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Marketing and Sponsorship

Monster Energy's NASCAR Title Sponsor Deal Worth Significantly Less Than Sprint's Deal

Monster Energy's deal to title sponsor NASCAR's premier series is "worth 2.5X less annually" than the last deal, according to ESPN's Darren Rovell. Sprint in the previous deal paid NASCAR $50M a year, according to Darren Rovell of ESPN.com (TWITTER.com, 12/1). In Daytona Beach, Godwin Kelly notes terms of the contract were not disclosed, but NASCAR Chair & CEO Brian France said it was a "multiyear agreement with some options." Monster Energy "becomes only the third company to sponsor the NASCAR Cup Series," joining Winston ('71-'03) and Nextel/Sprint ('04-16). Monster will also be title sponsor for the All-Star Race at Charlotte Motor Speedway. Daytona Int'l Speedway this week "changed the name of the Sprint Unlimited race to The Clash at Daytona." A track spokesperson was "noncommittal when asked if Monster Energy would sponsor the 75-lap Clash" set for Feb. 18. France did not unveil the official new name of the top series and said NASCAR is "working on the exact composite logo." Monster Energy CMO Mark Hall said, "If you would have asked me five years ago if I've ever contemplated something like this, the answer would be never in a million years, but it's a rare and unique opportunity.” Kelly notes the Monster Energy brand "appeals to a younger demographic and it was no secret that wooing that audience is a NASCAR priority" (Daytona Beach NEWS-JOURNAL, 12/2). NASCAR VP/Integrated Marketing Communications David Higdon indicated that Monster will "carry 'official energy drink' status and any energy drink not currently sponsoring a driver in Sprint Cup will not be able to sponsor a Cup car." ESPN.com's Bob Pockrass reported Higdon would "not talk about the details of the grandfather clause and whether 5-Hour Energy, sponsor of Erik Jones at Furniture Row Racing, would be included." As an energy shot, 5-Hour Energy is "slightly different from an energy drink." The company has "not gotten details yet from NASCAR on whether it will be affected" (ESPN.com, 12/1).

JUST WANNA HAVE FUN: FOXSPORTS.com's Tom Jensen wrote the youth-oriented Monster Energy brand "should be a perfect fit for NASCAR because the sport is in a unique period of transition with an astonishing lineup of young talent coming up in the ranks." Bringing in a company like Monster that specializes in the youth market "makes an awful lot of sense at a time when NASCAR is going all-out to attract the coveted younger demographic in a sport that right now has an older fan base" (FOXSPORTS.com, 12/1). USA TODAY's Jeff Gluck writes Monster’s marketing will "undoubtedly usher in a new era of stock car racing." The company "sponsors athletes across all forms of motor sports, and it has an edgy feel to its millennial-targeted branding." The energy drink had been "most associated with action sports, but will now have NASCAR as a major part of its image" (USA TODAY, 12/2). France indicated that the marketing plan is to "give more of a hip feel to the sport, drawing in millennials and a younger audience that NASCAR needs, considering the shifting demographics." France said, "When I say edgy, I mean fun. They get at a millennial audience in a different way clearly than we've ever been associated with, particularly at this level, and they know what they're doing" (ORLANDO SENTINEL, 12/2). AUTOWEEK's Matt Weaver wrote Monster "intends to inject a copious [amount] of fun into what used to be the NASCAR Cup Series." The word was "used 10 times over a 25 minute span during a Q&A that featured" France and Hall. Weaver: "For those that felt the Sprint-Nextel era was too corporate, the next few years could be the about-face you've waited for" (AUTOWEEK.com, 12/1).

CAN A SPONSOR BRING CHANGE? USA TODAY's Brant James writes NASCAR's title sponsorship is "not just a logo or a brand, but an emblem of the state and essence of things for a hard kernel of heavily invested, heavily fretful fans." That Monster Energy "doesn't market its highly caffeinated beverage to children under 12 ... is both ironic and unfortunate for the series because that is the next generation NASCAR is trying to reach." James: "Maybe Monster will make inroads. But Red Bull and its Sprint Cup team were supposed to do the same a decade ago" (USA TODAY, 12/2).

SOMETHING TO LOOK AT: YAHOO SPORTS' Nick Bromberg wrote a staple of Monster Energy's marketing "doesn’t jive with NASCAR’s diversity efforts." Monster has a "cadre of 'Monster Girls,' women who appear on the company’s website in scantily-clad attire and answer questions such as what is their favorite bikini to wear at the beach." Not long after Hall yesterday "mentioned the company’s 'girls,' the sponsorship announcement ended with two Monster Girls around four middle-aged white men." Bromberg: "What message does it send by a sport that has made very public overtures to be inclusive and more diverse if objectification of women only becomes more prominent via a 'dynamic' brand?" While Winston and Sprint had spokesmodels in victory lane after races under their sponsorships, the context of their clothing is "quite different" (SPORTS.YAHOO.com, 12/1).

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