The latest on NASCAR Cup entitlement search: 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.(Forbes)(7-19-2016) UPDATE: All good things must come to an end and such is the case with NASCAR's relationship with outgoing entitlement sponsor, Sprint. But that does not mean there aren't bigger and better things on the horizon for the sport's top racing series. The list of companies wanting to step forward with an iconic branding opportunity has now been narrowed to roughly a dozen, NASCAR Chief Sales Officer, Jim O'Connell, told Kickin' the Tires on Thursday. "We are in a great place," O'Connell said. "Timing wise we are exactly where we thought we would be. The numbers go up and down but we are talking to approximately a dozen companies right now. From a timing standpoint we look to narrow that down to a handful sometime (later) this summer and we look to make the announcement sometime in the Fall, similar to what we did with Xfinity. We are talking to a number of great companies." There has been speculation of two potential entitlement sponsors but that does not appear to be the case as several people involved, who asked not to have their names used in this article, said the traditional entitlement sponsorship is what most companies appear interested in. Still, there is a chance for tweaks and adjustments based on the needs of the sponsor and the sport. For example, it might not make sense for the entitlement sponsor to have its name on the All-Star race or it might be better for a company to have a specifically-branded identity for the Chase for the Championship. O'Connell declined to address specifics when asked but indicated NASCAR would try to keep close to its existing model, while meeting the best needs of the next entitlement sponsor. "While it certainly won't look exactly how Sprint has done the partnership, we are flexible to fit the needs of our new brand," O'Connell said. "But I don't want to get into details of how a new partnership might look. I don't want to say anything is off the table but if it is the right fit we will consider looking at things differently than we have done in the past. We have been asked about different things - some of which you have mentioned."
O'Connell stopped short of saying exactly which companies NASCAR was negotiating with but he was adamant things were going well despite rumors to the contrary. It's expected he would paint a rosy picture but sources have confirmed some companies have actually been declined by NASCAR because it wasn't a good business decision. Of course, there's been a few PG-13 jokes about which companies might or, might not, be interested and what the series would be named if certain companies sealed a deal. There have also been rumors that, at least, one insurance company was interested in becoming the entitlement sponsor but after reviewing contracts with its teams and partners, it was determined a deal could hurt several teams and the investment wouldn't offset money lost from other sponsors that might end up being locked out of the sport, like Verizon was when Sprint came on-board. NASCAR doesn't want to have a sponsor that will hurt the financial strength of its race teams and track partners.
One issue that keeps coming up is the overall cost of the entitlement sponsorship, which appears to be confusing with regards to how much a company would pay to NASCAR and how much the activation by that company would cost. Early numbers hit the $1 billion mark but that was said to be inaccurate. Whatever company comes on-board will pay a rights fee. That amount is only a portion of the investment must make but the money doesn't necessarily go to the sanctioning body. In fact, the new entitlement sponsor will want to spend money with tracks for activation during race weekends, on advertising and marketing and then on other promotions that would boost fan interest in the sport and the sponsor's brand. That is separate from what NASCAR would receive but it would be included in an overall total value.
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.(Forbes)(7-19-2016) UPDATE: All good things must come to an end and such is the case with NASCAR's relationship with outgoing entitlement sponsor, Sprint. But that does not mean there aren't bigger and better things on the horizon for the sport's top racing series. The list of companies wanting to step forward with an iconic branding opportunity has now been narrowed to roughly a dozen, NASCAR Chief Sales Officer, Jim O'Connell, told Kickin' the Tires on Thursday. "We are in a great place," O'Connell said. "Timing wise we are exactly where we thought we would be. The numbers go up and down but we are talking to approximately a dozen companies right now. From a timing standpoint we look to narrow that down to a handful sometime (later) this summer and we look to make the announcement sometime in the Fall, similar to what we did with Xfinity. We are talking to a number of great companies." There has been speculation of two potential entitlement sponsors but that does not appear to be the case as several people involved, who asked not to have their names used in this article, said the traditional entitlement sponsorship is what most companies appear interested in. Still, there is a chance for tweaks and adjustments based on the needs of the sponsor and the sport. For example, it might not make sense for the entitlement sponsor to have its name on the All-Star race or it might be better for a company to have a specifically-branded identity for the Chase for the Championship. O'Connell declined to address specifics when asked but indicated NASCAR would try to keep close to its existing model, while meeting the best needs of the next entitlement sponsor. "While it certainly won't look exactly how Sprint has done the partnership, we are flexible to fit the needs of our new brand," O'Connell said. "But I don't want to get into details of how a new partnership might look. I don't want to say anything is off the table but if it is the right fit we will consider looking at things differently than we have done in the past. We have been asked about different things - some of which you have mentioned."
O'Connell stopped short of saying exactly which companies NASCAR was negotiating with but he was adamant things were going well despite rumors to the contrary. It's expected he would paint a rosy picture but sources have confirmed some companies have actually been declined by NASCAR because it wasn't a good business decision. Of course, there's been a few PG-13 jokes about which companies might or, might not, be interested and what the series would be named if certain companies sealed a deal. There have also been rumors that, at least, one insurance company was interested in becoming the entitlement sponsor but after reviewing contracts with its teams and partners, it was determined a deal could hurt several teams and the investment wouldn't offset money lost from other sponsors that might end up being locked out of the sport, like Verizon was when Sprint came on-board. NASCAR doesn't want to have a sponsor that will hurt the financial strength of its race teams and track partners.
One issue that keeps coming up is the overall cost of the entitlement sponsorship, which appears to be confusing with regards to how much a company would pay to NASCAR and how much the activation by that company would cost. Early numbers hit the $1 billion mark but that was said to be inaccurate. Whatever company comes on-board will pay a rights fee. That amount is only a portion of the investment must make but the money doesn't necessarily go to the sanctioning body. In fact, the new entitlement sponsor will want to spend money with tracks for activation during race weekends, on advertising and marketing and then on other promotions that would boost fan interest in the sport and the sponsor's brand. That is separate from what NASCAR would receive but it would be included in an overall total value.
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