Lowe's is out as title sponsor for Charlotte track

Thursday, Aug. 06, 2009

Lowe's will end its 11-year deal as the Lowe's Motor Speedway's title sponsor, the company confirmed Thursday.

It was rumored this month that the Mooresville home-improvement retailer would remove its name from the Concord track after its agreement, estimated to be worth about $3.5 million a year, expires at the end of the year.

The announcement Thursday afternoon means a name change is coming for one of NASCAR's most venerable tracks. Since its first race in June 1960, the track has become one of the best known in the sport, which in recent years has broadened its reach nationwide.

It's unclear what that new name will be. Speedway Motorsports Inc. owner Bruton Smith said last week that the track will again become Charlotte Motor Speedway unless a new title sponsor is lined up, according to The Associated Press.

Lowe's officials said both companies are discussing other sponsorship possibilities.

“When Lowe's entered into this marketing relationship in 1999, it was during the time of our company's rapid national expansion, and Lowe's Motor Speedway gave us the platform to introduce the Lowe's brand to millions of NASCAR fans and consumers across the country,” Robert Gfeller, senior vice president of marketing and advertising at Lowe's, said in a news release Thursday. “… However, marketing strategies change, and it was time after 11 years to direct our marketing resources in other areas.”

Speedway president and general manager Marcus Smith said in the same statement that Lowe's has been a “tremendous partner” and that the track and retailer will continue trying to find ways to work together.

Lowe's spokeswoman Chris Ahearn said officials from both companies are still discussing what that relationship might look like.

The Lowe's sponsorship was the first of its kind at a major U.S. racing facility. The only other NASCAR tracks with title sponsors are Infineon Raceway in Sonoma, Calif., which is also owned by Speedway Motorsports Inc., and Auto Club Speedway in Fontana, Calif.

News of the name change caps a rough few months for Speedway Motorsports Inc., which owns seven major tracks. The company on Thursday reported a second-quarter net loss of $23.4 million, or 55 cents per diluted share, compared with a profit of $47 million, or $1.08 per diluted share, in the same period last year.

Company officials cited recession-related declines in consumer and corporate spending, poor weather that plagued several races, sizable losses for Motorsports Authentics, the company's merchandising venture with International Speedway Corp., and other factors.

Speedway Motorsports Inc. shares closed at $15.36 Thursday, down from $16.19 the day before.

Kirsten Valle: 704-358-5248

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