NHRA News: NHRA president Tom Compton pleased with NHRA's growth (6/15/2004)

NHRA president Tom Compton pleased with NHRA's growth

6/15/2004

"I strongly believe the future of NHRA has never been brighter."
– Tom Compton

It is immediately apparent when talking with NHRA president Tom Compton that his passion for the continued growth of drag racing is unsurpassed. Since being named NHRA's third president on Jan. 1, 2000, Compton has been on an endless coast-to-coast journey spreading the word about "the world's most exciting motorsport" to racers, sponsors, and fans alike.

In this extensive question and answer session, Compton talks about the progress of NHRA in the last four and a half years, addressing the successes and current status of many areas, including sponsorships, television, Sportsman racing, member tracks, and NHRA's continuing efforts to promote the sport.

Q: This year marks your fifth season as president of NHRA. You and your management team developed, at the outset of your presidency, a strategic plan with the intention of growing and expanding NHRA. Where are you today on that plan?
Compton: We have made some significant strides to grow and expand our fan base, sponsorships, and television while increasing awareness of NHRA as the No. 2 motorsport, by nearly every measure, in the United States. With that said, there is much more work that needs to be done.

We remain focused on five key initiatives: 1) increase attendance at national events; 2) secure nontraditional sponsors and work with race teams on sponsorship procurement; 3) increase sponsor activation in the marketplace around NHRA sponsorship; 4) activate POWERade/Coca-Cola relationship; and 5) increase television viewership. Everything we do as an organization should make a direct impact on these five initiatives.

By accomplishing these initiatives, NHRA can secure the financial resources necessary to support Sportsman racing at all levels. This includes the means to maintain the infrastructure necessary to manage and conduct Sportsman racing, to provide support to the NHRA Member Track network, and to fund some elements of Sportsman racing whether it's tied to a national event, a divisional event, or at a local member track.

Q: Summarize what has been accomplished to date and what still needs to be done.
Compton: In terms of success, we signed a long-term television package with ESPN that provided unparalleled exposure and consistency for the sport of NHRA Drag Racing, reaching out to our loyal fan base and to a new, broader base of sports fans. Together with ESPN Regional Television, we have significantly raised the bar with regard to how drag racing is shown on television.

We were able to secure two new series sponsors when we signed the POWERade brand and The Coca-Cola Company (Professional) and Lucas Oil (Sportsman). We made changes on-site at our national events, both on and off the track, to increase the entertainment value of our show for our customers, including reducing the time between rounds and minimizing downtime associated with oildowns. We have improved facility amenities with the introduction of new state-of-the-art stadiums in Sonoma, Bristol, and Las Vegas and have made improvements at many tracks, including Indianapolis Raceway Park.

Compton was on hand for Shirley Muldowney's recent induction into the International Hall of Fame.
Cameras In Action

We refocused attention on sponsorship and sponsor relations, which resulted in the high marks we received in Street & Smith SportsBusiness Journal's 2003 League Report Card, including being ranked among all sports as the No. 1 property in terms of offering good value for the money. These are but a few of the many accomplishments we have made in the last five years. Yet we still have work to do in each and every one of these areas.

We have the best motorsport product in the country, with unmatched access for fans and sponsors alike, and we need to build upon the foundation we have laid. We need to convey the excitement of NHRA Drag Racing to yet an even larger television viewing audience. We need to extend our partnership with POWERade and The Coca-Cola Company and continue to deliver results for the brand. We need to continue to improve our on-site show for our customers and bring more fans into the events. And we need to continue to work to introduce and secure nontraditional sponsor involvement with NHRA while increasing the return-on-investment for our current sponsor base.

Q: The ESPN relationship is now in its fourth year, and you recently announced a one-year extension through the 2006 season. Is the relationship what you envisioned it would be back in 2000?
Compton: We very much value our relationship with ESPN and the network's broad appeal to drag racing fans, motorsport fans, and sports fans in general.

