QUOTE(campbellcj @ Mar 11 2015, 09:44 PM)
Honest question - do motorsports sponsorships really pay-off (ROI) in general? Obviously there are big bucks involved at the upper echelons and those folks must think it's worthwhile, but how about in the more local, non-televised stuff?
Sponsorship is an interesting game. The little guy does it because he wants to or just to help out because its expensive for privateers to take on the full burden financially. Friends, family, a local business, even the bodyshop that painted the race car. Small chips for small players.
The big sponsors play by a different set of rules. To them its advertising and marketing. Part of its a write off as a legitimate business expense. TV time, exposure, magazines, staged product photo ops. If a Michelin equipped car wins they sell tires, lots and lots of tires. If a Pepsi branded car wins people buy it and guzzle it down. Big players want to be winners just like everyone else. Big players cant drive so they pay people or sponsor them to do it for them. Its simply a 4 wheel commercial. Do they get a return on investment? Of course they do. If enough people see the name they might go out and buy what they have to sell.
Big teams are smart also. They know what a year is going to cost. The worst case scenario expense is writing off a car or blown motors and transmissions. The minimum is a season of consumables, entrée fee's, transportation costs, room and board etc. A race car has a lot of advertising real estate to place names and decals on. The smart ones are the ones who tell sponsors "this is what its going to cost you to put your name on our car for a season". Its business.
A lot more goes on with sponsors and recipients.
An example: Does anyone remember the name of the sponsor on the back of the "Bad News Bears" uniforms. A team of dysfunctional kids running around a baseball field filmed in the north San Fernando Valley were wearing them. It was the drunken manager Buttermaker's Bondsman that sponsored his team. I played little league at that same ball field. The sponsor was Chicos Bail Bonds. I don't know why I remember that but I do. That was just a movie but I still remember the name of the fictional sponsor.