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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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Kurt Busch, driver of the #41 Haas Automation Chevrolet, celebrates with champagne and crew chief Tony Gibson in Victory Lane after winning the NASCAR Sprint Cup Series Toyota Owners 400 at Richmond International Raceway on April 26, 2015 in Richmond, Virginia.  (Photo Credit: Brian Lawdermilk/NASCAR via Getty Images)
Kurt Busch, driver of the #41 Haas Automation Chevrolet, celebrates in Victory Lane after winning the NASCAR Sprint Cup Series Toyota Owners 400 at Richmond International Raceway on April 26, 2015 in Richmond, Virginia. (Photo Credit: Todd Warshaw/Getty Images)
Kurt Busch, driver of the #41 Haas Automation Chevrolet, celebrates in Victory Lane after winning the NASCAR Sprint Cup Series Toyota Owners 400 at Richmond International Raceway on April 26, 2015 in Richmond, Virginia. (Photo Credit: Jared C. Tilton/Getty Images)
Kurt Busch, driver of the #41 Haas Automation Chevrolet, celebrates with a burnout after winning the NASCAR Sprint Cup Series Toyota Owners 400 at Richmond International Raceway on April 26, 2015 in Richmond, Virginia. (Photo Credit: Daniel Shirey/NASCAR via Getty Images)
Kurt Busch, driver of the #41 Haas Automation Chevrolet SS, wins, causing his crew to celebrate Sunday, April 26, 2015 in the NASCAR Sprint Cup race at Richmond International Raceway in Richmond, Virginia. (Photo by Alan Marler/HHP for Chevy Racing)
Kurt Busch, driver of the #41 Haas Automation Chevrolet SS, races to victory Sunday, April 26, 2015 in the NASCAR Sprint Cup race at Richmond International Raceway in Richmond, Virginia. (Photo by Andrew Coppley/HHP for Chevy Racing)
Kurt Busch, driver of the #41 Haas Automation Chevrolet SS, celebrates his victory with a burn-out Sunday, April 26, 2015 in the NASCAR Sprint Cup race at Richmond International Raceway in Richmond, Virginia. (Photo by Alan Marler/HHP for Chevy Racing)
Kurt Busch, driver of the #41 Haas Automation Chevrolet SS, celebrates his victory Sunday, April 26, 2015 in the NASCAR Sprint Cup race at Richmond International Raceway in Richmond, Virginia. (Photo by Harold Hinson/HHP for Chevy Racing)
Jamie McMurray, driver of the #1 Energizer Chevrolet, leads a pack of cars during the NASCAR Sprint Cup Series Toyota Owners 400 at Richmond International Raceway on April 26, 2015 in Richmond, Virginia.  (Photo Credit: Jared C. Tilton/Getty Images)
Cars race during the NASCAR Sprint Cup Series Toyota Owners 400 at Richmond International Raceway on April 26, 2015 in Richmond, Virginia. (Photo Credit: Jared C. Tilton/Getty Images)
Kurt Busch, driver of the #41 Haas Automation Chevrolet, takes the chequered flag to win the NASCAR Sprint Cup Series Toyota Owners 400 at Richmond International Raceway on April 26, 2015 in Richmond, Virginia. (Photo Credit: Daniel Shirey/NASCAR via Getty Images)
A detail view of the NASCAR Sprint Cup Series logo as rain falls prior to the NASCAR Sprint Cup Series Toyota Owners 400 at Richmond International Raceway on April 25, 2015 in Richmond, Virginia.  (Photo Credit: Streeter Lecka/Getty Images)
People walk on pit road as rain falls prior to the NASCAR Sprint Cup Series Toyota Owners 400 at Richmond International Raceway on April 25, 2015 in Richmond, Virginia. (Photo Credit: Kevin C. Cox/Getty Images)
Joey Logano, driver of the #22 Shell-Pennzoil Ford, celebrates after winning the Coors Light Pole Award for the NASCAR Sprint Cup Series Toyota Owners 400 at Richmond International Raceway on April 24, 2015 in Richmond, Virginia. (Photo Credit: Brian Lawdermilk/NASCAR via Getty Images)
Joey Logano, driver of the #22 Shell-Pennzoil Ford, celebrates after winning the Coors Light Pole Award for the NASCAR Sprint Cup Series Toyota Owners 400 at Richmond International Raceway on April 24, 2015 in Richmond, Virginia. (Photo Credit: Brian Lawdermilk/NASCAR via Getty Images)
Martin Truex, Jr., driver of the #78 Furniture Row/Visser Precision Chevrolet SS, qualifies for sixth position Friday, April 24, 2015 for Saturday evening`s NASCAR Sprint Cup race at Richmond International Raceway in Richmond, Virginia. Truex, Jr. is third in the NASCAR Sprint Cup Series (NSCS) standings. (Photo by Andrew Coppley/HHP for Chevy Racing)
Kevin Harvick, driver of the #4 Jimmy John’s/Budweiser Chevrolet SS, qualifies for fifth position Friday, April 24, 2015 for Saturday evening`s NASCAR Sprint Cup race at Richmond International Raceway in Richmond, Virginia. Harvick is the points leader in the NASCAR Sprint Cup Series (NSCS) standings. (Photo by Harold Hinson/HHP for Chevy Racing)

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