Tony Stewart & Co’s Determined Cut price Supply to $19.2 Billion Companion Amid NASCAR Exit Leaves Followers Baffled

The dearth of sponsorship was touted as a giant purpose behind Stewart Haas Racing’s exit from NASCAR. With the departure of their star driver Kevin Harvick in 2023, they misplaced Busch Gentle Beer and Smithfield. This was a giant hit for the crew as the 2 corporations coated the main prices in sponsorship cash. And this is the reason the crew needed to hustle to seek out sponsors to run their race vehicles in 2024.

Whereas Stewart Haas Racing is a famend title, their on-track efficiency and dwindling sponsorship cash generally made it robust for them to seek out companions. However they did appear to pay money for Texas A&M College in a deal that may see them characteristic twice in 2024. Chase Briscoe’s No. 14 automotive had the maroon Texas A&M wrap for the autumn Las Vegas race. In addition they featured within the championship race on the No. 4 SHR automotive with Josh Berry at Phoenix Raceway.

Nevertheless, Texas A&M College solely shelled out $160,000 to be the first sponsor for the 2 occasions. This got here out of their endowment fund that’s price $19.2 billion. In fact, there are sponsor obligations that the groups should ship, however going by the record of perks and calls for, it actually seemed like SHR went overboard to safe companions for the races. A report by Sportico laid out the effective particulars of the settlement the 2 events signed, together with the record of deliverables on SHR’s finish.

Other than that includes on the race automotive, the contract included a minimal of 4 Texas A&M-specific social media posts in the course of the race weekends. This got here together with the promise of tagging the college socials in all of the race-related posts. The college additionally acquired entry to twenty complimentary VIP full-access credentials, a race day tour adopted by a meet and greet with the drivers, the report added.

These calls for aren’t one thing that caught the eye of the race followers. However somewhat, the deal that was made by Texas A&M College. They actually had deep pockets however had been capable of strike a cut price deal to be featured on a Cup Collection crew. Fans were baffled to see a premier crew like Stewart Haas Racing settling for such a deal, and so they took to social media to share their opinion on the identical.

Did Stewart Haas Racing accept much less of their sponsorship take care of Texas A&M?

Though Busch Beer and Smithfield left the crew for good, considered one of their key companions, Mahindra, caught by the crew. They continued to be the first sponsor of the No. 14 automotive for 2024. Nevertheless, with the small print of the brand new discounted deal between the 2 events, it makes you surprise if Mahindra additionally lower a deal that favored them. “I’m wondering how that impacted their current sponsors. Now that this data is on the market, does somebody like Mahindra make a stink in the event that they paid their “full” value or did they get a reduction this yr to stay round?”

In accordance with a report by SBJ, the top-tier crew luggage sponsorship offers price as much as $10-20 million per yr. And when the quantity is unfold throughout everything of the season, it ranges from $250,000 to half one million per race. So that you see, the supply the SHR agreed on was removed from the business customary. And this was identified by a fan on Reddit: “Exhibits how low cost that sponsorship mannequin went for SHR. An higher midpack xfinity crew is charging 100k a race. So for a cup automotive for two races at that value is insane.”

Not way back, Stewart Haas Racing was a part of the Massive 4 equation. Hendrick Motorsports, Joe Gibbs Racing, and Group Penske are the opposite three. Nevertheless, because the flip of the brand new decade and the launch of the Subsequent Gen automotive, SHR has turn into a shadow of its former self. Whereas the highest groups do get higher sponsorships, this fan was fast to throw shade on the crew and questioned their top-tier crew standing. “One of many prime groups In NASCAR lol.”

SHR didn’t cling round with the announcement of shutting down for the top of the season. They dropped the information early within the season, in Could. Now, this might’ve been the explanation why Texas A&M bought a cut price of a sponsorship deal. The explanation cited for this early announcement was to permit the staff and drivers to search for a brand new residence, but it surely actually labored out for the 2 events. “They had been going out of enterprise although, maybe Texas A&M bought a deal!” one other fan shared by way of Reddit.

An insightful fan chimed in along with his suggestion stating that Texas A&M ought to’ve invested within the decrease collection. Xfinity and Truck Collection entice viewers who’re younger and are on the lookout for future research in comparison with the Cup Collection. “That’s loopy! SHR was clearly giving a reduction, but it surely is smart for schools to sponsor extra Xfinity and Truck groups. Hopefully crew advertising and marketing executives understand this.”

SHR actually made the a lot of the state of affairs that they had been in to shut out their NASCAR chapter. Even when that got here at the price of being low-balled by a sponsor to assist them get out of a tough spot.