As with every partnership, we must continue to grow and improve, and our relationship with ESPN is no exception. There is no denying that ESPN's ever-growing list of properties has created added challenges for NHRA programming. This is of great concern to us, and we are working daily with the network to secure the best times available to air our programming. We are working with ESPN to minimize the number of times we get bumped or moved because of other live sporting events.

We believe this is the right path given the value ESPN brings to NHRA, not the least of which is being in nearly 90 million households and the upside potential for growth associated with that. We also are working hard to communicate to our audience when scheduling changes occur to ensure that viewers are aware of the changes so that they can enjoy the television broadcast on a same-day basis.

We have seen improvement in terms of coverage within ESPN's other platforms, such as SportsCenter, ESPN News, and ESPN.com, as well as promotional spots regarding our programming. But it can always be better, and we are working with ESPN to further increase both the coverage we receive and the promotions we can secure each and every week.

Q: Where do you see the television relationship beyond 2006?
Compton: Both parties have expressed an interest in expanding our current television relationship beyond 2006. However, before we can talk about specifics, we believe it is important to sit down and try to find solutions to some of the challenges we currently face.

Q: Have television ratings increased or decreased under this current package?
Compton: Since 2001, NHRA has had more television viewers watching our shows than in any year in our history. In fact, in 2003, we had 40 percent more viewers exposed to NHRA Drag Racing than in 2000. That is an important statement given the challenges faced across the board by many sports organizations vying for television viewership in an ever-expanding universe of options and choices.

In 2003, viewership was down, yet it still was 40 percent more than in 2000 and the third-highest viewership total in NHRA history. Clearly, the downturn can be attributed to the record rain that had a direct impact, in some cases, on television viewership as well as the schedule shuffling as a result of programming on ESPN/ESPN2. Although we can't predict Mother Nature, we are making every effort to minimize the scheduling challenges with the network.

In 2004, although it is too early to tell, we are slightly up in terms of viewership on our NHRA POWERade Drag Racing final eliminations show, NHRA2day, and the NHRA Lucas Oil Drag Racing Series despite having a few of our races affected by inclement weather and one [Gainesville] receiving a less-than-favorable time slot.

Q: Sponsorship retention and new nontraditional sponsorship procurement were major initiatives in your strategic plan. The sponsorship base has remained intact, for the most part, but what is NHRA doing to change the mix to a more nontraditional sponsor base?
Compton: NHRA is focused and committed on maintaining and servicing our current sponsor base while bringing new, nontraditional sponsors to the sport. We spend countless hours working with agencies and companies to get them involved in NHRA. This initiative was, and will always be, a major part of our strategic plan. Some may be quick to point out that we haven't seen a mass recruitment of nontraditional sponsors. However, when we embarked on this initiative, we didn't have nontraditional sponsors like The Coca-Cola Company, U.S. Army, or Schick. We are now talking to a number of nontraditional companies that are looking at the sport seriously. But the process of recruiting new nontraditional sponsors to the sport of drag racing takes time.

We are at a pivotal time in our sport's growth as more and more sponsors are starting to look at the value associated with NHRA sponsorship. It is important that, as a collective group, we embrace these new opportunities and work together so that potential sponsors have a positive impression of the sport.

Q: NHRA had a very strong ranking in last year's Street & Smith SportsBusiness Journal League Report Card, yet sponsors are slow in embracing NHRA Drag Racing. Why?
Compton: Sponsorship procurement takes a tremendous amount of time and a lot of hard work. One survey alone doesn't bring them in but merely reaffirms we are on the right track. For many companies, it opened their eyes to the viability of getting involved in NHRA. We are working diligently to leverage the result of that study and get potential sponsors to take the next step.

NHRA is fighting for the same sponsorship dollar as everyone else in sports entertainment. To that end, we must continue to remain focused, aggressive, and proactive. I truly believe over time new sponsors will see what many already in the sport see – the incredible value associated with NHRA.

