Visions in Leisure and Business Monographs

Volume 4 Issue 1 Volume 4 Monograph, 2010 Article 2

2010

A History of NASCAR: A Perspective

Kathleen Munger Bowling Green State University, [email protected]

David L. Groves Bowling Green State University, [email protected]

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Recommended Citation Munger, Kathleen and Groves, David L. (2010) "A History of NASCAR: A Perspective," Visions in Leisure and Business Monographs: Vol. 4 : Iss. 1 , Article 2. Available at: https://scholarworks.bgsu.edu/visions_monographs/vol4/iss1/2

This Article is brought to you for free and open access by the Journals at ScholarWorks@BGSU. It has been accepted for inclusion in Visions in Leisure and Business Monographs by an authorized editor of ScholarWorks@BGSU. A HISTORY OF NASCAR: A PERSPECTIVE

BY

KATHLLEEN MUNGER, ADJUNCT FACULTY

AND

DR. DAVID L. GROVES, PROFESSOR EMERITUS

SCHOOL OF HUMAN MOVEMENT, SPORT AND LEISURE STUDIES BOWLING GREEN STATE UNIVERSITY BOWLING GREEN, OH 43403

INTRODUCTION using or selling drugs, brag about having children out of wedlock, or carry guns." This study examined and described the rea­ (Bonham, 1999) With a 63 year history, the sons forthe success of the National Associa­ public eye is upon its' owners and the organ­ tion of Stock Car Automobile Racing ization and the scrutiny of its followers is at (NASCAR), including its past, especially a high level. "The pie is getting bigger and focusing on the recent years. An analytical the stakeholders are jockeying for bigger framework utilizing a critical incident his­ slices. Stockholders, the NASCAR organi­ torical approach was used to determine, if zation, marketers, racetrack operators, race the relationships among the primary actors team owners, TV networks, drivers, crew have been and will continue to be a signifi­ chiefs, mechanics, and truck drivers are all cant element in the success of the sport as standing in line." (Poole, 2000, p. 13) The measured by attendance, television ratings, economy within the last two years has had a new tracks and race dates, and gate and tele­ profound effect upon attendance and TV rat­ vision revenues. ings. There has been a significant slippage in attendance. The economy down tum The National Association of Stock Car Au­ could not have come at a worse time for tomobile Racing (NASCAR) is one of the NASCAR because they were in the process growing sports in terms of fans and venues. of transitioning from a regional to a national A NASCAR commissioned fan survey sport. Long term management strategies showed that 37% of the American popula­ have had to give way to short term and/or tion follows NASCAR racing to some de­ crisis management. gree and trails only professional football in popularity. "It's clear right now that An examination of NASCAR history as re­ NASCAR is the No. 2 sport in the United lated to its past and future development States," said senior vice president George builds a foundation for understanding of the Pyne. (Jenkins, 2002) "Here's a sport or­ sport for planning. Significant events in its ganization that has never experienced a past, the cyclic nature of sport, and growth lockout or strike by its athletes. Further­ and popularity have been examined. This more, NASCAR' s drivers do not choke their examination of NASCAR past and present coaches, beat their wives, get arrested for leads to implications for the future.

3 RESEARCHQUESTIONS are repeated. Once the critical incidents were isolated, information was sought on This study addressed the followingresearch how and why they influenced patterns. It questions: must be remembered that this study 1. What is the significance of the relation­ represents a longitudinal perspective and ships of the primary actors in NASCAR that changes occur through time. What is a to the success of the sport? critical incident during one period may not 2. Why has NASCAR as a private entity be a critical incident during another period. been so successful? The study, therefore, identified critical inci­ 3. What past and present variables have dents of two types: one was consistent impacted the success of NASCAR? through time periods and the other was criti­ cal incidents that were situational fora par­ ticular time period. PURPOSE OF THE STUDY There were two media reviewed to identify The purpose of this study was to examine critical incidents and variables related to and describe the reasons for the success of success of NASCAR. Popular media was the National Association of Stock Car Au­ reviewed first to establish the tradition asso­ tomobile Racing (NASCAR), including its ciated with NASCAR on the basis of folk past sixty-three years. A critical incident lore. The second media reviewed was em­ approach was used to determine if the rela­ pirical studies to identify the variables asso­ tionships among the primary actors have ciated with possible models to understand been, and will continue to be, a significant the folklore in terms of established fact. element in the success of the sport as meas­ ured by attendance, television ratings, new tracks and race dates, and gate and television POPULARMEDIA revenues. The analysis of the popular media depends upon understanding the popularity and de­ CONTEXT mand forNASCAR and to the structure and history of the sport. (Amato et al., 2010 & The significant characterizations by critical Brunt, 1922) It is an analysis that synthesiz­ incidence were identified by actor and dec­ es variables and relations to understand the ade. The actors were NASCAR, teams and bigger picture. owners, drivers, fans, sponsorship, mer­ chandisers, and media. The purpose of this type of analysis was to identify the basic in­ NASCAR fluences of the patterns identified. For each of the patterns identified a critical incident NASCAR since 1940's has seen the sport of analysis was performed on professional pub­ racing grow from a regional to a national lications during the time period to develop sport. Growth has been unparalleled in pop­ an understanding of the relationships. The ularity. It has gone through three leadership Critical Incident methodology (Butterfield, periods and leadership has been identifiedas 2005) is factors which influences identified one of the reasons for the success of the patterns. These critical incidents are the sport. In the 1940's, NASCAR organized elements that bring the themes together and stock car racing into a unified association to

4 establish uniformity in the sport. The 1950's The fan base for Cup racing grows yearly. was a time of developing tracks and the de­ NASCAR realized unprecedented growth in velopment of relationships for the recogni­ 2001. (King, 2001) Tracking actual atten­ tion of the sport. The 1960's was an era of dance has become difficult because control to establish the structure in such a NASCAR stopped releasing race attendance way to develop leadership. The 1970's was figures in 1998. (Frank, 2001) The final the era of business. Relationships estab­ Goodyear Racing Attendance Report done lished in the 1960's had to be shown to op­ in 1998 lists total race attendance at erate on a sound basis to produce profits and 6,310,027 with average attendance reported develop a good show that sponsors would be as 190,940 with 32 race dates (Goodyear willing to provide money to support the Racing Attendance Report 1998). This was sport. The 1980's was a period in which a 3.5% increase over the 1997 attendance there was growth in the sport to the general figure of 6,091,356. The 1997 attendance population. This growth was not exponen­ figure represented a 9 .0% increase over tial but at a steady rate. The 1990's was a 1996 figures, with just one additional race. period of demographic expansion and The 1996 season realized a 4.9% increase in growth that was exponential as new fans attendance over 1995 with no additional rac­ realized the entertainment value. The es or venues. (Goodyear Racing Attendance 2000's has been a period of new audiences Report 1996) The average race attendance and new relations to expand the sport into a in 1997 was 190,355, in 1996 it was national arena that has attracted new spon­ 180,260. (Goodyear Racing Attendance Re­ sors and new investment. NASCAR politi­ port 1997) Mel Poole (1999b) says there are cal power even extended to the stimulus bill four simple dynamics that explain why in section 317 which provided funds forcost people are fans of NASCAR: "The show is recovery of tracks. good; fans are touched by and attached to the personalities in the sport; they view the Cup Series a dramatic continuum; and they POPULARITY feel a cultural affinity with the sport." (p. 24) (Canfield,2003) NASCAR as a motor sport has increased in popularity exponentially in the years from Since 1998, growth has been at a rate of 1995 to present. (Oliver, 1995) In the about 3 to 5 percent and has grown to well 1990's it was America's fastest-growing pro­ over 11 million. This growth reflects the fessional sport. (Dunnavant, 1997) It was change from a Southern to a national sport. bigger and more popular than it ever had New tracks in urban areas were built where been in its 63 year history. (Howell, 1997) there has not been race availability. Growth The demand for NASCAR racing, especially in these areas has been good but not stable. at the Cup level, was significant. Cup Grand In the past few years, some of the track at­ National Racing is the epitome of American tendance has been flat. Some tracks like stock car racing. Cup races are the second California have not had the growth as ex­ most watched of the major sports, trailing pected. Gas prices and the economy have only the NFL. (Frank, 2001) It is a goal of caused some problems. Many tracks have every race car driver, from midgets to sprint adapted and adjusted their programs to help cars, to join the Cup circuit. fans. Demand is still being created but new strategies are needed to stabilize and expand it. The best source for public attendance,

5 since the Goodyear reports, has been ratings were flat or slightly above the base. Jayski.com under the title heading of race­ Different tracks have different ratings; the tracks seating capacity and attendance chart. older track ratings have been stabilized and The records available are from 2000 for­ the new tracks are fluctuating but are hold­ ward. The attendance, that is, the most sig­ ing their own. The older tracks with tradi­ nificant is from 2007 through 2009. The tions are still popular. Owners have to de­ attendance charts were analyzed to deter­ velop solid traditions among the new track, mine the attendance numbers at each of the especially in urban areas. In the examina­ tracks for this period. The economy has tion of attendance from 2007 to 2009, 72% been the primary factor that has influenced of the race venues went down in attendance. attendance. Even in the economy, a ques­ There were various patterns based upon the tion that has been released is how has the geographic location. Of the 72%, 35% went attendance managed to retain and grow the down significantly in terms of attendance. population base. (Hansen & Gauthier, 1989) Significance in this instance was greater Examination of the attendance numbers has than 15%. Only 28% remained relatively shown a significant down turn in attendance. steady in attendance. This means less than a Each track has a different approach to mar­ 5 % change. There was only one race that keting retention management and growth. had an increase in attendance. A qualitative (Fredline & Faulkner, 2002) Many tracks observation was that the traditional tracks have downsized their seating and many have were the ones that were more stable and ma­ converted some of their seats to more lux­ naged attendance better. The downturn in urious seats. the economy occurred just as NASCAR was expanding into new areas and had not had an This increased growth also comes through in opportunity to stabilize their position in the the media. In the television arena, Cup races sports community in these urban areas. Be­ (Sprint Series) were spread over the various cause of their newness in the market they networks with FOX averaging a 6.2, FX a were the first to lose attendance numbers. It 4.4, NBC a 4.9 and TNT a 3.8. These fig­ may be a good time to visit tracks and their ures show increases over the 2000 season performance in the reallocation of races. It ranging from 8-25%. (King, 2001) The definitely shows a lack of ability to manage 2002 season saw NBC drawing 35 million numbers, develop new marketing strategies viewers for the Daytona 500. This made it and take advantage of the opportunities of a the most-watched race since the 1984 run­ downturn in economy. ning of the Indianapolis 500. (Lee, 2002) Sponsors rated NASCAR and golf first in Televisions rating for NASCAR have been the 2003 League Report Card by Street & strong. The television contract that allowed Smith's Sports Business Journal. Sponsor NASCAR to become the second largest rev­ satisfaction has always been the focus of enue generator next to footballwas an excit­ operations and is viewed as the financial ing time. But, recent television ratings have base for the success of the sport. (Ryan, not matched the revenue expectation from 2010) such an exclusive contract. The best source of the data is jayski.com under the menu New contracts were negotiated in 2002. At title Sprint Cup TV Ratings. In the compar­ that time, ESPN replaced NBC. The growth ison made from 2007 to 2009, only certain was steady from 2003 through 2007. The races were used because schedule changes average growth was 2 to 3 percent. In 2008 did not allow for direct comparisons based

