NASCAR is in the process of selling its premier series entitlement sponsorship, the most recognized asset for NASCAR and one of the most prominent in sports. NASCAR’s expiring series entitlement sponsorship with Sprint started in 2004 with a ten year deal between Nextel and NASCAR. The sponsorship required a shift from Nextel Cup Series to Sprint Cup Series in 2008 and has remained as such ever since. The parties previously extended their arrangement through 2016.
How Much Money Will It Cost For NASCAR Series Entitlement Sponsorship?
Sprint was spending somewhere between $50 million and $75 million annually to be the series entitlement sponsor of NASCAR’s highest level of racing. A year ago, NASCAR purportedly was seeking a price of $100 million per year with a minimum commitment of ten years prior to Sprint deciding to remain as the series entitlement sponsor for one final season. It was reported that NASCAR believed it could fetch a guarantee of $1 billion. The fee would be split between annual rights fees and activation. Sources have recently disputed the veracity of reports indicating that NASCAR’s next premier entitlement sponsor pays $100 million per year. It is much more likely that NASCAR receives an amount commensurate with what Sprint paid in its expiring deal.
Which Brands Are In The Chase For Entitlement Sponsorship?
[NASCAR Chief Sales Officer] O’Connell told me that NASCAR is currently in serious talks with roughly a dozen companies within various categories and that NASCAR’s timeline is to narrow the list down to a few final contenders by the end of Summer. NASCAR Chief Marketing Officer Steve Phelps recently stated that NASCAR is in talks with eight to ten companies. O’Connell expects an announcement by the Fall, which would be a similar timeline as to what took place when the Nationwide Series shifted to XFINITY.
In October 2015, SportsBusiness Journal indicated that the following companies had been pitched on the title sponsorship: Panasonic, LG, Coca-Cola, Goodyear, Comcast and Hisense, with Hisense showing the most interest at that time. Hinese would fall into the latter, international category described by O’Connell.
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