Race Is On To Find Nascar Sponsor Suitors Already Lining Up For Prestigious Ad Rights

The proposed ban on tobacco company sponsorship of sports events has sent motorsports officials looking elsewhere for money. They won’t have to look far.

Thanks to the ever-growing popularity of racing’s premier series, from stock cars to dragsters, there will be plenty of takers.

“There are a handful of companies that are probably licking their chops that these very hot properties are opening up,” said Jim Andrews, vice president of the Chicago-based IEG Sponsorship Report.

This is especially true when it comes to NASCAR’s high-profile Winston Cup series, featuring the likes of 25-year-old racing wunderkind Jeff Gordon.

McDonald’s, Coca-Cola and Pepsi are among companies rumored to be interested in taking over sponsorship of the series, now backed by Winston-brand cigarette maker R.J. Reynolds.

“This is widely perceived as one of the most sought-after sponsorship properties in sports,” said Scott Becher, president of Sports And Sponsorships, a Coral Gables, Fla.based firm.

Brian France, vice president of marketing for NASCAR, said new sponsors have been “looked at.”

“We would have some interesting things to go with,” he said. “Everything is about momentum. We have the momentum right now, and we have great position for somebody to step into.”

France, son of NASCAR president Bill France Jr., said there have been no discussions with big-name companies about the series sponsorship.

“It would have been inappropriate to do that” until the proposed ban is finalized, he said.

While NASCAR has a strong loyalty to R.J. Reynolds and their generous sponsorship, the time may have come for the sport to move away from its association with cigarettes.

“They’ll find other companies to replace Winston, and in the long run, new companies might want to get involved now that the tobacco companies are out of the picture,” he said. “It may actually encourage some new companies to get involved.”

Winston Cup fans have been proven to be remarkably product-loyal, making the series particularly attractive.

“From a pure sponsorship perspective, NASCAR is absolutely strong enough to survive the loss of tobacco’s sponsorship dollars,” Becher said.

R.J. Reynolds has sponsored the Winston Cup series for 27 years. But the company backs all levels of NASCAR racing, including contributions to about 125 race tracks nationwide, such as renting billboards and buying scoreboards.

That makes the proposed ban unpopular with drivers, who are grateful for tobacco’s support.

“I’ve never smoked a day in my life,” said Ed Kosiski, who races in NASCAR’s Late Models division at venues in the Midwest. “But they’re stepping on tobacco. What about beer? Why should they ban one and not the other?”

Winston Cup series driver Dale Jarrett said: “I never have understood where the government is coming from. They (Winston) are being treated unfairly right now. I hate to lose them because they are a key factor in what NASCAR is today.”

Last year, tobacco companies poured $195 million into sports sponsorships, with 95 percent of that going to motorsports. However, tobacco money accounts for only about 20 percent of motorsports’ sponsorships.

Winston Cup spokesman Chris Powell said R.J. Reynolds will not speculate on the future of its sponsorship of the series. The company will honor its contracts “until we are told we can no longer do so,” he said.

“We don’t have a crystal ball. The president certainly has the ability to make changes in the agreement, as does Congress,” he said.

The tobacco settlement, reached last month, still must be approved by Congress and President Clinton, and that could take many months.

In addition to paying nearly $370 billion in damages over the next 25 years, the tobacco companies agreed to nicotine regulation, stronger warnings on cigarette packs, and numerous advertising and marketing restrictions.

Matthew Myers, vice president of the National Center for Tobacco-Free Kids, said motorsports sponsorships are one of the most effective ways for cigarette companies to target young people.

“Today’s race car drivers are like yesterday’s baseball stars to kids,” he said.

Which is why the sponsorship ban was necessary to the settlement, he added.

“The elimination of brand-name sports sponsorships, combined with the other aspects of the settlement, represent the best tools available to reduce tobacco use among kids,” he said.

Racing’s other top series are reacting to the ban in much the same way as NASCAR - with mixed feelings.

“If tobacco went away, it would be a significant loss. But, at the same time, I’m very confident that we can fill the vacuum,” said Andrew Craig, the president and chief executive of CART. “Until such a time that we have more detail about the timing, there’s not a lot more we can say.”

But there is a tinge of sadness that the tobacco industry’s alliance with motorsports could be coming to an end, especially since tobacco money helped make the sport so popular.

“Our partnership with R.J. Reynolds is over 20 years old now. They have contributed so much, even those behind-the-scenes things that aren’t apparent,” said Wally Parks, founder and chairman of the NHRA. “I would have to say that our relationship has been of the highest degree.”