Bank of America's Bessant, NASCAR and Charlotte Win

AP Wire 03/13/2006 Bank of America's marketing chief gets big promotion

Bessant, a key player in Charlotte's winning bid for the NASCAR Hall of Fame has been named Bank of America's (BofA) global treasury services executive, succeeding Tim Arnoult, the bank said Monday.

Under Bessant, Bank of America expanded its marketing portfolio by adding sponsorship of the Olympics and deepening its ties to NASCAR racing, the country's fastest-growing spectator sport.

Besides offering below-market loans for the project, Bank of America and Wachovia Corp. contributed executives, bankers and lawyers to the team that developed and pitched Charlotte's bid for the hall. Bessant was a key figure as head of the Charlotte Chamber of Commerce.

Charlotte Wins Competition for NASCAR museum - No Sponsor Needed, or Wanted

There were four cities in "competition" for the NASCAR museum; Atlanta, Daytona and Kansas City (huh?). IMHO the race was "one" (sic) before it ever started. Why is that my opinion?

There's a lot of chatter as to why Charlotte "won" but I'm putting my money on the involvement of Bessant and BofA. The offer of "below-market loans" is one HUGE incentive right off the starting line.

BofA and Wachovia (Watch Over Ya - wouldn't it be the greatest ad campaign? Take note, Wachovia - you can use it for only $100,000) BOTH contributed "executives, bankers and lawyers" to the design/pitch team. Well, at this point they were leading by the exit of the first turn. You know what happens when you put together a team of executives, bankers and lawyers.

What really sews it up for me - and for those involved, comes along later in the details of the deal.

"By its standards, NASCAR isn't getting much for the use of its name. Officials estimate royalties and other payments will add up to $1.8-million in the hall's first year and NASCAR has agreed not to take a payment in any year when the fee would cause the hall to lose money. Outside the licensing fees paid to NASCAR, any operating profits are to be reinvested in the museum."

Pretty standard stuff and darn nice of Nascar if you want my opinion, especially if you stopped reading. But here's the part which (imho) really sealed the deal:

But a late addition to the deal gave NASCAR the right to develop a 300,000 square-foot office tower as part of the Hall of Fame.

The BofA/Wachovia/Charlotte deal is rounding third and they're three cars ahead...

With NASCAR paying just $1 annually to lease the land under the tower and with the downtown Charlotte real estate market booming, that could be hugely lucrative. Space in the nearby One Wachovia Center building (Hello neighbor! - ed.) leases for $26 per square foot - at that rate, space in the projected NASCAR tower would be worth nearly $8-million annually.

Ah, well that sort of helps us understand things better, right? The BofA/Wachovia/Charlotte car crosses the finish line laps ahead of its nearest competitor. (Sorry Daytona, Atlanta and KC!)

One DOLLAR a year to lease land with a potential of $8 MILLION dollars returned ANNUALLY? Whew - now that is one sweeeeeet deal. Wanna place a bet on whose loan papers will be slid under Nascar's pen for a quick sign and a faster thank you?

BofA and Wachovia cars are heading for the starting line... "...Start yer engines!"...