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NASCAR is Talking to Walmart

Walmart Sponsorship and Licensing Agreement is On the Horizon with NASCAR
Walmart is in deep discussions with NASCAR team and league officials about a wide-ranging deal that has both sponsorship and licensing implications.

Senior-level Walmart executives were guests of NASCAR at the May 22 Sprint All-Star Race in Charlotte and returned this past week to tour race shops and meet more team executives as the mass retailer explores potential partnerships.

While several scenarios are being considered and the talks remain fluid, industry sources say Walmart is discussing the potential of a direct license that would make it NASCAR's exclusive retailer in the mass merchandise space. A direct license would give Walmart the ability to select its suppliers and set prices for certain categories, such as hats and T-shirts.

These negotiations are going on as NASCAR attempts to roll its team and league licensing rights into a trust, which would create a centralized licensing agency for the sport.

Walmart is believed to be exploring sponsorship opportunities with Hendrick Motorsports as well. Hendrick's drivers—Jimmie Johnson, Jeff Gordon, Dale Earnhardt Jr. and Mark Martin—account for close to 75 percent of all licensed sales in the sport, industry analysts say, making it a logical team for Walmart to sponsor.

Landing Walmart, the world's largest retailer, as part of an exclusive mass merchandise deal would be a significant coup for any sports property, especially if it entails a NASCAR store-within-a-store concept.

This sort of hybrid sponsorship/licensing deal is also at the forefront of large deals of recent note, like the recent NFL/Verizon arrangement, which bundled content and sponsorship rights.

Most retailers, particularly Walmart, are loath to spend on sponsorships, so these deals, if completed, could generate major ripples across the industry.

“This should create a feeding frenzy among teams and leagues,” said Darren Marshall, senior vice president of research at sports marketing agency rEvolution. Marshall also suggested that the NFL, in the throes of designing a new licensing program, and the U.S. Olympic Committee would be likely targets if Walmart looks to expand its sports licensing base.




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Martin Truex Jr., driver of the #78 Furniture Row/Visser Precision Chevrolet, leads a pack of cars during the NASCAR Sprint Cup Series Windows 10 400 at Pocono Raceway on August 2, 2015 in Long Pond, Pennsylvania.  (Photo Credit: Jared C. Tilton/Getty Images)
Kyle Busch, driver of the #18 M&M`s Crispy Toyota, and Kevin Harvick, driver of the #4 Jimmy John`s/Budweiser Chevrolet, lead the field at the start of the NASCAR Sprint Cup Series Windows 10 400 at Pocono Raceway on August 2, 2015 in Long Pond, Pennsylvania. (Photo Credit: Todd Warshaw/NASCAR via Getty Images)
Smoke pours from the Kevin Harvick, driver of the #4 Jimmy John`s/Budweiser Chevrolet, during the NASCAR Sprint Cup Series Windows 10 400 at Pocono Raceway on August 2, 2015 in Long Pond, Pennsylvania. (Photo Credit: Photo by Nick Laham/Getty Images)
Kyle Busch, driver of the #18 M&M`s Crispy Toyota, pits during the NASCAR Sprint Cup Series Windows 10 400 at Pocono Raceway on August 2, 2015 in Long Pond, Pennsylvania. (Photo Credit: Jeff Zelevansky/NASCAR via Getty Images)
Joey Logano, driver of the #22 Shell Pennzoil Ford, pits during the NASCAR Sprint Cup Series Windows 10 400 at Pocono Raceway on August 2, 2015 in Long Pond, Pennsylvania. (Photo Credit: Chris Trotman/Getty Images)
Joey Logano, driver of the #22 Shell Pennzoil Ford, leads a pack of cars during the NASCAR Sprint Cup Series Windows 10 400 at Pocono Raceway on August 2, 2015 in Long Pond, Pennsylvania. (Photo Credit: Jared C. Tilton/Getty Images)
Joey Logano, driver of the #22 Shell Pennzoil Ford, leads Kyle Busch, driver of the #18 M&M`s Crispy Toyota, and a pack of cars during the NASCAR Sprint Cup Series Windows 10 400 at Pocono Raceway on August 2, 2015 in Long Pond, Pennsylvania. (Photo Credit: Jonathan Ferrey/NASCAR via Getty Images)
Matt Kenseth, driver of the #20 Dollar General Toyota, takes the chequered flag to win the NASCAR Sprint Cup Series Windows 10 400 at Pocono Raceway on August 2, 2015 in Long Pond, Pennsylvania. (Photo Credit: Todd Warshaw/NASCAR via Getty Images)
Matt Kenseth, driver of the #20 Dollar General Toyota, celebrates with a burnout after winning the NASCAR Sprint Cup Series Windows 10 400 at Pocono Raceway on August 2, 2015 in Long Pond, Pennsylvania. (Photo Credit: Tim Bradbury/Getty Images)
Matt Kenseth, driver of the #20 Dollar General Toyota, celebrates with the trophy in Victory Lane after winning the NASCAR Sprint Cup Series Windows 10 400 at Pocono Raceway on August 2, 2015 in Long Pond, Pennsylvania.  (Photo Credit: Tim Bradbury/Getty Images)
Matt Kenseth, driver of the #20 Dollar General Toyota, celebrates with the trophy in Victory Lane after winning the NASCAR Sprint Cup Series Windows 10 400 at Pocono Raceway on August 2, 2015 in Long Pond, Pennsylvania.  (Photo Credit: Tim Bradbury/Getty Images)
AJ Allmendinger, driver of the #47 Bush’s Grillin Beans Charcoal  Chevrolet SS, races to a seventh place finish Sunday, August 2, 2015 in the NASCAR Sprint Cup race at Pocono Raceway in Long Pond, Pennsylvania. (Photo by Garry Eller/HHP for Chevy Racing)
Jimmie Johnson, driver of the #48 Kobalt Tools Chevrolet SS, stops in his pit on his way to a sixth place finish Sunday, August 2, 2015 in the NASCAR Sprint Cup race at Pocono Raceway in Long Pond, Pennsylvania. (Photo by Rusty Jarrett/HHP for Chevy Racing)
Dale Earnhardt, Jr., driver of the #88 Microsoft Chevrolet SS, finishes in fourth place Sunday, August 2, 2015 in the NASCAR Sprint Cup race at Pocono Raceway in Long Pond, Pennsylvania. (Photo by Garry Eller/HHP for Chevy Racing)
Jeff Gordon, driver of the #24 AARP Member Advantages Chevrolet SS, races to a third place finish Sunday, August 2, 2015 in the NASCAR Sprint Cup race at Pocono Raceway in Long Pond, Pennsylvania. (Photo by Garry Eller/HHP for Chevy Racing)
Kyle Larson, driver of the #42 Suave Men Chevrolet, leads a pack of cars during the NASCAR Sprint Cup Series Windows 10 400 at Pocono Raceway on August 2, 2015 in Long Pond, Pennsylvania. (Photo Credit: Todd Warshaw/NASCAR via Getty Images)
David Ragan, driver of the #55 Aaron`s Dream Machine Toyota, practices for the NASCAR Sprint Cup Series Windows 10 400 at Pocono Raceway on July 31, 2015 in Long Pond, Pennsylvania. (Photo Credit: Jared C. Tilton/Getty Images)

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