Auto Racing Daily

June 23, 2011

by Dave Grayson

NASCAR and the U.S. Military

U.S. Representative Betty McCollum, a Democrat from Minnesota, last week vowed to continue her fight to drastically slash, if not even eliminate, the portion of the Department of Defense’s budget that is being spent on advertising with professional sports organizations and their events. The Congress woman said she will not give up this cause despite the fact that there seems to be very little support from her Congressional colleagues many, of whom, agree with Pentagon officials in the belief that these sponsorships actually bolsters military recruitment stats.

While McCollum’s proposed Congressional amendments references military sponsorships of all major sporting events, her focus seems to be aimed at NASCAR racing. She points out that the Pentagon spent a staggering amount of money during the 2010 NASCAR racing season. Currently the U.S. Army, the National Guard and the U.S. Air Force are involved in sponsorship programs with NASCAR Sprint Cup Racing teams...

...According to Pentagon figures, obtained and released by McCollum’s staff members, the National Guard spent approximately $20 million with Hendrick Motorsports, during the 2010 season, for sponsorships on race cars driven by Dale Earnhardt Jr and Jeff Gordon. In all fairness, it was pointed out that this figure was considerably down from the $32.7 million spent during the previous year. Meanwhile the Army spent $7.4 million last year which was trimmed down from $11.6 million in 2009.

The question remains: is there an accurate way of measuring tangible results from these advertising campaigns? Actually there is. It’s a service provided by a civilian company named Joyce Julius and Associates. Headquartered in Ann Arbor-Michigan, Joyce Julius and Associates Inc is regarded as the sports and entertainment industry leader in accurate measurement and evaluation of sponsorships and promotional programs. They generate their figures based on broadcast television exposure monitoring, full media measurements and fan/consumer perception analyses. They also back that elaborate procedure up with 27 years of experience.

Let’s just look at one example from a race team with military themed sponsorship: Dale Earnhardt Jr and his #88 National Guard/Amp Energy Chevrolet. The following stats, from Joyce Julius and Associates, was compiled during the first one third, or 12 races, from the current 2011 season:

Sponsor exposure time: 5 hours, 36 minutes and 54 seconds.

Verbal mentions, (during a NASCAR live and repeat broadcast): 18

Driver interviews: 8

Interview durations: 13 minutes, 7 seconds.

Driver mentions: 1,140

Recognition Grade, (RG) exposure value: $21,835,475.

That’s just for the first 12 NASCAR races of the current season. With Earnhardt seemingly on his way to a starting berth in the 2011 Chase, imagine what those numbers are going to be at the end of the season.

This level of brand exposure calculation is also a ringing endorsement for the beliefs of military and Congressional figures who truly believe that the taxpayers are getting more bang for their buck with these sponsorship campaigns.

However Congresswoman Betty McCollum apparently remains unconvinced and is reported to be laying the ground work for her next move towards reducing Pentagon spending in NASCAR.

According to a June 20th report, from “The Hill.Com”, Bill Harper, McCollum’s chief of staff, said “the lawmaker will likely offer an amendment on the House floor to the 2012 Pentagon appropriations bill that would limit the funds the military could spend on sporting events.”