It's Monster

From jayski.....

Monster sponsorship reportedly for 2 years; France responds: Monster Energy's deal to serve as title sponsor for NASCAR's premier series beginning with the '17 season is a two-year deal with a two-year option worth about $20M annually in rights, with activation "still being determined but expected to be less robust than predecessor Sprint," according to sources cited by Adam Stern of Sports Business Journal. Sources said that Sprint was paying $65-75M a year in rights and activation. Last week, Monster execs and staffers flew to NASCAR HQ in Charlotte for immersion meetings and they "began to sort out activation plans, down to figuring out the name and logo of the racing series." Monster Energy VP/Sports Marketing Mitch Covington was "not ready to release activation details but provided hints on what Monster may do." Monster "sponsors a host of motorsports and action sports properties globally and is known for its cross-promotion acumen, and Covington confirmed that it will be looking to cross-promote in NASCAR." He said that "virtually every form of activation imaginable is under consideration, from special NASCAR drinks to basic television advertising." Stern notes a "main concern industry observers share privately about Monster is whether the company's edgy style will fit with a sport that has a family ethos and atmosphere." But many in the industry "think that for a sport trying to age down, Monster could be the ticket"(Sports Busines Daily)

AND: NASCAR Chairman and CEO Brian France says an announcement on what the sport's premier series will be called under sponsorship from Monster Energy is forthcoming. "We'll have an announcement shortly," France said during a surprise call into SiriusXM NASCAR Radio. "We're working together with them. A lot of it is, they know motorsports, so they're not just along for the ride, they have some real good opinions on what they want to get done here as our entitlement sponsor. So, we're going to listen to them because they're obviously the most important partner; it's all going to be good." France noted the reception to the new partner has been positive, which is "what we wanted all along." And while it took time to work through things contractually, France said company is going to be engaging both on social media and at the track.

When asked to look at what the premier series car count will look like next year, France called it "normal times" as teams make decisions about their futures. That includes drivers moving around and organizations, like Tommy Baldwin Racing, deciding to end operation. But when it comes to the series as a whole, France made it clear that a recent report from the SportsBusiness Journal concerning the agreement between Monster Energy and NASCAR is not correct. France was quick to refute the numbers and said there would be longevity to the deal. "Those are not accurate numbers," France said. "We have a good understanding of where this relationship is going to be, so no, those are not accurate numbers ... [Monster Energy is] excited about being here. My view is, this is the biggest entitlement or biggest sponsorship yet for their company, and although they're very successful ... my view is, they're going to build on for a long time. That's the sense of it with me, and I made this particular sales call myself, so I have a good sense of it, and I'm a big believer in those guys. They really have an understanding of what we're all trying to do together."(Racer)(12-13-2016)
 
If those numbers are true, its a horrible sign for nascar. It's becoming more clear every year that Brian France is in over his head, and if continues, I'm not sure Nascar will be around in his current format for very much longer.

I think the sport will be around, but at some point you're going to see a split. The owners are investing too much money in their teams for this to continue down the path it is.
 
I don't think the owners are putting a dime into this sport. The sponsors are paying the freight and other than 1 or 2 teams, everyone is making money. At least the ones who understand racing are.
 
Go Panthers said:
If those numbers are true, its a horrible sign for nascar. It's becoming more clear every year that Brian France is in over his head, and if continues, I'm not sure Nascar will be around in his current format for very much longer.

I think the sport will be around, but at some point you're going to see a split. The owners are investing too much money in their teams for this to continue down the path it is.
Click to expand...

I think Nascar will always be around in some form but it is likely to look much different and have a much smaller footprint then it has in the past. Monster has picked up Nascar for pennies on the dollar and if it can make some inroads with cross-promotions and scantily clad women that will be great and if not they can exit the series quickly and fuggetabouit.

Nascar's most immediate need is to get younger as quickly as possible and provide a product that primarily appeals to millennials and to make the series cool like it was for a few years back in the late 90's and early 2000's. Can Monster provide a way for that to happen? I think it is possible but the on track product and method of operations would have to be changed as I believe many of Nascar's current events would be seen as sleep inducing to youngsters.

