By Adam Stern, Sports Business Journal, Staff Writer G+
Published February 20, 2017, Page 6
Amid a push to land more non-traditional sponsors, NASCAR has filled two business-to-business-rich categories with private aviation brand NetJets and construction firm Jacob Companies.
The deals will be announced this week. NetJets will take the title of official private aviation partner of NASCAR, while Jacob becomes the official construction company. The deals mark the first time NASCAR has had a partner in either category. Financial terms are not being released, but both deals are for multiple years and involve rights fees, according to Chad Seigler, vice president of business development for NASCAR.
Seigler said his team has been challenged to bring in sponsors across emerging or less traditional categories. Given that both companies are in NASCAR mainly to find B2B connections, NASCAR’s pitch involved how fertile the sport is with private aviation customers and companies that may need construction work on their facilities.
Both partners get rights to NASCAR intellectual property and marks, hospitality at a number of races, and entry to NASCAR’s Fuel for Business Council, which fosters B2B relationships among NASCAR partners by holding quarterly symposiums.
“For us, when we were sort of looking at this category in general, you looked around at a lot of the other sports leagues and saw places like the PGA where this category was having some success,” Seigler said of private aviation. “When you take a look at what happens in our industry on a weekly basis, whether it’s drivers, owners, crews, there’s so much private aviation that it just made sense to tell that story.”
NetJets, which also has a spate of deals in golf and tennis, has had a number of customers in NASCAR for years, according to Patrick Gallagher, executive vice president of sales and marketing for the company. That includes the sanctioning body, Seigler said. Competitors include Wheels Up, which also has been growing its presence in NASCAR and has a personal service agreement with Team Penske driver Joey Logano.
Allegiant Air remains the official airline of the sanctioning body, in a deal struck last year.
Meanwhile, Don Perry, chief executive of Jacob Companies, said the NASCAR sponsorship makes sense because his company is already seeing 50 percent of its projects come from the NASCAR space. The Florida-based company, which does work nationwide, has been involved in the sport for a few years as a team sponsor and has handled projects such as building the Chevrolet Daytona Experience in the infield of Daytona International Speedway. The company has sponsored Chip Ganassi Racing, and Perry said B2B results from that partnership include expanding the IndyCar shop for Ganassi in Indianapolis and work with Ganassi sponsor Target.
“Why I ventured into the partnership with NASCAR is, aligning with one or two teams, there’s only certain vendors you can partner with,” Perry said. “This gives us an opportunity to touch all of the partners in the sport.”
NASCAR now has 54 companies serving as official sponsors.
Cynopsis: Sponsorship & Promotion
NASCAR is entering a multi-year partnership with Jacob Companies that makes the company the “Official Construction Company of NASCAR.” As part of this partnership, Jacob Companies joins the NASCAR Fuel for Business Council and will have the opportunity to engage with decision makers of top brands and showcase services to other official partners. “Jacob Companies is a firm founded in innovation and ingenuity, and we are pleased that it’s growing its position in our sport in a strategic and meaningful way,” said Chad Seigler, NASCAR vice president of business development. We are excited for Jacob Companies to bring their expertise and experience to our Fuel for Business Council, and look forward to seeing them deliver custom design projects to official partners, teams and tracks alike.”