- No guarantees Xfinity will continue as second-tier title sponsor
- Xfinity is also one of four premier partners of the Cup Series
Nascar is in talks with Comcast-owned Xfinity over a contract extension beyond this season, according to Sports Business Journal (SBJ).
Xfinity has been title sponsor of Nascar’s second-tier series since 2015, with the ten-year deal worth roughly US$200 million.
However, with that contract concluding at the end of this season, there are no guarantees that Xfinity will continue as title sponsor.
When the contract was first agreed, it made sense for Comcast to promote its newly launched Xfinity brand through NBC Sports, also owned by Comcast, which had signed a ten-year broadcast partnership with Nascar.
This media rights deal comes to an end this year but, with the second-tier Xfinity Series being carved out to The CW Network for US$800 million, the synergy between the two Comcast-owned properties is lost.
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“It’s a little too early for us to give a really good answer on [whether the Xfinity Series asset is a necessity for a contract renewal],” Matt Lederer, vice president for branded partnerships and activation at Comcast, told SBJ.
“But I would say that as we’ve learned the sport over the last ten years, we’ve learned the ecosystem of Nascar has a lot of tentacles and there’s a lot of ways to engage with the fanbase.
“The Xfinity Series for us has been the gold star across all those areas, but it’s a little too early to say what a new deal would look like.”
In 2021, Comcast upgraded its Xfinity sponsorship deal with Nascar, becoming a premier partner of the Cup Series alongside Busch Light, Coca-Cola, and Geico. The brand also has a team deal with 23XI Racing, co-owned by National Basketball Association (NBA) icon Michael Jordan and current Nascar driver Denny Hamlin.
Lederer continued: “We’ve both had a strong relationship over the last ten years and I’ve said it many times, it’s been an extremely beneficial partnership to our brand and business and a very valuable partnership for the business and brand of Nascar.
“And what I would say is we’re really confident and optimistic that Nascar is doing all the right things to capitalise on all the changes going on within the racing industry as a whole, and we appreciate the changes that have been made over the last few years and the direction of the team and [Nascar President] Steve [Phelps] to further engage fans, find new fans – that’s fantastic and we share that optimistic view.
“Right now, we’re engaged with Nascar to explore what a potential continued relationship could look like across the sport as a whole.”
BlackBook says…
Nascar’s second-tier series moving to The CW Network will give Comcast pause for thought when considering this contract extension.
The CW is a largely unproven network when it comes to sports broadcasting, but its majority owner Nexstar has started to build a small rights portfolio, including LIV Golf and a package of 50 college football and basketball games from the Atlantic Coast Conference (ACC).
Whether this will be enough to convince Comcast to stick with its current arrangement or look for a restructured sponsorship deal remains to be seen.
With shifting consumer needs, the company could pivot towards its Xfinity Mobile brand, which was the primary sponsor on the 23XI Racing car of Tyler Reddick at Nascar’s last race at Atlanta Motor Speedway.