Nascar has rejected a one-year extension offer from Nascar Cup title partner Monster Energy – paving the way for a new multi-partner, multi-tier sponsorship approach in 2020.
Last year, Monster Energy signed a one-year extension with the US stock car racing organisation until the end of 2019, but the offer of a further extension has been declined by Nascar, according to reports this week.
As reported by SportBusiness Professional on March 20, Nascar plans to revamp its strategy from 2020 with the premier circuit likely to be called the Nascar Cup Series.
Nascar is looking for around five top-tier partners, but this will be dependent on agreeing the central sale of assets – such as individual race title sponsorships – currently sold separately by the tracks.
If the assets are centralised, Nascar will be able to offer more expansive partnerships that include broadcast integration; track title rights; camera-visible signage; at-track activations; the use of Nascar logos on products; and a digital and social media presence on Nascar channels.
Nascar hopes to earn significantly more from the top tier than the $20m (€17.7m) it currently earns from Monster Energy each year.
A tier-one package – for new sponsors at least – is expected to cost $20m annually, including $15m worth of assets across the league and tracks, plus a minimum $5m media spend.
Under the plan, there would be up to five tiers, with lower-tier partners getting less valuable assets.