6 upon consistency in reschedule. Only those League Report Card by Street & Smith's tracks that had the same network affiliation Sports Business Journal. Sponsor satisfac­ and the same date and schedule were com­ tion has aJways been the focus of operations pared. It was found that the television rat­ and is viewed as the financial base for the ings were down in 48% of the races. Most success of the sport. (Ryan, 2010) of these ratings were not a significant de­ NASCAR has been one of the world's 20 cline. Twenty-one percent of the ratings top promoters (September, 2009) and mar­ were equal or showed a slight increase. keters (August, 2009) in Sport Business In­ Twenty-four percent had a lower rating in ternational. It has lost few of its sponsors 2007 and 2009, but had an increase in 2008. and has had added many new ones. The television ratings were good news be­ NASCAR has always been the premier sport cause the television is not decreasing as for development and retention of sponsors. much as attendance. The television ratings Its ratings are always the best when compar­ were stable but may not be worth the reve­ ative studies are completed. The reason is nues forthe networks. Ratings for FOX and fan loyalty to the sponsors--they buy the TNT showed a slight decline. These overall sponsors products and respond to their mar­ ratings of the network are only part of the keting programs. This type of loyalty is the picture because it is the individual races that base of sponsor development. (Arneson, show the patterns. The older races have a 1997) The other dimension is investors and more stable rating. A logical assumption is their willingnessto provide capital for teams that a decrease in attendance because of the to improve the quality of competition in the economy may raise television ratings. This sport. The investors are related to others did not happen, which raises the questions sports such as baseball and football and rec­ about the popularity of the sport and the ognize the value in motor sports. This has need for changes to stabilize the attendance also brought a new competitive level related and television rating. to management skills and the ability to de­ velop quality organizations. Recognition is An interesting analysis was the cross tabula­ the essential element to money for develop­ tions of attendance and television ratings. ment of the sport. Even during difficult These results indicate that both attendance economic times, it is essential to retain rela­ and television were down at 45% of the ve­ tionships with sponsors and investors be­ nues from 2007 to 2009. Attendance and cause these are the individuals who are the television ratings were up at 26% of the ve­ foundational elements that are necessary for nues. Television was up over attendance in growth when the good times return. If you 29% of the venues. These results indicate have worked with these individuals and that with attendance being down and televi­ helped them through the difficult times; they sion up, viewing televised races is seen as a will remain because they understand that viable option to attending the race. Fans are growth will return to the sport as the econo­ still engaged, although, their engagement is my improves. in a different form. They are still loyal to the sport and support the sponsor The top consideration of all tracks capable of Cup racing, regardless of its current phase The real tribute to NASCAR is the sponsor­ of completion or incompletion, is a Cup ship and during hard economic times spon­ date. (Jewett, 2000) In 1997 season saw the sorship has been a bright spot. Sponsors opening of new tracks. Two of these tracks rated NASCAR and golf first in the 2003 (Texas and California) were assured a Cup

7 Race date. Tracks built without a race date lose races and Kentucky and Las Vegas included those in Chicago, Illinois; Kansas would gain a race. City, Kansas; New Orleans, Louisiana; There is a move to consolidate the tracks, Madison, Wisconsin; and Pikes Peak, Colo­ media, and ownership. The primary reason rado. (Sonderegger, 1997) Despite these is control. (Brockinton, 2001; Levin, 1997; openings, there was only one new race add­ & Poole, 1999b) The weather also plays a ed to the already full 1997 schedule. The role. (Dunnavant, 1997) The same drivers North Wilkesboro (NC) speedway lost the compete in qualifying rounds for each race Cup race dates it held continuously since and points are accumulated based on finish­ 1949, when new track owners Bruton Smith ing position and lead laps. (McCraw, 1997) and Bob Bahre moved one race to Texas and NASCAR is always making changes to meet the other to New Hampshire. One new race audience needs. The most recent change date was added in 1998 at a new track in Las was adding a championship with the last 10 Vegas, Nevada. In 1999, one new track races determining the champion. The pre­ with a race date, located in Miami, Florida vious races are used to qualify forthe cham­ was added. In 2001, there were two com­ pionship. It has been very successful and pleted tracks (Mesa, Arizona and Boston, has generated much interest. (Fryer, 2010) Massachusetts) that did not have a race date. There were also three proposed or in the Adding additional race dates is becoming process tracks in Oregon, Pennsylvania, Ok­ logistically impossible due to the limited lahoma, New York, and Kentucky without race season, so the answer for NASCAR race dates. There were two new race sites seems to be to close the smaller, older for the 2001 series, Kansas City, Kansas, tracks. The new tracks seat hundreds of and Chicago, Illinois. The 2002 season was thousands of people; the older historical the first in five years that opened without a tracks do not. Fan demand is great, and new race site. NASCAR strives to meet that demand. The dilemma of the increased demand therefore Since 2002, no new dates were added and it is knowing how to provide a top quality became apparent that races were no longer product with limited scheduling opportuni­ the right of new tracks. Law suits were filed ties. Alan Middleton in Stock Car Racing in the recent past for a race date: one for a states "Everyone wants to cash in on the race date in Texas and Kentucky. The Tex­ popularity and growth of NASCAR. But the as law suit was settled with a re-adjustment fact is, the schedule cannot and should not of race dates and the Kentucky law suit was grow anymore." (February, 2001) dismissed for a lack of jurisdiction. The question in both of these suits was a ques­ The questions being raised concerns the na­ tion of monopoly, that is, the sanctioning ture of change in the sport to meet the cur­ body and race ownership is under the same rent demand in popularity without changing authority. The number of Cup race dates is the product to the point of alienating the rac­ limited due to the nature of the sport, mean­ ing fan and causing a drop in popularity or ing that all drivers vie to race in every race. demand. (Dunnavant, 1997) There is al­ There cannot be more than one race each ready much controversy among the tradi­ weekend. The new approach is redistribu­ tional fans about ticket prices and money tion and not adding races. In a recent pro­ and its influence upon the sport. (Taylor, posal, New Hampshire and California would 1996) Even though this seems to be the "hey day" of the NASCAR Cup series, there

8 is still controversy and there are questions ta track accounts for 50% ($2.3 billion) of about the ultimate future of the sport. De­ the economic impact of sport in the Atlanta mand is being met through the arranging of area ($4.5 billion) (Rofe, 1999) This exacer­ schedules and races. Even though demand bates the problem in the downward phase of is flatthere still are requests fornew races. an activity or sport's popularity. The de­ mand is down now and the facilities that The popularity of the NASCAR Cup racing have just been built are woefully empty. series is evident and documented. There has Nature of planning is extremely crucial to been steady growth in the sport in terms of any sport or activity because you must pro­ both fan base and the dollars involved. The vide enough to meet demand but not enough maintenance of this popularity and growth is to exceed the seat capacity within a certain key to the ultimate future of the sport. period of time because there may be a sig­ nificant down turn in popularity. (Hag­ strom, 1998) DEMAND The reality of single-entity ownership has Demand, as defined by the Webster's dic­ been projected as one element that has tionary, is "to ask for insistently", where helped in the steady growth of NASCAR. popularity is defined as "widely liked or ap­ (Byrnes, 1994) The primary question is preciated." A sport may be "popular" but where is NASCAR on the demand curve and not in demand. It is the demand factor that are they planning too many facilities for determines success. (Fizel, 2006) when there is a down turn in popularity. (Taylor, 1996) A more conservative ap­ It is important to recognize that most sports proach of not building facilities before you or activities have a cyclic demand curve in know demand on a long-term basis is a pru­ which there are periods of great popularity dent decision. The current philosophy in and periods where the demand for the par­ NASCAR is to build the facilities, the ticular activity or sport is flat or declining. people will come and there will be a sanc­ (Agoglia, 1999; Gaylord, 1991; & Gaylord tioned race. This is the type of philosophy & Groves, 1993) Often the initial popularity that has proven to be fallible in other sports is much lower than the final popularity in and caused the over building of facilities. the flat phase of the curve. It is important to (Goncalves & Aguas, 1997) recognize the different types of demand curves and cycles that exist and how these NASCAR is at a crossroads of changing factors influence planning for a sport or ac­ from a regional to a national sport and these tivity. One of the primary problems with in­ changes will ultimately influence the popu­ dividuals, who do not understand this par­ larity and demand for the sport. (Elder & ticular type of demand in terms of cycles, is Greene, 2007 & Taylor, 1996) It is impor­ that they plan forthe long term on a straight tant that NASCAR take precautions to con­ line increasing demand curve. (Gonclaves & tinue to insure the popularity through the Aguas, 1997) proper changes. There is also a need to generate the necessary excitement to keep The result is that the needed facilities to the sport on an upward growth phase with­ meet this demand are usually built because out reaching a saturation point that will ul­ planning occurs right at the peak of the de­ timately cause a down turn in demand in mand. As an example of demand, the Atlan- popularity of NASCAR racing.

