To What Extent Should Drivers Be Allowed To Sponsor Racing Events

The first step for ensuring potential sponsors that IndyCar events are valuable entities to invest, is to provide statistical data of past events, to include the number of attendees, number of drivers, number of sponsors, and revenue generated versus expenses (Ferrell & Hartline, 2014). In reviewing the data, sponsors will have the opportunity to decide whether partnering with IndyCar, would be a risky business decision or a profitable partnership. The number of attendees will inform sponsors of the amount of exposure their products would receive. For example, if Disney decided to sponsor an event, the expectation of Disney is to attract spectators to purchase Disney products and merchandise. In doing so, Disney would have the opportunity to

Notable drivers attract fans, which in turn, increases crowd size, as well as revenue (Dees, Bennett, & Ferreira, 2010, p. 26). Committing these drivers before speaking with sponsors, will prove that the event is one that is serious and guaranteed to attract spectators. Many drivers are known as celebrities, and fans will attend the event, merely to get a glimpse of their favorite driver, or possibly snag an autograph. NASCAR conducted a study that indicated fans are attracted to drivers based on their personalities, which are linked to their sponsors (Dees, Bennett, & Ferreira, 2010, p. 26). There are several big name companies that sponsor racing events, such as Monster Energy Drinks, Coca-Cola, and Staples. Upon the end of a race, the winner is declared and is presented the trophy in the winner’s circle. At the podium, is a drink or image signifying the sponsor of the driver. I can recall a driver who was sponsored by a milk company, and after giving his winning speech, he drank a glass of milk. In doing so, the driver recognized his sponsor and endorsed their product once last time. Lastly, the bottom line on any marketing partnership, is the expected profit for all parties