Six Years, Plus Options

When explaining why IZOD chose to allign itself with the IndyCar Series, Phillips-Van Heusen (IZOD's parent company) Executive V.P. of Marketing Mike Kelly said that "We saw nothing but growth and opportunity" since becomming the offical apparel provider back in July of 2008.

Now the sports-spirited clothing maker has seized that opportunity by becomming the new title sponsor, ushering in the era of the IZOD IndyCar Series. The deal will last for a minimum of six years, with options to extend the relationship already built into the contract. Mr. Kelly declined to elaborate on just how much money IZOD is spending on this deal, but said that it was a sizable step up from the couple of millions of dollars per year that they were already spending on their IndyCar-themed line of clothing. He did remark that IZOD "expect(s) to be very aggressive in [their] spending".

So, what are they - and the Indycar Series - getting for their money? taken as a whole, it is the right to use the series as a vehicle to promote their product line; hence the new series title (and the new color scheme on this site!). For the Indy Racing League, the partnership means that they will be getting exposure beyond the traditional base of motorsports fans and, in the words of V.P. of Competition Brian Barnhardt; "marketing expertise that we've never had".

Here is what IZOD and the IRL publicly committed to during yesterday's press conference:

IZOD will use their marketing prowess to enhance the IndyCar Series' public exposure through their retail connections and through enhanced media initatives, which will extend beyond the outlets currently contracted to carry race broadcasts. They will also make a significant annual contribution to the  IRL's T.E.A.M. profit-sharing fund (see my Nov. 16, 2007 story "How TEAM Works"), which helps IndyCar squads meet their operating expenses.

In order to help IZOD achieve this, the IRL will give them full access to the vast collection of historic race cars and other memorabilia located in the Indianapolis Motor Speedway Museum for their marketing efforts. The drivers, whose "life stories" IZOD plans to use to promote the series, will be expected to make themselves available to help in the marketing effort.

And one more VERY COOL thing was announced yesterday. For several years now, the IRL has owned a couple of two-seater IndyCars, in which paying customers could be taken out for a few laps around a track on certian race weekends throughout the season. Starting in 2010, IZOD will have one such car at the head of the starting grid for every race, in which either an IZOD/Phillips-Van Heusen executive or an everyday race fan who has won a drawing/raffle will get to take the pre-green flag warm-up laps with the starting field!

This is alot to look forward to and, if it all plays out as it was laid out yesterday, I belive that this will prove to be a very beneficial relationship for the continued health and growth of the sereis.