9 attendance, television ratings, and merchan­ NASCAR needs to achieve long term sta­ dise. In the past several years attendance at bility in order to maintain its high level of events has not increased but this is a direct success. Studying NASCAR's past and reflection of the economy. Sponsorship has present utilizing forecasting and demand tapered a certain amount and the cause is the analysis enabled the researchers to make economy. Both attendance and sponsorship some guarded predictions concerning the are strong but reflectthe changing economy. future course of the sport. The same trends are present in all sports at the current time; however, NASCAR re­ mains stronger than most sports. STRUCTURE OF SPORT AS APPLIED TONASCAR The sport has been stronger in some locali­ ties more than others. The structural change There are four major professional sports is not only nationalization but from rural to (football, baseball, basketball, and hockey) urban population. Many of the urban popu­ that have approximately a century lineage. lations have close ties with their professional The current structure of each of these sports sports like baseball, football, etc. It will take is of an evolutionary nature and has devel­ time and the development of relationships oped and changed as the times and pressures for a new sport to be popularized in these of society have been placed upon each sport. urban areas. (Kusz, 2007) There is a new Sport has been a central construct in the eve­ wind in NASCAR that baseball owners and ryday lives of Americans, even in the earli­ investors are beginning to contribute to est part of the 20th century. (Jerome, 2008 & NASCAR. This type of relationship will Young & French, 1995) It has played a sig­ help in urban areas. The change in structure nificant role in the entertainment dollar and has been successful but through time new has had a significantimpact upon the psyche strategies have to be found to continue the of the American public. (Lame & Casper, growth of the sport in urban areas. 2007) An ESPS/Chilton Sports Poll re­ leased in November of 2000 shows that 85% The primary professionalsport structure was of the population follows an average of five developed by baseball and it is one in which of the top 12 sports. (Lamm, 2000) Rich there is an oligopical structure. This struc­ Lujer, the founder of the Sports Poll says of ture involves a committee made up of fran­ NASCAR: "Three years ago racing was a chise owners and it is the primary sanction­ blip on the screen for kids, now [NASCAR] ing body that sets policy. They hire a com­ is clearly positioned to be the second ap­ missioner who implements the policy and is, pointment sport in the U.S. with the NFL in fact, a check and balance to the power of being the first." (Lamm, 2000) NASCAR in the owners. This system also borders on a comparison to other sports is weathering the monopoly structure. In fact, baseball is a economy down turn well and has become recognized monopoly and has been sanc­ one of the major sports. The media has been tioned by Congress as a monopoly. There­ a primary factor in NASCAR' s increase in fore, there is a public oversight function by popularity. (Jenkins, 2010) Congress and its administrative agencies in baseball. Football, basketball, and hockey The popularity of NASCAR has continued have all adopted similar structures and have to grow from a regional to a national sport. been successful since the turn of the last This growth is primarily seen in terms of century based upon popularity.

10 operated by one family and represents a pri­ Motor sports have also been evolving since vate ownership corporation. The private the turn of the century. The structure in mo­ corporation has the right to control and has tor sports has been similar to the other sports no responsibility to answer to the public or in that there has been a sanctioning body to labor, only to stock holders. The control which has been basically controlled by track is absolute as a sanctioning body. The pow­ owners. The system in motor sports has er authority of this corporation has been been more open because there are many dif­ passed through the family and will continue ferent forms and levels of racing. These le­ to be passed to other family members in the vels include local and regional racing tracks. future. The growth of NASCAR has not This allows for competition for the racing been a cycle as much as it has been linear entertainment dollar. and has grown steadily and exponentially. The tracks where the races are sanctioned Monopoly has been the prevalent form of are mainly public corporations, but the con­ organization for other professional sports. trol and influence of the France family, the In motor sports in general, the labor, or the owners of NASCAR, has been absolute. drivers in NASCAR's case, have not been There are far more tracks seeking sanctioned an influential entity until recently. In base­ races than there are race dates available. ball, football, basketball, and hockey, there The labor has also been controlled with an are players unions which have been very absolute power. Jeremy Mayfield case is a powerful and able to negotiate a better posi­ good example. He was suspended for drug tion for their clientele. abuse and no other racing operator will as­ sociate with him for fear of reprisal from This is also true in motor sports with an ex­ NASCAR. There have been two driver ample being the Indy Racing League (IRL). uprisings and they have been subdued with There was a split in labor and management minimal effect. This absolute power is re­ in the IRL. Management formed the Indy flected in the results of the Annual Charlotte Racing League and labor basically formed Observer's ranking of the 25 most powerful the Championship Auto Racing Teams people in stock-car racing. The France (CART). The recombining of the IRL and family is always ranked at the top. The sur­ CART racing series was a necessary move vey was always conducted by Poole, but he for the financial stability of open wheel rac­ passed away in 2009. ing. (Plymire, 2010) This fusion has defi­ nitely helped from a financial and sponsor­ One of the primary questions is "Why has ship point of view. More importantly, this NASCAR as a private entity been so suc­ recombining has helped eliminate the identi­ cessful and what are the factors that have led ty crisis in open wheel racing. It will take to this success as it relates to increased de­ time for fans to come back to the sport. mand and will this demand continue in the New ways have to be found to change the future?" sport in relation to the society. If the same approach is used, NASCAR will continue New sport leagues are constantly looking for their popularity and dominance. Prior to the structures or models because they are not split between these two fractionsopen wheel limited by history with old forms of organi­ racing was more popular than NASCAR. zation. One of the models that has been The one aberration in motor sports has been viewed keenly is private ownership or single NASCAR. NASCAR has been owned and entity theory. Several of these new leagues:

11 lacrosse, soccer, arena football, and UFL ing so there would be buyers in the sho­ have all experimented with single entity wroom. The common motto was "Win on ownership with some degree of success. Sunday, Sell on Monday." (Hemphill, 1997, The reason for the interest in this type of p. 123; & Golenbock & Fielden, 1997, p. structure has been the ability to control, mi­ xiii) Even though this was the initial con­ nimize barriers, and influences and promote cept fromthe very beginning, racing took on strategic planning. Stability in structure, an entertainment value. The inclusion of the growth and ownership are important factors spectator led to folk heroes such as Barney in the single entity theory. Oldfield. From these humble beginnings, racing developed in many directions, includ­ Professional sports as entertainment has ing racing forspeed and for endurance. The been and continues to be an important part theory behind NASCAR was to modify and of American life. The structure of the sport race stock machines that are production line of NASCAR is different from any of the based. other major professional sport leagues. The single entity concept under which it is orga­ Even though the historical roots of nized allows for total control unlike the NASCAR and its folk legends is running franchise system of other professional moonshine in the hills of the South, espe­ sports. This control extends to tracks and cially during times of prohibition. Stock car drivers and appears to have been a major racing is actually much wider and represents factor in the success of the sport. a greater interest in modifying production cars. It has its roots in the production cars of Ford, Chevrolet, Chrysler and other car HISTORY OF NASCAR manufacturers. Today's NASCAR cars still have a great similarity and look to the pro­ One of the ways to address the issues of duction cars, but that's where the similarity popularity and demand is to examine the ends. (Swany, 1997) significant historical events and determine the growth patterns of NASCAR through a In December of 1947, William Getty France historical analysis. By understanding the saw a need to establish an organization of historical trends of the sport, a sense of the promoters, drivers, and mechanics to regu­ futurecan be realized. The following histor­ late the sport of stock car racing. (Pierce, ical analysis gives an overall introduction to 2010) Up until this time, the sport was very the sport from a historical perspective in or­ fragmented and promoters often would not der to develop a base of understanding for even deliver on the purses that were adver­ this study. (Yost & Salaba, 2007) tised. (Howell, 1997) There were many or­ ganizations and tracks that had their own Racing cars was a sport long before the in­ rules and regulations. These variations corporation of NASCAR in 1947. Racing made it very difficult to establish a national began with the development of the car and champion. Bill France believed that an or­ the desire for speed. (Lovell, 1992; & Old­ ganization was needed for the sport to grow. field, 1919) Determining who had the fast­ A consistent set of rules was needed to in­ est machine as well as the best driving abili­ sure uniformity and equity of competition. ty also became an important factor. In its (Golenbock, 1993) Therefore, in February initial phases, especially with Ford, the idea of 1948, the National Association of Stock was to demonstrate the product through rac- Car Automotive Racing was incorporated

12 with Bill France named as the president. to grow and be recognized as a legitimate This organization transformed the sport into sporting entity. a business. (Howell, 1997) This was an or­ This does not suggest that the evolution of ganization of individuals who represented the sport was without problems. There were the diversity of opinions in stock car racing growing pains and periods that reflected the that originally met with Bill France. Bill organizational development of a sport that France emerged as the primary or dominant was trying to gain recognition, and eventual­ force at this meeting because of his organi­ ly did. (Howell, 1997) Constant change and zational skills and vision. (Howell, 1997) attention to the needs of the various ele­ Golenbock and Fielden in the Stock Car ments made the sport strong. Its focus was Racing Encyclopedia (1997) quote Daytona on producing the best product to put on the Speedway President Jim Foster saying: track as well as the best show possible for Mr. France had something that none fans and sponsors. (Howell 1997) Since the of the others had, and that was vision. sport is so tied to the structural elements and Bill France was a visionary. He saw the delineation of the relationships in order where the sport was going to go and to understand the past and its development, he believed in it strongly, risked every the structure and the relationships among penny he had. Without Bill France, these elements must be well understood. there would have been no NASCAR; there would have been no racing as The important structural elements that were we know it today. (p. xv) identified in a study by Morais and Groves (1997) were NASCAR, fans, media, spon­ The development of NASCAR is an exam­ sors, drivers, car and team owners, and mer­ ple of a sport that can change to meet the chandisers. Mel Poole reiterates these same needs of the structural elements involved. groups as essential elements all "jockeying (Buckley, 2005) Most institutions of sport for bigger slices [of the pie]." (2000) There are so structurally rigid that change is very are other structural elements, but these are difficult. But with the open, interactive, and the basic core elements upon which all of cooperative nature that was established at the other secondary elements depend. It is this first meeting, there was an atmosphere important to examine these structures in re­ that allowed for change based upon fairness lation to their history and the relationships and equity. Most of the members recog­ among one another to understand the evolu­ nized that fairness and equity had to be ap­ tion of the sport. Some of the significant plied so the organization established was events, as related to the structural elements given dominant position. If the established identified above, are detailed in a historical rules and regulations were not followed, timeline. (Table 1) then sanctions were permitted and everyone supported these sanctions. Without the rules and the sanctions the sport would fall into DEVELOPMENT OF NASCAR the anarchy of the past. This is where the structural elements of NASCAR were em­ The important element in understanding his­ phasized and their importance delineated tory is the evolution of NASCAR. This has under a banner of single entity theory/own­ been a continuous process that has not been ership. The organization was recognized as slow. One of the elements that has made the institution that had to exist for the sport this sport viable to its fans has been that it changes to meet the needs of the fans in so-

