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

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  • Kurt W. Rotthoff
  • Craig A. Depken, II
  • Peter A. Groothuis

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

Suggested Citation

  • Kurt W. Rotthoff & Craig A. Depken, II & Peter A. Groothuis, 2011. "Influences on Sponsorship Deals in NASCAR: Indirect Evidence from Time on Camera," Working Papers 11-07, Department of Economics, Appalachian State University.
    • Handle: RePEc:apl:wpaper:11-07
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    File URL: http://econ.appstate.edu/RePEc/pdf/wp1107.pdf
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    References listed on IDEAS

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    Cited by:

    1. Craig A. Depken II & Peter A. Groothuis & Kurt W. Rotthoff, 2016. "Family Connections in Motorsports: The Case of Formula One," Working Papers 16-13, Department of Economics, Appalachian State University.

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    Keywords

    sports; sponsorship; nascar; naming rights; return on investment; advertising;
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