Motorsports Business Model: Sponsorship Channels in NASCAR and Formula One

What is it about?

This research analyzed the business model of elite motorsports (Formula One/F1 and NASCAR), detailing the dual role of corporate sponsorship in both the supply and marketing channels. The model emphasizes three interdependent marketing channels vital for value delivery: consumers/fans, business-to-consumer (B2C) sponsors, and business-to-business (B2B) sponsors. Sponsorship acts as a critical B2B exchange mechanism in the supply chain, where sponsors provide necessary resources to the teams. In the marketing channels, sponsors use the platform to target consumers or engage in B2B networking. F1 teams strategically leveraged their position to act as a B2B facilitator, connecting corporate partners to arrange additional commercial deals. NASCAR institutionalized this strategy with programs like the "Fuel for Business Council," designed to accelerate purchasing cycles among sponsors by intentionally bringing buyers and sellers together.

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Photo by Casey Calhoun on Unsplash

Photo by Casey Calhoun on Unsplash