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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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Matt Kenseth, driver of the #20 Dollar General Toyota, celebrates with a burnout after winning the NASCAR Sprint Cup Series Food City 500 at Bristol Motor Speedway on April 19, 2015 in Bristol, Tennessee. (Photo Credit: Brian Lawdermilk/NASCAR via Getty Images)
Matt Kenseth, driver of the #20 Dollar General Toyota, celebrates in Victory Lane after winning the NASCAR Sprint Cup Series Food City 500 at Bristol Motor Speedway on April 19, 2015 in Bristol, Tennessee. (Photo Credit: Drew Hallowell/NASCAR via Getty Images)
Matt Kenseth, driver of the #20 Dollar General Toyota, celebrates in Victory Lane after winning the NASCAR Sprint Cup Series Food City 500 at Bristol Motor Speedway on April 19, 2015 in Bristol, Tennessee. (Photo Credit: Drew Hallowell/NASCAR via Getty Images)
Tony Stewart, driver of the #14 Bass Pro Shops/Mobil 1 Chevrolet SS, finishes in sixth place and Jeff Gordon, driver of the #24 3M Chevrolet SS, finishes in third place Sunday, April 19, 2015 in the rain delayed NASCAR Sprint Cup race at Bristol Motor Speedway in Bristol, Tennessee.  (Photo by Alan Marler/HHP for Chevy Racing)
Ryan Newman, driver of the #31 Wix Chevrolet SS, finishes in fifth place and Kyle Larson, driver of the #42 Target Chevrolet SS, finishes in seventh place Sunday, April 19, 2015 in the rain delayed NASCAR Sprint Cup race at Bristol Motor Speedway in Bristol, Tennessee.  (Photo by Harold Hinson/HHP for Chevy Racing)
Jeff Gordon, driver of the #24 3M Chevrolet SS, finishes in third place Sunday, April 19, 2015 in the rain delayed NASCAR Sprint Cup race at Bristol Motor Speedway in Bristol, Tennessee.  (Photo by Alan Marler/HHP for Chevy Racing)
Jimmie Johnson, driver of the #48 Lowe’s Chevrolet SS, finishes in second place Sunday, April 19, 2015 in the rain delayed NASCAR Sprint Cup race at Bristol Motor Speedway in Bristol, Tennessee.  (Photo by Harold Hinson/HHP for Chevy Racing)
Matt Kenseth, driver of the #20 Dollar General Toyota, takes the checkered flag to win the NASCAR Sprint Cup Series Food City 500 at Bristol Motor Speedway on April 19, 2015 in Bristol, Tennessee. (Photo Credit: Sarah Glenn/NASCAR via Getty Images)
Kyle Larson, driver of the #42 Target Chevrolet, leads the field in a restart during the NASCAR Sprint Cup Series Food City 500 at Bristol Motor Speedway on April 19, 2015 in Bristol, Tennessee.  (Photo Credit: Todd Warshaw/NASCAR via Getty Images)
Martin Truex Jr., driver of the #78 Furniture Row/Visser Precision Chevrolet, has an on track incident during the NASCAR Sprint Cup Series Food City 500 at Bristol Motor Speedway on April 19, 2015 in Bristol, Tennessee.  (Photo Credit: Sean Gardner/NASCAR via Getty Images)
Kevin Harvick (Stewart-Haas Racing) and David Ragan (Joe Gibbs Racing) spin out during the NASCAR Sprint Cup Series Food City 500 at Bristol Motor Speedway on April 17, 2015 in Bristol, Tennessee.  (Photo Credit: Brian Lawdermilk/NASCAR via Getty Images)
Carl Edwards, driver of the #19 Comcast Business Toyota, pits during the NASCAR Sprint Cup Series Food City 500 at Bristol Motor Speedway on April 19, 2015 in Bristol, Tennessee.  (Photo Credit: Jared C. Tilton/Getty Images)
Jeff Gordon, driver of the #24 3M Chevrolet, races Jimmie Johnson, driver of the #48 Lowe`s Chevrolet, during the NASCAR Sprint Cup Series Food City 500 at Bristol Motor Speedway on April 19, 2015 in Bristol, Tennessee.  (Photo Credit: Jared C. Tilton/NASCAR via Getty Images)
Kevin Harvick, driver of the #4 Jimmy John`s/Budweiser Chevrolet, leads the field to a restart during the NASCAR Sprint Cup Series Food City 500 at Bristol Motor Speedway on April 19, 2015 in Bristol, Tennessee. (Photo Credit: Jeff Zelevansky/NASCAR via Getty Images)
Denny Hamlin, driver of the #11 FedEx Freight Toyota, climbs in his car prior to the start of the NASCAR Sprint Cup Series Food City 500 at Bristol Motor Speedway on April 19, 2015 in Bristol, Tennessee. (Photo Credit: Jeff Zelevansky/NASCAR via Getty Images)
Kurt Busch, driver of the #41 Haas Automation Chevrolet, is involved in an on track incident during the NASCAR Sprint Cup Series Food City 500 at Bristol Motor Speedway on April 19, 2015 in Bristol, Tennessee.  (Photo Credit: Brian Lawdermilk/NASCAR via Getty Images)
Brad Keselowski, driver of the #2 Miller Lite Ford, and Joey Logano, driver of the #22 Autotrader Ford, sit on the apron after an on track incident during the NASCAR Sprint Cup Series Food City 500 at Bristol Motor Speedway on April 19, 2015 in Bristol, Tennessee.  (Photo Credit: Brian Lawdermilk/NASCAR via Getty Images)

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