Test Track Sponsorship

[sportsguy2315]

I hate to assume the worst, but let's say GM does go bankrupt. What are the odds Disney picks up the tab to keep the ride going, or what happens at that point?

[TheRustyScupper]

1) Mattel as new sponsor?
2) Hot Wheels never seem to break down.

[JPL]

Since Test Track is an extremely popular I'm sure Disney would pick up the tab while actively searching for another sponsor.

[BMan62]

Nissan? Toyota? Honda? Just so it isn't Mini!!! I can't fit inside their cars!!!! :blush:

I hope they do find some way to keep the ride going, no matter who the sponsor is.

[RAIDER]

What about Hummer ?? ... you could then get a bigger car for passengers thus less queues :D

[TheRustyScupper]

What about Hummer ?? ... you could then get a bigger car for passengers thus less queues :D

1) This sounds like a good idea.
2) But, with the mileage, you need to build another power station.

[EpcotChic23]

I was just thinking of this a couple of nights ago. I feel Test Track is one of the most popular rides in Epcot they will not close it down. O and by the way Hummer is part of GM so I don't think we will see a Hummer sponsership anytime soon.

[CaptainSad]

Hummer is owned by GM. That won't happen if GM goes under.

[CaptainSad]

And besides Hummer will not be in production anymore.

[illini]

No way would they close it. They'd keep it operating and look for another sponsor.

[fupresti]

Seeing as how Honda is a pretty big sponsor at Disneyland I could see that partnership move over to Epcot as well.

[Scar]

U.S. Department of Transportation. Might as well have taxpayers foot the bill.

[BraddyB]

GM could sponsor a dinosaur ride with cavaliers and blazers located in various scenes since they cant seem to get their act together. Its sad to see it happen but maybe its a reality check for them to put out a decent product.

[sportsguy2315]

GM could sponsor a dinosaur ride with cavaliers and blazers located in various scenes

It's a non-threatening approach to Dinosaur! :) :rimshot:

[Zone Stop]

Word's been around amongst Tracksters that Honda or Toyota have (supposedly) stated that they will sign a contract the day GM is out.

[brownie]

I don't think you'd see Test Track shut down if GM goes into bankruptcy. I don't think you'd see a new sponsor right away, either. I believe the contract would be overseen the bankruptcy court and Disney probably would not be able to sign a new sponsor until the okay is given by the court.

[CU Tiger]

If they get the bail-out money, it will be partially owned by the US government, thus “you and me.” We can put our names on it and say it is sponsored by us!:D:mickey:

[Ian]

U.S. Department of Transportation. Might as well have taxpayers foot the bill.:rotfl:

Having just finished working for a General Motors company for the last 6 years, I'm probably uniquely qualified to offer insight into their situation.

First and foremost, I think it's highly unlikely that the government will allow them to go belly-up. The perceived impact on the economy is just too great. I think Washington is enjoying making them shuck and jive and beg and plead for their money, but ultimately I suspect they'll fork it over to them.

That being said, sponsorship of a Disney pavilion at Epcot may be something they have to discontinue anyway. I can't imagine the Federal Government being thrilled with spending that kind of taxpayer money on that kind of effort.

Although, does anyone know how the sponsorship deal works? What are the terms? Is it fully funded now or does GM pay annually? At this point, it may already be a done deal until the contract runs out.

[Jasper]

All you have to do is look at the long lines and know that it is unlikely that Disney would close it down if GM goes by wayside. Look at other attractions around various Disney parks that have either changed sponsors or been without sponsors after one company drops their sponsorship.

Continued sponsorship may also depend on how GM funds its advertising and whether it is done directly through the company or by a separate company that GM owns indirectly.

[Granny Jill A]

What about Hummer ?? ... you could then get a bigger car for passengers thus less queues :D

But it would take FOREVER to get to 60 mph!

[Imagineer1981]

GM sponsors many things besides Test Track, such as sports/charities/marathons/etc. All of that comes out of a marketing budget. They will not cut back on marketing as that is what keeps their name out there. Most likely GM will become smaller, leaner and with less brands, but I would count on their marketing being as strong as ever

[IloveDisney71]

If they get the bail-out money, it will be partially owned by the US government, thus “you and me.” We can put our names on it and say it is sponsored by us!:D:mickey:

:D That's a good one!

[pamickeys]

NO ONE is too big to fail in this economy, GM should wise up to that. remember TWA, Pan Am, and Eastern they're not here anymore either. Test track is just ad dollars for Disney Gm has nothing to do with the ride itself.KFC could sponsor it for all Disney cares, as long as the money is green.

[HiHoKermitTheFrogHere]

I don't think you'd see Test Track shut down if GM goes into bankruptcy. I don't think you'd see a new sponsor right away, either. I believe the contract would be overseen the bankruptcy court and Disney probably would not be able to sign a new sponsor until the okay is given by the court.
I thought I would chime in since I am a business bankruptcy attorney. Assuming that there remain obligations by both Disney and GM under the sponsorship agreement (and I wouldn't know because I am not privy to the terms of the agreement), GM would have the right to reject the agreement in bankruptcy. At that point, Disney would be free to sign up a new sponsor. GM likely would reject this contract almost immediately upon entering bankruptcy because one of the big benefits of a bankruptcy filing is the ability to shed burdensome contracts. A sponsorship agreement such as this one typically is considered burdensome and is rejected.

But if, for some reason, GM chose not to reject this contract (either right away or at all), depending upon the terms of the agreement, Disney might have recourse and may be able to seek permission from the bankruptcy court to terminate the deal. This probably will not be possible, though (again, I say this as pure speculation because I do not know the terms of the agreement), because this is not a situation like Enron, for instance, where the Houston Astros were able to get out of the stadium naming rights contract because Enron's bankruptcy filing was due to malfeasance. A bankruptcy filing by GM would not be due to such a situation (I am assuming).

If, on the other hand, the agreement is fully paid already (as another poster wondered) and only one party continues to owe any obligations under the contract (i.e., Disney's obligation to keep GM's logo on the building), then the contract would not be subject to rejection in bankruptcy and it is very possible that GM's name could remain there for the duration of the term of the agreement.

Again, I do not know the terms of the contract, but given the discussion in this thread, I thought this might be able to shed a little light on how the process works. And, of course, my comments in this post are not intended as legal advice and should not be relied upon by anyone. (Sorry, necessary disclaimer!)

I hope that helps.

[TheRustyScupper]

GM sponsors many things besides Test Track, such as sports/charities/marathons/etc. All of that comes out of a marketing budget. They will not cut back on marketing as that is what keeps their name out there.

1) If they go Chapter-11, these activities would go FAST.
2) They would be declared as unnecessary to operations.
3) They would be considered unnecessary to advertising.
. . . they are not targeted ads
. . . they can show no return
4) It is possible a lot of the charitable activities go by the wayside.
5) The bankruptcy is supposed to benefit the stockholders.
. . . not the employees
. . . not the advertisers
. . . not the customers
. . . not the charities
6) If the stockholder value is reduced to zero, the benefit is then the corporate entity.
7) That is to be preserved in bankruptcy, if possible.

NOTE: I was with a company that went Chapter-11, and the Master goes through such expenditures carefully. Of course, the poster above might have further info. I know the results from the CEO viewpoint.