The Calgary Stampede's signature event, chuckwagon racing, is a gritty and pricey game, offering drivers numerous bumps and bruises, a lifestyle unique to Western Canada and, if all goes right, a first prize of $100,000.

But this year, there's trepidation too: With oil prices collapsing, some of the companies that normally bid big to plaster the wagons' tarps with their logos have slashed budgets and laid off staff. More industry cuts are expected before the next auction for sponsorship takes place on March 19.

The annual auction is often seen as a barometer for the Calgary economy, at least for how free companies are with their money. Besides funding racers, proceeds also flow to various charities, including the Calgary Inter-Faith Food Bank.

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The racers of the horse-drawn wagons compete in events through the summer, but qualifying for the Stampede's GMC Rangeland Derby – the sport's Super Bowl – is important for the chance to vie for a total of $1.2-million in prize money and even more so for the advertising revenue.

How the rout in the energy market might affect much-needed advertising dollars for the Stampede's thrilling and, at times, controversial big show has some on the circuit concerned.

"That's the reason we get up and down the road every year – it's because of the advertisers. They're the ones that bankroll us for the most part because there's only so much prize money to go around," said Kurt Bensmiller, the winner of last year's 10-day Rangeland Derby, the rodeo's marquee attraction.

"In advertising, there's a good chance that it's going to drop. Oil affects everything as it is key to Alberta's economy," said the 31-year-old, who was sponsored by the Tsuu T'ina First Nation in last year's derby.

It's a costly operation for what are often family businesses. With horses, the wagon, vehicles for transport and riders, along with feed and all of the expenses involved in keeping animals healthy, annual costs can climb above $200,000.

At auction, the wagon tarps have fetched half that much or more, with bidding in recent big years garnering a total of $4-million for the 36 teams, which include 216 horses, said Mike Piper, vice-chairman of the Stampede's Chuckwagon Committee.

Organizers are putting on a brave face.

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"Certainly we're concerned a little bit about the downturn and the market adjustment, but we're feeling pretty confident. Our registered bid cards for the auction are higher now than they were at this time last year," Mr. Piper said at a recent reception held for advertisers.

"With the correction in the oil market, there are opportunities for companies that aren't related that had perhaps shied away because they felt it was too expensive."

The Stampede finds ways to ride through tough times. Witness the devastating Alberta floods of 2013, when much of the park and the grandstand and chuckwagon racetrack were submerged by the swollen Elbow River. Hundreds of workers and volunteers managed to get the event in shape within 14 days.

When it comes to energy downturns, this is not the Stampede's first rodeo, either. The chucks have been a major attraction since 1923 and since then the energy market has gone through numerous spikes and routs. During oil's last skid in 2009, organizers added a wrinkle that allowed several advertisers to band together.

That is how veteran driver Gary Gorst was funded in last year's derby – with nine sponsors showing their colours on one day each, in what was essentially fractional ownership. They carried a charity for the 10th day. For their funding, the sponsors get full access to the barns and share meals with the drivers and cowboys.

Mr. Gorst, who began driving in 1978, has two sons following in his footsteps in the sport. "You've got to get to Calgary because the sponsorship is good. It pays a lot of bills," said the 60-year-old from Meadow Lake, Sask.

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"Yeah, the oil price is down and people are losing jobs. But we went through this six, seven years ago. It's an auction – like buying a cow now. You can't afford to buy the cow, but 10 years ago you couldn't give that cow away. Up and down, eh?"