NASCAR faces loss of major top-tier partnership reflecting shift in sponsorship dynamics

NASCAR will part ways with GEICO, one of its four premier partners, at the end of the 2024 season. This marks the first time a premier partner has exited the motorsports series under the new tiered sponsorship model introduced in 2020, similar to other professional leagues.

For decades, NASCAR had a single entitlement sponsor, with brands like Winston, Nextel, Sprint, and most recently Monster Energy. In 2020, the series transitioned to a new sponsorship model, introducing four premier partners — GEICO, Xfinity, Busch Beer, and Coca-Cola — each enjoying a wide presence within the sport.

According to a recent report from Sports Business Journal, GEICO, the insurance company backed by Berkshire Hathaway, has decided to end its partnership after the 2024 season. GEICO has also served as the official insurance provider for the stock car racing series since 2019.

"The partnership between NASCAR and GEICO has demonstrated the immense value and weekly excitement that two consumer-driven brands can create, and we are proud of the extraordinary brand value, exposure and growth opportunities we’ve built together," the statement read.

GEICO has a wide presence in the sport, holding the naming rights for the restart zone, where the lead driver is allowed to accelerate before taking the green flag. Additionally, the insurance company served as the title sponsor of the 500-mile spring race at Talladega Superspeedway.

The Maryland-based company has been in the sport since 2009 and was also the primary sponsor of the now-defunct Germain Racing team in 2020. It remains unclear whether the insurance company will continue its presence in the stock car racing series beyond 2024.

NASCAR has already been on the lookout for another premier partner and is open to having five sponsors at the top level, with two spots to fill following GEICO's exit.

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Major shake-up in NASCAR hierarchy ahead of 2025 season

Earlier in July, NASCAR announced a major hierarchy shake-up ahead of the 2025 season, which will also see new media partners and a brand-new charter deal. These moves were made to enhance its global appeal and strengthen its digital presence and marketing endeavors.

"[The moves] will allow me to focus more on the strategic vision and global expansion of NASCAR-owned racing properties, which I believe to be the best and most exciting in the world." president Steve Phelps was quoted as saying by Sports Business Journal.

Some major changes include COO Steve O'Donnell reporting directly to Phelps, with Brian Herbst promoted to the role of Executive VP and chief media & revenue officer. John Probst was promoted to EVP and chief racing development officer, reporting directly to O'Donnell.

Ben Kennedy was also promoted to Executive VP and chief venue & racing innovations officer. He spearheaded the sport's international expansion, putting together an exciting schedule for the 2025 season. Amid the changes, an unknown number of employees were laid off.