Podcast: Why FedEx says a NASCAR sponsorship is worth a billion

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As a sponsor that has invested eight figures annually for 14 seasons in NASCAR’s premier series. FedEx has spent well more than nine figures promoting its brand.

But for all those millions spent, the amount of exposure has stretched above 10 figures annually.

In the most recent NASCAR on NBC Podcast, which highlights the sponsor’s long-term relationship with Denny Hamlin and Joe Gibbs Racing, a FedEx executive shared a few interesting nuggets about how it tracks the efficacy of its NASCAR involvement.

“We measure it very closely, and we have more than a billion brand impressions generated from the No. 11 sponsorship each year,” said Patrick Fitzgerald, the senior vice president of integrated marketing and communications for FedEx. “It’s one of the reasons it’s important for us to be the sole sponsor of the No. 11 car.”

After selling off a few of its races last year, FedEx will adorn Hamlin’s No. 11 in every race during the 2019 season to gather those impressions, which Fitzgerald said cover myriad categories.

“It’s across everything,” Fitzgerald said. “Eyes on the brand at track, on broadcasts, on digital. Every place we’re able to activate the sponsorship”

Though the delivery and logistics company sponsors many sports globally (including golf, the NFL, international soccer and the NBA), its most visible spokesman is Hamlin, who scored his second Daytona 500 victory in February. The JGR driver has 33 victories with FedEx since 2006.

“He’s become a genuine extension of our brand and a real brand ambassador, and we’re proud of that,” Fitzgerald said. “He certainly understands our culture and business. He takes the time with customers and team members and does understand our business and what we represent and why it’s so powerful to have a long connection with the company and the brand.

“A lot of that can be credited to Coach Gibbs. Denny over time has watched and learned from the interaction with our brand and company. There’s no greater ambassador in sports for the FedEx brand than Coach Gibbs. That’s something that Denny has picked up from him and is a big part of it.”

FedEx also measures revenue generated through the business relationships fostered through NASCAR. More than 1,600 of its customers are entertained annually at NASCAR races by the company, which also considers the value of brand awareness.

“The overall mix, we get a lot of value,” Fitzgerald said. “NASCAR is a great example of the evolving media landscape. For example, with the advent of DVRs and other technologies that change the overall effectiveness of traditional broadcast advertising, the exposure you get from a race, which is DVR proof, you get tremendous brand value just being on that car lap after lap, race after race, and then in particular when Denny does something like amazing like winning the Daytona 500.

“When we host a customer at an event, we look at shipping volumes before and after, you can start to draw some conclusions of the effectiveness as a revenue generator. We looked at that closely.”

The special narrative edition of the podcast followed Hamlin on a trip to the sponsor’s headquarters in Memphis, Tennessee, and included reflections by the driver on the origins of aligning with FedEx and what the future might hold

Hamlin, who will turn 39 in November, signed a multiyear extension with FedEx in 2017 and would like to lay claim to having only one sponsor through the end of his NASCAR career.

“I’d like to do one more contract beyond what I have,” he said. “What I have is long term. We’re not even in the middle of that yet. So I’d like to be here.

“It’s so rare. We thought Jimmie (Johnson) would finish (his career) with Lowe’s. I think there’s something to be said about that. To have someone who is with you from the start to the finish. It’s all about dollars and sense and whether you can make things work, but I’m with the company I believe in and hopefully believes in me through the course of my career. I’d like to go at least 43-ish.”

To listen to the podcast, you can click on the embed above, or listen via Spotify, Apple Podcasts, Stitcher, Google Play or wherever you download podcasts.

NASCAR announces merger agreement with International Speedway Corp.

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International Speedway Corp. announced Wednesday morning that it has entered into an agreement and plan of merger with NASCAR. The deal is valued at approximately $2 billion.

Shareholders will receive $45 for each share.

This deal is expected to close this calendar year.

International Speedway Corp. owns 12 tracks that host NASCAR races, including Daytona International Speedway, Darlington Raceway and Homestead-Miami Speedway.

