Monster Energy and NASCAR have signed a new deal.
The beverage company will remain the entitlement sponsor of the NASCAR premier series through 2019, adding a third year to its partnership with the sport. NASCAR officials made the news official Wednesday afternoon following months of discussion between the two sides and Monster Energy’s requests for extensions on making a decision.
“NASCAR and Monster Energy enjoyed a productive first year and both parties have benefitted significantly from the partnership,” said Steve Phelps, NASCAR chief operating officer. “Monster Energy successfully utilized our sport as a platform to elevate its brand and drive business, while introducing NASCAR to new audiences. With this renewal, we look forward to building upon our early success.”
Monster Energy and NASCAR mutually agreed to a one-year deal after initial reports surfaced that it could have been for another two years. Additionally, NASCAR acknowledged it will be looking at its entitlement sponsorship model for the future and it is “highly unlikely” that Monster Energy would return as the title sponsor after next season.
A new model could involved the tracks and television partners and might not including naming rights.
The departure of Sprint/Nextel after the 2016 season opened the door for NASCAR to work with a new entitlement sponsor in the premier series. Monster Energy originally signed a two-year deal with NASCAR in December 2016.
“Over the past year, NASCAR’s passionate and brand loyal fan base embraced Monster Energy and we are excited to be able to continue to build on and strengthen that momentum through 2019,” said Rodney Sacks, Monster Beverage chairman and CEO. “Racing is in our DNA and extending this partnership further establishes Monster Energy’s prominence in motorsports.”
NASCAR said the benefits of its partnership with Monster Energy included a Nielsen report showing that as a result of race broadcasts, Monster Energy gained more than half a billion dollars in sponsorship exposure value.
Of note, more than 16 million additional NASCAR fans heard of the Monster Energy brand in just one year.
Meltwater showed that in 2017 an average of nearly 400 media stories per day included mentions of both Monster Energy and NASCAR, which was the top performing earned media partnership in all of sports.