SPORTS MARKETING JOURNAL
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International Journal of Sports Marketing & Sponsorship

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Back issue   Volume 9   Number 3   April 2008

Editorial
Never mind the dopers, what about the spies?
more...

If the dopers don’t win, then the spies will. Great sport, eh? Last year was hardly the nadir of sporting ethics, but hopefully it will turn out to have been a watershed. I do not want to revisit my observations (on commercial influences on doping and vice versa) from our most recent edition, but there do appear to be some parallels between the doping scandals of recent years and the Formula 1 spying scandal in 2007. It seems apt (and timely), therefore, to consider some of the issues surrounding ‘Spygate’, especially in a motorsport special edition.

From the top, here’s what the BBC reported: “McLaren received a systematic flow of information from a spy within rivals Ferrari for nearly three months this year, the FIA has revealed. Drivers Fernando Alonso and Pedro de la Rosa were aware of the information. It was the possession of this ‘highly sensitive’ data that led the FIA to fine McLaren £49.2m and deduct their Constructors’ Championship points. The information came to McLaren chief designer Mike Coughlan from Ferrari chief mechanic Nigel Stepney.”1

In a subsequent twist, Ferrari fell foul of a counter accusation, with the BBC reporting:

“Ferrari have been accused of spying on Formula One rivals McLaren by former head of development Nigel Stepney. In the latest twist to the ‘spy-gate’ saga, Stepney claims he received key information about McLaren’s set-up. ‘I got weight distribution, I got other aspects of various parts of their car, and I was Ferrari's employee at the time,’ he told grandprix.com.”2

The parallels with doping? Well, for a start, it is happening; some teams may be gaining an unfair advantage by doing it; and for the time being at least, getting away with it seems to be proving difficult at a time of heightened vigilance. Oh, and it’s illegal. Or, is it only illegal if you actually get caught?

My mind drifts to the days when I started watching Formula 1, back in the mid 70s, when strange and revolutionary contraptions were produced by teams such as Tyrell (six wheels!), Brabham (a car with a huge rear fan) and Lotus (the revolutionary Lotus 79 that resulted in the ‘ground effect’ era). All attracted significant attention, the latter leading to a spate of copycat designs. How could the other teams do this and why did all the cars on the 1979 starting grid look so much the same? Simple: team officials walked up and down the pit lane looking, making notes and in some cases taking pictures – you could even ask someone else to take the pictures for you.

Take a look at some dictionary definitions of what a spy is: “a person who keeps close and secret watch on the actions and words of another or others”; “to discover or find out by observation or scrutiny”; “to search for or examine something closely or carefully”; “to be on the lookout; keep watch”3. In other words, 1970s F1 was populated by spies; indeed we’ve all been spies at some stage of our lives if we follow the definitions presented above. Formula 1 in the 21st century is apparently no different. Punish us all?

So what has changed? Probably not that much. Many competitive sports people are willing to do what is necessary to compete on equal terms. This could be by taking drugs or it could be by spying. There are clearly some very interesting regulatory and ethical issues here which thus far no one seems to have mentioned.

For instance, are drug taking and spying, in essence, the same thing or different things? If they are the same, then why not give parity in the way such indiscretions are dealt with? In addition, why is it that the penalties for spying in motorsport appear so harsh when compared with transgressions in other sports?

While I accept that the high technical content of F1 cars may be more conducive to forms of industrial espionage, this denies the increasingly technical nature of much of sport – from cycling to football, to footballers and their boots.

For the Journal, what is most interesting is the response of sponsors and commercial partners. Cycling, admittedly, appears to be dead on its drugfuelled legs, but commercial partners have recently been quick to abandon the sport following recent scandals. Yet this does not seem to have happened in F1. I wonder how many, if any, of the corporations currently involved in F1 have been embarrassed by points deductions, multi-million dollar fines and severe reprimands. Isn’t this all bad for business?

Yet while we all seem to find drug-taking abhorrent and sponsors are prepared to sever long-term team relationships because of it, we rarely hear about such concerns relating to spying, in motorsport or otherwise. Does that mean we condone spying? Is it an accepted part of sport (and indeed everyday life)? Or are we failing to face up to the fact that it exists and gives some people/teams an advantage, unfair or otherwise? If drug-taking in cycling has gone on for too long, a counter to this view could be that spying has gone on for too long in motorsport – and sponsors and commercial partners need to start taking a more ethical and socially responsible stance. If spying is prevalent in F1 then, as I argued in the previous edition of the Journal, a market-led solution is likely to be the best way forward. That is, if sponsors and commercial partners start to pull out, then it will stop.

