorman]

Busch and Trucks.

[Insomniac]

Busch and Trucks.

Still the NASCAR empire. I guess if they wanted to come crawling back to a lower level of the organization that just gave you the boot, they could.

[Andrew Longman]

In my mind there is some question whether Sprint will continue their deal for the full 10 years. It was a deal hatched by Nextel, not them, and it may not fit as nicely with their marketing plans. Also the wireless market is very different and less cluttered than it was just a few years ago. Companies are no longer in a land rush for market share and now competing on price, service and features.

I suspect the 10 year deal includes multiple option years and out clauses, or if it doesn't the Nextel lawyers should be fired or sued. This fear is likely why NASCAR is playing such hardball with AT&T.

Just IMO of course