NASCAR Rejects Monster Extension For New Sponsor Model

Monster Energy "offered to extend its title sponsorship of NASCAR’s Cup Series for one additional year" through '20, but NASCAR "rejected the overture because the sanctioning body is set on switching to a new tiered sponsorship model," according to sources cited by Adam Stern of SPORTS BUSINESS JOURNAL.

NASCAR was looking into switching to a system in '20 that will go "without a title sponsor for its top series and instead feature tiers of sponsorships."

Sources said that Monster "offered to stay one additional year to give NASCAR more time to get the model ready." However, NASCAR "chose to keep moving forward with the change," so Monster now is in talks about "becoming a lower-level official partner."

The overture from Monster "signals that the company remains satisfied with the title sponsorship," which is worth around $20M annually. The new sponsorship model will have "three tiers, with top-tier partners receiving the best assets and NASCAR asking around $20 million annually for those slots."

A source said that Monster is "more likely to land a second-tier slot." It is "not yet clear what NASCAR is asking for second-tier positions." Monster no longer being title sponsor should "reopen the energy drink category for teams." Monster VP/Sports Marketing Mitch Covington said that the company "welcomes" that notion. SPORTS BUSINESS JOURNAL