As NASCAR sponsors ‘throttle back’ on spending, expect more unlikely alliances

NASCAR driver Ryan Newman was filming an interview about his new sponsor, Tornados snack foods, at Charlotte Motor Speedway earlier this year when something caught his eye.

Nearby fans had been blocked from getting too close to Newman. So he grabbed a plate of Tornados, waded into the crowd and handed out samples.

“I’ve done more things than I ever have to keep good sponsors” because everyone in NASCAR “has had to stretch their necks out a little bit to make up for the bad times,” Newman said.

As the poor economy continues, NASCAR teams are forced to hustle for new sponsors and to keep the ones they have. That’s especially true for primary sponsors, who write the biggest checks for the logos that dominate the paint schemes on NASCAR race cars.

Sponsorship cash flowed freely to teams a few years ago. But just as race attendance has slumped because NASCAR fans are watching their wallets, sponsors have cut back on the spending that is the main source of the $15 million to $20 million it takes to field a competitive NASCAR Sprint Cup Series car.

Sponsors’ “budgets are smaller and they’re being more selective,” said Steve Lauletta, president of Earnhardt Ganassi Racing with Felix Sabates, whose Cup drivers are Juan Pablo Montoya and Jamie McMurray, this year’s Daytona 500 winner.

The pullback in sponsorship spending has contributed to mergers among some NASCAR teams. But even powerhouse teams are now scouring for cash beyond conventional NASCAR sponsors such as auto products, beverages and consumer goods.

Hendrick Motorsports, for instance, announced a three-year deal Wednesday for the AARP-backed “Drive to End Hunger” campaign to be the main sponsor on Jeff Gordon’s No. 24 Chevrolet in 22 races per season. Gordon’s longtime sponsor DuPont and others “wanted to throttle back” on their NASCAR spending, team owner Rick Hendrick said.

The team owned by Roger Penske has yet to find a 2011 primary sponsor for its No. 77 Dodge now driven by Sam Hornish Jr., whose main sponsor, Mobil 1 motor oil, is moving to two-time champion Tony Stewart next season.

Stewart needed Mobil 1 because he’s losing Old Spice as a primary sponsor after this season. Stewart also is co-owner of the Stewart-Haas Racing team, whose other car is Newman’s, and Stewart-Haas still needs more sponsors for Newman’s car in addition to Tornados.

“It’s a hard time right now, a hard economy,” Stewart said.

That means NASCAR teams can no longer command the same prices for sponsorships. “Most companies still see [NASCAR] as a massive marketing opportunity,” Lauletta said. “But something you might have been able to sell [to them] for $10 a year ago is now at the $6 to $8 range.”

But Tornados’ backing of Newman’s car illustrates how NASCAR still holds appeal to sponsors.

Tornados are made by Ruiz Foods of Dinuba, Calif., a leading seller of frozen Mexican foods. When the company last year prepared to expand Tornados from convenience stores to a wider array of retailers, its chief executive, Bryce Ruiz, pitched NASCAR.

Ruiz said he’s “absolutely” pleased with the results so far on his seven-figure investment. Even with attendance declines, many Cup races still draw 80,000 to 120,000 fans that Tornados targets with sample giveaways. Product promotions are tied to NASCAR, and sales to retail stores are up 10% or more from last year, he said.

But the pressure remains to keep proving to sponsors that motor racing is worth the investment.

In the past, “we all kind of took it for granted, the economy, the sponsors that we had, the good times that we had,” Newman said. “Now it’s harder than it’s probably ever been.”

james.peltz@latimes.com