NASCAR is facing a potential $10 million gap in sponsorship 2026 revenue due to contract uncertainties with Sunoco, the official fuel provider for over two decades.
As NASCAR and Sunoco enter their final contractual year without a new agreement, questions are being asked about the future of their long-term engagement beyond 2025. Known for supplying fuel to all of NASCAR's national series, Sunoco has been a vital partner in the sport since they stepped in for 76 back in 2004. Now, with no new contract in place, the implications for both parties could be considerable.
Sunoco has played a substantial role within NASCAR, not just as a fuel provider, but also through various sponsorships. Sunoco's branding is prominently featured on the sport's cars, and the company sponsors the prestigious Rookie of the Year award, a key element of the sport's driver development.
On top of this, Sunoco supports individual drivers like Toni Breidinger in the ARCA series. In 2023, the brand was the largest financial contributor to the sport, with an investment of $26.25 million. The year after, it reduced to $12 million, with this year coming in $2 million lower than that.
Despite this large drop in investment over the last few years, Fred McConnell, Director of Marketing for Sunoco made it clear that negotiations are ongoing.
"They are in talks for a new long term deal," he confirmed.
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Arguing against this, however, is Sports Business Journal's Adam Stern. According to his sources, no extension deal has been reached despite the season beginning this month.
"NASCAR is expected to hold talks with other brands in this category," he posts to X (below).
.@SunocoRacing’s longtime sponsorship as the official fuel of @NASCAR expires after 2025, per sources, and the sides are heading into the start of the season with no extension reached.
🔲 NASCAR is expected to hold talks with other brands in the category. https://t.co/o4pM66LdOP
In recent years, NASCAR's Premier Partner lineup has experienced plenty of change. For example, Geico exited its Premier Partner status after the 2024 season.
Meanwhile, Xfinity will no longer hold the title sponsor position for NASCAR's secondary series. Instead, it has chosen to remain a Premier Partner by sponsoring the fastest lap award, which gives points to drivers who put in the fastest lap of the race.
These changes show that NASCAR is struggling, as Denny Hamlin recently discussed.
"I mean, it is tough out there. Sponsorship is hard to come by, and certainly, while it is such an important time in our sport to recognize that sponsorship dollars are not flowing like they used to for sure," he told FOX Sport's Bob Pockrass.
Denny Hamlin’s hauler has a lot of open white space as JGR continues to look for an anchor sponsor for him now that FedEx no longer sponsors a car. What he said Saturday about the sponsorship search: @NASCARONFOX pic.twitter.com/jyzen8mgRs
— Bob Pockrass (@bobpockrass) February 1, 2025"Everyone has had to adjust quite a bit, and there are certain aspects that JGR has to price into their pricing as well that is probably tough. I don't know. It is part of it. Certainly, having one sponsor for 20 years, made things pretty easy and now it is all catching up. Is it concerning from my end?
"Maybe a little bit, but it is probably more concerning from JGR's standpoint."
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NASCAR's current financials rely heavily on sponsorships, comprising between 60% to 80% of team revenue. This is drastically different from other sports leagues, such as Major League Baseball, where sponsorship contributes a smaller portion of total revenue.
Variability in the charter system adds another aspect of uncertainty, with recent charter sales showing significant fluctuations in market values. Media rights also play a role in this. A new $7.7 billion media deal set to run from 2025 to 2031 will distribute broadcasts across four platforms, potentially complicating how sponsors engage with audiences due to fragmentation.
Looking ahead, NASCAR may explore new sponsorship opportunities, potentially considering companies with a broader consumer reach, such as ExxonMobil or Shell, should they fail to reach a renewed agreement with Sunoco.
For the latest NASCAR news, head over to Newsweek Sports.
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