NASCAR is at a steep corner unable to finalize a new charter agreement with teams for what comes after 2024. The key contention point has been a bigger share of the new media rights deal for them, something the promotion doesn’t seem to be willing to provide. Further numbers from an analytics company called GlobalData have cast the spotlight on the extremity of the situation.
Advertisement
Extensive research carried out by taking in data found outside of the Daytona Beach Headquarters has showcased that the sport has been leaking money. Sponsor revenue for NASCAR was $425.06 million last year. There has been a 16% drop in this figure this year and currently stands at $362.34 million. This is because leading brands have decided to pull out of their commitments.
Sunoco led corporate sponsorship in 2023 by shelling out $26.25 million. The size of the check has fallen considerably to just $12 million this year. Goodyear has become the largest sponsor with a $25 million deal. Xfinity, Toyota, and Coca-Cola form the leading lines along with other such global names. The loss of sponsor revenue hasn’t solely been for NASCAR.
Like the mothership, teams have been unable to attract sponsor revenue as they once did. Which is precisely why they’re demanding more revenue from the media rights deal. Team Penske had an approximate sponsorship revenue of $140.94 million in 2023. It nearly lost 40% of this money and has received only $86.63 million this time. Teams including Richard Childress Racing follow similar trends.
How much more money are teams looking for from NASCAR?
The new media deal that NASCAR has drawn with broadcasters like NBC Sports, Prime Video, and Fox Sports will bring in about $1.1 billion annually for seven years. According to the current model of sharing, teams will get $275 million a year. But they’re trying to get rid of this model and obtain a more lucrative one. The numbers from GlobalData sure do help make their case.
At the end of the day, these figures aren’t from NASCAR itself. The research does not take into the incomes that are received from licensing deals and track revenue. However, it does provide insight into the economic health of NASCAR and underlines the imperativeness of the situation. Hopefully, all the parties will find a solution beneficial to their interests and keep the show running.
