Sprint will end its run as sponsor of NASCAR's premier Cup Series after its current agreement expires in 2016, the company announced Tuesday.
The news was not a total surprise, given Sprint has undergone a sale and leadership change within the past year.
"We are proud of our association with NASCAR's top series but have made the decision not to extend our sponsorship beyond the next two years," Sprint vice president of marketing Steve Gaffney said. "As we look to the future, Sprint is focused on investing in maintaining a competitive edge and providing consumers with the best value in wireless.
"Sprint has long benefitted from the unprecedented level of brand integration available in NASCAR, and the passionate fan base that is the most loyal in sports. Without question, the NASCAR sponsorship property has been a valuable investment for us and will be for our successor."
Nextel replaced Winston as the sponsor of the Cup Series in 2004, and the brand later shifted to Sprint when the companies merged in 2008. Sprint agreed to a three-year extension in 2011 that takes it through the end of the 2016 season.
In a statement, Brett Jewkes, NASCAR senior vice president and chief communications officer, said: "NASCAR and Sprint have enjoyed a long and productive partnership that has returned significant value to both parties. We understand significant changes within Sprint and the highly competitive business environment it is in has led to a decision not to extend its Cup Series entitlement position following the 2016 season.
"The NASCAR Sprint Cup Series is a very unique, premium sports marketing platform with strong momentum, so we are very confident of moving forward in 2017 with an outstanding new partner. In the meantime, we look forward to Sprint's partnership on the best racing series in the world for the next two seasons."
Now, NASCAR must find another globally known brand that is willing to part with big bucks in return for branding emblazoned on everything from cars to tracks to signage. The 2004 deal Nextel signed was estimated at at least $70 million per year at the time.
The title sponsor funds the annual points bonuses, which this year were more than $20 million. It also is responsible for marketing and branding campaigns.
Sprint also supplied cell towers at tracks to help improve communications for fans, who otherwise could be left without wireless or strong cell signals at some venues that don't yet offer those services.
Eddie Gossage, president of Texas Motor Speedway, said in a statement:
"... Much like 2004, this is an enormous opportunity for a prospective sponsor to join one of the country's most popular sports on its highest level. NASCAR has reached out in advance to industry people like myself to assist them in identifying a replacement title sponsor. We encourage NASCAR to find an active, supportive and long-term sponsor with broad consumer reach and minimal category conflict that proves beneficial to the entire industry in the future."
Earlier this year, the stock-car series recently announced that Xfinity would be taking over sponsorship of its second-tier series - previously Nationwide, which left to sponsor Dale Earnhardt Jr.'s No. 88 Chevrolet. Earnhardt Jr. is the sport's most popular driver and could give Nationwide an even bigger return on its money.
In 2008, Camping World replaced Craftsman as the sponsor for the Truck series.
