TJS_05-18_OnlineEdition

NEWS
PHELPS HINTS AT EVOLUTION OF NASCAR
SPONSORSHIP MODEL, MONSTER ENERGY’S
CONTINUED ROLE
Welcome news that Monster
Energy has returned as the title
sponsor of NASCAR’s top division
came with a compelling hint
at what the future might hold, not just for
the powerful energy drink brand but for the
sport’s established sponsorship model in
general.
Steve Phelps, NASCAR’s Chief Operating
Officer, touched on the potential
evolution of stock-car racing’s sponsorship
structure in a Tuesday media roundtable,
which dovetailed with Monster Energy’s
one-year renewal with the sanctioning
body. Phelps said the push for the shorterterm
contract extension was mutual, as
both sides shifted focus toward establishing
a new framework for companies
involved in the sport.
“This is something we’ve been exploring
for a while,” Phelps said, noting that
the idea was first broached roughly three
years ago. “It’s more to do with this notion
that we want to make it easier for sponsors
to say yes. The entitlement position,
the things that we’re talking about, we’re
already requiring of our
entitlement partners
right now, but we’re
talking about broadening
it, so it’s not just
one company at the
top of the pyramid, but
it’s multiple categories,
multiple companies that
will allow us to make it
easier.
“We think there’s
greater value, frankly, for
the sponsors by doing
this, but it will take the
next level of collaboration
within the industry.”
Phelps said that the
sport already works with
sponsorship packages
that involve multiple
stakeholders, but that a new model could
be even more inclusive, bundling sponsorship
across various entities such as the
sanctioning body, race tracks and TV and
media partners.
That new look of corporate backing also
would be segmented into different levels
or tiers of participation, similar to other
sports. Though Phelps added that Monster
Energy’s return at the entitlement level in
18 // TJS 2018