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

The shortage of sponsorship was touted as a giant cause behind Stewart Haas Racing’s exit from NASCAR. With the departure of their star driver Kevin Harvick in 2023, they misplaced Busch Mild Beer and Smithfield. This was a giant hit for the staff as the 2 firms coated the foremost prices in sponsorship cash. And this is the reason the staff needed to hustle to search out sponsors to run their race vehicles in 2024.

Whereas Stewart Haas Racing is a famend identify, their on-track efficiency and dwindling sponsorship cash usually made it powerful for them to search out companions. However they did appear to pay money for Texas A&M College in a deal that will 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 value $19.2 billion. After all, there are sponsor obligations that the groups should ship, however going by the checklist 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 tremendous particulars of the settlement the 2 events signed, together with the checklist of deliverables on SHR’s finish.

Aside from 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 slightly, the deal that was made by Texas A&M College. They actually had deep pockets however have been in a position to strike a cut price deal to be featured on a Cup Sequence staff. Fans were baffled to see a premier staff like Stewart Haas Racing settling for such a deal, they usually took to social media to share their opinion on the identical.

Did Stewart Haas Racing accept much less of their sponsorship cope with Texas A&M?

Though Busch Beer and Smithfield left the staff for good, one in every of their key companions, Mahindra, caught by the staff. 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 marvel if Mahindra additionally minimize a deal that favored them. “I ponder how that impacted their current sponsors. Now that this information 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 line with a report by SBJ, the top-tier staff luggage sponsorship offers value as much as $10-20 million per yr. And when the quantity is unfold throughout the whole thing 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 commonplace. And this was identified by a fan on Reddit: “Exhibits how low-cost that sponsorship mannequin went for SHR. An higher midpack xfinity staff 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 Large 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 out to be a shadow of its former self. Whereas the highest groups do get higher sponsorships, this fan was fast to throw shade on the staff and questioned their top-tier staff standing. “One of many high groups In NASCAR lol.”

SHR didn’t hold 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 rationale why Texas A&M obtained 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 dwelling, nevertheless it actually labored out for the 2 events. “They have been going out of enterprise although, maybe Texas A&M obtained a deal!” one other fan shared through Reddit.

An insightful fan chimed in together with his suggestion stating that Texas A&M ought to’ve invested within the decrease collection. Xfinity and Truck Sequence appeal to viewers who’re younger and are searching for future research in comparison with the Cup Sequence. “That’s loopy! SHR was clearly giving a reduction, nevertheless it is smart for faculties to sponsor extra Xfinity and Truck groups. Hopefully staff advertising and marketing executives notice this.”

SHR actually made the a lot of the scenario that they have 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.