There is one obvious problem when using this line of argument: in a sport where the link between sponsor/commercial partner and team is much closer and more synergistic than in perhaps any other sport (some sponsors are actually referred to as ‘technical partners’), are the two complicit in spying? Does technical data acquired in a surreptitious manner benefit the sponsor as much as it does the team? If complicity is an issue, then it will clearly have some interesting implications for brands, image transfer, recall and so on. My advice to those involved? Just don’t get caught – wear a good disguise!

Simon Chadwick, Editor

1 ‘McLaren exposed by spy evidence’, accessed 3 February 2008 from: http://news.bbc.co.uk/sport1/hi/motorsport/formula_one/6995240.stm

2 ‘Ferrari accused in F1 spy twist’, accessed 3 February 2008 from: http://news.bbc.co.uk/sport1/hi/motorsport/formula_one/7027318.stm

3 All taken from dictionary.com

Interview
Jim O’Connell, Vice President Corporate Marketing, NASCAR
Paper 1
Demographic and psychographic variables predicting NASCAR sponsor brand recall
Authors
Lance Kinney, University of Alabame
Stephen R. McDaniel, University of Maryland
Larry Degaris, University of Indianapolis
Abstract
Four demographic variables (education, age, gender and internet use) and two psychographic variables (attitude toward NASCAR sponsors and NASCAR involvement) were investigated for impact on NASCAR fan ability to recall sponsor brands. Regression analysis indicates that the above variables are significant predictors of ability to recall sponsor brands, combining to explain 33% of observed variance.
Paper 2
Corporations brought to you by NASCAR: rhetorical identification through sponsorship
Authors
Matthew Gill, Eastern Illinois University
,
,
Abstract
This study approaches corporate sponsorship of sport as identification rhetoric to further understand the relationship created between consumers and corporate sponsors. The focus is on the corporate sponsorship of NASCAR’s Sprint Cup Series, examining how sponsorship messages utilise identification tactics. The study finds that messages rhetorically create identification through common ground and unifying symbol strategies between the sponsor and sponsored activity and between the sponsor and consumer.
Paper 3
NASCAR fans’ responses to current and former NASCAR sponsors: the effect of perceived group norms and fan identification
Authors
Aron M. Levin, Northern Kentucky University
Fred Beasley, Northern Kentucky University
Richard L. Gilson, Northern Kentucky University
Abstract
This research examined fans’ purchase intentions towards the sponsor of a NASCAR event and towards the previous sponsor. The study shows that fans are more likely to purchase from the current sponsor and less likely to purchase from the previous sponsor. Fan identification and perceived group norms were significant predictors of purchase intentions towards the current sponsor, but only perceived group norms predicted purchase intentions towards the ex-sponsor. Additionally, perceived group norms partially mediated the relationship between fan identification and purchase intention.
Paper 4
NASCAR in Mexico: the US expansion of motorsport into Hispanic culture
Authors
Thomas S. Mueller, University of Florida
,
,
Abstract
NASCAR has instituted an aggressive growth campaign. A compelling challenge is to retain its core fan base – south-eastern US consumers – while also attracting a new upscale demographic and an international following. One targeted initiative was a three-year commitment to feature the NASCAR Busch Series at the Autodromo Hermanos Rodriguez, near Mexico City. This paper explores the assimilation of the NASCAR core product into a Hispanic subculture, observes the media’s depiction of the expansion, and discusses the US fan reaction to racing in Mexico.
Paper 5
Inside BAM Racing: rethinking the sponsorship match-up process in ‘America’s fastest-growing sport’
Authors
Jessica R. Braunstein, Towson University
Joshua I. Newman, Towson University
Adam S. Beissel, University of Baltimore & Towson University
Abstract
This paper expands upon existing sports sponsorship ‘match-up’ research by offering an interview-driven, empirically grounded, ‘thick’ description of the decision-making processes of sports organisations in developing athlete-sponsor-team relationships. By focusing on a particular NASCAR organisation – BAM Racing, the study offers an in-depth interpretation of the sometimes ‘messy’ methods employed by executives in grafting an effective, synergistic match-up. The paper concludes with a discussion on the theoretical and practical implications of these findings.
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