NASCAR issued a statement Wednesday: “We are pleased with the progress that the negotiation and execution of the merger agreement between NASCAR and ISC represents.  While important regulatory and shareholder approval processes remain, we look forward to the successful final resolution of this matter and continuing our work to grow this sport and deliver great racing experiences for our fans everywhere. With a strong vision for the future, the France family’s commitment to NASCAR and the larger motorsports industry has never been greater.”

NASCAR Chairman Jim France told competitors in the drivers meeting before the Daytona 500 that “this sport was built by families and we’re just a part of it. It’s so important that we remember that this is still a family business. Our family is committed to it.”

The agreement announced Wednesday allows NASCAR to control those tracks, along with Iowa Speedway, which it already owns. That could make it easier for NASCAR to move dates to take a date from one track to another. NASCAR President Steve Phelps has stated that the schedule is among the areas the sanctioning body is looking at making changes. NASCAR’s five-year sanctioning agreement with tracks ends after next season.

With NASCAR private, it won’t have to publicly report attendance revenue and other financials as ISC had to do as a publicly traded company.

ISC also announced that a class-action lawsuit that had been filed against it after NASCAR and ISC announced last November plans to merge will be dropped.

Speedway Motorsports Inc., which owns eight tracks that host NASCAR races, including Charlotte Motor Speedway, Las Vegas Motor Speedway and Texas Motor Speedway, announced April 24 that it had received a non-binding proposal from Sonic Financial Corp. to acquire all outstanding shares of common stock other than those already held by Sonic. Bruton Smith and his family own and control Sonic Financial Corp. Smith is the founder and majority stakeholder in Speedway Motorsports Inc.

The only tracks not owned by ISC or SMI that host Cup races are Pocono Raceway, Dover International Speedway and Indianapolis Motor Speedway.

NBC Sports Power Rankings heading into Coca-Cola 600

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After finishing third in the All-Star Race, Kyle Busch is back atop this week’s NBC Sports Power Rankings – although it was not a unanimous decision.

The real story this week is Kyle Larson. Although it was a non-points event, Larson’s win in the All-Star Race propelled him from not even in last week’s rankings to No. 3 this week. Larson is one of three drivers who went from unranked last week to into this week’s top 10. Also making a big jump from last week was Kevin Harvick (from 7th to 2nd).

Several drivers took big drops from last week, including Chase Elliott (1st to 5th), Alex Bowman (2nd to 6th), Clint Bowyer (4th to tied for 10th) and Brad Keselowski (5th to out of the top 10).

Here’s how this week’s Power Rankings look heading into the Coca-Cola 600:

1. Kyle Busch (38 points): Finished third in All-Star Race but climbs the rankings for his rant on the radio late in the race. If you can’t win .… But he did win the Truck race and finished the year winning all five of his starts. Last week: 3rd.

2. Kevin Harvick (32 points): Once again, falls short of victory lane. Pit crew mistakes again. Will they finally get things fixed in time for the race that typically has the most pit stops of the season in it? Last week: 7th.

3. Kyle Larson (30 points): Will the $1 million man build upon his riches to earn some wins that will actually count towards the playoffs? Last week: unranked.

4. Joey Logano (24 points): Strong run at the end to secure top-five finish in All-Star Race. Could be a big factor in the 600. Last week: 8th.

5. Chase Elliott (22 points): Things didn’t go his way. Hey, he has 600 miles this weekend to make things happen. Last week: 1st.

6. Alex Bowman (17 points): With three straight runner-ups and eighth in the All-Star Race, a win could be right around the corner – perhaps as early as Sunday. Last week: 2nd.

7. Bubba Wallace (14 points): Storybook night – stage win in Open and fifth-place finish in All-Star Race – gave him an emotional boost that may lead to better things to come. Last week: unranked.

8. William Byron (10 points): Strong move to win the first stage in Monster Open and then finishes the night with a ninth-place finish in the All-Star Race. Last week: unranked.

9. Martin Truex Jr. (9 points): Fast car but then later had issues and finished 10th. Last week: 9th.

(tie) 10. Clint Bowyer (7 points): Punched his ticket to a 12th-place finish, then went out and punched Ryan Newman on pit road. Will their feud flare up again on Sunday? Last week: 4th.

