Drinks brand Monster Energy has renewed its title sponsorship of the premier series of North American stock car-racing championship Nascar until the end of the 2019 season.
The one-year extension will see Monster retain naming rights to Nascar’s premier series, while it will also continue as the official energy drink of the organisation.
Monster began sponsoring Nascar’s premier series in 2017 and its two-year deal was due to expire at the end of the 2018 season. Nascar’s chief operating officer, Steve Phelps, has said that it is unlikely that the partnership will extend beyond next season as the series seeks to take a different approach to its sponsorship model.
“I wouldn't suggest that the entitlement is not working, but we want to make sure our sport is as easy or easier to do business with,” Phelps said, according to ESPN.com. “Our competitive advantage is that our fans understand the importance of sponsorship and they go out and support our sponsors. … We just think this is a better model to be able to make sure that sponsors want to stay involved more broadly.
“We feel there is an opportunity to feel more invested in the sport – and I'm not just talking financially and what they're paying different entities, but more invested in the sport so they will then turn around and do more activation and feel like this position is an ownership position that they have.”
Phelps added: “Nascar and Monster Energy enjoyed a productive first year and both parties have benefited significantly from the partnership. Monster Energy successfully utilised our sport as a platform to elevate its brand and drive business, while introducing Nascar to new audiences. With this renewal, we look forward to building upon our early success.”
Monster took over from telco Sprint as Nascar’s premier partner, with the original deal said to be worth $20m (€16.1m) per year. “I'm very interested in seeing the new model,” Monster Energy vice-president of sports marketing Mitch Covington said. “We're just deep in supporting the sport. We definitely want a front-row seat to see the new model.
“I won't use the word 'difficult' (to describe the deal in its current form). It's complex in the fact there are so many entities to deal with. … We've been in it long enough, we feel like we're (navigating the sport) well.”