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The end of tobacco road: NASCAR will end the 31-year Winston era and opt for a breath of fresh air with Nextel
Auto Racing Digest, Dec, 2003 by Larry Woody
IN 1969, JUNIOR JOHNSON WAS searching for a sponsor for his race team when he approached officials of the RJ Reynolds Tobacco Company and asked if they might be interested in getting involved in stock car racing. And the rest, as they say, is history--NASCAR history.
With tobacco advertising having been banned from television, RJR was eager to find a new way to create exposure for its product. After Johnson peaked its interest, RJR decided that racing was just the outlet it was looking for. But RJR wanted something bigger than a single-team sponsorship. It wanted to be a major player in the sport itself.
The tobacco giant plunged into NASCAR with unprecedented corporate backing, becoming the title sponsor of its premier series. In 1972, NASCAR's Grand National division officially became the Winston Cup Series.
What began as a relative trickle quickly turned into a cascade of cash. In 1971, the Winston Cup championship was worth $100,000; in 1992, champion Tony Stewart collected a cool $3.75 million.
Winston has pumped more than $100 million into NASCAR's premier series points fund over the years.
And Winston's involvement didn't stop with its title sponsorship. It also supported NASCAR's national weekly racing series. backed NASCAR's all-star race (The Winston), and funded The Winston Million bonus program. RJR employs a full-time PR staff just to assist the press with Winston Cup coverage, and it produces a comprehensive race-by-race media guide with updated statistics on every race and every driver.
For over three decades "Winston" has been virtually synonymous with NASCAR, with its familiar red-and-white flags flapping over every racing venture.
Now the Winston era is ending. This summer, it was announced that Nextel, the communications giant, would replace Winston starting in 2004. Nextel's 10-year deal as tire sponsor of NASCAR's premier series is worth a reported $700 million.
Welcome to the NASCAR Nextel Cup.
Veteran racer Mark Martin spoke for most of his fellow drivers when he said: "It's going to take some getting used to. In fact, some of us old fogeys probably never will get used to it."
Still, most racing observers see the change as a positive one for the sport. What was once considered a rural, rough-neck recreation has in recent years experienced national popularity. NASCAR has worked hard to preen its mainstream image, and separating itself from tobacco--and its growing negatives--is a major step in NASCAR's ongoing public relations process.
"This does a lot for our sport. Winston did a lot of stock car racing--especially in the 1970s and early 1980s--and its promotion was invaluable," says former NASCAR public relations director Chip Williams, who now operates a racing marketing agency. "But the sport had reached a point where it was incredibly difficult to grow because of the changing public perceptions of tobacco.
"With tobacco, you can't market to kids. That might not sound like a big deal to some people, but it's becoming a larger and larger issue. Most of our clients--most of the companies involved in motorsports team sponsorship--are marketing to families. How can you market to families without marketing to kids, too?"
Williams continues: "I believe it was becoming uncomfortable for a lot of people--especially drivers--to portray themselves as role models with a cigarette patch out front on their uniform."
Williams recalls when one of Winston's original slogans was: "We love racing as much as you do," and as NASCAR PR director he steadfastly defended the tobacco industry's involvement racing. "Their involvement has been an issue for as long as I can remember," he says. "And one worth fighting for."
But times changed. Today, signs that read NO SMOKING are posted around many racing venues. The irony was inescapable.
NASCAR CEO Bill France, Jr., whose father founded the association in 1947 and helped broker the deal with Winston in 1971, says: "Thirty" years ago my father announced a new association with RJ Reynolds tobacco company and its Winston brand. Back then our company and the sport were young and growing, but still regional. My dad believed RJR's commitment to NASCAR would take us to new heights and make us a national sport. Now NASCAR takes another giant step for the future of the sport. Nextel's 10-year commitment to our sport is a truly historic moment."
France says Nextel is "a perfect fit for NASCAR because technology is an untapped growth area for our sport. It's an area of significant interest among all consumers everywhere. Nextel will be able to promote our drivers, our teams, and our tracks in all forms of media and to all NASCAR fans. These efforts will help propel NASCAR to new audiences and new markets. Nextel's participation will definitely benefit every member of the NASCAR community."
What's in it for Nextel? Tremendous and unparalleled exposure.
In recent years, NASCAR has passed every pro sport except the NFL in growth. It's attendance and TV ratings continue to soar, and that massive exposure was the lure that drew Nextel. "We're joining one of the largest, most passionate families in America, one we've admired for some time," says Nextel president and CEO Tim Donohue. "It's no surprise why we are so interested in becoming part of the NASCAR team. Simply put, it is the most popular and exciting sport in America, and it has the most dedicated fans."