13 ciety. NASCAR is very sensitive to societal crossroads between the future and the past trends and how they impact their sport, es­ and it may be the most difficult time for the pecially the automotive industry. (Donovan, management skills of those involved with 2008) This is also true of the other sponsors NASCAR. (Gage, 2009) and how the competition affects the drivers as spokespersons for the sponsors. Positive Teams and car owners have been the second family images have been a trademark for the line of leadership that has caused the sport to sport. Behavior that is not consistent with prosper. The current team that has the most this image is not tolerated, especially in to­ popular drivers is Hendrick. Hendricks has day's market. five of the most popular drivers: Dale Earn­ hart Jr., Kasey Kahne, Jimmie Johnson, Jeff In order to obtain a longitudinal perspective, Gordon, and Mark Martin. A team's prima­ it is important to take advantage of each ry concern has been competition and win­ segment's change in relation to the other ning and the improvement of technology to actors and how NASCAR has welded ad­ improve the speed and performance of cars. ministrative policy. An administrative poli­ There has also been a focus upon recruiting cy in this context is a determining of what the best drivers for that person and machine operation will be successful to maintain the can be matched for competition. The engi­ goals of the sport and how these operations neering of the car is only one aspect of the can be manipulated to improve the enter­ team operations. It is the business side tainment value. This entertainment value where most progress has been made because cannot decrease the importance of the com­ it is realized that they are in business and petition level. The development of policy is must manage a team, drivers, sponsors, etc. a balancing act that NASCAR has done well to put an entertaining product on the track. through the changing trends from the forties NASCAR has operated not as a franchise as to the present. These were five important in other sports but as an independent busi­ actors: NASCAR, team and car owners, ness operation giving the teams freedom of drivers, fans, sponsors, merchandisers, and choice and entrepreneurship. These free­ media. doms have given rise to differentapproaches to engineering and business and have al­ A common thread through the 1940's to the lowed the teams the ability to apply their 2000's has been strong leadership and the ownership and determine their own destiny consistent enforcement of the rules and within prescribed boundaries. The one ele­ regulations. Another of the elements has ment that they do not have that other fran­ been a constant development of the enter­ chise sports have is controlled over the top tainment value for the fan. There has also leadership. been an aggressive plan of expansion of the popularity of the sport through the media Drivers are at the core of the NASCAR ex­ and education. An important dimension has perience. The fans have a natural attraction been the finances and the realization of the to their driver and follow their results and importance of sponsors and investors. Many lives very closely. (Wann & Waddill, 2007) of the current problems are due to success They also strongly endorse and buy the and how to manage the demand for the products of their drivers and teams. The product given the limited resources of tracks drivers are the stars of NASCAR and they and time. There's also the need to balance are at the center of the business model that the new and the old. The leadership is at a has made NASCAR a success. Their cha-

14 racters and life stories are what make the old and the new. The traditional fan is NASCAR unique. Other sports have their rural and the new populations tend to be characters but motor racing is a sport that more urban. These urban fans also have tra­ creates more friction and conflict which ditional loyalties to other sports. The ques­ keeps the fans on the edge of their seats. tion of popularization is how to approach Other sports are games but motor sports are these fans to develop loyalty to motor sports. an activity where lives are risked for the This is going to be a difficult process but the love of the sport. The one element that has future of NASCAR depends upon it. been added to the mix is the necessity of the driver becoming a spokesperson for their Sponsors are the financial core of dollars for sponsor. This takes a certain level of so­ the teams and tracks. The focus of these phistication and understanding how sponsor­ sponsors has significantly changed. The ship relates to business processes. Driving sponsors at the beginning were local and skills are important but the drivers are the focused upon the auto industry. Today, the key to creating business. Personality is ex­ sponsors are Fortune 500 companies trying tremely important in this process but the fan to sell their wares to over 25 million fans. can detect honesty and dedication. The evolution is a matter of audiences that are loyal in both the short as well as the long Of the actors, the fans are the most impor­ term marketing efforts. The prime proper­ tant because without them there would be no ties are the drivers with the most wins, sex money in the system. Loyalty is a common appeal, and the best personalities. The cost thread through the years that has attracted of sponsorship for the team has significantly the other actors into the system. (Arneson, increased which has left many of the older 1997) Just as the drivers are dedicated to traditional sponsors behind. Innovative ap­ the fans the fans are very dedicated to the proaches to packaging the cars as rolling drivers. This driver and fan relationship billboards are the only reason some of the makes the sport unique. (Hall & Hall, 2006) teams remain in racing. The day of com­ The one misconception about the fan is that plete sponsorship for a season is gone be­ it is gender driven. However, women make cause costs for racing are so high. The cost up a significant percentage of motor sports benefit ratio has to be very high for a com­ fans. It is family based and represents an plete season sponsor. all-consuming lifestyle. It is important to recognize in the expansion of NASCAR that Merchandisers have been the mystery ele­ many of the new fans have a social motiva­ ment of all the actors. Until recently, they tion and are not as dedicated and loyal as the have been small operations. Now, merchan­ older fan. There has been a separation be­ dising is a revenue stream that far outweighs tween the new and old fans. The entertain­ winnings and sponsorship in some cases. ment value and what is emphasized is not The driver is a product and packaging is es­ meeting the needs of the old fans. The fans sential to the revenue to the income of a desire to follow certain drivers is the same, driver and/or team. The key word is exploi­ but it is the motivation and the tradition that tation. In the nineties, drivers like Dale make the difference. NASCAR has to bal­ Earnhardt and Jeff Gordon realized these ance the diversity in the fans. The sport has potential and developed businesses around an inherent attraction but it must be realized their names and trademarks. This does not that new fans have a different motivation suggest that until this time merchandise was and a plan needs to be worked out to satisfy not important but the control over the prod-

15 uct did not occur until this period. After this EMPIRICAL MEDIA period, NASCAR quickly centralized sales and licensure. They purchased the mer­ The empirical studies provide an objective chandising companies and set off into busi­ perspective that helps by using an analytical ness integrating stores as well as other out­ approach that breaks down variables into lets and production. This vertical integra­ their component parts and relationships. tion worked for a while but the merchandise The function is to provide understanding has gone flat and Motor Sports Authentic fromthe bottom up. has gone bankrupt. The demand is still there but the supply was too much. This does not suggest that there is no demand; it only sug­ FOUNDATIONAL NASCAR STUDIES gests that the supply and form of the mer­ chandise has moved into the realm of the There are few empirical studies that explore ridiculous. the foundation of NASCAR that give direc­ tion to the structure. They document only Media has a profound influence on the po­ the public research that has been completed pularization of any sport. When NASCAR on NASCAR and provide direct evidence started the media was local and automotive. related to the subject. The limited topic spe­ The primary form was print and some radio. cific research available gives credence to the As the sport evolved regional and national research topic as a valid subject. Racing has television realized the potential of the sport. been a part of the American way of life Much of this has happened by accident. In since the inception of the automobile. fact, much of the airtime had to be pur­ NASCAR has been around for 63 years, but, chased and sponsor sought through indepen­ due to the nature of its' organization, the dent agents. Each track use to negotiate specific data documenting its' success has their own television deal. NASCAR centra­ been kept private and unavailable. The stu­ lized the process, so that the volume pro­ dies in this area include a study by Morais gramming had power and the networks pro­ and Groves (1997), which developed a ty­ moted the sport. In addition to television, pology of the sport in structural terms, two national sportswriters reviewed the races. cultural studies done by Mark Howell As a result, the media groups realized the (1997) and Ted Ownby (1998), and a de­ attractiveness of the sport. The number of scriptive project of tracks in Northwest fans also helped to focus the media as the Ohio. The primary focus of this study by sport became more popular. The economic Sharon Conrad (1992) was the importance downturn has caused ratings to fall but not of these tracks to the local Northwest Ohio as much as expected because of the loyal fan area. Studies related to safety (Pope & Tol­ base. Print and radio media have been hurt lison, 2010; Dole, 2007; & Bothner, 2007) more than television and some print media provide the basis for improving the sport by reporters have moved to the internet because lowering risks. of the lost jobs. The Morais and Groves research (1997) at­ tempted to set a framework for structural studies of sport using NASCAR as an ex­ ample. The primary contribution of this study was the identification of the actors that set the framework for the structure and func-

16 tion of NASCAR. Six structural groups response to the U.S. society's love affair were identified: controllers' (NASCAR), with the automobile and to determining who car and team owners, drivers, fans, sponsors, has the best car for speed, endurance, etc. and media. Typologies of types or catego­ He relates to this basic need for racing in ries of individuals were established with terms of motor sports and then relates it to each of the groups identified. NASCAR as one type of manifestation of the desire of the U.S. citizens for competi­ The primary idea behind this study was that tion and speed. He states, "The sport of it is necessary to understand the infrastruc­ stock car racing revolves around legendary ture and functions of each of the actors in men and machines, while protecting many order to effectively do business within each cultural myths that are important to under­ type of sports venue. The overall philoso­ stand what it means to be an American." (p. phy of the study is that different sports have 15) different ways of doing business. It is im­ portant to understand the peculiarities relat­ The Howell study documents the develop­ ing to structure and function to understand ment of NASCAR fromits roots nationwide, and thus be able to effectively do business but notes its primary location of interest be­ with this particular sport. It is important to ing the Southeast United States. Many sto­ recognize that from this initial study of the ries emphasize the running of moonshine as sport that NASCAR is different from other the basic beginning of NASCAR, but the sports because of the single entity theory. national movement to race production cars The France family owns and controls that had some modifications for speed that NASCAR and this is the only major U.S. really fed the sport's beginning. The sport sport that has successfully operated on the really took an important turn in the small single entity theory. Therefore, its structure tracks and local communities, especially in is different from other sports because of the the Southeast United States where this sport power structure and authority. The advan­ has been immortalized. tage of this infrastructural study is that it is based upon sub-categories where other in­ The basic popularity of NASCAR is tied to frastructural studies take a look at a group linkages of the automotive industry and and do not distinguish between or among the Chevrolet, Ford, and Chrysler being the various types within the sub-categories. For pride of the American Manufacturing com­ example, fans are often viewed at as one munity. It is racing in the American style, category and not distinguished in terms of using the patriotic elements to help the sub-category types. Another important dif­ American public identify again with the au­ ference in this infrastructural study was that tomotive industry. Americans live their ex­ it was based upon developmental perspec­ perience for speed and competition through tive and the sub-categories had some type of their favorite driver. It is also important to progression and were related to important recognize that NASCAR has come to stand variables of development. for family values, independence, and, in short, the "American Way" of doing busi­ The Mark Howell study (1997) is a signifi­ ness. This represents apple pie and mother­ cant contribution to the fieldbecause it iden­ hood to its fans. The loyalty factor is seen tifies the cultural significance of NASCAR as a direct response to the socialization of in the American society. Howell identifies the family and the development of the cultural significance of NASCAR as a NASCAR as a socialization element in basic

