Businesses line up to sponsor Las Vegas’ NASCAR race

From race cars painted with brand logos to drivers' suits smothered with sponsor patches, NASCAR fans are bombarded with an advertising blitz whether they're at the track or watching on television.

There's no avoiding it, not that it bothers them. NASCAR's estimated 50 million fans have been pegged as the most loyal of all sports customers, three times more likely to buy a product associated with their favorite driver.

When they need laundry detergent, they're going to buy Tide. Darrell Waltrip and Ricky Rudd drove that car.

That's why corporate sponsors continue to embrace motorsports even in this day of scaled-down advertising and marketing budgets.

For the first time in more than 10 years, the Las Vegas Motor Speedway has locked in sponsors for all three days of NASCAR Weekend, March 4-6. Last year's event contributed an economic impact of $165.8 million to the local economy, Las Vegas Convention and Visitors Authority data show, a 7.4 percent increase in economic impact over the 2009 event.

Lowe's Kobalt Tools brand is sponsoring the 400-mile Sprint Cup race. Sam's Town committed to the Nationwide race (formerly the Busch series) for the 14th consecutive year. And the Stratosphere jumped on board for qualifying day.

While company executives would not disclose financial terms of their agreements, website HowStuffWorks.com reports that sponsoring a race at the track level typically sets a company back $500,000 to $2 million, depending on the venue.

Not a bad deal compared with the $10 million to $15 million cost of being the primary sponsor for a race team, or $350,000 to $500,000 per race.

"I get hit all the time by motorsports guys wanting us to sponsor them, but sponsoring an event makes more sense for us than sponsoring a team," said Dan Stark, vice president of corporate marketing for Boyd Gaming Corp., owner of Sam's Town. "We don't have to worry about our car qualifying or running up front. When the race ends, our general manager is in victory lane with our customers. In the results page, it'll talk about the Sam's Town 300. From that perspective, it works out better than the car."

Stark said it's difficult to quantify a return on investment, especially since Sam's Town has been the only sponsor of the Nationwide (and Busch) race in Las Vegas. Some of it is economics and some of it is certainly branding, he said.

In addition to getting their names in front of some 150,000 spectators at the Las Vegas Motor Speedway, race sponsors get their logos printed on tickets and programs; skybox seats, VIP tickets and hospitality tent; pit passes; and access to drivers and the winner's circle.

With skillful negotiation, the companies can have someone ride in the pace car, drop the green flag or announce, "Gentlemen, start your engines."

Las Vegas hotel operators have learned to use the NASCAR race as a powerful marketing tool to fill rooms and cater to preferred customers.

Stratosphere general manager Paul Hobson said he doesn't know exactly how many of the hotel's 2,400 rooms will be occupied by race fans. However, demand for that weekend is stronger than all but about four or five weekends throughout the year, he said.

Stratosphere, which has undergone a $20 million renovation, hosted the Dale Earnhardt Foundation charity poker tournament with NASCAR drivers and about 20 driver autograph sessions last year.

"This is just a natural extension of our long relationship with NASCAR and allows us to showcase our affiliation with them," Hobson said. "It helps us get in front of more people on a busy weekend in Las Vegas."

Stratosphere's sponsorship includes complimentary tickets for qualifying day, billboard signs at the track and a spot in the program guide.

Sam's Town put together race packages starting at less than $1,000 that include a room for three nights, two tickets to the Sam's Town 300 and Lowe's Kobalt Tools 400 and motorcoach transportation to and from the speedway. Upgraded packages are offered for premium seating in the Richard Petty and Dale Earnhardt terraces.

Jimmie Johnson, a five-time NASCAR champion and last year's Las Vegas race winner, is scheduled for a one-hour question-and-answer session at Sam's Town Live on March 3, produced by Fox Sports. Driver Greg Biffle comes in March 4.

Lowe's sponsorship of the Las Vegas race runs through 2013, corporate spokeswoman Katie Cody said. The home improvement retailer is also sponsoring the Phoenix race through 2014.

"This race is a big, important race that is popular with fans and we are excited to be able to bring them the Lowe's and Kobalt Tools experience," Cody said in an e-mail. "We know the Las Vegas Motor Speedway will provide a great place for that experience."

Las Vegas Motor Speedway Vice President of Sales Kevin Camper said race sponsorships are critically important from a financial standpoint.

"The sports and entertainment industry as a whole has been hurt from the public not being able to buy tickets," Camper said from Florida, where he's attending the Daytona 500. "No question, sports in general has seen a decline in attendance. Part of it is the economy. You can't buy a $45 ticket when you've got to pay the electric bill."

Camper said Lowe's is offering $48 tickets for the March 6 race, while Smith's Food and Drug is offering half-off tickets for children younger than 15. The $25 ticket for the March 4 qualifying session includes access to the speedway's Neon Garage, where spectators can watch race crews work on cars and enjoy live entertainment.

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.