If you looked closely, the texting was on the wall.
Sprint, the sponsor of NASCAR's premier Cup Series since 2004, had started cutting back. Positions were being eliminated, budgets slashed and racing-related elements like the Sprint Experience -- a massive marketing area which used to travel weekly -- was showing up at the racetrack less and less.
So it wasn't a major surprise when Sprint revealed Tuesday it will not extend its NASCAR sponsorship when the current agreement expires in 2016.
"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 vice president of marketing Steve Gaffney said. "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. Without question, the NASCAR sponsorship property has been a valuable investment for us and will be for our successor."
But for NASCAR, the question is: Now what?
It recently signed a 10-year television deal worth $8.2 billion with NBC and Fox, but has experienced continued declines in attendance and TV ratings. In the next two years, NASCAR must find another globally known brand that is willing to part with big bucks in return for branding emblazoned on everything from cars to tracks to signage to races. The 2004 deal with Nextel was estimated at at least $70 million per year at the time, so it's important to find a suitable replacement that understands what deep pockets could bring in return.
The title sponsor funds the annual points bonuses, which this year were more than $20 million. It also is responsible for marketing and branding campaigns. For example, Sprint has its name associated with the season's first exhibition race, the Sprint Unlimited; the mid-May All-Star Race in Charlotte; and of course the 10-race Chase in which 16 drivers vie for the championship.
Nextel began sponsoring the Cup Series in 2004, but the name was changed in 2008 after Sprint acquired Nextel.
In 2017, there will be another name change -- the third different name in 13 years following Winston's 33-year run as the Cup Series sponsor.
This follows other title sponsor changes for NASCAR's second-tier series (Busch to Nationwide to Xfinity starting next year) and Truck Series (Craftsman to Camping World in 2008).
Earlier this year, the stock-car series announced that Xfinity would be taking over from Nationwide, which left to sponsor Dale Earnhardt Jr.'s No. 88 Chevrolet in the Cup Series. Earnhardt Jr. is the sport's most popular driver and could give Nationwide an even bigger return on its money. Xfinity signed on through 2024.
In 2008, Camping World replaced Craftsman as the sponsor for the Truck series and this year signed an extension that keeps it with the sport through 2022.
Brett Jewkes, NASCAR senior vice president and chief communications officer, said via statement: "NASCAR and Sprint have enjoyed a long and productive partnership that has returned significant value to both parties. 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. In the meantime, we look forward to Sprint's partnership on the best racing series in the world for the next two seasons."
Under new CEO Marcelo Claure, who took over in August, it was apparent many things about Sprint would change. Claure moved quickly to refocus the company on its core business priorities, cut costs and alter the way customers looked at Sprint.
With all the changes Sprint is currently going through, more cutbacks may be in store over the next couple seasons. One of the most valuable services the company provides NASCAR is bringing extra cell phone towers to the racetracks, which do not yet have wifi capabilities for fans; those could disappear in 2017. The sport prides itself on a fan-friendly atmosphere and strong social media campaign -- one that could be bruised if fans cannot communicate and share quickly while at venues that often are not in major metropolitan areas.
Texas Motor Speedway president Eddie Gossage called the news "disappointing" but said there was now an opportunity "for a prospective sponsor to join one of the country's most popular sports on its highest level."
"NASCAR has reached out in advance to industry people like myself to assist them in identifying a replacement title sponsor," Gossage said. "We encourage NASCAR to find an active, supportive and long-term sponsor with broad consumer reach and minimal category conflict that proves beneficial to the entire industry in the future."
Follow Gluck on Twitter @jeff_gluck
