NASCARs once-promising negotiations with Subway to title sponsor its #2 series have hit the skids, sources say, and the sanctioning body has spent the last few weeks revisiting many of the brands that initially turned down the sponsorship. KFC, Dunkin Donuts and Allstate, each of which had been contenders for the sponsorship earlier in the process, are among the companies NASCAR has approached in the last few weeks as its tries to replace Anheuser-Busch. Subway, which was considered the front-runner 30 to 60 days ago, remains in talks with NASCAR, but industry insiders no longer characterize Americas largest restaurant chain as the favorite. As NASCAR seeks a new title sponsor, industry insiders say the price is dropping. NASCAR was asking $30 million a year when it began the sales process in the first quarter of the year, but that figure has dropped by nearly half. As part of the new price, NASCAR and ESPN, working jointly to sell the title sponsorship, have relaxed the required media spend on ESPN, sources say. At first, about a third of that $30 million was a required spend on ESPNs platforms. NASCAR had no comment on potential partners or issues under negotiation and maintained that its goal is to announce a new series partner by mid-November, at the end of the Busch Series schedule. Sources say that category exclusivity has been a primary obstacle as Subway and NASCAR try to resurrect their deal. Exclusivity has dominated the news this season with AT&Ts lawsuit against NASCAR and Cup series sponsor Sprint Nextel, which joined the lawsuit as a co-defendant, as well as an earlier turf war between Sunoco and Shell. Exclusivity emerged as a major sticking point in Subways negotiations because of the broad quick-service restaurant category. Arbys, McDonalds, Jimmy Johns and Dominos are among the team sponsors already involved in the Busch Series.(Sports Business Journal)(8-28-2007)