Q: What is NHRA doing to help race teams secure sponsorships?
Compton: There has never been a time in NHRA's history when the sanctioning body has worked more closely with race teams to secure sponsorship. NHRA has developed and made available a variety of resources to help procure race team sponsorship. NHRA has presentation packages, extensive research, videos, and other data and materials to help race teams secure sponsorship. I, as well as other members of my executive team, have made numerous presentations on behalf of race teams to show the benefits of participation in NHRA. We are staunchly committed to help race teams secure sponsorship, and we realize the critical importance of well-financed race teams.

Q: NHRA is in the third year of its relationship with POWERade. What is the feeling at The Coca-Cola Company regarding the sponsorship's success?

Sandy Douglas, left, president of the North American Division of The Coca-Cola Company, seals a five-year deal with NHRA and Compton in 2001.

Compton: The NHRA relationship with POWERade, The Coca-Cola Company, and Coca-Cola Enterprises is a working example of how a sponsorship can significantly benefit all parties involved. On a regular basis, we see a growing commitment from their senior management team and everyone involved on the property regarding the sponsorship and the positive impact it has made on the POWERade brand.

Q: What has POWERade done to stimulate interest among its business partners and increase awareness for the sport?
Compton: The positive impact POWERade has made on NHRA and the credibility we've gained through the association with one of the world's most recognizable companies is immeasurable. For the first time ever, we have seen national television advertisements produced by The Coca-Cola Company featuring our POWERade World Champions. We enjoy POWERade-themed in-store displays on the sport of NHRA POWERade Drag Racing and promotional programs with some of the many POWERade business partners, which continues to broaden and expand.

One recent example is the just-completed promotion with over 130 McDonald's outlets in the Columbus area and a very similar program to be implemented as part of the 50th annual Mac Tools U.S. Nationals in September. In 2003, POWERade introduced an NHRA-themed bottle that was made available nationwide, and this year expanded the program to include a national under-the-cap promotion. Further, NHRA is working with more and more grocery and fast-food chains thanks, in large part, to our relationship with POWERade.

Q: Will POWERade continue its role as a series sponsor?
Compton: We know, given the feedback we have received from The Coca-Cola Company and Coca-Cola Enterprises, that the POWERade brand is experiencing growth as a direct result of its association with NHRA. We hope to talk more specifically later this year about continuing our relationship well into the future. All indications are that they are very pleased, as we are, with the partnership.

Q: Lucas Oil has become, in just a few short years, a major player in the sport of NHRA Drag Racing? Are they committed long-term?
Compton: We can talk at length about the positive impact Lucas Oil has had on the drag racing community. Forrest Lucas, his wife Charlotte, and the entire Lucas Oil Company care very much about Sportsman racing and have a true love for the sport of drag racing at all levels. Lucas Oil has, in a short time, become a very important part of the NHRA family. The recently announced sponsorship extension of the NHRA Lucas Oil Drag Racing Series through 2009 is the best evidence of their long-term commitment to NHRA.

Q: How is Sportsman racing and NHRA Member Track relations? NHRA announced a new policy regarding Sportsman classes and participation at national events. How has that worked out?
Compton: In recent years, we have seen tremendous growth in participation at the Sportsman level and a significant increase in the NHRA Member Track program. I attribute this success to listening to the racers and the member track network. We have worked more closely with racers to make every effort possible to provide an enjoyable experience when they come to a national event, divisional event, or to a member track for a weekly function. We have worked with our NHRA member tracks to develop marketing programs to encourage participation and provide value, not only to the racing community but to the member tracks as well. NHRA2day, the weekly magazine show aired every Sunday morning on ESPN2, has visited tracks in all seven divisions and showcased these facilities as part of our Sportsman Spotlight segment.

Whenever you make changes, as we did when we announced the new policy on Sportsman racing at national events, you are bound to get criticism, and this issue was no exception, initially. With that said, we have received many letters from racers who have seen the positive results of these changes, including more runs at a national event and better run times. Sportsman racing is, and always will be, a crucial component of our national event structure, and we felt it was necessary to manage the growth and make it work as best we can for everyone involved. We believe these changes will help us better deal with the challenges associated with space, time, and the overall experience at a national event. Ongoing, we are looking at the impact of this year's changes and will modify them, if necessary, to assure we meet the objectives we set out to accomplish.

