Speedway sells $3 million in new Indy 500 sponsorships

May 22, 2013
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Indianapolis Motor Speedway officials said an effort that started in 2011 has resulted this May in $3 million in new Indianapolis 500 sponsorship deals.

Total sponsorship revenue this year, IMS officials said, is up 9 percent over last year and more than 18 percent over 2011. Much of the success, they said, is due to the development of new sponsorship categories and filling vacant ones.

While financial terms of the specific deals were not disclosed, Speedway officials said sponsors will get a mix of track signage (premium sponsors will get signage visible during television broadcasts), tickets, hospitality offerings and the right to use Speedway and Indy 500 logos in their marketing.

In all, IMS officials said they’ve added 23 new sponsors and increased the packages of seven existing sponsors at the 2013 Indy 500. Most, however, are relatively small deals in the low-six-figure range, sports marketers said.

One of the biggest-name sponsors to join the Indy 500 paddock this year is Philadelphia-based Sunoco. While Sunoco has been an IndyCar series sponsor since 2011, Shell previously had an exclusive sponsorship deal at the IMS. Sunoco is expected to be active in promoting the race this year.

Also notable is Hardee’s, which is the first fast-food category sponsor at the track since 2008. Other big-name sponsors to join the race this year are Great Clips, Caterpillar and the National Guard.

Other new sponsors include: Abbott Laboratories (health care), Allied Solutions (insurance), Brand Affinity Technologies/Fantapper (photography), Bear Data Solutions (technology), Blue Renewable Energy/SunWize (solar), Bluegreen Resorts (vacation/resorts), BMG (staging/event production), Citizens Energy Group (water/energy), Gladiator GarageWorks (home improvement products), Global Tower Partners (telecommunications hardware), Growth Energy (ethanol fuel), K&N Filters (automotive supplies), Keihin (automotive specialty), Old National Bank (financial services), Plantronics (technology), Ray’s Trash Service (waste management and recycling), SMS Audio (electronics) and The Jackson Group (printing).

IndyCar teams are also gaining speed this May, with several new sponsors.

Sarah Fisher Hartman Racing this month signed a deal with Century 21. The residential real estate firm will be the primary sponsor of the car driven by up-and-comer Josef Newgarden and will promote its Smarter, Bolder, Faster campaign at the track this month.

On Monday, Indianapolis-based Angie’s List confirmed it would partner with Katherine Legge’s effort in the No. 81 Schmidt Peterson Pelfrey Motorsports Honda. Legge, a popular British driver, made the race after her deal came together on Pole Day Saturday.

Another Broken Egg Café, the popular breakfast, lunch and brunch spot in the Southeast that recently opened in Indianapolis at 9435 N. Meridian St., signed a deal to sponsor Ed Carpenter, who is sitting on the pole. The company’s vibrant rooster and broken egg logo has been installed on Carpenter’s No. 20 racecar.

KV Racing recently signed a deal to promote the launch of the energy drink N.O.-Explode. A bright red N.O.-Explode logo will adorn the highly visible shark fin on Tony Kanaan’s No. 11 car for the Indy 500 and five other IndyCar races in Detroit, Texas, Iowa, Pocono and Mid-Ohio.

 

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  • But, but, but this can't be. Chief and his loyal followers keep telling us this is a dying series and that it is fading fast. New big name sponsors, a new suppliers, the best racing but the haters feel it is dying. Go figure. That said, more good news for the race and the series. Miles needs to find the hook to bring up attendance and ratings. Obviously big name companies are willing to spend millions supporting the series.
  • Where's the other $2M?
    20 years @ $5M/year. This is $3M against the first year's payment. Another $2M and they'll be down to 19 years...
  • If you are meaning the $100 million loan from the State, it is a loan and from what I have heard IMS is adding $1 per ticket and funneling some concessions receipts to pay off the loan.
  • Tater Tots
    Who makes Tater Tots? They would be a good sponsor, because $3 Million for the alleged "Greatest Spectacle In Racing" is taters. Tiny, tiny taters. But at least they are making up something of the losses accumulated over the years in this dying sport. Buttock in seat is certainly not doing it, nor eyeball on TV, as evidenced by the lack of both.
  • Yep, the haters are trying to make good news bad. I guess it is hard to get people to believe the series is dying when they are gaining new sponsors.
  • Newman/Haas Used to get
    millions for putting a company's bumper sticker on one of its Lolas. But you gotta take what you can get.
  • One race deals....
    Congrats to the speedway. 99.9% percent of the sponsors are gone the day after the race is over. Short term, speedway-centric thinking got us in this mess.

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  1. Apologies for the wall of text. I promise I had this nicely formatted in paragraphs in Notepad before pasting here.

  2. I believe that is incorrect Sir, the people's tax-dollars are NOT paying for the companies investment. Without the tax-break the company would be paying an ADDITIONAL $11.1 million in taxes ON TOP of their $22.5 Million investment (Building + IT), for a total of $33.6M or a 50% tax rate. Also, the article does not specify what the total taxes were BEFORE the break. Usually such a corporate tax-break is a 'discount' not a 100% wavier of tax obligations. For sake of example lets say the original taxes added up to $30M over 10 years. $12.5M, New Building $10.0M, IT infrastructure $30.0M, Total Taxes (Example Number) == $52.5M ININ's Cost - $1.8M /10 years, Tax Break (Building) - $0.75M /10 years, Tax Break (IT Infrastructure) - $8.6M /2 years, Tax Breaks (against Hiring Commitment: 430 new jobs /2 years) == 11.5M Possible tax breaks. ININ TOTAL COST: $41M Even if you assume a 100% break, change the '30.0M' to '11.5M' and you can see the Company will be paying a minimum of $22.5, out-of-pocket for their capital-investment - NOT the tax-payers. Also note, much of this money is being spent locally in Indiana and it is creating 430 jobs in your city. I admit I'm a little unclear which tax-breaks are allocated to exactly which expenses. Clearly this is all oversimplified but I think we have both made our points! :) Sorry for the long post.

  3. Clearly, there is a lack of a basic understanding of economics. It is not up to the company to decide what to pay its workers. If companies were able to decide how much to pay their workers then why wouldn't they pay everyone minimum wage? Why choose to pay $10 or $14 when they could pay $7? The answer is that companies DO NOT decide how much to pay workers. It is the market that dictates what a worker is worth and how much they should get paid. If Lowe's chooses to pay a call center worker $7 an hour it will not be able to hire anyone for the job, because all those people will work for someone else paying the market rate of $10-$14 an hour. This forces Lowes to pay its workers that much. Not because it wants to pay them that much out of the goodness of their heart, but because it has to pay them that much in order to stay competitive and attract good workers.

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  5. It is sad to see these races not have a full attendance. The Indy Car races are so much more exciting than Nascar. It seems to me the commenters here are still a little upset with Tony George from a move he made 20 years ago. It was his decision to make, not yours. He lost his position over it. But I believe the problem in all pro sports is the escalating price of admission. In todays economy, people have to pay much more for food and gas. The average fan cannot attend many events anymore. It's gotten priced out of most peoples budgets.

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