Subject: [NEXTEL-1] Nextel races to Charlotte

From: [email-masked]
Date: Mon, 08 Sep 2003 16:40:29 -0400

Nextel races to Charlotte
New sponsor of top NASCAR series will locate office here

Erik Spanberg
Senior staff writer

Already known as the hub of NASCAR and its teams, the Charlotte 
region is on the cusp of drafting economic momentum from new series 
sponsor Nextel Communications Inc. 

The wireless phone company, which signed a 10-year, $750 million 
deal this summer to become NASCAR's new title sponsor, is close to 
securing office space in Huntersville. From there, Nextel will hire 
a staff to oversee its stock-car racing advertising, promotions and 
services -- including experimental communications technology for 
race teams to use during competition. 

"This just represents a further indication of how strong the 
motorsports industry is here, and how important it is," says Humpy 
Wheeler, chief operating officer at Speedway Motorsports Inc., which 
owns Lowe's Motor Speedway and five other race tracks around the 
country. "This is another sign of vitality and growth." 

The move is both a relief and a boon for the area. Nextel chose the 
Charlotte area over Daytona Beach, Fla., and New York, the locations 
of NASCAR's primary business offices. NASCAR operates its licensed-
products division as well as a racing research-and-development arm 
in North Carolina. 

Nextel spokeswoman Audrey Schaefer confirms the company is seeking 
office space in Huntersville but declines further comment. 

Nextel has said little about its plans for the local office -- and 
its entry into NASCAR. The company must tend to changing out 
speedway signs across the country (to Nextel from Winston), launch a 
motorsports-themed ad campaign and begin working with drivers and 
teams on an array of projects. 

Industry experts say Nextel is close to signing a lease for 7,000 
square feet at Huntersville Business Park near Interstate 77. The 
company, working with sports-marketing consultant Octagon, will have 
15 to 20 staffers handling NASCAR-related work here. 

Soon after the company signed on with NASCAR, it began exploring 
ways to extend the partnership beyond advertising and promotions. 

Its patented walkie-talkie wireless technology may be incorporated 
into the equipment race teams use for communication between crews 
and drivers. 

"When it comes to working with teams, you need to have access," says 
Geoff Smith, president at Roush Racing Inc. "That means you have to 
be here, where you can reach everybody in the sport very quickly." 

The company is replacing R.J. Reynolds Tobacco Co. as the sport's 
lead sponsor. Beginning next year, the top series will be known as 
the NASCAR Nextel Cup. The new office here will serve the same role 
currently led by Sports Marketing Enterprises, the Winston-Salem-
based R.J. Reynolds offshoot responsible for the tobacco company's 
racing-related events and promotions. 

Nextel's imminent arrival, combined with the sponsorship, 
demonstrates the staying power of stock-car racing. The Reston, Va.-
based company is the nation's fifth-largest wireless company, with 
$8.7 billion in revenue last year. 

"We know for the next 10 years we have a comfort range because of 
Nextel," says Ed McLean, executive director of the N.C. Motorsports 
Association, a Cornelius-based trade group. "It means the future 
should be even better than the recent years of growth in the 
industry." 

Charlotte and surrounding areas such as Cabarrus and Iredell 
counties are home to nearly every major NASCAR team, as well as 
Lowe's Motor Speedway. McLean's association says the annual 
statewide impact of motorsports-related businesses is $1.5 billion 
to $2 billion. 

Those impact numbers come from estimates, though the N.C. 
Motorsports Association plans a formal study early next year. McLean 
says many in the region and state overlook the importance of racing 
to the economy. 

Many racing-related businesses are small, tucked away in warehouses 
and other nondescript buildings in and around the speedway. "These 
companies make roll bars or sheet metal for the race cars, but 
people don't see these businesses," McLean says. "It adds up to a 
tremendous impact, though." 

Industry experts say Nextel's arrival can only bolster the local 
motorsports sector. "Any time you can get more revenue and overall 
opportunities into the economy, it's good," says Jim Doyle, 
principal at Retail Sports Marketing Inc., which works with several 
NASCAR clients. "Nextel is going to be good for NASCAR." 

http://www.bizjournals.com/account/sign_in?uri=/charlotte/stories/2003/09/08/story5.html

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