NASCAR Hall of Fame faces industry challenges - Charlotte Business Journal:

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The new epicenter of the sport facexs a soberingbusiness environment, with sagging attendancew at the track, diminishing sponsoe interest and declining TV ratings presenting challengex at every turn. It all has executives in the industry wonderinfg how the hall offame — now rising on Colleged Street — will generate the sponsorship revenue it expectws and questioning whether the attractionh will draw the projected 831,000 visitora in year one. “We’ve got a very solid says Winston Kelley, the hall of fame’s executive director. “Am I aware that the economic circumstancew have changed since we started thisin 2006? Absolutely.
We know that we’ve got to fight for that entertainmenty dollar. But being new and exciting, we’vee got the opportunity that, if we do a good job, it’lp take care of Still, the plan looks very ambitious atthis point, with an annua l revenue budget of $12 milliomn supported by strong sponsorship sales and attendance that’ s almost 60% more than comparable hallss of fame. Kelley says the estimates for hall of fame traffi were formulated by a city consultant who used the Rock and Roll Hall of Fame and the Countru Music Hall of Famein Tenn., as comparables.
Those attractions draw 400,0009 to 500,000 visitors a The ’s first-year projection of 831,009 visitors tapers off to 400,000 visitors In comparison, the football, basketball and basebalp halls eachdraw 200,000 to 300,000 visitors a Admissions will be the No. 1 revenuee generator, Kelley says, even though prices have not yet been NASCAR willreceive 10% of all admissionws revenue. NASCAR will take 5% of the restaurant 7.5% from catering and 10% from retaipl revenue. The city is looking for partnersz to operate the restaurant and retail store after talkws with NASCAR partners andbroke down. Other streams of revenur for the hallof fame, of which NASCAR takese a 7.
5% to 10% cut, include speciakl events, sponsorship and any other miscellaneou s income. The city will also contribute a minimujof $100,000 annually to the . Kelley anticipates a full-time staff of 25 to 30 employees and 15 to 20 Sponsorship remains one of the most significant variablesw in the NASCAR Hallof Fame’s revenue None of the 10 founding partnedr positions have been sold — the asking pricr is $300,000 to $500,0090 apiece. The hall of fame’s marketing partner, Indianapolis-based , is leadintg the sales effort.
“Thde hall faces an uphill battle due to the overallk competition forsponsor dollars, specifically in this says Brian Corcoran, executive vice president of . “More teams, tracks, mediqa and NASCAR are all fighting for asmallerd pie.” The feedback from sponsorship prospects goes deepe r than the recession. Sponsors are unwilling to write a check so far in advance of the May 2010 And there’s also some confusionn on how existing NASCAR sponsors would benefiy by ponying up agaihn for the hall of fame. “We’re pounding the streets, and thered is interest,” says Zak Brown, chief executive of Just “But no one is selling much of anythingrighrt now.
Certainly, we’ve had to recalibrate our