(tie) 10. Kurt Busch (7 points): Late crash left him with a disappointing 17th-place finish (out of 19 drivers). Look for a big comeback in the 600. Given his consistency this season, he’s overdue for a win. Last week: 6th.

Others receiving votes: Brad Keselowski (4 points), Aric Almirola (3 points), Austin Dillon (2 points), Ross Chastain (1 point).

NASCAR America: Dale Jr. Download with Mike Helton, 5 p.m. ET on NBCSN

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On today’s Dale Jr. Download, which runs from 5 to 6 p.m. ET on NBCSN, Dale Earnhardt Jr. welcomes NASCAR vice chairman Mike Helton.

Earnhardt has known Helton his whole life, and while the two consider each other good friends, Junior told one story where that friendship was tested a bit. 

Here’s a brief segment of what Junior had to say about Helton:

You can be an incredible friend, but the funny thing is when you need to chew somebody’s ass, you can get that done, too. There was one time you had to get after me pretty hard at Bristol Motor Speedway. … We had a car explode a brake rotor on the race track and threw brake parts all over the place.

There was about 15 laps to go and we were running under caution. Typically, NASCAR red flags the race and I was wanting them to do that, but they didn’t. I don’t see the brake stuff, everything’s great, I’m raising hell. This was in the Bud days. Tony (Eury) Sr. was on the radio and I think he was encouraging me a little bit. Our spotter came over and said they want you and Tony Sr. to come to the truck after the race. I stopped talking immediately.

That’s when I learned that Mike Helton and the guys in the booth listen to the drivers and I was thinking, ‘Oh, man, they heard me.’ … We go up in the hauler and me and Tony Sr. still feel like we’re in the right and that we’re going to tell ‘em this and tell ‘em that, and that we’re going in there thinking we’re going to tell Helton and he’s going to say ‘you’re right, we should have red-flagged the race.’

As soon as Helton’s head comes into the door jamb, Tony Sr. and I both started pleading our case. And Mike Helton said, ‘Both of y’all hush. Y’all aren’t going to talk, I’m going to talk.’ You were so mad, so angry, and when I realized how mad you were, I was so disappointed in myself for disappointing and angering him. … I realized now what I had done.’”

Tune in to hear the rest of the story on the Dale Jr. Download (the above portion starts around 51:00).

And then stick around for the following show, IndyCar Live, from Indianapolis Motor Speedway from 6-6:30 pm ET with Kevin Lee.

If you can’t catch either of today’s shows on TV, watch online at http:/nascarstream.nbcsports.com. If you plan to stream the show on your laptop or portable device, be sure to have your username and password from your cable/satellite/telco provider handy so your subscription can be verified.

Once you enter that information, you’ll have access to the stream.

Click here at 5 p.m. ET to watch live via the stream.

Missouri’s Lucas Oil Speedway heavily damaged by possible tornado

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Severe storms barreled through south central Missouri on Monday night, causing a number of injuries and heavy damage to the area, including significant damage to Lucas Oil Speedway in Wheatland, Missouri, about two hours southeast of Kansas City.

According to a media release from track officials, “The storm moved into the area shortly before midnight and damaged several buildings, destroyed the grandstands at the off-road track and also damaged some of the grandstands at the dirt track. There also was damage in the campground and debris was scattered throughout the facility. Several vehicles on-site were toppled, including some campers that had arrived for the weekend.”

There were several injuries reported at the RV park located nearby. Investigators were trying to determine if the storm actually spawned a tornado that caused the damage.

The storms left the track without power and forced officials to cancel this weekend’s Lucas Oil Show-Me 100, one of the its biggest races of the year.

Lucas Oil Speedway general manager Danny Lorton said in the media release that this weekend’s racing – which is considered part of the “Crown Jewel of dirt Late Models” – would be rescheduled at a future date. Lorton said the earliest some announcement may be made is Tuesday.

Also in the media release, track racing operations director Dan Robinson noted, “Our first thoughts are for the people of the Wheatland community and the area and we are thankful that there were no fatalities. Our thoughts and prayers go out to all who were affected.”

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