Joe Gibbs Racing has been a central figure in NASCAR sponsorship discussions since the 2022 season, dealing with the departure of Mars from the No. 18 team and FedEx’s gradual reduction in its support for Denny Hamlin. Sponsorship is crucial for NASCAR teams, providing both financial support and brand visibility.
Dave Alpern, president of Joe Gibbs Racing, emphasized the team’s dedication to their sponsors by showcasing how they use sponsor products daily.
The Significance of Sponsorship in NASCAR
Even as NASCAR enjoys its strongest position in years, teams still face challenges in securing and maintaining sponsorships. The rise of social media marketing and the demand for flexible sponsorship agreements mean that companies prefer to sponsor only parts of the season to maximize returns. Consequently, teams must attract multiple sponsors to stay financially viable. Joe Gibbs Racing, for instance, has 21 partners, reflecting its status as a top team in NASCAR.
Dave Alpern highlighted the team’s use of sponsor products, stating, “Do NASCAR teams use the brands that sponsor them? For Joe Gibbs Racing, absolutely. Our parking lot is filled with Toyotas, our people drink Coke or Monster, and we use Dewalt tools throughout the shop. Every car has an Interstate battery, we ship with FedEx, use sound gear for hearing, and Rheem units for AC and HVAC. Even our technical partners like Siemens contribute to our success. We personally use every partner’s products, and it’s a privilege to support the companies that help us race.”
The NASCAR sponsorship landscape has shifted dramatically in the past two decades. In 2005, 60% of team sponsors were Fortune 500 companies; by 2023, that figure had dropped to 20%. Major sponsors like Subway, Mountain Dew, GoDaddy, Jimmy John’s, Home Depot, and Farmers Insurance have left the sport, with others likely to follow. FedEx, once a full-season sponsor for Denny Hamlin, now sponsors only half the season. Kyle Busch’s exit from Joe Gibbs Racing was partly due to the loss of a $25 million annual deal with M&M’s, leading Mars Inc. to also withdraw. This sponsorship gap forced Busch to move to Richard Childress Racing, which had sponsors like Lenovo, Lucas Oil, and McLaren Custom Grills ready to back him.
Given these challenges, it’s clear why Dave Alpern stresses the team’s daily use of sponsor products. Maintaining good relationships with sponsors is crucial for on-track success and attracting new sponsorships. While NASCAR sponsorship isn’t disappearing, the types of sponsors are changing.
NASCAR remains a valuable sponsorship opportunity for some blue-chip companies, as demonstrated by 23XI Racing’s partnerships with big brands like McDonald’s, Mobil 1, Walmart, Dr Pepper, and DraftKings, leveraging the star power of Michael Jordan and Denny Hamlin. However, most teams rely on smaller, growing brands. This trend is expected to continue, as these challenger brands benefit more from NASCAR sponsorships. Surveys have shown that NASCAR fans are the most brand-loyal in sports, ensuring that consumer brands will likely maintain their involvement.
NASCAR’s sponsorship dynamics have evolved, but the sport’s $7.7 billion media rights deal indicates strong ongoing interest. As long as fans remain engaged, sponsorships will continue to play a vital role, with smaller brands increasingly featured on race cars.
