IndyCar is looking to marry into some wealth that deep, deep pockets. You know the type of people that do that? Generally 50 years younger, say they’re in it for love then overdose on weight loss pills at a casino in Florida. IndyCar’s just looking for someone with a little cash on hand.
Not just a little cash, the series is asking for $30M A YEAR from their next sponsor. That’s more than the $20M NASCAR receives from Monster Energy per season, that’s double what Formula E receives from ABB and they’re a global series from the future.
According to the Indianapolis Business Journal, the series is seeking $10-15M a year in cash and another $10-15M to spend on advertisement and promotion of the series. Astronomical numbers compared to the deal Verizon is finishing. Currently, Verizon pays $6M in cash and $4M to advertise the series.
Nothing like asking for triple the amount of money you were making. Walk into your next review and suggest your salary gets tripled. It’s a bold strategy that likely won’t pay off but you know what they say ” it never hurts to ask?”
Should Mark Miles and his team in Indianapolis can land a sponsor somewhere close to their $30M mark that would be the accomplishment of the decade. IndyCar is a great series with new growth and a positive trajectory but their TV ratings dropped slightly in 2017. Granted the ratings are up over 30% from 2013.
One could argue Verizon’s advertisement of the series helped grow the series hence the $10-15M wanted for promotion and advertisement. However, some people within the paddock have voiced their displeasure with Verizon over what they viewed as a lack of promotion.
Shoot for the stars, IndyCar. It’s a lofty goal and one that likely won’t be reached currently but the trajectory of the series has made them bullish on their chances. Take a smaller deal than $30M and aim higher when that contract runs out. That’s quality free advice from a guy that doesn’t have a finance degree, take it.
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