Obviously Nascar has known for many years that the product it provides often times can't stand on its own which is why so many gimmicks have been installed and we see the flagrant misuse of the yellow flag in order to manage races. Do millennials like this sort of contrived drama as opposed to a sporting event? I don't know but Nascar better listen to them attentively as the series will live or die based upon them.
 
sdj said:
... my favorite comment from Brian - "I made this particular sales call myself".
Click to expand...
"Hi, [other party's first and last name]! This is Brian France from NASCAR. How are things in [other party's state] today? [wait for other party to respond] That's great. Now, this is NOT a sales call. NASCAR is reaching out to motorsports-interested parties like yourself [other party's first name] ..."
 
I think nascar should have considered going without a sponsor if the deal was only 2 years and 20 million a season. Thats not even as good a deal as a nascar team would get. Most of the money is an agreement to advertise with the networks anyways. I would have thought sprint might have considered staying on for that much less money.
 
That's not a great figure at all, but ultimately I think any dividends from this deal will come much more from marketing and activation than just a check every year. If Monster can help rebuild NASCAR's brand and make some things more interesting that's probably better than a company paying $35m/year and being an irrelevant brand to the fan base and having apathetic activation efforts.
 
If (and it's a big if) the deal is only $20m for two years, that would be on par with or lower than a single primary sponsor at a major team. In that case I really hope we don't see the car sponsors go back to the teams and re-negotiate for much lower rates based on the far lower relative value. I suspect that's what it will come to though. If the entitlement sponsor's worth has now dropped from $75m a year to $20m a year then it would stand to reason that a full season car sponsorship would also drop from $25m to around $6.6m. That's gonna be a big pay cut.
 
Brian France trying to put a positive spin on it is comical.There has to be some team owners having sleepless nights now.I would think Penske,Gibbs,Hendricks and the rest realize they can't continue without major changes.I just have no confidence in Brian bringing changes to NASCAR to bring in new fans.I can't blame NBC and Fox running all the commercials they do as much money as their paying out.
 
Acs said:
If (and it's a big if) the deal is only $20m for two years, that would be on par with or lower than a single primary sponsor at a major team. In that case I really hope we don't see the car sponsors go back to the teams and re-negotiate for much lower rates based on the far lower relative value. I suspect that's what it will come to though. If the entitlement sponsor's worth has now dropped from $75m a year to $20m a year then it would stand to reason that a full season car sponsorship would also drop from $25m to around $6.6m. That's gonna be a big pay cut.
Click to expand...
Sprint's number included their activation budget.

The Monster figure of $20M, assuming it's correct, does not. Apples / Oranges.
 
No ways those numbers are correct. 2 years 20 million a year is silly and anyone who believes it is silly.
 
cheesepuffs said:
I said just a few days after the announcement was made that Monster was only paying 20 million a year and I got the typical "whats your source?? I don't believe you" type responses.

M "gyno" in Charlotte is battin' .1000.
Click to expand...

Count me as a believer as I heard it was 25 million at first and then 20 million from multiple sources. Who knows as Monster may be paying Nascar with Monopoly money or with services from the Monster girls that are monetized at 20 million per. Whatever the case is Nascar went from Bugatti money down to a 1978 Chevette Scooter.
 
hidesert cowboy said:
I think nascar should have considered going without a sponsor if the deal was only 2 years and 20 million a season. Thats not even as good a deal as a nascar team would get. Most of the money is an agreement to advertise with the networks anyways. I would have thought sprint might have considered staying on for that much less money.
Click to expand...

Right or wrong Sprint like many other companies did not feel that being involved with Nascar was a worthwhile endeavor.
 
FLRacingFan said:
That's not a great figure at all, but ultimately I think any dividends from this deal will come much more from marketing and activation than just a check every year. If Monster can help rebuild NASCAR's brand and make some things more interesting that's probably better than a company paying $35m/year and being an irrelevant brand to the fan base and having apathetic activation efforts.
Click to expand...

Truth be told I am more interested in Monster's involvement from a business perspective as if they can even get the ship to stop taking on water it will be very impressive.
 
Acs said:
If (and it's a big if) the deal is only $20m for two years, that would be on par with or lower than a single primary sponsor at a major team. In that case I really hope we don't see the car sponsors go back to the teams and re-negotiate for much lower rates based on the far lower relative value. I suspect that's what it will come to though. If the entitlement sponsor's worth has now dropped from $75m a year to $20m a year then it would stand to reason that a full season car sponsorship would also drop from $25m to around $6.6m. That's gonna be a big pay cut.
Click to expand...

