Sprint recently announced its decision to end the NASCAR sponsorship deal. Since 2004, Sprint has been the sponsor of NASCAR's premier Cup Series. However on Tuesday, Sprint revealed that it will not extend its sponsorship with NASCAR when the current agreement expires in 2016.
Since Nextel and Sprint had a corporate merger in 2008, the once Nextel Cup Series was changed into the Sprint Cup Series where Sprint became the entitlement sponsor for the organization's top-tier racing series. According to ESPN, Sprint will not renew it NASCAR sponsorship deal after it agreed to a three-year extension that took the contract through 2016.
According to the statement released by Sprint, the company cited the need to concentrate more directly on its core business properties on why it decided to end the NASCAR sponsorship deal, NBC Sports reported.
"We are proud of our association with NASCAR's top series but have made the decision not to extend our sponsorship beyond the next two years," Sprint's Vice President of Marketing, Steve Gaffney said. "As we look to the future, Sprint is focused on investing in maintaining a competitive edge and providing consumers with the best value in wireless."
"Sprint has long benefited from the unprecedented level of brand integration available in NASCAR, and the passionate fan base that is the most loyal in sports," Gaffney continued. "Without question, the NASCAR sponsorship property has been a valuable investment for us and will be for our successor."
Sprint's announcement to end the sponsorship deal on Tuesday gave NASCAR two seasons to find a replacement. And NASCAR also released its own statement.
"NASCAR and Sprint have enjoyed a long and productive partnership that has returned significant value to both parties," NASCAR's Senior Vice President and Chief Communications Officer Brett Jewkes stated. "We understand significant changes within Sprint and the highly competitive business environment it is in has led to a decision not to extend its Cup Series entitlement position following the 2016 season."
"The NASCAR Sprint Cup Series is a very unique, premium sports marketing platform with strong momentum, so we are very confident of moving forward in 2017 with an outstanding new partner," the statement continued. "In the meantime, we look forward to Sprint's partnership on the best racing series in the world for the next two seasons."
The decision of Sprint not to continue its sponsorship deal with NASCAR meant that the organization will enter a new entitlement agreement for the fourth time since 1971, Yahoo! Sports reported. Sprint has been responsible for funding the season-ending point fund, which was almost $22 million this past season and awarded $4.8 million to first-time champion Kevin Harvick. It also promoted the series through several marketing campaigns.
The many changes on Sprint is brought about its new leadership and its changing marketing strategies. In August, USA Today reported new CEO Marcelo Claure took over the headship and led the company to focus on business priorities, cut costs and change the way customers looked at Sprint.
Meanwhile, NASCAR will again look to seek out a major series sponsor after Sprint decided to end it sponsorship deal. Though the organization lost it major sponsor, this 2014 has been a busy and successful year for NASCAR.
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