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NASCAR struggles with sponsorships during economic slowdown

06:46 PM EDT on Friday, October 24, 2008

By FRANCES KUO / NewsChannel 36
E-mail Frances: FKuo@WCNC.com

CHARLOTTE, N.C. -- First it was Wachovia, and then US Airways took an economic hit. Now, another major Charlotte employer -- NASCAR -- is struggling with sponsorships.

Experts say NASCAR investors and fans will likely see changes.

Sponsors are the engines of the NASCAR world, and even the smallest teams need at least $12 million to survive.

"The cost of a primary sponsorship has significantly risen in the past few years," said Torrey Galida of Roush Fenway Racing.

Galida says its teams are set for now, but they are counting on fans to cushion the blow.

"They actually go out and support the sponsors, the companies that support the drivers,” said Galida. “They'll actually go out and vote with their dollars."

Kathleen Hessert of Sports Media Challenge, a sports marketing firm, said sponsors now are shying away from signing on to more teams. Instead, she said they’re enhancing the ones they team up with already.

Fans will likely see changes with drivers taking a more grassroots approach.

"You're going to probably use your drivers for more hospitality, you're going to use more creative social media, blogs and community forums," said Hessert. “People know that if they support NASCAR, NASCAR fans are going to support them."