What: Brokering deals
between race cars and sponsor companies
Who: Cragg Eubanks of RaceSport Ltd.
Where: Wichita Falls, Texas
When: Started in 2001
Cragg Eubanks, a 47-year-old amateur sports car aficionado, uses his expertise to broker business deals and his contacts in the professional racing industry to find corporate marketing partners for race teams nationwide. "Everybody realizes that the whole marketing venue in sports is changing and that we have to come up with methods to better manage these programs," says Eubanks. "We have to come up with business plans to show these corporations what they're going to get out of it if they invest these marketing dollars in professional motor sports teams."
He first came up with the idea for his business after realizing that the hundreds of millions of dollars spent every year on team sponsorships yielded few quantifiable results for the companies that choose to invest their marketing dollars. So he decided to change the way sponsorships were approached.
Today, his company brokers deals that generate revenues and value for everyone involved. For example, RaceSport brokered a licensing deal between Lampus Racing (a major race team) and Mothers Against Drunk Driving (MADD), whose logos will be placed on Lampus race cars. In exchange, RaceSport is seeking corporate sponsors in the non-alcoholic beverage industry for MADD, which plans to implement a multimedia-based youth education and awareness program at the race track. Having closed one deal and with another in the works, Eubanks is on his way to reaching sales projections of $400,000 by the end of the year.