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In addition to television exposure, in his expert report,
Mr. Caponigro considered the following factors that he claimed
enhance sponsorship values: (1) The “prestige of participating
in the Indy 500";64 (2) good team performance on a consistent
basis; (3) one or more drivers with “star power”; and (4) the
extent to which a sponsor requires ancillary rights, such as use
of a driver’s name, image, and likeness.
Finally, the business opportunities afforded by sponsorships
may affect the sponsorship’s value. At the races, sponsors
develop business relationships with other participants and learn
about their products and services in a “more personal
environment”. If a sponsor is in business competition with one
or more other participants, the sponsor may spend more on a
sponsorship in order to match the size and scope of its
competitors’ sponsorships.
In his report, Mr. Caponigro also explained the different
levels of sponsorship categories. Mr. Caponigro described
primary sponsors as “usually the most prominent visually or most
important to the program.” The second class of sponsors,
“associate/secondary” sponsors, are “smaller in scope yet still
64He described the Indy 500 as equal in prominence to the
World Series or the Super Bowl and called it a “Memorial Day
tradition”.
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