Phelps hints at evolution of NASCAR sponsorship model, Monster Energy’s continued role

Tuesday's welcome news that Monster Energy has returned as the title sponsor of NASCAR's top division came with a compelling hint at what the future might hold, not just for the powerful energy drink brand but for the sport's established sponsorship model in general. Steve Phelps, NASCAR's Chief Operating Officer, touched on the potential evolution of stock-car racing's sponsorship structure in a Tuesday media roundtable, which dovetailed with Monster Energy's one-year renewal with the sanctioning body. Phelps said the push for the shorter-term contract extension was mutual, as both sides shifted focus toward establishing a new framework for companies involved in the sport. "This is something we've been exploring for a while," Phelps said, noting that the idea was first broached roughly three years ago. "It's more to do with this notion that we want to make it easier for sponsors to say yes. The entitlement position, the things that we're talking about, we're already requiring of our entitlement partners right now, but we're talking about broadening it, so it's not just one company at the top of the pyramid, but it's multiple categories, multiple companies that will allow us to make it easier. "We think there's greater value, frankly, for the sponsors by doing this, but it will take the next level of collaboration within the industry." Phelps said that the sport already works with sponsorship packages that involve multiple stakeholders, but that a new model could be even more inclusive, bundling sponsorship across various entities such as the sanctioning body, race tracks and TV and media partners. RELATED: Monster Energy renews with NASCAR That new look of corporate backing also would be segmented into different levels or tiers of participation, similar to other sports. Though Phelps added that Monster Energy's return at the entitlement level in 2020 was "highly unlikely," he expects the company to return as a key partner in a different role. And Monster VP of Sports Marketing Mitch Covington told the Sports Business Journal on Tuesday that the California-based company was open to participating in the potential new structure, saying, "We're always open to good ideas and we want to continue to be a part of the sport one way or the other." Monster Energy joined the sport as an entitlement partner in 2017, expanding its brand's reach to a new sports domain. Monster has brought a maverick approach in an effort to win over younger and more diverse fans -- an effort, Phelps said, that NASCAR would maintain over the coming seasons. "That's a journey that we're going to continue on," Phelps said. "… We have to continue on to make sure our content is as strong as it can be that we're pushing through the digital and social channels. We need to make sure that we continue to cater to kids and to make sure our millennial audience is happy. We have to continue the gains that we've made with our Hispanic fans, which has been significant over the last three years. That journey doesn't end. And by the way, we have to make sure that we're nurturing the existing fan base that we've had for many, many years. They're incredibly important." PHOTOS: Monster Energy girls at the track