NASCAR is asking around $20 million for top-tier slots in its proposed new sponsorship model, close to double original estimates, according to sources.
The plan is to move away from one title sponsor in place of a tiered system, similar to the one used by the NCAA. The premier series would simply be called the NASCAR Cup Series.
NASCAR has been pitching big spenders already in the sport, among others. One name consistently mentioned as a brand likely to land a top-tier slot is Coca-Cola, which already has an official deal with the sanctioning body through 2023. NASCAR has more than 50 official sponsors.
Sources say a template for the Tier 1 package the sanctioning body has been pitching to brands comes in around $20 million annually. That includes $15 million worth of assets across the league and tracks, plus a minimum $5 million media spend. That template is for brands that are new to the sport; the terms could look slightly different for brands that are already NASCAR partners.
When the model was originally announced, sources projected the sponsorships would sell for around $10 million each.
The new model would be unique in that it would include assets that have never been packaged with the series sponsorship. Those include title deals for NASCAR Cup Series races for top-tier partners, TV-visible signage and - in a new twist - opportunities to have brands involved with parts of the season that previously didn't have a sponsor, like the annual western swing.
--- Sports Business Daily ---