17 family entertainment. "It is as if this activity sport of NASCAR. The diversity of the embodies some basic rules for American number of tracks and the type of participa­ living, some fundamental ideas that help us tion, that is, possible within one geographic cope with the responsibilities and problems region illustrates the active participation on of American culture." (Howell, p. 17) a regional basis as well as the diversity of involvement that is possible within the Ted Ownby (1998) conducted another cul­ framework of motor sports and NASCAR. tural study focusingon the sport of stock car The study illustrates the relationship be­ racing and its relationship to the white man tween local and regional tracks and the in the south. His article is an examination of NASCAR movement from a foundational literature and sport in relationship to "south­ interest in motor sports. These foundational ern manhood". He looks at three sports: studies are necessary to establish a baseline hunting, stock car racing and college foot­ but the data is not timely because the status ball. He attempts to answer the question of of NASCAR is always changing. The ques­ whether modern sports contribute to the tion is the same, but the results have very southern male identity. He also discusses limited time in terms of their saliency. the various definitions of manhood. He identifies two of these definitions, the first NASCAR is a dangerous sport and a prima­ coined by W. J. Cash, as the "hellavafella," ry concern is risk and how it is managed for and the second as the goal of personal inde­ safety. One of the components of the risk is pendence as being the most appropriate in the Peltzman effect. (Pope & Tallison, the sport of stock car racing. (p. 8) He finds 2010; Dole, 2007; & Bothner, 2007) As dif­ it significant that stock car racing is one of ferent rules are established they have a di­ the few mass sport events in which white rect effect upon accidents. Rules and their people make up virtually all of the specta­ regulation is essential for the controlling of tors and participants. accidents. Much controversy exists between a rule and its influence upon safety and en­ Ownby also discusses what he sees as myths tertainment value. Another factor that has a in stock car racing. The first being that the direct influence upon risk is an individual's cars are basically the same as the cars any­ position in relation to winning or keeping a one can purchase. The second is in regards seat in a certain car. The greater the per­ to the fan loyalty to the same make of car as ceived importance in position, the more risk the one they personally drive. that is taken. This is also true in relation to an end result such as the Chase. Those indi­ The Sharon Conrad study (1992) is typical viduals that are on the bubble will take more of writings that are not of an academic na­ risks. ture. This study is descriptive in an effort to determine the status of a specific aspect of The reviewed studies are important as they motor sports, the number and type of tracks represent some of the available empirical that exist within a particular geographic re­ literature concerning NASCAR. The qualit­ gion. The focus is to answer a very simplis­ ative research completed in these studies tic question based upon the status of give a foundation of the scope of the sport. NASCAR under certain circumstances. The They define the sport in terms of partici­ question to be answered in the Conrad study pants in relation to structure and the single was related to track types and their impor­ entity theory. tance in the regional development of the

18 SPORT ECONOMIC APPROACH MANAGEMENT/SPECIALIZED NASCAR STUDIES The first example of the economic fan-based approach is best demonstrated by a study by A review of the Sport Management literature Oga (1998). In this study, it was assumed confirms the lack of direct research within that the sport industry would be more direct- the NASCAR arena. Two areas within 1 y affected by the indices of family income. Sport Management/specialized NASCAR This analysis, however, showed that the pat­ studies , relate to the NASCAR topic. The terns in the sport industry, exclusive of the first is literature relating to demand, both pattern of the golf practice centers, were not economic and fan-based. The actual de­ related to family. It has been shown from mand for NASCAR has been documented this study that the general economy has a previously with attendance and dollar fig­ strong influence upon the sport industry. It ures. The review of the sport manage­ is important, therefore, to grasp the general ment/specialized NASCAR studies literature business fluctuations correctly and take attempted to explain the reasons for the de­ some preventative measures in order to sta­ mand for NASCAR. The second area of bilize the demand using sound business literature examined the organizational fac­ practices and understanding of the relation­ tors in sport, relating to cultural and struc­ ship between trends in the economy and tural elements, and leadership. Previous re­ sport industry. They contribute to improve search has shown that these factors are es­ in forecasting and planning by sport related sential elements in successful organizations. agencies. The structure of NASCAR is one in which the organizational and cultural elements are A study by Bernthal & Regan (2004) fo­ highly important and the literature review cused on the economic impact of NASCAR focused on these areas to interpret the rea­ on a community. This study revealed that sons forthe organization's success. NASCAR has an annual major economic impact on regions where races are held. The majority of fans were from outside the re­ DEMAND gion of the race track and it was concluded that most of these fans would not have vi­ There are two primary types of studies that sited this region, if not for NASCAR. focus upon demand relating to the general topic of sport. The firstapproach is trying to Two other significant studies that represent relate economic cycles to the general health the fan-based approach to demand are by of sport in terms of fan attendance and par­ Chalip (1992) & Hansen & Gauther (1989). ticipation. This approach includes economic These studies indicate that demand is a po­ structure and its influences on the sport in­ lycemic phenomenon, that is, it has the abili­ dustry. The second approach is non­ ty to generate multiple effect responses and economic based and focuses upon develop­ meanings from spectators. The polycemic ing fan interest and participation from a mo­ structure of an event or sport, accounts for tivational point of reference. This approach the multiple fan experience from just a pass­ focuses on fan identification and loyalty ing interest to intense involvement. Under­ within the realm of sport and its effect on standing this polycemic nature of a sport is the sport itself.

19 the key to understanding the contemporary Mahar et al. showed the relationship be­ fascinationwith a particular sport. tween stock market response and perfor­ mance and NASCAR. (Mahar et al, 2005) Chalip has learned from the Olympics that The key to stock performances is related to sport has come to represent a great deal success on the track as well a marketing more than a game or contest. This approach campaign related to consumers. There was details the marketing of the Olympic Games also a positive correlation with auto related via the simultaneous presence of multiple industries. narratives, imbedded genre, and layered symbols. This type of polycemic approach The benefits of sponsorship are also direct! y is very much culturally based and moves far related to the value of a sponsors stock. It beyond the initial understanding of fan in­ has been shown that there is a direct rela­ terest based upon a pure understanding of tionship between sponsorship and value. numbers. (Durr et. al., 2009 & Pruitt et. al., 2004) This as not been perceived as a direct benefit This approach has special appeal to under­ but it is a plus that adds value to sponsor­ standing the sport of NASCAR. The Olym­ ship. This is a process that is related to an pics have assumed a symbolic position in association with the sport that has a high sport, so too has NASCAR and its ability to profile. This profile is directly related to attract audiences across class, gender, and image. Image in this context is the core of ethnic backgrounds. There are three ap­ investment and is a commodity to be used proaches of a polycemic nature that may along with the effect of business plan to in­ have direct application to NASCAR: a) the crease sales and thereforevalue. multiple narrative approaches, b) the imbed­ ded genre, and c) the layered symbols. The Another approach developed by Hansen and multiple narrative approaches create stories Gauthier (1989) sees attendance at profes­ about the sport. In NASCAR, the stories sional sporting events as not being sport and their embellishment are part of the fan specific but related to more of the situational experience. The imbedded genre approach factors such as scheduling, team roster involves such arenas as festivals, rituals, quality, price, competing forms of enter­ spectacle, and games. This also has an im­ tainment, fan amenities and conveniences. portance for NASCAR because the event In this approach, there has been little rela­ has taken on a life and nature of its own to tionship between the winning and atten­ develop fan meaning. Chalip defines the dance. The attendance is seen as a direct layered symbols as words, banners, flags, relationship between or among these situa­ and uniforms that make the experience more tional factors and the developing of an at­ than is represented by the fan's experience. tractive package to stimulate fan interest. It takes on a meaning such as freedom, This study examined four categories of va­ childhood, etc. This has an application to riables: economic, social demographic, at­ NASCAR because the symbols are widely tractiveness of the game and residual prefe­ used to represent the nature of the fan's ex­ rences and isolated factors that seemed to perience and relate this experience to other contribute significantly to attendance. Some phases of the fan's life through a type of of the important factors related to attendance transferprocess. were: scheduling, quality of the team roster, number of star players, ticket price, etc. The

20 general consensus is that these factors are economic, polycemic, and situational, the situationally related. one that seems to hold the greatest implica­ tions for use in NASCAR is the polycemic Regan and DaMante examined geo econom­ approach detailed by Chalip. It is important, ic analysis to NASCAR attendance, dollar also, to recognize that the economic and sit­ spent, etc. (Regan & DaMante, 1999) The uational variable approaches have a second­ findings suggest there are a number of pat­ ary impact. The polycemic approach sets terns related to distance from a track. The the perspective and the economic and situa­ closer the population centers to the track the tional factors are secondary elements which less marketing dollars need to be spent. In will help understand the variations in data. those locations where individuals are more There is a definite lack of sport management sophisticated, marketing strategies must be literature in the area of techniques to study applied. It is important that the marketing demand, especially in relation to determin­ strategy be tailored to the geographic loca­ ing the factors relate current numbers to fu­ tion of the audience in relation to it's poten­ ture strategic planning. tial spending patterns.

