Cost vs. return key factor in series title sponsorship (cont'd)

NASCAR's asking price for the Busch Series sponsorship is a little less than half what Nextel pays for the Cup Series, which is an estimated $70 million a year for 10 years.

The outlay for the Busch Series sponsorship will likely be around $300 million over a 10-year period. Chances are the terms won't be much less than 10 years -- continuity is a big deal these days to NASCAR.

According to its research, there are 75 million NASCAR fans in North America, and that number has been static for the past six years. That suggests that the sport is maturing, and while it gains new fans every year, the overall number hasn't gone up very much.

A company looking to get into the NASCAR arena will look at that and measure potential value against the numbers and come up with the following equation: invest $300 million for the right to market to 75 million fans over 10 years, and add in the associated costs.

It didn't make sense to KFC, but it likely will to one of the other companies on the list.

The Busch Series, which celebrated its 25th anniversary last season, has grown by leaps and bounds alongside the Cup Series during the past 15 years or so, and is a valuable sports property in its own right.

In addition to running many combo events with the Cup Series, the Busch Series has stand-alone events across the country. It also has the only two races on foreign soil, in Mexico City and Montreal.

The Busch Series also fills the role of test pilot when NASCAR officials consider expanding the schedule. Mexico City and Montreal are the first steps in that expansion, and a potential race in Asia is probably next on the list.

One of the key drawing points for the Busch Series, and a factor that the new sponsor is likely to consider a big plus is the fact that so many Cup drivers use the Busch Series to experiment with the cars and the track for the following day's race.

How that will change with the advent of the Car of Tomorrow -- which isn't planned for the Busch Series for a few years -- is anybody's guess, but seat time is seat time. Newcomers to the Cup Series will also use the Busch Series to get track time.

KFC has bowed out of the race to replace Busch, but there are other companies interested enough to keep talking. Look for an announcement in the next 90 days or so.