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Marketing and Sponsorship

NASCAR Deals With Uncertainty Over Strength Of Economic Future, Including Monster Deal

The pulse surrounding NASCAR continues to "flow with concern on the economic well-being of the industry amid many hurdles, including uncertainty" surrounding Monster Energy's title-sponsorship of the Cup series, according to Bob Pockrass of ESPN.com. Monster Energy "has not yet announced whether it would pick up the option to sponsor the series" for '19-20, a decision that "needs to be made soon if NASCAR has to find another new sponsor." NASCAR Chair & CEO Brian France has said that he is "happy with the sponsorship." But it would seem that if "all sides were happy, this decision already would have been a no-brainer." Monster Energy this season had a "footprint at some races, including some impressive displays and extreme athlete performances." It brought "MMA fights to select tracks." But other times, it "didn't do all that much." Sponsorship in the sport as a whole is a "mixed bag." Major companies such as Target, Farmers Insurance and Great Clips have "ended sponsorship deals." MillerCoors "cut back on its investment with Team Penske, and Subway so far hasn't announced if it would return after bolting from Daniel Suarez." Some companies, such as Credit One, have "increased investment." But at least a third of the top 30 cars from '17 still "seek significant sponsorship for next season." NASCAR must find ways to "increase sponsor value or create a system in which the purse money covers enough to pay a decent salary for a driver and a team to remain competitive." Sponsorship often "requires confidence in the sport, where it's going and its leadership." It is why NASCAR "tries to paint a picture of growth and doesn't want to acknowledge specific challenges publicly" (ESPN.com, 11/28).

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