Lowe’s announces end to sponsorship of champ Johnson

The Associated Press

CHARLOTTE, N.C.— Lowe’s, one of the last remaining corporate giants in NASCAR, announced Wednesday that it will not sponsor seven-time champion Jimmie Johnson after this season, an ominous sign for the nation’s top racing series.

For Johnson and Hendrick Motorsports, it means the best NASCAR driver of his generation has a blank slate of “inventory” for the first time in nearly two decades.

“Jimmie is one of the greatest champions and ambassadors in all of sports and still at the top of his game,” team owner Rick Hendrick said. “This change opens up all kinds of possibilities, and we look forward to having conversations with potential new partners. It’s a special opportunity with an iconic athlete and team.”

For Lowe’s, the decision is simply business.

The home improvement company teamed with Hendrick and Johnson in 2001 when the driver was a nobody. Owner and company took a leap on Johnson, the driver Jeff Gordon promised them was going to be a star. Gordon was right and Johnson was so good that Lowe’s couldn’t leave.

Lowe’s signed on in the heady days of NASCAR when sponsors paid $20 mil- lion or more just to get in the door with a top team. A deal for an entire 36 race package, plus the two all-star events, could cost upward of $30 million per season.

Lowe’s wasn’t sure about Johnson when Hendrick sold them on a full deal; the company hedged its bet with a smaller deal for four-time champion Gordon just in case Johnson was a bust. But even if Lowe’s got in on the cheap with Johnson in 2001, the price undoubtedly went up as Johnson racked up his record-tying seven championships, 83 victories and a Hall of Fame career all while representing the Lowe’s brand the last 18 years.

As one executive once put it, for Lowe’s, taking that chance on Johnson, was like “winning the lottery.” Times have changed. Sponsor after sponsor has scaled back on full package commitments, and teams now sell open inventory on their cars in pieces. A full season sponsor is now almost unheard of in any racing series and one by one the Fortune 500 backers have altered their marketing spends. Target is out of racing. So is Home Depot and Sprint. UPS, Subway, Great Clips and Dollar General. Aaron’s and Best Buy are gone, too. GoDaddy was gone but came back only this season for a two-race farewell tour with Danica Patrick.