Nascar has reportedly rejected an offer from Monster Energy to extend its title sponsorship of the US stock car racing series in order to push ahead with a new tiered partnership model.
According to the Sports Business Journal, the energy drink brand offered to extend its deal for an additional year to give Nascar more time to finalise its sponsorship restructure. However, Nascar has apparently turned down that option to keep moving forward with the new model, with Monster now in talks about becoming a lower-level partner.
Nascar’s switch to a tiered sponsorship model has been rumoured for some time, and the series is reportedly asking for close to US$20 million each year for top-tier deals.
The Sports Business Journal added that Monster would likely land a second-tier sponsorship deal, although it is not yet clear how much Nascar wants for those slots.
Monster was first named Nascar title sponsor in 2017 as part of a two-year deal estimated to be worth an annual US$20 million. The company then extended the partnership for a further season in April last year. At the time, Nascar’s chief operating officer Steve Phelps, who now serves as the series’ president, admitted that it was “highly unlikely” the partnership would continue beyond 2019.
The new arrangement would see Nascar’s premier series be known as the Nascar Cup Series, rather than the title-sponsored Monster Energy Nascar Cup Series.