The authors in this study examined the eco­ NON-ECONOMIC FAN-BASED nomic impact of the race event upon the STUDIES North Carolina Motor Speedway. (Bernthal & Regan, 2004) The direct economic im­ The non-economic fan-based studies re­ pact for two races was 29 million and the viewed, for this study, focus on motivational indirect was 16 million. These events in and loyalty issues and dealt with fan identi­ Darlington act as organizational and motiva­ fication and sport popularity. These studies tional tools for the stimulation of cottage dealt with the societal issues in relation to businesses. These cottage industries are li­ sport fan identification and involvement mited and seasonal in scope but have a last­ with sport. They also related behavioral ing effect. The focus is on how to sustain reactions and responses and their impact on this impact. fan demand. (Nelson et al., 1992 & Miller & Simon, 2010) Connaughten and Madsen examined the economic impact of the motor sports indus­ A study by Smith (1988) focused upon de­ try upon North Carolina. (Connaughten & mand froma societal viewpoint. The prima­ Madsen, 2007) The total economic impact ry interest of this article was the socializa­ was 5.9 million and it had a significant in­ tion of the sports fan and why their loyalty fluence upon employment. The nature of and intensity to their sport is so great. The the motor sports industry, in this study, is key is the vicarious nature of the sport as directly related to economic development well as the cohesion that is developed as a and it is not an ancillary. Darlington is the result of the identity with a social group re­ cradle of NASCAR racing. The focus is on lated to the particular sport. This article new businesses constantly being added such emphasizes the position of sport in society. as the new NASCAR art museum which will Several theories are explored to explain the multiply its economic impact significantly. intense involvement of the sports fan. These theories include social integration, excite­ When relating the conclusions of the afore­ ment and escape, the aesthetic factor, and mentioned studies, to the three model types: the transmission of sport through the culture.

21 Each theory attempted to explain the popu­ introducing new ideas, products, and servic­ larity of the sport and the nature of the sport es. The key element to success is involve­ in relation to the quality of life, the cohesive ment. factor and its effect on society. Sport is unique and has developed out of an eclectic Dean focused upon brand and its attributes. position in most of the theories presented. (Dean, 2004) A unique methodology was used focusing upon desired attributes in a A study by Wann & Bascombe (1993) ex­ new product. Preferences were decomposed amined fans from an identification process. using a conjoint methodology. Results sug­ The purpose of this study was to explore the gest that this method has potential if asso­ identification process in termsof behavioral, ciated with simulation because various strat­ effective, and cognitive reactions. Persons egies can be tested based upon product pre­ who had moderate and high identification ference. with sports teams display a more ego­ enhancing pattern of attributes forthe teams Dalakas and Levin examined the negative success, have more positive expectations influence of fan attitudes for a sponsor. concerning future team performances, exhi­ (Dalakas & Levin, 2005) Primary findings bit greater willingness to invest larger indicate that a positive attitude toward the amounts of time and money in order to sponsors products had very positive results. watch and follow the team, and are more If a fan has a negative attitude toward the likely to believe that fans of a team possess sponsor, this directly translates to a negative special qualities. · Fans with high involve­ feelingfor the sponsors products. ment are predisposed toward aggressive be­ havior, the social nature of friendships that Bernthal and Regen suggest that there is a develop with individuals who have a com­ consumer gap in perceptions in regard to mon interest, and the personal nature of an NASCAR fans. (Bernthal & Regen, 2001) involvement with a team's success and the Findings confirm this gap and suggest that distancing of a team's loss based upon situa­ the gap is widening based upon changing tional factors. Demand, in this instance, is conditions, especially related to the econo­ based not on understanding the popularity of my. The degree of the consumer gap is re­ the sport, but understanding the individual lated to the type of fan, that is, casual, mod­ and their response to the sport and the rela­ erate, and hardcore. tionship between the individual and a specif­ ic component of the sport, such as an indi­ Schackleford examined NASCAR from a vidual or team. perspective of cultural development. (Schackleford, 2002) These cultural ele­ Lapio Jr. and Morris examined marketing ments include; secularism, equality of op­ approaches and their effectiveness. The ar­ portunity, status and roll, bureaucracy, ticle points out that there is little information achievement, and record keeping. Cultural about marketing effectiveness of NASCAR. elements that are usually studied are class, (Lapio Jr. & Morris, 2000) The focus of the race, and gender. This examination illu­ article on the integration of television, the strates a transition and evolution of Internet, etc., is to create and maintain ex­ NASCAR as an indicator of progressive cul­ citement about the sport. The effectiveness tural change, especially in the South. of a marketing approach is related to the at­ tachment to this excitement and constantly

22 Amato investigated the fan culture. (Amato the question about the external relationships et. al., 2005) There are generally two types with sponsors as being a prime element in of fans: those that are deeply bonded and decision-making. The basic thrust of the those who are pledged but showed less research is that many times there is no con­ commitment. The key to management based tinuity between the sponsor and the sponsor­ upon culture seems to be related to the de­ ing agency and these results in a loss of the velopment of relationships. sponsorship. The key to these relationships is the benefits derived by the sponsor and Other studies also try to isolate demographic how well the agency can communicate these and psychographic variables to explain the benefits to the sponsor. One of the impor­ NASCAR phenomena. (Kinney et. al., 2008 tant elements is good communication. & Gill, 2008) Educations, age, gender, the internet, attitudes toward NASCAR, and in­ Another study by Haggerty (1988) identified volvement have all been found to be signifi­ control as an important element through or­ cantly correlated. Other studies focus on ganizational culture and structure. This identification and symbols and their influ­ study established information links as the ence. There have also been positive rela­ key to control. It is how the information is tionships between these factors and communicated, how it is carried or trans­ NASCAR. The one missing element in ferred, and how complex the communica­ these studies has understood the NASCAR tion. It is the basis of a system, and the cy­ nation as a heterogeneous population. Each bertization of the system, that has the great­ of the races has its own unique set of va­ est impact upon the effectiveness of the or­ riables that influence the fans. A geographic ganization. Those organizations that address approach may provide more understanding. the information processing and its move­ ment in the various levels of the system or organization are the ones that are most suc­ ORGANIZATIONAL FACTORS cessful.

There are two primary factors in the review A study by Flint and Eitzen (1987), argued of literature on organizational development. that organization in sport is isolated from One is cultural and structural elements and other types of institutions within society. the other is leadership. The purpose of both Owners of professional teams tend to gravi­ of these factors is to increase organizational tate toward professional relationships with efficiency to achieve the objectives of the other sport enterprises and not other corpo­ organization. The primary question is which rate entities. This study also suggests that is most important, organizational culture and the sports affiliations or relationships are structure or leadership, or what combination more local than national or global. Rela­ of the two is best to achieve organizational tionships are very important to the success effectiveness? of traditional enterprises. This was not as evident as being a necessary element or condition for success in the sport industry. CULTUREAND STRUCTURE It was also noted that the sport industry is more driven by wealth than merit, but it is The first of the factors to be explored was seen in many quarters as being a meritocrat­ organizational culture and structure. A study ic system. by Copeland (Copeland et. al., 1996) raises

23 Hugenberg and Hugenberg examined the community identity and maintaining its cul­ idea that NASCAR is rooted in the Ameri­ tural position in the South. can values. (Hugenberg & Hugenberg, 2008) The primary focus of the article was Spann examined NASCAR from the pers­ dispelling the myth that the sport is primari­ pective of cultural development. (Spann, ly for white males from the South. The is­ 2002) These cultural elements include secu­ sue of nationalizing the sport is discussed as larism, equality of opportunity, status and well as the dilemma of new fans versus the roll, bureaucracy, achievement, and record traditional NASCAR fan. keeping. Other cultural elements are social class, race, and gender. This examination Newmann examined the ethno graphic cha­ illustrates a transition and evolution of racteristics of the NASCAR fans. (New­ NASCAR as an indicator of progressive cul­ mann, 2007) This study identified a process tural change, especially in the South. of how an individual becomes famous. Var­ ious issues were examined around the sport Another element of research is the basic cul­ in terms of current issues about the sport ture of NASCAR. There are studies that growth. These issues have caused a chang­ have tried to understand how the culture has ing, landscape, especially as it relates to a developed utilizing different theories. conservative political and faith based pers­ (Newmann, 2010; Newman & Giardin, pectives. 2008; & Baucus et. al., 2008) One theory is a Neo Liberalism which is directly related to Hurt explored the premise that the geograph­ capitalistic values and their influence upon ic expansion of NASCAR has significantly the sport. The pursuit of corporate culture changed the sport. (Hurt, 2005) This ex­ drives the sport and its influence as a nega­ pansion has led to the decline of the south­ tive effect based upon the political structure ern distinctiveness of the sport. The focusis that has developed. One of the examples is on the loss of identity and its impact. Identi­ the institutionalized cheating. (Norton et al., ty in this context is the loss of a uniqueness 2008) This is a value that has pervaded the in terms of the development of cultural ele­ sport and puts forththe wrong image to fans, ments. especially children. This type of culture needs to be changed and it can only be ac­ Alderman explored the transcultural nature complished through recognition of positive of NASCAR racing in the South. (Alder­ values and a positive administrative leader­ man, 2003) Two different cases were cited ship. Another of the cultural theories is the as examples of change. One was the loss of Southern roots of the sport and its relation to the track at North Wilkesboro and the other its confederate tradition. This is a problem, was Charlotte. With the example of North especially when the sport is trying to natio­ Wilkesboro, the negative aspect of the nalize its audience. There is a natural con­ change on the community and its loss of her­ flict between the core values of the fans. itage and identity has been devastating. In (Shackeford, 1999; & Steinberg & Kinche­ the Charlotte area change has led to positive loe, 2009) The primary question is, does development. It is a repository of past tradi­ NASCAR give up its southern roots to ac­ tions and a redevelopment of a new identity. cept a new image that sells better to a na­ The other is an example of how change can tional audience? be used to stimulate business and a new

