Energy drink brand Monster is taking its name into the world of motorsport with a $20m sponsorship deal for NASCAR’s No.1 series, fueling hopes that the American sport can engage with a younger audience.
The two-year deal reportedly comes with an option to extend for an additional two years with Monster stumping up $20m per season for the privilege – although NASCAR has refuted the accuracy of these figures.
If true the sponsorship deal would significantly undercut a 2004 deal struck with Sprint, which saw the mobile firm cough up $75m per season for a full decade, which it subsequently extended to 2016 at a rate of $50m per season.
NASCAR chief executive Brian France commented: “Those are not accurate numbers. We have a good understanding about where this relationship is going to be. So no, those are not accurate numbers. We’ll work on that.”
How much Monster will spend on promoting its sponsorship has yet to be determined and may increase the final sum but even so the total spend will be significantly south of the $1bn over 10 years which NASCAR was purportedly seeking.
Despite flagging audiences NASCAR benefits from a $4bn television contract that will run for eight more years.