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Army Ads and NASCAR: Racing Away with Your Moneyby
Drew Johnson Jul 16, 2003 When NASCAR fans pack the 20 racetracks to attend
the 36 races that comprise the 2003 Winston Cup schedule, the tickets, parking,
and t-shirts will not be the greatest costs assumed by those in attendance.
Before the green flag ever falls at a single event, these, and all other American
taxpayers will have already paid over $16 million for the "Army of One" sponsorship
on a Winston Cup stock car.
That's right, American taxpayers dish out millions
to purchase sponsorship for the United States Army in NASCAR's elite touring
series.
By raiding its taxpayer-funded advertising budget
to plaster decals on the quarter panels of an MB2 Motorsports Winston Cup
Series entry, the Army hoped to speed off with 1,200 new recruits. The sponsorship
forces taxpayers to subsidize much of the research, development, and manufacturing
costs for the cars and engines, as well as employee salaries and operational
expenses of MB2, a private for-profit enterprise. Thus, the race team is free
to jockey for earnings through race purses and bonus funds with very few expenses
left uncovered by the U.S. Army. Who are the recipients of this subsidy? The
multi-millionaire owners of MB2 Motorsports led by investment banking firm principal and auto
dealership magnate, Nelson
Bowers.
The sponsorship intends to reach the sports-minded
17-24 year old male population, a main source of possible Army recruits. However,
that prime demographic group constitutes less than 10 percent of NASCAR fans
and viewers, meaning that relatively few of the Army's target audience will
ever see the black and gold "Army of One" car in action.
Further limiting the potential for recruiting success
is a severe lack of star power and on-track achievement by the drivers wearing
the Army firesuit. MB2's regular driver Jerry Nadeau, currently sidelined
with injuries sustained in a practice accident at Richmond International Raceway,
has never finished higher than 17th in NASCAR's year-end point
standings.& Mike Wallace, temporarily piloting the "01" car for the recovering
Nadeau, boasts only two top-five finishes in a dozen years of Winston Cup
racing. In all, Nadeau and Wallace possess a combined total of one victory
in over 300 Series starts.
The Army's $16 million commitment is considered highly lucrative by Winston
Cup Series standards and sponsorships of such magnitude generally fall to
only the most highly successful, thus most recognizable and marketable drivers
in the sport, not also-rans like Nadeau and Wallace.
For example, pharmaceutical maker Pfizer pays $12 million per year, far short
of the cost of the Army's agreement, to sponsor the Jack Roush car of 33-time
race winner Mark Martin. A $15 million yearly arrangement by United Parcel
Service secured Robert Yates' entry driven by Dale Jarrett, whose resume boasts
30 Winston Cup race winsÑamong them, three Daytona 500 victoriesÑand the 1999
Winston Cup Championship. In NASCAR, where consistent finishes and frequent
trips to victory lane translate into sponsor visibility and promotional success,
it seems the Army found a dud of a race team rather than bang for its buck.
If the Army manages to reach its goal of signing
1,200 new soldiers resulting from its $16 million association with the MB2
NASCAR team, it will do so at the staggering cost of $13,333 per enrollee.
Currently, the Army seeks to enlist over 70,000 new recruits. If the Army
spent as much to reach each of the desired new enlistees as it will on those
attracted by its NASCAR program, the cost would verge on $1 billion.
The Army recruiting budget, which includes advertising
expenses, is set to increase $228 million in the upcoming fiscal year and
Army brass claim that still more money is needed to satisfy its advertising
needs. Congress must realize that it is not insufficient funding, but rather
the imprudent way in which the Army spends its substantial taxpayer-provided
advertising budget that limits its ability to reach potential recruits. It
is time to wave a red flag over further Army attempts to recruit through wasteful
methods at the expense of America's taxpayers.
Drew Johnson, the son of a former NASCAR series driver, is a Policy Analyst at
the National Taxpayers Union, a non-partisan, citizen group dedicated to lower
taxes, less wasteful spending, and the principles of rational and limited
government. Readers may write to him at 108 N. Alfred St., Alexandria, VA
22314, or visit www.ntu.org. |
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