I hear what you are saying but I don't think it is applicable as the title sponsor is essentially paying for blue sky while a team sponsor is paying in large part to fund the team. If Lowes came to Rick Hendrick and said we will now be giving you 6 million to sponsor the 48 the team would be mothballed.
 
cheesepuffs said:
I said just a few days after the announcement was made that Monster was only paying 20 million a year and I got the typical "whats your source?? I don't believe you" type responses.

M "gyno" in Charlotte is battin' .1000.
Click to expand...

It was reported within hours of the announcement to be in that range and was mentioned here. We still don't have what I would call clear confirmation of that, but several reporters are independently reporting similar figures. That's more likely to be true than Brian France's non-denial denial in which he says it's inaccurate but refutes nothing specifically.

It's also true that the rights fee isn't the important part of the sponsorship.
 
darlingtonfan said:
Brian France trying to put a positive spin on it is comical.There has to be some team owners having sleepless nights now.I would think Penske,Gibbs,Hendricks and the rest realize they can't continue without major changes.I just have no confidence in Brian bringing changes to NASCAR to bring in new fans.I can't blame NBC and Fox running all the commercials they do as much money as their paying out.
Click to expand...

Brian France and his minions are accomplished liars as there is no way in the world there were multiple series sponsors in play like they said. I am sure Monster said its offer was good for 20 million for 2 years with a 2 year option and Nascar could take it or leave it. They probably had a time frame in which to respond and without any other offers on the table Nascar blinked and took what they were given.

If any other companies were ever seriously interested in being Nascar's title sponsor word would have leaked by now.
 
aunty dive said:
Sprint's number included their activation budget.

The Monster figure of $20M, assuming it's correct, does not. Apples / Oranges.
Click to expand...

I was just channeling some synergistic energy regarding the activation budget and audibly heard Wolfman Jack say: "It's all according to how your boogaloo situation stands, you understand?
 
Skoalbandit33 said:
If any other companies were ever seriously interested in being Nascar's title sponsor word would have leaked by now.
Click to expand...

That's not accurate. We have a good understanding of where that interest was with regard to other companies. So no, that's not accurate.

^ I've decided I'm going to be Brian France next Halloween, so I'm practicing early.
 
gnomesayin said:
That's not accurate. We have a good understanding of where that interest was with regard to other companies. So no, that's not accurate.

^ I've decided I'm going to be Brian France next Halloween, so I'm practicing early.
Click to expand...

You better be careful as going dressed as Brian France could be hazardous to your health!
 
gnomesayin said:
Fox is paying $2.4 billion over eight years and NBC is paying $4.4 billion over ten years. However, it is important to note that only 10% of this goes to NASCAR directly. 65% goes to the tracks, and 25% is distributed to the teams through the purses.
Click to expand...

What I never got about the deal was why pay 65% of that to the tracks and then NASCAR turns around and charges SMI and ISC huge sums for sanctioning fees for their races.
 
gnomesayin said:
I can't get over the hilarity of Brian's repeated boasting about how he made the sales call himself. This f'ing guy. I thought Roger Goodell was a dweeb.
Click to expand...

Yeah....what does Brian want......a freakin hero biscuit or something? I think he has an IQ of 60 on a good day.
 
Joe Isuzu is more honest than Brian France

isuzu_joe.jpg
 
Brian looks totally hungover in this pic.....actually he looks about 5 years late to a 6 month stint at Betty Ford. SNL should do a skit on the bloated little alkie as it would be quite funny.

76ff7e19b47bdac13f1ff7c26282a4c3.jpg
 
One thing I will say for Brian France is that he does grasp that he shouldn't directly lie. Not everyone in the public eye understands that anymore. He clouds the issue and evades when asked a question he'd rather not answer. The funny thing is that the media that pay attention to NASCAR are not exactly an adversarial lot, and he could probably get away with it.

If you're still doubting the figures that have been reported by several different reporters at this point, I assume you do so because you believe the actual sponsorship fee must be much higher. I'm guessing it's not that people are thinking it must be $5 million, $20 or $25 million sounds like too much. If you believe that Brian France wouldn't say something along the lines of the following if he were able to without bald-faced lying, I have some land you might be interested in buying:

"No, that's not accurate. We don't discuss the specifics of our contracts, but I can assure you that the agreement is for significantly more than what has been reported. I don't know who is leaking those figures to the media, but they are wrong."
 
You must log in or register to reply here.
Back
Top Bottom