24 LEADERSHIP Warren Bennis completed a study (1984) in which 90 effective leaders in sport, politics, Another element that must be examined is industry, and social organizational develop­ leadership. A study by Weese (1995), ex­ ers were surveyed to quantify their traits and amined the relationship between leadership characteristics. He identified four compo­ and organizational culture. The theory nents: management of attention, manage­ found that there was no direct relationship ment of meaning, management of trust, and between leadership and organizational cul­ management of self. The common characte­ ture and effectiveness. There was a signifi­ ristic or the primary thrust of the leaders was cant relationship between the organizational those that were visionary or transformation­ strength and organizational effectiveness. It al. These leaders inspire followers by unit­ should also be noted that the type of leader­ ing them toward a common goal and creat­ ship being examined was transformational, ing the social architecture ( organizational which is the process of influencing major culture) embodying unity of purpose, ex­ changes in attitudes and assumptions of or­ citement, and challenge. ganizational members and building com­ mitment for the organizational mission and Nalbandian in a case study examines the po­ goals. Weese also found that those organi­ litical issues associated with the develop­ zations that possess strong organizational ment of a NASCAR track. (Nalbandian, cultures and transformational leaders focus 2001) He gives insight to the type of politi­ upon cultural building activities that are cal leadership that is needed to bring such a consumer related. Those relationships that project to a successful conclusion. The pri­ were found to be significant are important at mary framework is related to vision and the all hierarchical levels within an organiza­ ability to negotiate the political system and tion. The hierarchical structure does not show the benefits of such a project. seem to have an important impact, especial­ NASCAR in this context shows great adap­ ly when the organization has been well satu­ tability to individualizing the development rated or integrated with a transformational of a track to a specific region. It is also well leadership approach. understood in this case study that the future of such an endeavor depends upon a cooper­ One of the leadership studies was by Daniel ative and collaborative atmosphere to devel­ Soucie (1994). The primary focus of his op a fan base in traditional four days geo­ study is the isolation of what makes an ef­ graphic location. fective leader in a sport organization to the achievement of success of an organization or Levin examines sponsorship from a brand the achievement of an organization's goals attitude and recall bases. (Levin et. al., and objectives. The primary thrust of the 2001) The recall was higher through the use research was identifying leadership influ­ of a logo than brands exposed through tradi­ ences and power, leadership traits and skills, tional ads. The most effective approach was leadership behaviors, situational leadership, combining traditional marketing with logo and charismatic and transformational leader­ development associated with recognition of ship. The results indicate that empowerment car color, number, etc. of subordinates, to establish goals and objec­ tives that are realistic and the development Pruitt examines sponsorship and shareholder of plans, is instrumental in the success of wealth/stock value. (Pruitt et. al., 2004) sport organizations. There is an increase in shareholder wealth

25 for sponsorship. Successful NASCAR and the varying degrees of fan involvement sponsors were examined using a multiple and demand. regression analysis. A team that is directly associated with the automotive industry is directly correlated to value because of an THE EVOLUTION OF NASCAR attitude toward the stakeholder in regard to success. One of the interesting variables The evolution of NASCAR has been over that was negatively correlated was cash flow different eras of development. The 1940's, per share. especially the late 40's, was the period of organization. The 1950's was the period of The Marcopolos study recounted the devel­ development of circuits and tracks. The opment of the construction the Nashville, 1960's was the driver era during which Tennessee speedway. (Marcopolos, 2006) many of the folk heroes and legends were The primary focuswas on the history of rac­ established. The 1970's was the era of the ing in Nashville and the cost of the speed­ manufacturer. The car manufacturers rea­ way. The success of this endeavor can be lized the benefit of racing to selling cars. If directly related to community support for their car won on Sunday; people would such a facility. show up in the showroom on Monday morn­ ing. The 1980's was the era of the sponsor Sponsorship is not a given and it depends and the 1990's was the era of the media. directly upon promotions and a sound busi­ (Golenbock & Fielden, 1997) The 2000's ness plan. Just because a sponsor is affi­ was the era of the investment of outside in­ liated with the sport does not mean that there terests. will be direct benefits. (Levin et. al., 2008; DeGavis et. al., 2009; Levin et. al., 2004; & Bill France was primarily a promoter and Dees, 2010) Current sponsors have an ad­ organizer of races. There were many other vantage over new ones because of their lon­ promoters and organizers on a number of gevity and the establishment of relationships circuits that were in direct competition with with fans. Identification is the key element France. It was evident there was a need for to developing brand loyalty. There must a national association to insure a racing also be a good fit between the product and standard and bring fairness to the competi­ the fan. Relationships are the key to capita­ tion. (Butterworth, 1971) Seeing this need, lizing on sponsor investments. in 1948 Bill France incorporated and devel­ oped the initial structure of NASCAR under The literature reviewed in sport management the singleentity theory. (Oliver, 1995) reveals important factors that may impact the present and future success of NASCAR. NASCAR was in direct competition with The overall influence of the general econo­ other organizations as sanctioning bodies for my may affect the demand in relation to races. What made NASCAR most success­ ticket prices and overall event costs. Also ful was the ability to develop a competitive important forthe fans is the factor of main­ product, insure the fairness of racing at a taining connections. The use of symbols in highly competitive level, and offer a good NASCAR is and will probably continue to entertainment product. During this early be important. It is important for NASCAR period there were obvious forces, especially to realize the polycemic nature of the sport in the driver category, that resisted standar­ dizing the rules and sanctions of NASCAR.

26 The NASCAR organization had to walk a would eventually flourish and their visions tightrope during this time because they had could be realized. (Fielden, 1990a; & Fiel­ to develop a product to attract race fans as den, 1990c) well as to insure fairness of competition. They also had to be competitive among oth­ At the end of the 50's and beginning of the er organizations that were trying to organize 60's the drivers were beginning to establish stock car racing. One strategy that devel­ reputations and becoming folk heroes in and oped was a firmness of action and not tole­ among the various actors. (Girdler, 1988) rating any other opinions, and yet having a The refinement of the entertainment product willingness to change to make the sport was beginning and there was now a firm more competitive and to develop a better product in the car as well as the driver that product for the race fan. (Howell, 1997) could be sold to race enthusiasts. The inves­ tors were individuals who had a keen inter­ In order for NASCAR to establish itself in est in racing and in the level of competition. the late 40's and early 50's, new rules and This was a time of development and growth. regulations had to be developed. Even more This was the era of drivers and the begin­ important was that tracks had to be built. ning of legends. This was one of the most The forging of cooperative relationships colorful eras of NASCAR because of the with track owners was also important in or­ array of characters that raced during this pe­ der to develop a sanctioning system in the riod. (Fielden, 1989a & Fielden, 1990b) An circuit that would allow interested drivers to individual in a small shop with limited re­ compete and provide a highly competitive sources could become a winner in any product for the fan. The new super speed­ NASCAR race with dedication and determi­ ways were quickly becoming the premier nation. tracks and attracting fans. The short tracks were giving rise to these super speedways In the late 1960's and early 1970's, the where more speed could be obtained and manufacturers realized the potential of drivers and cars could be tested so that better NASCAR and became heavily involved, es­ entertainment could be provided for the fan. pecially in the development phases. This Even though the entertainment value was represented a need fora larger investment as prized, there was a constant striving to im­ well as a greater technical knowledge to de­ prove safety and equipment. (Craft, 1993) velop a winning product. (Fielden, 1989a) Ford and Chevrolet have been consistently The 50's was a time of change fororganiza­ involved in NASCAR. Chrysler had a dis­ tional restructuring to insure the continuance pute with NASCAR over the hemi-head en­ of NASCAR. The realization of the vision gines and was out of racing until 2001. The and the firm establishment of the reputation manufacturers not only realize that of NASCAR in the motor sports arena was NASCAR is an excellent place for testing the goal. Even though there was success, it but also that winning car brands sell to the was limited during this period and those that public. There is a very close relationship were in the sport were primarily involved between car dealerships, manufacturers, and because of love of the sport and the competi­ NASCAR racing. Manufacturers have al­ tiveness of racing. This was a time of pro­ ways been a strong contingency and an im­ motion, selling the dream to drivers, fans, portant influencein racing. This influence is and track owners. It involved convincing all not only in the base product but relates to the actors and groups that the investment

27 the America's love affair with the automo­ promoted through the sponsors, which dur­ bile. ing the 80's became the driving forces. The key element here is the loyalty of the fan. The automobile is one of the elements of Fan loyalty runs about 72% whereas most lifestyle that have radically changed life in other sports run about 30-35%. (Howard, the United States. Individuals' love of their 1995) NASCAR fans tend to be very loyal automobiles has been almost legendary. to their drivers as well as their sponsors. With the invasion of the Japanese cars, this (Kate, 1995) Fans can get closer to the driv­ love affair has been somewhat tarnished, ers than players in any other sport. The except in the NASCAR arena. The Ameri­ sponsors are an integral part of getting the can public identifies with the NASCAR cars fans close to the drivers by sponsoring spe­ that look like the Fords, Chevrolets, and cial events for their customers. These events Chryslers, that they drive. The relationships put the fan at the center of attention. The among manufacturers in NASCAR's roots drivers know how important the fans and run deep. These roots extend especially into sponsor are to the sport. They actively pro­ the sales and development arenas. The pri­ mote their fans and sponsors. In response, mary element among the manufacturers is by supporting their favorite driver's sponsor, ego and pride. (Craft, 1993) Ford is one of fans believe they are directly helping the the initiators of motor racing and it is hard to driver. (Fielden, 1990b; & Lee, 2002) believe that in an American sport like NASCAR that their roots have not run deep. As the popularity of NASCAR increased, NASCAR had to sell the manufacturers in the 90's became the era of the media. All the 70's and since this time they have been aspects of the races were covered, qualifying an integral part of the infrastructure of rounds, happy hours, practice sessions, any­ NASCAR. thing that says NASCAR and has a potential for an audience, was being exploited by the After selling the manufacturers in the media. (Dunnavant, 1997) All of the major 1970's, the 1980's was the era of the spon­ networks plus ESPN, TNN, TNT!fBN, had sor. The primary reason for sponsor in­ extensive coverage of motor sports, espe­ volvement is the vast fan base and loyalty cially NASCAR. FOX and TNT!fBN had that NASCAR has garnished. (Kate, 1995) six year $1.2 billion deals with exclusive Without the money from big time sponsors rights to one half of each season. (Brockin­ such as Busch, RJR Reynolds, Proctor and ton, 2001) In terms of the growth of atten­ Gamble, Coke, etc., the high-tech nature of dance, it is the most popular sport in the the sport would not be possible. With the United States. (Jenkins, 2002) The increase in money come greater technology, NASCAR Cup series is the success story of greater speed and competitiveness and, the 1990's with a 91 % growth in ticket sales therefore, more fans. One of the success since 1990. (Poole, 2000) Media exposure stories of NASCAR has been their ability to shows no signs of slowing down, as long as cultivate long-term relationships with spon­ the fans are there, the media will be there. sors and use this as a money base to drive the sport. (Morrison, 1996) Many of the The 1990's was also the era of the merchan­ sponsors, in essence, help NASCAR be­ diser. The television exposure brought with cause their logos appear on their sponsor's it, the opportunity to merchandise. Products product and their driver is constantly pro­ ranging from power tools and household moting the product. Therefore, NASCAR is items to the basic t-shirts and hats were

