Will NASCAR's Next Challenge Involve "Dead Beat" Sponsors?

Many people are familiar with the term "dead beat" dads.  These fathers are that walk away without fulfilling their parental responsibilities, particularly in regard to not paying child support.

Have you heard of "dead beat" sponsors?  In the midst of the economic turmoil in the world and in the sport, "dead beat" sponsors just might be NASCAR's next challenging area.

Let's face it—there have always been sponsors that have promised the moon and delivered nothing but moon dust.  Because racers are often so desperate to be on the track, they sometimes believe just about anything that a prospective sponsor is willing to promise.

Again, because of the passion to race, teams get taken advantage of. They think they have a sponsor deal in place but end up having the rug pulled out from under them.  The worst thing to happen is that some teams cover their vehicles with sponsor decals, but find out that the sponsor has not paid, will not pay, or disappear from existence entirely.

The "dead beat" sponsorship occurs more often than not in developmental leagues.   For example, when I was involved with a Camping World East series team several years ago, a weight loss sponsor, who shall remain nameless, took real advantage of a team.

They promised all kinds of promotional funding for the car on the track and special events off the track.

When push came to shove, this so-called wonderful corporate partner disappeared from the scene, without paying a single dollar of the sponsorship commitment.

Ultimately, the company went bankrupt, as did the race team.

This year, "dead beat" sponsors may not just be a phenomenon in the lower leagues of racing.  Even at the Cup level, some corporate sponsors may have to pull out or renege on their agreements because of economic pressures.

So, will 2009 be the year of the "dead beat" sponsor?  Everyone in the sport of NASCAR surely hopes that this will not be so.

Here is a word to the wise for all race teams.  Instead of blindly believing in your sponsor, moving forward with a deal on a handshake or with a "gentleman's agreement", get your lawyers involved and make sure your contract is ironclad.

NASCAR, beware—a "dead beat" sponsor could be lurking in your future.