rpm.espn.com: RJR decision not unexpected

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Tuesday, July 17
RJR decision not unexpected
By Bill Stephens
ESPN.com

It was the worst-kept corporate secret in motorsports. With the restrictions on advertising and sponsorship mandated by the government's Master Settlement Agreement forcing R.J. Reynolds' hand, the tobacco giant and parent company of the Winston brand has announced the inevitable.

After the 2001 season, their sole major sponsorship in the world of automobile racing will continue with NASCAR, and the NHRA will see their 27-year relationship with RJR go by the boards.

In his official statement, Rick Sanders, president of RJR's Sports Marketing Services, was forthright in emphasizing the exasperating scenario in which the ultimate choice was made.

"The decision to forego this partnership has been a very difficult one for Reynolds Tobacco and the Winston brand," he announced Tuesday. "Both NASCAR and NHRA deliver an excellent product to fans, are experiencing tremendous growth and have promising futures. In the final analysis, however, we had to choose a single sponsorship and felt that the NASCAR sponsorship had the edge in supporting Winston's overall business objectives over time."

Tom Compton, NHRA's president, was equally up front in his response, namely, that the decision had long been anticipated.

"The announcement that RJR has elected to continue sponsorship of NASCAR in 2002 came as no surprise to NHRA," Compton stated. "We have seen tremendous interest from a number of companies regarding our series and each opportunity represents a significant step forward for the sport. NHRA's goal is to make an announcement in the very near future."

So, what happens next?

Certainly the doomsayers and fatalists in the motorsports realm are having a field day with the news. But where reasonable heads are prevailing, there is a sense of anticipation and speculation as to who the next title sponsor will be. While there is surely a fair number of strong potential candidates, there has been no official word as to who has the inside line or how soon a deal might be struck.

It is with some irony that RJR's announcement should come during the NHRA's 50th Anniversary season. Despite the added exposure NHRA events have enjoyed because of the half-century birthday and the new ESPN television package -- which has even resulted in final round highlights being included on the network's vaunted Sportscenter -- the value of a corporate association with NHRA drag racing becomes evident.

Make no mistake; the price tag for any title sponsorship of a racing series of the magnitude of the 24-event NHRA schedule is significant. That kind of commitment isn't made in a few hours, a few days or even a few weeks. Whoever devotes the kind of financial resources to the NHRA imprimatur a sponsorship agreement requires will be considering it carefully. The NHRA, in turn, will want a corporate companion that seeks mutual benefits in the long term.

Best case scenario? A new title sponsorship agreement will be announced in time for the U.S. Nationals at Indianapolis Raceway Park on Labor Day weekend. Worst case scenario? No sponsorship deal is struck by the end of the 2001 season and the public relations and corporate fallout will fuel any number of dismal and dire predictions concerning the health and viability of the world's fastest motorsport.

Let's all give the dealmakers the time they need, and in the meantime, we've got a drag racing season to finish.

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