Monster Energy's status as a sponsor of NASCAR

They may be just trying to hold on. This from NASCAR.

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Decision day nearing for Monster Energy sponsorship deals
Monster Energy is coming up on a crucial period, as it is determines whether to extend its title sponsorship with NASCAR and its team deal with Stewart-Haas Racing. The energy drink company's deal with SHR expires after this year, while the title sponsorship is slated to run through '18. Sources said that Monster is contractually obligated to let NASCAR know by sometime in December whether it will pick up a two-year option on the original two-year, $20M annual deal that would then extend through '20.

Sources said Monster is looking at recalibrating its investment in the sport next year, as it looks to find an overall spend that it deems as more of a returnable figure. Cuts could come on both the team side and entitlement activation side.

Monster has dealt with growing pains in its first year as the entitlement sponsor, as could be expected, and sources said that has continued in recent months amid issues with driver participation in Monster's marketing and track activation assets like signage and suites. While execs close to the deal concede there have been growing pains, a source disputed that it would lead to any early exit after this season. The source added that such growing pains should be eased significantly next year. NASCAR in recent months has said that it believes it will earn a renewal from Monster, and Covington's public comments on the deal have been almost entirely positive aside from conceding that it has been an adjustment for the company to get used to NASCAR's structure.

--- Sports Business Daily via Jayski ---
 
I predict they will pick up the 19-20 option for Nascar but will not pick up the 41 car this year.
By spreading the startup costs and yearly costs over 4 years and using the #41 sponsor money to pay for the 19/20 seasons they will end up with a great return on their money.
If they don't pick up the 19/20 option the door will be wide open for a number of companies to step in and at those prices I believe Coke will be the top bidder. They already spend a good deal on Nascar and it would only be a matter of redirecting existing funds. They have so many brands they can spread the costs over 5 or 6 brands.
 
"Sources said Monster is looking at recalibrating its investment in the sport next year, as it looks to find an overall spend that it deems as more of a returnable figure"

Translation: "We like being associated with Nascar but 20-25 million per year is stupid money to pay and we should have never signed the agreement to begin with. Beginning in 2018 we would be on board with a total outlay of 8-10 million bucks."

PS: I love the use of the word re-calibrating as a means of saying "We are paying too steenkin much" as it should be a word that becomes much used on the forum like "enhanced" has. I am looking forward to hearing something like "Nascar tracks are re-calibrating their seating inventory in order to enhance the fan experience." This sort of stuff is an absolute hoot.
 
AndyMarquisLive said:
Oh look, it's this week's "NASCAR is dead" thread.
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IDK where you are coming from as all that is going is the beginning of a negotiation for Monster to be with Nascar for another 3 years for a total of 30 million or thereabouts. It is just business and Monster will give Nascar 3 more years at a number they can live with and Nascar will accept it and everyone will put on happy shiny faces.
 
Just means Monster is going to spend more on title sponsorship and activation next year.
AdoubleU24 said:
I hope they don't leave that soon, they've certainly brought a lot of newness and edginess that we've not seen before. And that's just in 1 year.
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Agreed. Totally digging the Monster lifestyle.
 
This is all basically the media trying to play up Monster's contractually obligated time to reup with NASCAR. Will they or will they won't? Twitter is just armature media trying to likes or what ever they do on that stuff.
 
I am bummed for Kurt if Monster decides not to sponsor him and goes with the series sponsorship instead. It would be really strange to see both him and Matt Kenseth on the sidelines next year due to the lack of funding as those 2 guys can still get it done.

I would rather Monster not sponsor the series and go with Kurt and see Kenseth in the 10 with sponsorship
 
Skoalbandit33 said:
I am bummed for Kurt if Monster decides not to sponsor him and goes with the series sponsorship instead. It would be really strange to see both him and Matt Kenseth on the sidelines next year due to the lack of funding as those 2 guys can still get it done.

I would rather Monster not sponsor the series and go with Kurt and see Kenseth in the 10 with sponsorship
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*laying on the couch with a cold compress on my forehead*
 
Still SMH at this title sponsor deal.

Don't get me wrong, I don't have a problem with Monster. It's just this: The Monster deal was reported to be $20 million per year. If NASCAR, throughout the title sponsor negotiations, had been willing to settle for something close to that, perhaps some other company would have signed on for a longer-term deal?? NASCAR claimed several companies were interested.

As a reminder, NASCAR at the beginning of the search was saying they hoped to get $100 million per year... :rolleyes:

This whole deal just reeked of a desperation move to get someone, ANYONE, to sign on so the series would not go without a sponsor.

That's not just my imagination. Reporting earlier this year indicated that it was in fact a last-minute deal. All this despite NASCAR saying they would rather sit out a year or more without a title sponsor than sign a bad deal.

It's interesting to now read this and similar articles, in light of how things have actually gone down:

https://www.usatoday.com/story/spor...-sponsor-may-bring-less-money-table/92151830/
 
Candace66 said:
Still SMH at this title sponsor deal.

Don't get me wrong, I don't have a problem with Monster. It's just this: The Monster deal was reported to be $20 million per year. If NASCAR, throughout the title sponsor negotiations, had been willing to settle for something close to that, perhaps some other company would have signed on for a longer-term deal?? NASCAR claimed several companies were interested.

As a reminder, NASCAR at the beginning of the search was saying they hoped to get $100 million per year... :rolleyes:

This whole deal just reeked of a desperation move to get someone, ANYONE, to sign on so the series would not go without a sponsor.

