Fatal mishap could make team sponsors nervous
Nascar driver Tony Stewart’s involvement in a fatal on-track accident last weekend may wave a caution flag for the big-money corporate sponsors backing the threetime champion’s team, industry analysts say.
While no charges have been filed against Stewart, 43, one of auto racing’s biggest names, the incident that killed Kevin Ward Jr during a race in upstate New York could still spook the backers whose brand logos cover Stewart’s sleek race car.
‘‘For any of those companies that have relationships with Tony Stewart or his team, I think they’re all probably in a ‘let’s take a step back and assess this relationship’ mode in light of the tragic incident,’’ said Jim Andrews, senior vice-president at consulting firm IEG.
Nascar teams rely heavily on backers from companies that foot their hefty expenses in exchange for exposure to the thousands of fans at the racetracks and the millions who watch the races on television.
Stewart’s sponsors include outdoor retailer Bass Pro Shops, which as title sponsor pays up to US$20 million (NZ$23.7m) a season, according to sports marketing analysts, and secondary sponsors ExxonMobil Corp and Coca-Cola, who pay lesser amounts.
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they would take another two weeks to investigate the fatal incident, in which Ward jumped out of his car and, while standing in the middle of the track, pointed angrily at Stewart, who struck the 20-yearold when he came around on the next lap.
‘‘If there are no criminal charges here, I think they have to at least go through the process of saying, ‘Has this diminished the value of this association because he got involved in this incident, even if it was an accident?’,’’ said Andrews.
‘‘Whether any of those companies will say,‘This is the tipping point for us and we need to take a hard look at ending our relationship’, I’m not sure.’’
Stewart, despite his brilliance as a driver, has been in fistfights with his rivals and has a take-noprisoners approach with other drivers concerning his position on the track.
‘‘Nascar isn’t going to be any different than golf with Tiger Woods,’’ said Michael Cramer, director of the Texas Program in Sports and Media at the University of Texas-Austin.
‘‘But when bad boy goes to an incident that involves the death of another person, whether it was intended or not, it will impact sponsors, as we’ve seen in the past for lesser activity than this.’’
Andrews said the accident had to be viewed next to Stewart’s overall attitude.
‘‘If you look at the sum total here, you start to say, ‘Do we have a pattern of behaviour here that is going to open the possibility here that this is going to happen again?’.’’
The speed with which sponsors can cut ties with a sports franchise was illustrated earlier this year after racist comments by former Los Angeles Clippers owner Donald Sterling emerged, prompting the basketball franchise’s backers – including auto dealer CarMax, Virgin America airlines and State Farm insurance – to pull back.
Despite his volatile personality, Stewart remains a valuable mouthpiece for sponsors.
‘‘Tony Stewart has very, very deep and long-lasting relationships with his sponsors,’’ said Ramsey Poston, a former Nascar executive who is now president of public relations firm Tuckahoe Strategies. ‘‘These sponsors depend on drivers who can connect with this very passionate fan base. And he’s done that probably better than anyone.
‘‘He’s the rare driver who has crossed over into the mainstream. He’s known outside the Nascar world.’’
Bass Pro Shops issued a statement after the fatality that read, in part: ‘‘We send our thoughts and prayers to the family and friends of sprint car competitor Kevin Ward Jr, and also to Tony Stewart and everyone at Stewart-Haas Racing.’’ Exxon also voiced its condolences.