Why So Many Fortune 500 Companies Sponsor Nascar

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July 2 (Bloomberg) –- Motor Sport U.S. Editor Gordon Kirby and Bloomberg’s Eric Chemi discuss the business of Nascar. They speak on “Market Makers.” (Source: Bloomberg)

Last i checked, it was a southern sport.

It was that way until the 1980's and it began to expand and become a much more national sport in the venues and the competitors.

It has changed a great deal from its early days with its southern roots.

It really is a national sport.

It has got tremendous corporate sponsorship.

Amongst the car manufacturers and amongst many well-known american brand names.

It is a huge sport.

It does have a huge fan base.

Why is that?

Why are there more fortune 500 companies that advertise in nascar than any other sport?

You have to get advertising.

You have to get sponsorship if you want to run the race.

It is too expensive otherwise.

It's not like basketball where you can put on a game without any advertising.

It is a requirement here.

But why do these companies want to do it?

The toyota sell more cars?

That is not was clear.

There are two kinds of sponsors.

Manufacturers like toyota, chevy, ford.

Then there are sponsors like home depot and lowe's and coca-cola.

They are advertising on the cars themselves.

That is where we have seen -- home depot announces they will not be back next year.

They have one of the best drivers and they don't want to come back next year.

That is a big thing.

You wouldn't know as well as anybody, what advertisers want is the demographic.

Who does nascar appeal to right now?

Are those people the same folks who would appeal to 10-15 years ago?

No question that the basic demographic has changed.

And is changing.

Perhaps it's not changing in the way that nascar p would prefer.

They have an aging audience and they are not generating the youth market they need.

What are they doing wrong?

Why is the sport not appealing to millenials?

In my opinion, it's because the sport is not very relevant technologically.

We are in a whole new different age in terms of mutations technology.

Everybody has an iphone.

The technology of the cars is way beyond this.

They are antique cars running traditional american v-8. they adopted a 50-year-old item.

When you go to indy car racing, they are writing small capacity turbo engines -- i believe everything you are saying.

You're talking to a gear head.

I understand a little bit about it.

How many 20-year-old kids don't want to go to a nascar race because there is no fuel injection?

20-year-olds love technology.

They are spending $400 million making fatter seats.

Should nascar be spending money on technology which is what young people care more about?

I think they should.

No question about that.

They have to attract them.

Writing about racing, it is quite disturbing in the past 10 years or so to see that the youth of america just has no interest in so many forms of automobile racing.

It is a conundrum for the entire sport.

Formula one has the bells and whistles.

They, too, are suffering from declines in the audience.

Suffering from the same issues.

That is the point.

It is not about the technology.

I would make the case that is because we see consistent results, but inconsistent rules.

Every year they changed the rules in the sport.

Different ways to win the championship, different ways the points are set up.

They keep trying to change it because i think it will -- technology does not matter because they're just watching racing.

Maybe people have found better things to do than watch cars drive around -- maybe people have found better things to do than guy watch guys tackle each other.

They have gone and done deals with the second-tier cable companies.

You will see races on the sports networks.

It is not the same as seeing it on nbc.

Espn is walking away from the sport because it is not worth it to them.

They have not seen me slide down asphalt.

Then they will change their whole strategy.

Just want to let you know.

It's not even worth it for them -- the money is not there.

Drivers are not spending the effort to come and enter the race.

Gordon?

There they have built a tremendous ladder system.

There is a whole pile of new talent.

Kyle larson and austin dillon this year.

You have a whole pile of talented, young drivers.

They have done a great job that way.

They have a very strong contingent of drivers.

The problem i believe, a key problem, going back to the gray days of nascar, richard petty and dale are, those drivers were real personalities.

They had a real personality and a real cutting-edge.

For the past 20 years, the drivers have been turned into pitchman.

Jimmie johnson is a great racing driver.

Six-time champion.

He is accused by many people of being mr.

Adds.

Jeff gordon has a personality of his own.

The rest, pitchmen.

I have heard this from many nascar fans.

They're not interested because that is what the drivers are to them.

They are not racecar drivers in the traditional sense.

Can't believe you didn't mention danica patrick.

This text has been automatically generated. It may not be 100% accurate.

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