Who wins in Verizon sponsorship deal with IndyCar Series?
By: Autoweek Personnel on March 14, 2014
LAT PHOTOGRAPHIC – Verizon adds some punch to the IndyCar Series with its new title sponsorship agreement.
With confirmation Friday that Verizon has turn out to be the IndyCar Series’; new title sponsor, the query is front and center: Which firm hit the home run? Or was it each?
IndyCar was in desperate want of a title sponsor, an individual to change Izod, which left soon after the 2013 campaign. Primarily, IndyCar required a companion for the sake of conserving encounter due to the fact no 1 wants to search undesired, especially in the spotlight.
Verizon isn’;t just a identify for IndyCar, and it truly is not just a spouse. It really is a brand, and a monster one particular at that. Every person understands Verizon, including those Sprint customers going to NASCAR Cup Series races.
Verizon will do a lot more than give IndyCar a $ 10 million annual lifeline for the up coming 10 years, as the Sports Organization Journal reported it will give IndyCar relevancy.
Verizon has Fortune 500 status. It is one of the world’;s most acquainted brand names, and it figures to carry IndyCar to areas former series title sponsors Pep Boys, Northern Light and Izod never ever could.
Verizon is all over the place. Amid slumping television ratings and reduced self-esteem, IndyCar could stand to be anywhere.
So what did Verizon get out of the deal? It already had Roger Penske and his 3-auto IndyCar Series group, with Will Electrical power (complete-time) and Juan Pablo Montoya (8 races) sporting the company’;s decals. But possibly this strengthens that connection in techniques that will not display up for some time.
Since IndyCar is owned by Hulman and Co., which includes the Indianapolis Motor Speedway, Verizon also likely gets a platform at the Indianapolis 500, a residence in line with the Daytona 500, which Verizon can’;t join due to Sprint’;s exclusivity. Verizon also will get a series that can go nowhere but up, and it will get it at a price which is affordable by skilled sporting requirements.
Let us begin with the truth $ 10 million is less than half of a major NASCAR car sponsorship, and Verizon could not get Jimmie Johnson even if it wanted to. Farmers Insurance coverage will commit $ 20 million a yr for thirty many years for naming rights to the new football stadium in Los Angeles. Metropolitan Daily life Insurance coverage is paying similarly above 25 years for MetLife Stadium in East Rutherford, N.J. Even in Indianapolis, Lucas Oil Items has committed $ 121.5 million for stadium naming rights to the constructing the NFL’;s Colts perform in.
Yes, 2 of these venues have already hosted Super Bowls, but the money that is becoming invested there is just for the signal on the door. With IndyCar, Verizon will get spokesmen (drivers and group owners), a sport with background, recent stars and occasions in 15 markets, including 2 of the biggest 4 in the U.S.: Los Angeles and Houston, plus Toronto.
It will be fascinating to discover Verizon’;s breakdown between income to IndyCar and commitment for outside promotion of the sport. The latter is not only very likely, it really is ultimately better for IndyCar. It truly is also far better for Verizon because it really is basically committing to much more promotion of its own solution.
At this level, IndyCar is probably the greater winner, but Verizon is acquiring some thing, also.
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