Hall of Fame Attendance and Sponsorships Spur Cuts

In a tough economy cutting costs is always at the top of discussion, but how does the economy affect the motor sports market? Moreover, how do you avoid cutting costs to the point where people are not losing jobs? Unfortunately, the NASCAR Hall of Fame (HOF) is looking to cut between $2.5 million and $3 million annually in order to balance its budget. The reason for cutting costs is that attendance figures have not reached the level anticipated in Charlotte’s bid for the HOF. However, Tim Newman, CEO of the Charlotte Regional Visitors Authority (CRVA), stated in a recent NASCAR.com article that cutting costs at NASCAR’s HOF will not impact plans for any current or future exhibits nor the laying off of 27 ful-time employees. Nevertheless, the NASCAR Hall of Fame has witnessed a decline in the number of people visiting due to a poor and sluggish economy.
Subsequently, when trying to win the business of Hall of Fame participants, NASCAR finds itself competing with places like the Rock and Roll and the Country Music Hall of Fame, two other good attendance draws. Surprisingly, other sources reported that attendance at NASCAR was lower than expected during the summer months. The sluggish turnouts have resulted in a net loss of around $3 million for NASCAR. However, NASCAR is on par with anticipated attendance figures between 250,000 and 350,000 running close to Baseball’s Hall but just ahead of Pro Football’s Hall attendance according to this year’s projected forecast. Meanwhile, Country Music and Rock and Roll Hall’s first year’s attendance for both venues was estimated at around 800,000 respectively compared to the 800,000 respectively for the NASCAR Hall. In spite of a slow economy, NASCAR’s Hall of Fame was still the leader with around 300,000 as compared to baseball’s 280,000 and football’s 196,000. In retrospect, football’s highest attendance ever in the early 70′s was around 247,000. In conclusion, the NASCAR Hall is planning a new advertising campaign to help boost attendance.
It’s important to understand the dynamics of a sluggish economy whether it’s a lack of interest from tourists or the fact that people are just not flocking to the Hall of Fame on which millions were spent building. Ultimately, it’s important to remember that some individuals are able to visit the NASCAR Hall only by dipping into their discretionary income. Tim Newman suggested that there are several local promotions in the works; if successful, the local attendance could make budgets cuts less severe. AS

NASCAR–fulfilling its role in CSR

Corporate Social Responsibility (CRS) has become an integral part of business world now as huge corporations and even smaller businesses are now looked upon to show their commitment to their communities. NASCAR is not lagging behind in fulfilling its role of Corporate Social Responsibility. For example, the NASCAR Foundation came into being in 2006 and has been involved in charitable causes since its inception through different programs and with the help of various non-profit sponsorships. One of its emphasis has been on initiatives to help children to live, learn and play.

This time NASCAR has come up with the Coca Cola Chase for Charity Program in collaboration with its sponsor, the Coca Cola Company. This program involves auction of collectibles, autographed items from race tracks and Victory Lane, and drivers’ and teams’ personal collections. And since this auction is combined with a noble cause of charity, it has doubled the attachment of fans to this effort. This auction will conclude on December 3. I see this action plan of NASCAR executed at just the right time, when the audience is declining and reduction in viewership is occurring. It is a great way to attract fans in two ways, one by creating excitement of getting NASCAR related collectibles through auction and another by touching fans emotionally through this cause of being charitable.

Besides the NASCAR Foundation there are two more projects NASCAR is carrying forward in betterment of the NASCAR community. One is a “Green initiative” to reduce the environmental footprint of NASCAR and the other one is “Drive for Diversity” to increase minority and female participation in the sport. These efforts of NASCAR towards the good of the whole nation positions NASCAR distinctively in the minds of its viewers and fans. I, being fan of NASCAR, really appreciate the ways it is playing its role in CSR. I believe when our favorites come up with such good causes, the fans feel proud and the loyalty towards that brand increases. The current efforts of NASCAR towards the well being of community is once again making its hardcore fans feel immense pleasure in being associated with this sport and it may also help NASCAR regain some of the lost viewership and attendance. FA