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Marketing and Sponsorship

NASCAR Formally Unveils 10-Year Deal Making Fanatics Its Primary Retailer

NASCAR, NASCAR Team Properties and Fanatics yesterday formally announced that they have struck a 10-year deal that "will make Fanatics the 'primary retailer of NASCAR, team and driver merchandise at all 38 NASCAR Sprint Cup Series race weekends,'" according to Brant James of USA TODAY. The plan centers around a "climate-controlled tent housing merchandise from every NASCAR team and driver in individualized departments, a customization center for gear and an expanded selection of items for women and children." NASCAR Exec VP & CMO Steve Phelps said that Fanatics "was chosen from 12 applicants by an advisory board including the sanctioning body and representatives of tracks and teams." He would not reveal terms of the deal. Phelps said that the fact that previous at-track distributor Motorsports Authentics "has no online retail component was a major factor." He added that the deal "was driven by a belief fans will eventually be enamored with more choices and buying options, but said the new system also will be 'a better model from a bottom-line standpoint.'" Phelps said that haulers "will remain in use at least through the first half of this season with full implementation of the new model planned" for '16. Fanatics' manufacturing and customization divisions "will produce their own line of merchandise to be sold alongside existing authorized licensees." Fan reaction to the move "was initially negative both on social media and satellite radio ... as nostalgia in an era of frequent change in the sport extended to souvenir shopping" (USATODAY.com, 1/22). 

BIGGER IS BETTER? ESPN.com’s Darren Rovell reported Fanatics starting in July will “sell team and driver items out of a 65,000-square-foot tent, which will travel around from race to race." Fanatics Authentic President Ross Tannenbaum said, "It's a whole lot easier to have trailers and have them drive around from track to track and pin up T-shirts to a wall. But it's not a great shopping experience. There's a line of people waiting behind you, you have to point at your item and then buy it. What we have will be a much better experience for the fan.” Tannenbaum added that the new deal will “provide fans with more choices, including an expanded offering of kids and women's merchandise, separate areas for items like diecast model cars, and space that is reserved for specific drivers” (ESPN.com, 1/21).

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