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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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Carl Edwards, driver of the #19 Subway Toyota, leads a pack of cars during the NASCAR Sprint Cup Series Coca-Cola 600 at Charlotte Motor Speedway on May 24, 2015 in Charlotte, North Carolina. (Photo Credit: Rainier Ehrhardt/Getty Images)
Martin Truex Jr., driver of the #78 Furniture Row/Visser Precision Chevrolet, leads a pack of cars during the NASCAR Sprint Cup Series Coca-Cola 600 at Charlotte Motor Speedway on May 24, 2015 in Charlotte, North Carolina.  (Photo Credit: Streeter Lecka/Getty Images)
Jimmie Johnson, driver of the #48 Lowe`s Patriotic Chevrolet, is involved in an on-track incident during the NASCAR Sprint Cup Series Coca-Cola 600 at Charlotte Motor Speedway on May 24, 2015 in Charlotte, North Carolina.  (Photo Credit: Streeter Lecka/Getty Images)
Kurt Busch, driver of the #41 Haas Automation Chevrolet, leads a pack of cars during the NASCAR Sprint Cup Series Coca-Cola 600 at Charlotte Motor Speedway on May 24, 2015 in Charlotte, North Carolina. (Photo Credit: Brian Lawdermilk/Getty Images)
Matt Kenseth, driver of the #20 DeWalt Toyota, and Joey Logano, driver of the #22 Shell Pennzoil Ford, lead the field through the green flag to start the NASCAR Sprint Cup Series Coca-Cola 600 at Charlotte Motor Speedway on May 24, 2015 in Charlotte, North Carolina.  (Photo Credit: Matt Sullivan/NASCAR via Getty Images)
Matt Kenseth, driver of the #20 DeWalt Toyota, leads the field through the green flag to start the NASCAR Sprint Cup Series Coca-Cola 600 at Charlotte Motor Speedway on May 24, 2015 in Charlotte, North Carolina. (Photo Credit: Jared C. Tilton/Getty Images)
Martin Truex Jr., driver of the #78 Furniture Row/Visser Precision Chevrolet, Kevin Harvick, driver of the #4 Budweiser/Jimmy John`s Chevrolet, and Denny Hamlin, driver of the #11 FedEx Office Toyota, lead the field into turn one during the NASCAR Sprint Cup Series Coca-Cola 600 at Charlotte Motor Speedway on May 24, 2015 in Charlotte, North Carolina. (Photo Credit: Rainier Ehrhardt/Getty Images)
Carl Edwards, driver of the #19 Subway Toyota, wins the NASCAR Sprint Cup Series Coca-Cola 600 at Charlotte Motor Speedway on May 24, 2015 in Charlotte, North Carolina. (Photo Credit: Matt Sullivan/NASCAR via Getty Images)
Carl Edwards, driver of the #19 Subway Toyota, celebrates in Victory Lane after winning the NASCAR Sprint Cup Series Coca-Cola 600 at Charlotte Motor Speedway on May 24, 2015 in Charlotte, North Carolina. (Photo Credit: Jerry Markland/Getty Images)
Carl Edwards, driver of the #19 Subway Toyota, celebrates in Victory Lane after winning the NASCAR Sprint Cup Series Coca-Cola 600 at Charlotte Motor Speedway on May 24, 2015 in Charlotte, North Carolina. (Photo Credit: Jerry Markland/Getty Images)
Carl Edwards, driver of the #19 Subway Toyota, places the winner`s decal on his car after winning the NASCAR Sprint Cup Series Coca-Cola 600 at Charlotte Motor Speedway on May 24, 2015 in Charlotte, North Carolina.  (Photo Credit: Sarah Crabill/NASCAR via Getty Images)
Kevin Harvick, driver of the #4 Budweiser/Jimmy John’s Chevrolet SS, finished in ninth place, Sunday, May 24, 2015, in the NASCAR Sprint Cup race at Charlotte Motor Speedway in Concord, North Carolina. (Photo by Garry Eller/HHP for Chevy Racing)
Ryan Newman, driver of the #31 Quicken Loans Chevrolet SS, stops in his pit on his way to a sixth place finish, Sunday, May 24, 2015, in the NASCAR Sprint Cup race at Charlotte Motor Speedway in Concord, North Carolina. (Photo by Andrew Coppley/HHP for Chevy Racing)
Martin Truex, Jr, driver of the #78 Furniture Row/Visser Precision Chevrolet SS, stops in his pit on his way to a fifth place finish, Sunday, May 24, 2015, in the NASCAR Sprint Cup race at Charlotte Motor Speedway in Concord, North Carolina. (Photo by Andrew Coppley/HHP for Chevy Racing)
Dale Earnhardt, Jr., driver of the #88 Nationwide Chevrolet SS, finished in third place, Sunday, May 24, 2015, in the NASCAR Sprint Cup race at Charlotte Motor Speedway in Concord, North Carolina. (Photo by Alan Marler/HHP for Chevy Racing)
Jamie McMurray, driver of the #1 Cessna/McDonald`s Chevrolet, sits in his car during practice for the NASCAR Sprint Cup Series Coca-Cola 600 at Charlotte Motor Speedway on May 23, 2015 in Charlotte, North Carolina. (Photo Credit: Streeter Lecka/NASCAR via Getty Images)
Joey Logano, driver of the #22 Shell Pennzoil Ford, practices for the NASCAR Sprint Cup Series Coca-Cola 600 at Charlotte Motor Speedway on May 23, 2015 in Charlotte, North Carolina. CPT Travis L. Patriquin, US Army, is honored on the car as part of the 600 Miles of Remembrance program.  (Photo Credit: Jeff Zelevansky/NASCAR via Getty Images)

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