Gone are the days when NASCAR relied on title sponsors and partners to run races. Nextel, Monster, and Winston once flooded the sport with big bucks, allowing it to reach new heights. However, from the 2020 season onwards, the premier series was called the NASCAR Cup Series, thus entering an era without the support of a single brand or company. Now, they seem to have cut ties with one of their premier partners, GEICO.

This might be due to NASCAR’s shift towards TV revenue and growth prospects with streaming services. Last year, they signed a $7.7 billion TV deal for the next seven years, securing a steady flow of money to keep the sport up and running. However, in adapting to the new business model, they seem to have lost the trust and support of their iconic partners. The $32 billion insurance company GEICO became the latest one to cut ties with NASCAR.

NASCAR loses one of its premier partners

After the brand revamps in 2020, the governing body chose to have a set of key sponsors to help sustain the sport’s operations. Busch Beer, Coca-Cola, GEICO, and Comcast’s Xfinity were roped in as premier partners in NASCAR racing. All four companies received special mentions during race days.

Busch Beer received exclusive sponsorship for the pole awards, which were then called the Busch Light Pole. Coca-Cola became the official soft drink of NASCAR. Xfinity became the official entertainment partner, while GEICO served as the official insurance provider of NASCAR. But, according to a report by Sports Business Journal, GEICO and NASCAR will part ways after 15 years of collaboration.

“The partnership between NASCAR and GEICO has demonstrated the immense value and weekly excitement that two consumer-driven brands can create, and we are proud of the extraordinary brand value, exposure, and growth opportunities we’ve built together,” A NASCAR executive confirmed to SBJ.

Losing one of the premier partners is indeed a concern for NASCAR. Additionally, the governing body is yet to ink sponsorship deals with the other three partners as well.

NASCAR is unable to renew major sponsorship deals this year

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GEICO has been one of the top spenders on FOX and NBC during the races. The most notable feature and presence of the brand that connects with viewers is the GEICO restart zone. The insurance company also sponsored the Talladega races and camping grounds at Daytona. So, it is a big loss to part ways with a sponsor who has served the sport for so many years.

Moreover, there are rumors that Xfinity could be backing out as the title sponsor for NASCAR’s second division of the racing series. Comcast signed the deal with NASCAR as the title sponsor back in 2015, and so far, there’s no clarity on whether they will continue the partnership. Comcast, for the time being, isn’t sure about forging a long-term agreement and may start building a year-on-year relationship with NASCAR.

“Not trying to look at what Year 11 looks like, but really, how does this become Year 1 of a new deal?” Comcast VP/Branded Partnerships & Activation Matt Lederer said to SBJ. The report also suggests that NASCAR was looking for $15-20 million from its premier partners back in 2019. The big worry for NASCAR now is retaining the three remaining partners as the current deals expire in 2024, while also looking to replace GEICO’s departure.