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Influences on Sponsorship Deals in NASCAR: Indirect Evidence from Time on Camera

Kurt W. Rotthoff, Craig Depken and Peter Groothuis

No 11-07, Working Papers from Department of Economics, Appalachian State University

Abstract: Corporate sponsorship plays an important role in the entertainment business. The question becomes: what influences the value of a sponsorship contract? Empirical analysis of this question is relatively limited because of a lack of complete data on contract values. This is especially true in NASCAR where sponsorship values are generally not released to the public. We analyze a proportional proxy for driver sponsorship value: the value of time on camera. We find that the value of time on camera is influenced by driver performance but also by their experience and, in the case of two drivers, their family name-brand capital. The results confirm that sponsorship value in NASCAR is not only determined by what a driver has done most recently but, to some extent, what their fathers had done before them. Key Words: Sports, Sponsorship, NASCAR, Naming Rights, Return on Investment, Advertising

Date: 2011
New Economics Papers: this item is included in nep-mkt and nep-spo
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http://econ.appstate.edu/RePEc/pdf/wp1107.pdf (application/pdf)

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Journal Article: Influences on sponsorship deals in NASCAR: indirect evidence from time on camera (2014) Downloads
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