Allstate ends Brickyard 400 sponsorship

Back to TopCommentsE-mailPrintBookmark and Share

Allstate Corp. is ending its five-year run as the lead sponsor of the Allstate 400 at the Brickyard NASCAR race in Indianapolis, company officials announced today.

The announcement comes one day after this year’s race at Indianapolis Motor Speedway suffered a 20-percent attendance drop from last year’s event.

Allstate spokesman Raleigh Floyd told the Associated Press that the company's decision to end its sponsorship was not motivated by the speedway's performance. Instead, he said it arose from the insurer's desire to expand its Olympics and college football sponsorships, which includes the Sugar Bowl.

"That property performed well, extremely well in fact. Race fans are the most loyal fans in sports, probably," Floyd said. "It just so happens that some of our other sponsorships perform a little better."

Even though attendance for yesterday’s race fell to 180,000, IMS officials said they were pleased with the turnout. Sports business experts said since many of the tickets were discounted and revenue from the event was likely off 30 percent or more.

The attendance decline, sports marketers said, is related to three things: a swooning economy, waning interest in NASCAR and the tire problems that plagued last year’s race.

“It will hurt us from a revenue standpoint when it comes to the bottom line, but the long-term future of this event is secure,” IMS spokesman Ron Green this afternoon

Speedway officials said they were told by Allstate officials that the change was due primarily to the economy and the Northbrook, Ill.-based insurance company’s shifting objectives.

“Certainly the Indianapolis Motor Speedway is disappointed, but we’re understanding in light of the economy,” Green said.

Green added that IMS officials would not necessarily pursue a replacement title sponsor for the race, which was known as the Brickyard 400 before Allstate stepped in as sponsor. The parties have not disclosed how much Allstate paid as part of the sponsorship.

“Remember, we didn’t actively pursue Allstate,” Green said. “It just turned out that we had similar goals and objectives and were a good fit. The relationship proved to be very good for both of us.

“We’re not turning around and aggressively looking for a replacement.”

Green said the event was “very solid for 11 years before Allstate came aboard.”

For more on this story, see IBJ sports blog, The Score.


Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. I'm a CPA who works with a wide range of companies (through my firm K.B.Parrish & Co.); however, we work with quite a few car dealerships, so I'm fairly interested in Fatwin (mentioned in the article). Does anyone have much information on that, or a link to such information? Thanks.

  2. Historically high long-term unemployment, unprecedented labor market slack and the loss of human capital should not be accepted as "the economy at work [and] what is supposed to happen" and is certainly not raising wages in Indiana. See Chicago Fed Reserve: goo.gl/IJ4JhQ Also, here's our research on Work Sharing and our support testimony at yesterday's hearing: goo.gl/NhC9W4

  3. I am always curious why teachers don't believe in accountability. It's the only profession in the world that things they are better than everyone else. It's really a shame.

  4. It's not often in Indiana that people from both major political parties and from both labor and business groups come together to endorse a proposal. I really think this is going to help create a more flexible labor force, which is what businesses claim to need, while also reducing outright layoffs, and mitigating the impact of salary/wage reductions, both of which have been highlighted as important issues affecting Hoosier workers. Like many other public policies, I'm sure that this one will, over time, be tweaked and changed as needed to meet Indiana's needs. But when you have such broad agreement, why not give this a try?

  5. I could not agree more with Ben's statement. Every time I look at my unemployment insurance rate, "irritated" hardly describes my sentiment. We are talking about a surplus of funds, and possibly refunding that, why, so we can say we did it and get a notch in our political belt? This is real money, to real companies, large and small. The impact is felt across the board; in the spending of the company, the hiring (or lack thereof due to higher insurance costs), as well as in the personal spending of the owners of a smaller company.