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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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Dale Earnhardt Jr., driver of the #88 Taxslayer.com Chevrolet, signs autographs for fans during practice for the NASCAR Sprint Cup Series Sprint Unlimited at Daytona International Speedway on February 12, 2016 in Daytona Beach, Florida.  (Photo Credit: Photo by Chris Graythen/Getty Images)
Austin Dillon, driver of the #3 DOW Chevrolet, Clint Bowyer, driver of the #15 5-hour Energy Chevrolet, Brian Vickers, driver of the #14 Mobil 1 Chevrolet, and Danica Patrick, driver of the #10 Nature`s Bakery Chevrolet, practice for the NASCAR Sprint Cup Series Sprint Unlimited at Daytona International Speedway on February 12, 2016 in Daytona Beach, Florida.  (Photo Credit: Photo by Sarah Crabill/NASCAR via Getty Images)
Kyle Larson, driver of the #42 Target Chevrolet, practices for the NASCAR Sprint Cup Series Sprint Unlimited at Daytona International Speedway on February 12, 2016 in Daytona Beach, Florida.  (Photo Credit: Photo by Sarah Crabill/NASCAR via Getty Images)
Jimmie Johnson, driver of the #48 Lowe’s Chevrolet SS, holds his daughter, Lydia Sunday, November 22, 2015 before final race of the 2015 NASCAR Sprint Cup Series season at Homestead-Miami Speedway in Homestead, Florida. Johnson and other Jeff Gordon teammates at Hendrick Motorsports wore tribute hats to honor the retiring Chevy driver prior to the start of the race. (Photo by Alan Marler/HHP for Chevy Racing)
Jeff Gordon, driver of the #24 Axalta Chevrolet SS, races to a sixth place finish Sunday, November 22, 2015 in the final race of the 2015 NASCAR Sprint Cup Series season at Homestead-Miami Speedway in Homestead, Florida. Gordon finishes third in the Chase for the Cup Championship. This was Gordon`s last race as a NASCAR Sprint Cup driver. He has made 796 consecutive Cup Series starts, earned 93 wins, and 81 poles - all behind the wheel of Chevrolets. (Photo by Andrew Coppley/HHP for Chevy Racing)
Defending Sprint Cup Champion Kevin Harvick, driver of the #4 Budweiser/Jimmy John’s Chevrolet SS, races to a second place finish, Sunday, November 22, 2015 in the final race of the 2015 NASCAR Sprint Cup Series season at Homestead-Miami Speedway in Homestead, Florida. Harvick finishes as the runner-up in the NASCAR Sprint Cup Championship. (Photo by Andrew Coppley/HHP for Chevy Racing)
Defending Sprint Cup Champion Kevin Harvick, driver of the #4 Budweiser/Jimmy John’s Chevrolet SS, races to a second place finish, Jeff Gordon, driver of the #24 Axalta Chevrolet SS finishes in sixth place, and Martin Truex, Jr., driver of the #78 Furniture Row/Visser Precision finishes in twelfth place Sunday, November 22, 2015 in the final race of the 2015 NASCAR Sprint Cup Series season at Homestead-Miami Speedway in Homestead, Florida. This Chevrolet drivers finished 2nd, 3rd and 4th (respectively) in the Chase of the Cup Championship. (Photo by Harold Hinson/HHP for Chevy Racing)
Series championship contenders Jeff Gordon, driver of the #24 AXALTA Chevrolet, Kevin Harvick, driver of the #4 Budweiser/Jimmy John`s Chevrolet, Martin Truex Jr., driver of the #78 Furniture Row/Denver Mattress Chevrolet, and Kyle Busch, driver of the #18 M&M`s Crispy Toyota, take part in pre-race ceremonies for the NASCAR Sprint Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 22, 2015 in Homestead, Florida.  (Photo Credit: Chris Trotman/NASCAR via Getty Images)
Former racing driver Mario Andretti, Jeff Gordon, driver of the #24 AXALTA Chevrolet, and Formula One World Champion Lewis Hamilton pose during pre-race ceremonies for the NASCAR Sprint Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 22, 2015 in Homestead, Florida.  (Photo Credit: Jared C. Tilton/Getty Images)
Joey Logano, driver of the #22 Shell Pennzoil Ford, and Kyle Busch, driver of the #18 M&M`s Crispy Toyota, race during the NASCAR Sprint Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 22, 2015 in Homestead, Florida (Photo Credit: Chris Trotman/Getty Images)
Jeff Gordon, driver of the #24 AXALTA Chevrolet, pits during the NASCAR Sprint Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 22, 2015 in Homestead, Florida. (Photo Credit: Jared C. Tilton/Getty Images)
A general view as cars pit during the NASCAR Sprint Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 22, 2015 in Homestead, Florida. (Photo Credit: Robert Laberge/NASCAR via Getty Images)
Kevin Harvick, driver of the #4 Budweiser/Jimmy John`s Chevrolet, Kyle Busch, driver of the #18 M&M`s Crispy Toyota, Jeff Gordon, driver of the #24 AXALTA Chevrolet, and Martin Truex Jr., driver of the #78 Furniture Row/Denver Mattress Chevrolet, race during the NASCAR Sprint Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 22, 2015 in Homestead, Florida. (Photo Credit: Chris Trotman/NASCAR via Getty Images)
Kyle Busch, driver of the #18 M&M`s Crispy Toyota, crosses the finish line to win the NASCAR Sprint Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 22, 2015 in Homestead, Florida.  (Photo Credit: Jonathan Ferrey/NASCAR via Getty Images)
Kyle Busch, driver of the #18 M&M`s Crispy Toyota, celebrates winning the series championship and the race with a burnout after the NASCAR Sprint Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 22, 2015 in Homestead, Florida. (Photo Credit: Chris Graythen/Getty Images)
Kyle Busch, driver of the #18 M&M`s Crispy Toyota, celebrates winning the series championship and the race in Victory Lane after the NASCAR Sprint Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 22, 2015 in Homestead, Florida. (Photo Credit: Sean Gardner/NASCAR via Getty Images)
Kyle Busch, driver of the #18 M&M`s Crispy Toyota, celebrates winning the series championship and the race with his team after the NASCAR Sprint Cup Series Ford EcoBoost 400 at Homestead-Miami Speedway on November 22, 2015 in Homestead, Florida. (Photo Credit: Chris Trotman/NASCAR via Getty Images)

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