In the fast-paced world of motorsports, the only constant is change. This is why NASCAR has opted to hire CAA Sports to help find a new chief commercial officer, as they look to secure some blue-chip sponsorships. The auto racing entertainment company has seen tremendous growth since the pandemic, and the move to partner with CAA is NASCAR’s initiative to capitalize on that momentum to compete with Liberty Media’s Formula 1.

Speculation is rife about what could be the requirements for the CCO role, while sources claim that the sanctioning body is looking to hire somebody based in New York City.

NASCAR aiming high with agency appointment

Liberty Media, the parent company of Formula 1, has seen a significant revenue increase year after year, reporting a total of $3.2 billion in takings at the end of 2023. Sponsorship fees comprise 18% of that figure, thanks to the sport extending its deal with logistics company DHL and renewing its partnership with the Saudi Telecom Company. Formula 1 also signed a 10-year media rights deal with BeIN Sports to broadcast their races in the Middle East, Turkey, and North Africa and signed a multi-year agreement with Romanian broadcaster Antena.

With NASCAR hoping to grow in a similar trajectory, the chief commercial officer will oversee sales in the organization’s premier and official partner categories, as well as media sales like NASCAR Digital Media and Motor Racing Network. Despite the organization having an office in New York, which would mean hiring a CCO from the city could help in having a key figure at Madison Avenue, the company is also open to expanding its search to Charlotte and Daytona Beach as well.

The chief commercial officer will be expected to work closely with NASCAR teams, venues that are not owned by the sanctioning body, as well as media rights holders. What could this mean? It means that NASCAR and the teams under its banner could work together starting next year to sell sponsorships, but everything would be dependent on the outcome of the ongoing negotiations surrounding charter agreements. As things stand, the CCO will report to the NASCAR EVP and Brian Herbst, the Chief Media and Revenue Officer.

So where does CAA Sports come in? The company, which is ranked as the most valuable sports agency in the world according to Forbes, has contracts worth an estimated $17.8 billion. They will assist NASCAR in its search for a chief commercial officer, widening the net on potential candidates and helping speed up the process, which is expected to conclude by the end of the year. It’s not the first time that the organization has hired CAA Sports to help with its business ventures, as they consulted the agency in 2022 and 2023 over its media rights strategy, which helped NASCAR generate over $7 billion in revenue.

NASCAR revamps its sponsorship sales division as well

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Earlier this year, NASCAR was forced to reshuffle its sponsorship sales division after Executive Vice President and Chief Revenue Officer Daryl Wolfe announced his intention to retire. What followed was the organization letting go of multiple salespeople who had worked under Wolfe, which included key personnel in the sponsorship department as well. The sanctioning body also hired brand consultancy company Monigle, to assist them with renewal talks with Xfinity and Geico, two of NASCAR’s premier partners.

Kami Taylor, who works with several brands in NASCAR as executive vice president of experiential at Octagon, said, “If, as a league, they don’t evolve and grow with the way the marketplace is going, then they’re going to fall behind. However, I think the overall health of NASCAR is strong and they still provide robust sponsorship opportunities for brands looking to grow regionally or domestically.”

The American sports and entertainment landscape has always been very competitive, but NASCAR has found its niche and cemented its position over the last few years. However, the leadership at the organization is looking for more avenues to grow the company, hoping to penetrate the domestic market and foreign markets to compete against Liberty Media, the owner of Formula 1.

While the structure of NASCAR’s new sales team remains unclear, it’s evident that they are in a lot better position than they were pre-pandemic, and would not find sponsorship opportunities hard to come by.