That's not just my imagination. Reporting earlier this year indicated that it was in fact a last-minute deal. All this despite NASCAR saying they would rather sit out a year or more without a title sponsor than sign a bad deal.

It's interesting to now read this and similar articles, in light of how things have actually gone down:

https://www.usatoday.com/story/spor...-sponsor-may-bring-less-money-table/92151830/
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IDK what Monster thinks the title sponsorship is worth but they can smell blood in the water and realize they can get a substantially discounted rate if they play hardball. Nascar would be better off going without a title sponsor than discounting it again and waiting things out. Taking the 20 million from Monster has already cost the teams enough grief taking less will only add to the misery.
 
jws926 said:
I must be stupid, what the hell is the activation ?
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If you are, we both are. I had the same question back in January. At that time I thought it meant something like activating a credit card or an on-line account. Turned out it was something like money Monster is obligated to spend to promote the Cup series, above the basic fee for having their name on the series.
 
Charlie Spencer said:
If you are, we both are. I had the same question back in January. At that time I thought it meant something like activating a credit card or an on-line account. Turned out it was something like money Monster is obligated to spend to promote the Cup series, above the basic fee for having their name on the series.
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Or activating a cell phone on the Sprint Network.
 
Nascar loves using different terms like enhance, encumbered, activation and re-calibrate. To the best of my knowledge encumbered means you have won a race but done something wrong and activation means a title sponsor spending money over and above what they are forking over to Nascar for just being the title sponsor. Enhance means removing seats at tracks that will never be sold again and re-calibrate means a sponsor has decided they are spending stupid money on Nascar or its teams and either want out or a significant price concession.
 
Monster's "growing pains" required lawyers. Apparently they haven't gotten to do a few things that they were promised. NASCAR is currently trying to "fix" that. In the article, Mitch Covington declined comment. He couldn't even give a canned "happy to be in the sport" blah blah remark. Right now, he's not. Hope they work it out and remain partners for a while. I think the series is headed in the right direction (at least their unhappiness comes from deliverable rather than attendance/ratings etc. The former seems much easier to remedy).

Also, I didn't get the impression they'd pull back from Kurt entirely. They will be with him in some capacity depending on what their title outlook is. Could be more, could be less, could just be a big PSA (which would help in the event of a paycut) but it will be something.
 
Skoalbandit33 said:
I am bummed for Kurt if Monster decides not to sponsor him and goes with the series sponsorship instead. It would be really strange to see both him and Matt Kenseth on the sidelines next year due to the lack of funding as those 2 guys can still get it done.

I would rather Monster not sponsor the series and go with Kurt and see Kenseth in the 10 with sponsorship
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I don't mind those with 50 million plus leave. They have reached the stage of entitlement and give nothing to the series. There are few more that can be added to that list and that will make racing better. I would rather watch kids TRYING to get the win and fail than watch entitled drivers drive around for 2 hrs.
 
Team Penske said:
I don't mind those with 50 million plus leave. They have reached the stage of entitlement and give nothing to the series. There are few more that can be added to that list and that will make racing better. I would rather watch kids TRYING to get the win and fail than watch entitled drivers drive around for 2 hrs.
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I can't tell if this is a joke or not. I can't speak for everyone, but if you think Matt & Kurt are just happy to cash checks and clock laps, you haven't been watching. As for giving nothing to the series - Kurt does as much to promote the series as anyone in the garage...certainly more than the kids. Follow him on Twitter. He's an extremely active voice on TV & radio promoting race weekends. (Sadly, I can't tell you much about what Matt does away from the track. Will agree with you there.)
 
I had pegged Matt as one of those drive around guys like JG was near his end. Of course even at RFR Matt would qualify poorly and be at the front at the end of the race. One thing that bothers me is that Kurt was not really welcomed at SHR other than by the man who hired him. I am wondering if that could be why he doesn't seem to be getting what he needs or does it mean he needs a new CC?
 
Team Penske said:
I had pegged Matt as one of those drive around guys like JG was near his end. Of course even at RFR Matt would qualify poorly and be at the front at the end of the race. One thing that bothers me is that Kurt was not really welcomed at SHR other than by the man who hired him. I am wondering if that could be why he doesn't seem to be getting what he needs or does it mean he needs a new CC?
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I'd agree with this. Especially this year, since he won the very first race. It's a blessing and a curse. Blessing because, well, he won the Daytona 500. Curse because races 2-26 have been all about getting his teammates into the chase. It's not like he's been awful. He usually runs between 7-12...which can also be a curse, because he's not competing for wins, but also not terrible enough to fix.
 
It's not only Monster Energy,Goodyear has announced 2 major sponsorships recently.Goodyear to sponsor Cotton Bowl and Cleveland Cavaliers jerseys will have Goodyear patches on them.There hasn't been any news about NASCAR and Goodyear for 2018.
 
Allenbaba said:
In the article it mentions "amid issues with driver participation in Monster's marketing and track activation assets like signage and suites." Sounds about right. Unfortunately, NASCAR promised things it has a hard time controlling...
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It sounds like a meeting of drivers, team owners, sponsors and Nascar principals is in order so everyone can get on the same page and do what is best for the series. It may mean that some of the parties need to make some concessions and spend time doing things they would rather not do but the big picture needs to be kept in mind. JMO.
 
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