Sprint will not extend its title sponsorship of the NASCAR Cup Series after the current agreement expires at the end of the '16 season. The company cited a need to focus on its core business, and Sprint VP/Corporate Marketing Steve Gaffney said in a statement, "Without question, the NASCAR sponsorship property has been a valuable investment for us and will be for our successor." The relationship dates to '04 when Nextel signed a 10-year partnership. At the conclusion of the first 10 years, Sprint extended for an additional three years (Sprint). NASCAR VP & Chief Communications Officer Brett Jewkes in a statement said, "NASCAR and Sprint have enjoyed a long and productive partnership that has returned significant value to both parties. We understand significant changes within Sprint and the highly competitive business environment it is in has led to a decision not to extend its Cup Series entitlement position" (NASCAR).
TOUGH TASK AHEAD: In K.C., Randy Covitz notes the original 10-year deal was valued at $750M, but the three-year extension after '13 was for "what was believed to be less money." Kansas Speedway President Pat Warren: "I completely respect the fact they’re looking at their landscape right now and saying they need to focus on other things.” Covitz notes Sprint is "in the midst of cutting 3,700 jobs and slashing" $1.5B from department budgets under CEO Marcelo Claure, who replaced Dan Hesse in August. Wireless industry observers "speculated that Sprint may want to shift the marketing money it currently directs to NASCAR to soccer." Claure "owns a soccer team in his native Bolivia and is trying to win" an MLS franchise for Miami with David Beckham (K.C. STAR, 12/17).
A SUCCESSFUL RUN: USA TODAY's Jeff Gluck writes the move by Sprint "wasn't a major surprise." NASCAR now must "find another globally known brand that is willing to part with big bucks in return for branding emblazoned on everything from cars to tracks to signage to races." The title sponsor "funds the annual points bonuses, which this year were more" than $20M (USA TODAY, 12/17). Driver Jeff Gordon said of Sprint, "They've really done a tremendous job marketing the sport from the digital side of things. ... When you think of major players in how the sport has grown, I would definitely put Sprint very high up there." FOXSPORTS.com's Jared Turner noted since the partnership began in '04, Sprint has "worked closely with NASCAR to bring many fan-friendly innovations to life." Michigan Int'l Speedway President Roger Curtis said, "They've really done an amazing job and helped us grow the sport from a technology standpoint, and helped us get into the next age. I think NASCAR is healthy and will find another series sponsor, obviously, but Sprint will be missed, no doubt" (FOXSPORTS.com, 12/16). NBCSN's Steve Letarte said Sprint "has been a great sponsor, but I remember the transition to Sprint and we thought it was all going to cave in at that point and Sprint picked us up and ran with it." NBCSN's Jeff Burton said of changing the title sponsor, "In many ways it can help the sport grow again." The net's Carolyn Manno added of the season and new Chase playoff format, “I can’t imagine a sponsor that wouldn’t want to get in on that action" (“NASCAR America,” NBCSN, 12/16).
LOOK TO THE FUTURE: ESPN.com's Brant James wrote with about 18 months to acquire a new title sponsor, NASCAR Chair & CEO Brian France "faces a process that could go far in determining whether the series maintains its status as a major league enmeshed with Fortune 500 America or recesses into a niche sport." Title sponsors "help set the tenor for how a series is perceived." Just Marketing Int'l Founder & CEO Zak Brown in an e-mail wrote, "It's a great fit for a big consumer brand and I suspect NASCAR will be able to replace them." He added, "Sprint has some significant business challenges and NASCAR must not fit in with their future strategy. That's not a poor reflection on NASCAR. It's probably the business reality Sprint finds itself in" (ESPN.com, 12/16). Meanwhile, officials at Daytona Int'l Speedway said that the announcement "will have no effect on the Speedway through the next two years." The Daytona Beach NEWS-JOURNAL notes the existing Sprint Tower grandstand is "going to be replaced as part of the Daytona Rising project that will be complete" by February '16. DIS Senior Manager of PR Andrew Booth said that the preseason Sprint Unlimited race "will change names" in '17, along with the "infield area known as the Sprint FanZone" (Daytona Beach NEWS-JOURNAL, 12/17). In Charlotte, Jim Utter notes replacing Sprint "will be a tall order" for NASCAR, as its partnership "has grown to touch virtually all facets of the sport." Former Charlotte Motor Speedway President Humpy Wheeler called the search for a title sponsor “an expensive undertaking." But he added that it is one that "could come with added benefits." Wheeler: "A new sponsor in a category like software could ignite things the right way" (CHARLOTTE OBSERVER, 12/17).
