#3 New Sponsorship model.
According to an article from Forbes.com. NASCAR will be moving to a multi tiered sponsorship system in 2020, which will move from one blanket sponsorship over the entire series to a multiple official partners. The move is said to be a way for NASCAR to minimize loss when a sponsor walks away and allows reportedly will allow smaller companies to advertise with NASCAR as well.
The news come as the sport has announce that Monster Energy won’t be sponsorship The Cups Series past the 2019 season, which has left many wondering what the sport would do next. What made the sponsorship fall out even more disturbing was the fact that it was the second time in a five year period that NASCAR has been forced to find a new title sponsor.
According to The Article,”In the new model, NASCAR could see possibly five partners spending $5-$7 million annually for similar value, which makes for a more attractive proposition for companies with smaller marketing budgets. Should a partner decide not to renew, the NASCAR sales team would replace a smaller amount of revenue – as opposed to having to replace a much larger revenue source in a short amount of time.”