Monster Energy has had several high-level meetings with NASCAR execs in recent weeks regarding the future of its Cup series title sponsorship, according to sources, but no decision has been reached yet about the future beyond ’18. Monster Chair & CEO Rodney Sacks discussed the topic Thursday at the company’s investor meeting, saying management is “evaluating where we are going forward in 2019 and thereafter.” He said, “We’re busy in discussions with NASCAR and deciding what will be the best way forward for us. But certainly this year we’re fully vested and excited about the opportunity for the brand and continuing to establish our presence in NASCAR and with the NASCAR consumer.” He admitted the first year of Monster’s two-year, $20M annual deal “was an interesting change for us.” He did admit the deal “afforded us extensive exposure to many more consumers who would not ordinarily follow the sports we traditionally have been in.” At least one financial analyst expects Monster to renew the deal. Stifel Financial, which covers the beverage industry, released a note this week that included a section with the header, “NASCAR Sponsorship Renewal Likely Despite Extension.” Monster’s window to make a decision about the ’19-20 seasons recently was extended until early this year. The analysts also indicated that the new tax reform bill passed into law this year by the U.S. government could benefit NASCAR’s chances of a renewal since it will mean that added “cash flow from a lower rate could make an extension more palatable to management.” Several people close to the deal have recently shown an increasing, but not unanimous, sense of optimism around NASCAR’s chances of a renewal.