28 "hawked". Television was being used dur­ of a framework to provide a comprehensive ing races and other time slots to sell mer­ understanding of the sport. (Newman & chandise. Merchandise is sold in retail Beissel, 2009 & Harrow & Swatek, 2009) stores, restaurants, racing facilities, etc. No doubt history gives an indication and NASCAR expected merchandising to top information is needed to provide a sound $1.26 billion in 2000 after generating $80 theory to explain the success of the sport. It million in 1990. (Poole, 2000) has had success over six decades and has been in a positive growth position. Times The 2000's continue as an era of the media have changed and NASCAR has evolved to and sponsorship. Sponsors are willing to meet the needs of the fans. Causal under­ pay the dollars for the race especially in the standing is needed to gain a perspective and television venue. Thomas Lee writing for provide a base for good planning not based the St. Louis Post-Dispatch states, "anyone on intuition. and anything associated with NASCAR is hot." Increased television and media expo­ The review of empirical studies has revealed sure means more fans and a continuing in­ little. Of the studies that are focused on crease in the popularity of NASCAR. The NASCAR, few are empirical. The lack of 2001 season was the inaugural season on available research on the topic implies a FOX TV, the telecasts reached an average of need for research to provide a basis of un­ 19.9 million viewers. NBC covered the derstanding for the reasons for the success second half of the 2001 season and their rat­ of NASCAR. This understanding may al­ ings for NASCAR were 34% higher than low for other sport businesses to benefit 2000. (Fielden, 2003) Mike Helton, from the success of NASCAR. NASCAR executive, notes: "The NASCAR Cup Series is the second most watched regu­ lar-season sport on TV. Our sport ranks CONCLUSION third in licensed merchandise. Of the 20 most attended sporting events in 2002, 17 The history of NASCAR provides an under­ were NASCAR Cup races ... In simple standing of the foundation of the sport and terms, there are more people watching how it began. There is an inherent enter­ NASCAR racing today than ever before." tainment value in auto racing. The sport has (Fielden, 2003, p. 444) The end of the era maintained a competitive level and provided has been influenced by the economy. There an interesting story line. It is one of the ma­ has been a significant down turn in mer­ jor sports in terms of attendance and televi­ chandise, attendance, TV ratings, and there sion rating. NASCAR has, through strong has been an increase in investment by out­ leadership and sensitivity to fans, developed side sport interests and venture capitalist. an entertaining product that has been recog­ This is a good time to invest while the sport nized as a major sport. A culture has devel­ stabilizes itself. There is still a strong inter­ oped that supports over 25,000,000 fans and est from sponsors. Investors and sponsors national events every week. Fanage is still see the value in NASCAR (Fielden, growing but at a slower rate because of the 2010). economy. Loyalty in this culture has been seen in few other sports. This loyalty is not The empirical research suggests that there short term but lasts a lifetime. have not been enough comprehensive stu­ dies to provide a model forthe development

29 There has been little empirical research completed on NASCAR. Direct research These areas of review are all contributory involving NASCAR includes an eclectic se­ for different reasons. They individually ex­ ries of studies. There are corporate studies plore the variables related to the single enti­ that have been conducted, but this informa­ ty theory and identify significantstudies that tion is not shared because it is either of an contribute to the structure of the research. organizational or company nature and used The single-entity theory is an important is­ to make decisions regarding sponsorship and sue as it defines the structure of NASCAR advertising. The information is protected and its' uniqueness as an organization. through corporate policy so as not to give competitors an advantage by using a compa­ NASCAR has been, and continues to be, an ny's own database. There are descriptive extremely popular sport; the demand contin­ studies and many articles, especially about ues to grow on a yearly basis. Examining tracks and drivers. But, these studies pro­ the variables impacting this growth provides vide little information as to the important an understanding of the future direction and variables that have influenced NASCAR's past success of the sport and provides a development through the years. There has model for future sport businesses. The been much written about the history of NASCAR structure is rich in history and NASCAR. Most of the information is of a tradition and operates under a single-entity folklore nature and provides some of the concept. The past will impact the future as best data about the importance of the status the organization continues to change, grow, of NASCAR, especially its importance to and evolve. cultural development.

30 Table 1

Important Incidents/Variables -- By NASCAR Group and Year

NASCAR

1940's • Organization period • National champion established • Uniform rules established • Fair payout

1950's • Era of the tracks • Move away fromstock cars • Factory involved/dictates rules • Building of Daytona • American Automobile Association departure/removed biggest hurdle NASCAR faced

1960's • Era of control • Factories pull out/can not control • Drivers try to organize • Growing pains • Safetyissues/rules change

1970's • Era of business • NASCAR good business • Corporate sponsorship • Modem era/concentrate on best events • RJR enters and revitalizes sport • Factories out because they can not control rules and competition

1980's Introduction to General Public • Period of growth • '79 television/CBS • Madison Avenue becomes important • Fans different/diverse • Cable TV coverage

1990's Demographic Expansion • Period of growth • Growing pains to become a national sport • Biggest period of new track construction

2000's New Audiences • Mainstream media • Expansion into urban areas • Format change • Car of Tomorrow • More control

31 Team and Car Owners

1940's • Garage period • Small operations • Drivers more skilled

1950's • Team concept developed by one owner/took to extremes/driver curfews • Driver important element to winning • Technical improvements • Mercury Outboard/improve quality of operation, i.e., transport systems • Factory into racing/Motor City 250 • Ford Thunderbird super charged engine • Factories went to teams/owners

1960's • Driver is part of a team • Technical improvements • Pit procedure improved/Wood Brothers • Drivers organize/Curtis Turner and Tim Flock • Dodge and Ford dominate • Ralph Moody/developed standardized chassis

1970's • Need for improved equipment/learning • Business becomingimportant • Drivers as owners/beginning of end • Lee Iaccoca -- Ford out • Driver's strikein Talledaga

1980's • Team concept/more testing and information • Corporate spokesperson • Manufacturersback in sport

1990's • Teams and drivers as stars • Drivers come from everywhere • Team skills improve

2000's • Era of expansion • New investors • Team consolidation • Outside money • . Growing need formoney to keep up

Drivers

1940's • Bragging period • Curtis Turner • Moonshiner involvement • Colorful drivers • Individuals more important than teams • Level of competition reason forparticipation

1950's • Moonshine/Outlaw Era

32 • Fireball Roberts • Joe Weatherly • Junior Johnson • Herb Thompson • Tim Flock • Lee Petty • Marshall Teague • Colorful Drivers • Individuals more important than teams • Holman -- Moody, very important • Focus on car makes

1960's • Fred Lorenzen/good looks and articulate • More business like • Ned Jarrett • Richard Petty • Driver attractive "personalities"

1970's • Richard Petty becomes icon and folkhero • Star period begins • Sponsorship spokesperson/especially STP • D.W./upscale promotion and team mode • Change fromcare to driver promotion

1980's • Dale Earnhardt/icon and folkhero • Bill Elliott winning Winston million • Corporatization of drivers • Drivers becoming public heroes -- loss of personal!ties

1990's • Dale Earnhardt/iconand folkhero • JeffGordon/icon and folk hero nd • JeffGordon winning Winston million and z National Championship • Dollars reason to participate • Drivers attract women/mechanics attract men • Fan focus is now on driver • Businessmen first, drivers second

200's • Super star era • Money a prime motivation • Skills important • Less equipment • IMAXimportant • Safety important

1940's • Stock car enthusiasts

1950's • Factory popularity • Fans primarily males

33 1960's • Motor sports enthusiasts • Loyalty/try productsbecause they support racing

1970's • TV popularity • Differenttracks/different type of fan • Loyalty to sponsors

1980's • Mainstream/regional • New breed of fan/moneyand behavior • Upgrading of facilities • Women become fans

1990's • Mainstream/national • Focus on drivers and cars • World-Wide Web -- means of staying connected, being on the inside of the sport - individual driver sites - team sites

2000's • Social era • Entertainment products • Fan unrest • Image

Sponsorship

1940's • Local sponsorship/especially auto suppliers

1950's • Factory sponsors • Mercury outboard/firstof non-automotive sponsors • Marshall Teague • Pure Oil

1960's • Auto sponsorship/regional/need money now that factories are out • Goodyear

1970's • Corporatesponsorship/moving billboards • STP/Petty • Unicol "76" • Pepsi/Petty • Coke/Bobby Allison • RJR marketing model • Made sport lucrative and appealing • Gatorade • Tide, Hanes, and other sponsors appealing to women

1980's • TV/National sponsorship • Fan loyalty tied to sponsorship • Sponsorship dedication important to success • Wrangler/Integrated marketing • PG/new marketing methodology/especially forwomen

34 1990's • Sales/Merchandising • Sponsors help popularize NASCAR in community

2000's • Image • Sales • Profits • More Fortune 500 companies • Left some old companies behind

Merchandisers

1940's • Souvenirs and local sponsored products/i.e., calendars

1950's • Souvenirs and regional sponsored products/i.e., calendars • Kiefhopher/Mercury

1960's • Give aways/Hats & T's

1970's • TV discovers NASCAR • Fine points of contest* • Popularity drives merchandise -- Maxx cards, Racing champion & Matchbox car models • Learned how to broadcast • Women becoming fans • Drivers exploiting merchandise

1990's • Icons of sport influence race merchandise corporate merchandise period of collectibles • Corporate approach/fans & drivers • Big business • Earnhardt/made $30 million selling his rights • Renegades • TV sales--QVC, ESPN, Shop Talk • Internet sales

2000's • Icon Era • Diversity of products • Obsession • Driver part of family • Over production of merchandise

1940's • Auto media • Local newspapers

1950's • Auto media • Bill France cultivated media/writers • Regional newspapers

35 • Radio

1960's • 1961 Firecracker 250/Wide World of Sports • Big City Newspapers • No Media box in 60s/only observation platform* • Low person on newspaper staffwas racing editor

1970's • TV tapes/Wide World of Sports • Print media • "79" CBS/high television rating • More knowledge becomes racing's move to more important positions • Recognition of safety needs formedia (and fans)

1980's • 1984 CBS/beat winter Olympics rating • 1984 Petty and Reagan picture in National press • ESPN/Cable (FOX, TNN/TBN, etc.) • Knowledgeable print • TV and electronic media professionalized • Readership survey indicated popularity of NASCAR

1990's • Mainstream TV • World Wide Web • Some major newspapers still do not cover • 7 differentcable shows dedicated to NASCAR • Centralized Media

2000's • Own Network/Speed • Internet Important • Ratings revival over other Sports • Create programs/reality • Coverage of everything • More control of media

Trends

2000's • Chase • Sport Change • Law Suits • Slow Down • Change in Management • Outside Investment • Bad Economy/Low Attendance • TV Numbers Down

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