NASCAR's Phelps Confirms Plans For New Tiered Sponsorship Model
NASCAR President Steve Phelps confirmed that the sanctioning body is "putting a new business model in place" in which it will "move away from the one titled sponsor approach for its marquee Cup Series to a variety of sponsors pouring money into the entire system," according to Godwin Kelly of the Daytona Beach NEWS-JOURNAL. Sponsorship money would be spread out among NASCAR, TV partners, "member tracks and race teams." Phelps said, "It’s really more to make the sponsorship buy as easy as possible. As an industry, we are fairly fragmented. You have the sanctioning body, different tracks, race teams, drivers and broadcast partners; all these different groups you can contract with as a sponsor. We are trying to bring all of them under one umbrella. If you go to, for example, a company such as Coca-Cola, you can sell them a one-stop shop. It’s an ease in doing business. If you do that, it’s going to foster more sponsor activity.” Kelly notes tracks, race teams, drivers and media partners will "still look for marketing dollars for funding." But NASCAR said that the new model "sweetens the pot for all stakeholders." Phelps: "We are out in the marketplace right now selling these tiered sponsorships for 2020. We won’t get everybody signed on for 2020, but this will be the start" (Daytona Beach NEWS-JOURNAL, 12/17). SBJ first reported NASCAR's sponsorship plans this summer.