Facilitating Sponsorship Channels in the Business Model of Motor Sports

Abstract

Basic business models consist of identification of customers, analysis of the customers’ needs, and plans for efficiently delivering solutions to such needs at a profit. The business model of motor sports has evolved to prominently feature corporate sponsorship as a B2B exchange mechanism that supplies the motor sports organization while offering sponsors a promotional channel for their marketing message. As a result, racing series managers and teams are often simultaneously positioned as a buyer and seller in relation to their corporate sponsors. This argues that the sustainability of this business model rests with the propensity for motor sports organizations to consistently deliver value to both B2C and B2B firms and minimize potential role conflicts. The in-depth interviews of industry professionals, which are analyzed in this research, highlight how actors in Formula One and NASCAR serve as channel facilitators (i.e., middlemen) to connect buyers and sellers within the motor sports sponsorship network.

Keywords: business model, motor sports, Formula One, NASCAR, sports marketing, sponsorship, B2B Marketing Channel