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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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Paul Menard, driver of the #27 Serta/Menards Chevrolet SS, finished ninth and Austin Dillon, driver of the #3 Dow Great Stuff Chevrolet SS, finished 28th Saturday, August 23, 2014 in the Nascar Sprint Cup race at Bristol Motor Speedway in Bristol, Tennessee. (Photo by Alan Marler/HHP for Chevy Racing)
Jamie McMurray, driver of the #1 McDonald’s Chevrolet SS, finished eighth and Kasey Kahne, driver of the #5 Great Clips Chevrolet SS, finished 35th Saturday, August 23, 2014 in the Nascar Sprint Cup race at Bristol Motor Speedway in Bristol, Tennessee. (Photo by Rusty Jarrett/HHP for Chevy Racing)
Kurt Busch, driver of the #41 Haas Automation Chevrolet SS, finished fifth Saturday, August 23, 2014 in the Nascar Sprint Cup race at Bristol Motor Speedway in Bristol, Tennessee. (Photo by Harold Hinson/HHP for Chevy Racing)
Jimmie Johnson, driver of the #48 Lowe`s Chevrolet SS, finished fourth and Kyle Larson, driver of the #42 Target Chevrolet SS, finished twelfth Saturday, August 23, 2014 in the Nascar Sprint Cup race at Bristol Motor Speedway in Bristol, Tennessee. (Photo by Rusty Jarrett/HHP for Chevy Racing)
Joey Logano, driver of the #22 Shell Pennzoil Ford, leads a pack of cars during the NASCAR Sprint Cup Series Irwin Tools Night Race at Bristol Motor Speedway on August 23, 2014 in Bristol, Tennessee. (Photo Credit: Tom Pennington/NASCAR via Getty Images)
Joey Logano, driver of the #22 Shell Pennzoil Ford, and his team celebrate in Victory Lane after winning the NASCAR Sprint Cup Series Irwin Tools Night Race at Bristol Motor Speedway on August 23, 2014 in Bristol, Tennessee. (Photo Credit: Matt Sullivan/NASCAR via Getty Images)
Joey Logano, driver of the #22 Shell Pennzoil Ford, celebrates in Victory Lane after winning the NASCAR Sprint Cup Series Irwin Tools Night Race at Bristol Motor Speedway on August 23, 2014 in Bristol, Tennessee.  (Photo Credit: Sean Gardner/Getty Images)
Joey Logano, driver of the #22 Shell Pennzoil Ford, celebrates in Victory Lane after winning the NASCAR Sprint Cup Series Irwin Tools Night Race at Bristol Motor Speedway on August 23, 2014 in Bristol, Tennessee.  (Photo Credit: Sean Gardner/Getty Images)
Joey Logano, driver of the #22 Shell Pennzoil Ford, takes the chequered flag to win the NASCAR Sprint Cup Series Irwin Tools Night Race at Bristol Motor Speedway on August 23, 2014 in Bristol, Tennessee. (Photo Credit: Brian Lawdermilk/NASCAR via Getty Images)
Joey Logano, driver of the #22 Shell Pennzoil Ford, celebrates with a burnout after winning the NASCAR Sprint Cup Series Irwin Tools Night Race at Bristol Motor Speedway on August 23, 2014 in Bristol, Tennessee. (Photo Credit: Patrick Smith/Getty Images)
Matt Kenseth, driver of the #20 Dollar General Toyota, leads a pack of cars during the NASCAR Sprint Cup Series Irwin Tools Night Race at Bristol Motor Speedway on August 23, 2014 in Bristol, Tennessee. (Photo Credit: Brian Lawdermilk/NASCAR via Getty Images)
Danica Patrick, driver of the #10 GoDaddy Chevrolet, is involved in an incident during the NASCAR Sprint Cup Series Irwin Tools Night Race at Bristol Motor Speedway on August 23, 2014 in Bristol, Tennessee. (Photo Credit: Patrick Smith/Getty Images)
Kyle Busch, driver of the #18 Doublemint Toyota, Aric Almirola, driver of the #43 STP Ford, and Clint Bowyer, driver of the #15 5-hour Energy Toyota, are involved in an on-track incident during the NASCAR Sprint Cup Series Irwin Tools Night Race at Bristol Motor Speedway on August 23, 2014 in Bristol, Tennessee. (Photo Credit: Sean Gardner/Getty Images)
Kurt Busch, driver of the #41 Haas Automation Chevrolet SS, qualified for seventh position Friday, August 22, 2014 for Saturday evening`s Nascar Sprint Cup race at Bristol Motor Speedway in Bristol, Tennessee. Busch is 23rd in the NASCAR Sprint Cup Series (NSCS) standings. (Photo by Garry Eller/HHP for Chevy Racing)
Jimmie Johnson, driver of the #48 Lowe`s Chevrolet SS, qualified for sixth position Friday, August 22, 2014 for Saturday evening`s Nascar Sprint Cup race at Bristol Motor Speedway in Bristol, Tennessee. Johnson is seventh in the NASCAR Sprint Cup Series (NSCS) standings. (Photo by Harold Hinson/HHP for Chevy Racing)
Jeff Gordon, driver of the #24 Drive To End Hunger Chevrolet SS, qualified for second position Friday, August 22, 2014 for Saturday evening`s Nascar Sprint Cup race at Bristol Motor Speedway in Bristol, Tennessee. Gordon leads the NASCAR Sprint Cup Series (NSCS) standings. (Photo by Harold Hinson/HHP for Chevy Racing)
Kevin Harvick, driver of the #4 Jimmie John`s Chevrolet SS, won the pole position Friday, August 22, 2014 for Saturday evening`s Nascar Sprint Cup race at Bristol Motor Speedway in Bristol, Tennessee. Harvick is sixth in the NASCAR Sprint Cup Series (NSCS) standings. (Photo by Harold Hinson/HHP for Chevy Racing)

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