I completely understand that business objectives drive executive behavior. Got it. Check the box.
But what I’ll never understand is why some executives believe that they can use the ‘smoke and mirrors’ technique to hide (or side step) the truth and in the end not damage their reputations.
Charlotte Motor Speedway has hosted an annual Media Tour for the past 20-plus years. The premise of the tour has been two fold: 1. Give motorsports media members the opportunity to gather pre-season stories, 2. Since 98% of NASCAR race teams are in the Charlotte area, give them a platform for team and sponsor announcements.
It’s a great vehicle for both groups and at its height, before media outlets began slashing their staff and budgets, there would be more than 300 media members piling into numerous tour busses for the four-day event.
One particular year, my partners Rodrick and Doug Cox and I had been hired by NASCAR team owner Travis Carter to manage the Public Relations for his two-car Sprint Cup Series team. Most multi-car teams have individual primary sponsors for their cars, but in this particular situation, Travis had one sponsor for both of his cars – Kmart.
Kmart was not new to motorsports. In fact, the discount retailer had sponsored Mario Andretti in Indy Car, at one time had its own race - the Kmart 400 at Michigan Speedway - was once the Official Retailer of the Daytona 500 and sponsored teams in NASCAR. So the fact that the brand was the primary sponsor on two cars was not a surprise. Actually, it was unique and seen as a bold and committed move considering the costs of sponsoring just one car.
In mid-December, Travis was telling us that Kmart had a new customer loyalty school program that they were going to launch and wanted to use the NASCAR platform as a way to build awareness. At that time, driver Jimmy Spencer had left the team and had been replaced by Joe Nemechek. We decided to use the Media Tour as our platform to deliver the corporate message and introduce the new Kmart team of drivers Todd Bodine and Nemechek. It was the perfect scenario to kick off the season and build the pre-Daytona buzz. I worked out the details with the Media Tour organizers and we were locked in for a ‘lunch stop’ on January 22.
We had less than a month to get the press stop organized so preparations quickly began: meeting with the sponsor brand team to determine their message points, writing speaking points for the emcee, team owners and drivers, putting press kits together, preparing and reviewing the Q&A points, designing the stage and positioning of the cars, organizing the photo op list, ordering food and media gifts, etc., etc., etc.
Roughly two weeks prior to the announcement, the signs of Kmart’s financial troubles were really making news and making all of us on the team and agency side very nervous. We spoke with our brand contacts and they assured us that it was ‘business as usual,’ the commitment to the NASCAR program was in tact and there were big announcements to be made.
I recall offering up the suggestion of changing course with the announcement several times as the news volume began to increase. We could still make the school program announcement they wanted, but perhaps this wasn’t the venue. Maybe we wait until Daytona and let things settle down a little bit in the media? Maybe we just go the route of an old-school press release announcing the school program? My immediate concern was that the core messaging for the press event would be completely upstaged and the brand’s credibility eroded with a ‘commitment to the sport’ message if the bankruptcy rumors we had all been hearing became a reality.
I got the same response and we continued down the path.
The core team – brand contact, drivers, Travis, Rodrick, Doug and myself – all met the night before the announcement to go through the Run of Show, review the talking points, discuss the Q&A and walk through the staging and photo ops. For us, it was business as usual. However, that changed when the brand manager told us that there was going to be a big announcement tomorrow from corporate. We asked what it was and if it was good news or bad news. He said it looked as though the company was going to file for Chapter 11 bankruptcy.
My stomach dropped and I took him aside and said that we really don’t need to compete with that news tomorrow. We can call it off and not put ourselves in the media cross-hairs. We are moving ahead and staying the course, was the answer I heard. I reminded him that he would be the one at the podium taking the questions about support of the your teams and bankruptcy and no one is going to ask a single question about your school program. This would do more harm than good. Didn’t matter. He rationalized to me that by making the announcement about the school program, it would prove that the company was still moving forward in the face of the financial situation.
While I can understand that, I also told him that it would specifically call into question Kmart’s team sponsorship commitment, put him in the line of media fire that he may be prepared for, but our team owner and drivers aren’t. Oh, and the fact that we are announcing this on the day that the company files for Chapter 11 bankruptcy protection doesn’t make us look very smart. I was told this wouldn’t be on the motorsports media radar and that the bankruptcy filing was just a procedure.
January 22 was here and the media tour busses began pulling into the team’s parking lot. Our group had already read some of the business and financial headlines reporting on Kmart’s filing. Have you ever felt like you were either leading a lamb to slaughter, OR that you were in the flock about to be slaughtered?? That’s about how I felt that morning.
I’ll fast forward to the point when our brand contact, who was given 15 minutes to make the school program announcement, passed the 35 minute mark and finally opened the floor for questions. Rule No. 1 for press events with food – don’t go over your time allotment because you are now standing between a hungry press corps and their lunch!
The first question that came up was not about the school program. Can you believe that?? It was directly about, wait for it … you got it: was Kmart going to still support its NASCAR team sponsorship given the bankruptcy protection filing?
Silence. Then a feeble response about business as usual and we are committed to Travis and the teams. And after that, there were a few questions to the drivers and team owners from the emcee (that we planted with him), but no other questions from the media. They were done and hungry.
Once the smoke cleared and the mirrors put away, Kmart only sponsored the teams through the second race of a season that had 30+ on the schedule citing that under the terms of the bankruptcy filing they had to trim all ancillary spending.
At that point, Travis and his teams had their own ‘blue light special’ to promote: “Attention potential sponsors, there’s a blue light special in the motorsports department on primary sponsorships for the Nos. 26 and 66 Fords.”
The team scrambled to piece together small sponsorships for the balance of the season and, sadly, this marked the beginning of the end of Travis’s multi-car organization.
So what can we learn from this? I offer the tips below as thought starters for you as you assess future press events, corporate presentations or other public displays … what else would you add?
Six tips for knowing when it may be time to ‘Pull the
Plug’:
1. When you find yourself or hear someone rationalizing why you should proceed rather than recognizing the reality of the situation.
2. When transparency takes a back seat to smoke and mirrors, which becomes the primary message vehicle.
3. When you realize that the true message that you want to deliver will be overshadowed.
4. When you determine that your spokesperson will become a news target rather than a news source.
5. When your agency partners (charged with looking out for your best intentions) are pointing out that this isn’t the best course of action.
6. When it appears that ego is beating out wisdom.

Recent Comments