Amidst NASCAR’s Ongoing Sponsor Crisis, Insider Speculates Worsening Situations Post 2024 Calendar

Corporate support is the bread and butter of NASCAR, fueling everything from acquiring equipment to maintaining top-notch team facilities. Yet, there’s a growing concern as NASCAR’s viewership has been on a bit of a downhill run, dropping by 5% from 3.03 million to 2.86 million viewers per event this year. And because of such scenarios, even the sponsors, the backbone of NASCAR, are starting to back off the throttle.

On top of that, the recent retirements of Kevin Harvick and Aric Almirola have sent ripples through Tony Stewart‘s team and the wider NASCAR community. While Kevin Harvick’s sponsor, Anheuser-Busch, is sticking around, taking Ross Chastain under its wing next season, Aric Almirola’s sponsor, Smithfield, is waving goodbye to NASCAR. This move, according to NASCAR insider Jim Richards, President and CEO of The Market Share Group, is setting off alarm bells, signaling a potential shift in the landscape of NASCAR sponsorship.

It’s not only the Cup Series feeling the heat; even the Xfinity title sponsors might be looking to shift gears after 2024

NASCAR’s heyday in 2006 is a far cry from where it stands today. Back then, teams were bolstered by big corporate sponsors signing on for the long haul. But the 2007 financial crisis threw a wrench in the works, not just for the American economy but for NASCAR too. The result? A dwindling number of sponsors willing to dive into multi-year commitments, and even fewer looking to get their tires dirty with NASCAR sponsorship at all.

Despite NASCAR picking up some steam lately, the challenge of hooking and keeping major consumer brand sponsorships remains a tough nut to crack. Jim Richards, the head honcho at The Market Share Group and a key player for sponsors like Reser’s Fine Foods in NASCAR, recently weighed in. As per SBJ, he said, “If we can get back to talking about the fans, I think consumer brands will come back … [but] we should be concerned that Smithfield is not coming back, that M&M’s didn’t come back [in 2022]. That’s telling in some ways and I think everyone needs to put some effort around addressing it.” 

Besides that, Xfinity is the namesake of NASCAR’s secondary series, the Xfinity Series. But there’s chatter that they might pull away after 2024 to explore new marketing tracks, which could spell more trouble in the NASCAR pit.

Dale Earnhardt Jr recently also shared his two cents in his podcast about the current state of sponsorship deals. “You are gonna have to do X amount of appearances for this partner. We got a new partner coming in. Gotta do XYZ. […] I was kinda lucky with Budweiser; I had one primary for the majority of the year. And now the drivers today—Well, they got 6 or 7 partners that want dozens of appearances. When you look at the calendar year, your time just goes away. And when you are not doing that, you are working.”

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With these sponsorship deals becoming more elusive, it’s becoming crucial for drivers to make every appearance count. But, during the same press conference, Phelps and O’Donnell mentioned that there are strategies to turn this tide. It’s not all doom and gloom; there are steps that can be taken to steer NASCAR’s sponsorship challenges back on track.

Insights from NASCAR President and COO to tackle the sponsorship hurdles

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NASCAR President Steve Phelps and COO Steve O’Donnell were present at the “State of the Sport” press conference. Per O’Donnell, weaving compelling stories about drivers could be a game-changer in drawing viewers and sponsors alike. Imagine getting an inside scoop on the highs and lows of your favorite racers. Take Kyle Larson, for instance. O’Donnell suggests pitching Larson’s knack for skimming his car just inches from the wall as a high-octane narrative. This kind of storytelling could not only glue fans to their screens but also spark sponsor interest in the drivers and, by extension, in NASCAR itself.

Shaking up the race calendar might also be a winning formula. This year’s Chicago street race turned heads and proved a hit. So, why not bring back some classic tracks and sprinkle in a bit of novelty? It’s about creating a buzz and luring new fans from different corners of the map.

Media rights deals are another piece of the puzzle. This season, Fox Sports aired 16 out of the 36 races, with NBC covering the remaining 20. But here’s where it gets interesting: NASCAR is flirting with the idea of furthering a streaming partnership. Names like Amazon’s Prime Video and Turner Sports are being tossed around for broadcasting several races. It’s still up in the air, but if it pans out, it could be a major play in the sponsorship arena.

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Fingers crossed, these strategies will shift the gear in NASCAR’s viewership and sponsorship game, breathing new life into the sport’s stats.