The Charlotte Observer from Charlotte, North Carolina • 52

THE CHARLOTTE OBSERVER 6D WEDNESDAY FEBRUARY 10 1W ups stake in racing with $35 million deal LOWE'S HOME DEPOT PAINT AT THE TRACK Home Depot and are locked in a head-to-head battle for NASCAR fans how the companies have tied their marketing to motorsports SPEEDWAY MOTORSPORTS INC EARNINGS SMI reported fourth-quarter and year-end 1998 earnings Tuesday The results take into account the company's December purchase of Las Vegas Motor Speedway which dampened earnings The Lowe's naming rights deal is expected to add 2 cents a share to earnings in 1999 and eventually contribute 5 cents a share Fourth Change Quarter from year Full year 98 before '98 Change Operating Income $16951 -33 $79795 167 Net Income $8785 -113 $42371 110 Earnings per share 21C -87 $100 124 diluted Figures in thousands except per share data Source: Speedway Motorsports Inc Naming rights: 10-year $35 million deal puts company name on Charlotte Motor Speedway and makes Lowe's Home Improvement Warehouse" at Speedway Motorsports other tracks Team sponsorship: No 31 Team Racing Chevrolet Monte Carlo driven by Mike Skinner Promotions: Lowe's uses its NASCAR tie-ins heavily in advertising and also gets Lowe's customersNASCAR fans involved with memberships in the Racing Team and a fan magazine promotes racing ties heavily in advertising as well as on the company Web site Home Depot NASCAR sponsor: "Official Home Improvement Warehouse of NASCAR" a title that gives it the right to use NASCAR logos in advertisements and in-store promotions and provides other publicity opportunities Team sponsorship: Sponsors Joe Gibbs No 20 Pontiac driven by Tony Stewart Home Depot also gets mileage out of Stewart's partnership with Coca-Cola Racing which will put the image on thousands of vending machines in more than 750 Home Depots Promotions: Three 53-foot tractor trailers featuring a racing simulator and team merchandise will promote Home Depot's NASCAR ties in visits to more than 600 stores Meanwhile 80 million advertising inserts will reach 80 percent of households SPEEDWAY from ID the speedway was one of the first sponsors at Charlotte Motor Speedway It became the first Home Improvement Sponsor of when the category was created two years ago had our toe in the water for about 20 Tillman said years ago we got very aggressive by sponsoring a In this new arrangement becomes the Home Improvement Warehouse of Speedway not to be confused with the Home Improvement Sponsor of distinction which as of Jan 1 is held by Atlanta-based Home Depot archrival In NASCAR companies can sponsor a team a track or even the NASCAR league Both warehouse chains sponsor cars As a track sponsor will reach people in the stands And while both chains can run television advertisements during the races only Home ads will feature the official NASCAR logo Home Depot thinks viewers will notice the distinction and some marketing experts agree Unlike other sports NASCAR encourages fans to patronize sponsors tells them that with out sponsors ticket prices would be higher and the teams said Bill Chipps an editor of IEG Sponsorship Report a newsletter that writes about corporate sponsorship in sports and entertainment Home Depot landed the NASCAR sponsor distinction when contract renewed The home-improvement giant said it too was approached by Speedway Motorsports about naming the Charlotte track but Home Depot declined you buy a particular venue limited to that race said Carol Schumacher Home vice president of public relations think this way we can reach fans at every single Home Depot has stores in 44 states Now that Lowe's has committed millions of dollars what will ensure announcers will use Lie right name? After all commentators still occasionally refer to the Indianapolis Hoosier Dome and not RCA Stadium (a right Thompson Consumer Electronics paid about $10 million for in 1994) Speedway Motorsports owns PRN Performance Racing Network which broadcasts the races on the radio said spokesman Brian Peace Plus made that a provision of the contract he said Speedway Motorsports plans more rights deals at its other properties MUTUAL FUNDS think maybe the right marriage the right relationship just presented itself Helton said think part of it has to do with the fact that in motorsports the facilities are all privately held as opposed to being in city arenas or being Now he said other tracks will a hard at the sale of naming rights Fans will begin to see name changes on Charlotte Motor Speedway facilities this spring In fact the cost of changing the name on everything from the building to T-shirts to tickets that initially dampens the positive eltect of the deal on bottom line While this year it will add 2 cents to the per-share earnings in coming years that should climb to 5 cents the company said NAME from ID northeast ends of the speedway site add new restrooms and upgrade those that exist create more parking spaces and improve roads within the speedway complex so traffic moves better And although SMI officials giving specific figures the next track name-change might be a higher dollar SMI Chairman and Chief Fxecutive Bruton Smith said Tuesday Speedway Motorsports stock gained 'M'i cents to close at $26 1 2 Vi Tuesday up 146 percent is the first company to buy the naming rights at a major auto racing lacility but the idea has been tossed around for some time said Mike Helton vice president lor competition mm mm sm ConhnuKi Horn prfxoUinq igo Respected Rewarding Relevant MBA Open House INFORMATION SESSION Let Summit Mortgage Help You! 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