More on the possible UPS/Edwards sponsorship
Quote selected text Published April 22nd, 2008 in NASCAR News
Office Depot is in the final year of its three-year deal with the #99 team. Edwards and Roush Fenway appear to be in position to push the first of many sponsor dominoes in the coming four to six weeks. If Office Depot, which has used Edwards out front for its annual “Official Small Business of NASCAR” promotion, doesn’t have a deal done by mid-May, industry sources say UPS will pursue sponsorship of Edwards’ car.
UPS has been considering several options, from staying at Michael Waltrip Racing to Edwards to Jeff Burton’s #31, which is scheduled to lose AT&T as its primary sponsor at the end of this season, but sources said Edwards has emerged as the top option.
The issue between Office Depot and Roush Fenway, sources said, is the price tag for the #99 car has increased significantly from three years ago when Edwards was considered more of an up-and-comer than a bona fide star. If Edwards stays in the # 99 as expected, Roush Fenway hopes to extract $22 million to $24 million a year in the next contract, sources said, a significant step up from the deal Office Depot signed three years ago in the $14 million to $15 million range annually.
It’s uncertain how aggressively Office Depot will pursue another three years on the #99 at the higher price. The office supply retailer is embroiled in a proxy fight with a shareholder group that is attempting to oust CEO Steve Odland from the company’s board after an 85 percent drop in fourth-quarter net earnings year-over-year. Office Depot’s stock price has dropped from a high of $37.05 nearly a year ago to $11.51 at Monday’s close, which has prompted questions about its ability to win a bidding war for the #99 car. John Miller, a former Roush marketing executive who now owns his own agency, Xceed Sports Marketing, is representing Office Depot in these negotiations.
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When your company’s stock drops 75% in value how can you justify 100% jump in a 3 year contract to sponsor a car driver ??? If you can’t keep the $$ flowing and are bleeding at a 75% loss rate your expenses need to drop not jump by 100% to justify your job. I dumped Office Depot stock 9 months ago and I fear the stock holders will dump C.E.O. Mr. Odland as well…
Hello UPS $$…
why don’t they give the ceo of office depot a couple million dollar raise. that what most co. do. the ceo loses money then they give him more money into his pocket. i go to office depot all the time for my office stuff. their stores are awesome.. carl is a awesome driver and happy type of guy.
I GUESS NAPCAR SPONSORSHIP IS NOT PAYING OFF FOR OFFICE DEPOT.EVERYTHING AT ROUSH IS EXCELLENT,MAYBE NOT ENOUGH FANS IN THE STANDS AND POOR RATINGS ON TV…………….