Q: Let's talk about attendance at national events. Is attendance up or down in 2004?
Compton: Since I have been with the company, we have never seen such strong advance ticket sales at our national events as we have in the first part of 2004. Unfortunately, Mother Nature, which had a direct effect on us in 2003, has played havoc with some of our races. This clearly has had a direct impact on overall attendance; however, with these strong underlining trends, when the weather has cooperated, we have seen strong numbers and some record-setting attendance figures.

Q: Will NHRA expand its schedule in 2005?
Compton: NHRA does not have plans to expand its schedule in 2005. However, we are hoping to make an announcement regarding the 2005 schedule much sooner than in years past.

Q: Where do you see the current state of the national event tracks in terms of providing not only a racetrack conducive to great racing action?
Compton: NHRA is about drag racing. To that end, our national event tracks should be the best prepared and provide the best fan experience in the country. Many of our national event facilities this off-season focused on improving racetrack surfaces. NHRA national event tracks should be, and are, the best in the country, and we applaud our national event track partners who have allocated resources to maintain this high standard. In fact, this last off-season, eight national event facilities improved, at some level, their racetrack surfaces, ranging from a complete resurfacing of the racetrack all the way down to the sand trap to extensions of concrete pads, new asphalt, grinding, and shutdown-area improvements.

Q: What is NHRA doing to promote the sport and bring it more into the mainstream?
Compton: Sponsorship activation, television, and media. NHRA alone cannot adequately promote the sport and must continue to garner support from our sponsors. Most importantly, we need to implement and expand in-market activation programs to get the sport and NHRA out to a broader audience. Sponsors are leveraging their involvement in NHRA by incorporating consumer-related programs into their sponsorship mix and/or expanding advertising efforts to a larger nontraditional audience. An example of this would include advertising placed by such brands as POWERade, Budweiser, and the U.S. Army, to name a few, in publications such as USA Today. The growth of the sport and mainstream acceptance will hinge upon the cooperation and partnership between NHRA, its sponsors, and quite frankly the entire racing community.

In terms of television, there are few mediums that can better introduce the sport of NHRA Drag Racing to a mainstream audience than television. Our relationship with ESPN, the worldwide leader in sports, provides the platform to reach millions of viewers each and every weekend that may not normally be exposed to drag racing. Delivering a compelling show at a reasonable hour is one of the major initiatives at NHRA. ESPN Regional Television, our television production company, has done a tremendous job of capturing the sport for viewers at home through camera angles, graphics, and storylines, just to name a few, and the entire racing community recognizes that. But those of us who have been to a national event realize the challenge to convey the sport's speed, power, and awesome nature through television.

Thanks to everyone in the racing community, media coverage of the sport in daily newspapers and magazines as well as radio and television outlets is at an all-time high. We are seeing more coverage in race markets, more coverage from daily newspapers nationwide each and every week we compete, and our coverage in USA Today has increased dramatically in just three short years. Add to this the increased exposure in nontraditional publications, and the results have heightened awareness of NHRA Drag Racing among fans and sponsors alike.

Q: Has the tremendous growth of NASCAR and its position within the mainstream hurt or helped NHRA?
Compton: NASCAR has mainstreamed motorsports and made it a legitimate force alongside the traditional stick and ball sports. As a result, everyone in motorsports has benefited from their tremendous growth, and NHRA is no exception. Our sport is a viable alternative because there is simply nothing that can compare to the raw power, speed, and fan accessibility. When combined with all of the other positive attributes NHRA offers and unparalleled return-on-investment a sponsor can obtain, NHRA is a very compelling story. I strongly believe that with more people looking at motorsports, coupled with NHRA's unique attributes, the future of NHRA has never been brighter.

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