Time on Camera: An Additional Explanation of NASCAR Tournaments
Journal of Sports Economics Vol. 12, No. 5, 561-570, October 2011
Kurt W. Rotthoff, Ph.D. Department of Economics and Legal Studies
Pete Groothuis, Jana Groothuis
NASCAR’s reward structure for rank order tournaments has been considered the exception to the rule in tournament theory due to the linear payout structure. We suggest that the rewards for drivers are nonlinear when you take into consideration the value of sponsorship time on camera and sponsor mentions during a race on TV. Given the importance of corporate sponsorship in NASCAR, we suggest that performance in a race provides additional benefits that are not captured in traditional tournament payments.