How much does it cost to sponsor a NASCAR racecar?
The cost of 200 mph billboard is high. Farmers Insurance paid $67.28 million (before bonuses) to Hendrick Motorsports for the deal with Kasey kahne.
An open lawsuit has revealed numbers of the Kasey Kahne / Farmers Insurance contract. Farmers Insurance paid roughly $660,000/per race for the past 6 season’s.
Related: Kasey Kahne to Leavine Family Racing
NASCAR Primary Sponsorship Costs
2012: $13.5 million (22 races)
2013: $14.04 millon (22 races)
2014: $16.348 million (22 races)
2015: $7.6 million (12 races)
2016: $7.8 million (12 races)
2017: $8 million (12 races)
6 Year Total: $67.28 million
NASCAR Bonus Sponsorship Payouts
Top 5: $250,000
Top 10: $100,000
Daytona 500 pole: $150,000
Bonus Cap: $2 million
NASCAR Bonus Payouts
Top 5 in Points: $578,947
Making the Chase: $289,474
Merchandise: Farmers Insurance received a royalty payment on all merchandise. That deal was made at 9% of the licensed items.
Appearances: Kasey Kahne was contracted by Farmers Insurance to conduct 16 appearances for a duration of two hours during the 2012-14 season. That number was reduced to just 9 in 2015-17.
In additional to those, Kasey Kahne was required to do a 10 minute appearance for the sponsor and their friends in each race that they were the primary sponsor. He was required to 22 for 2012-14 and 12 in 2015-17.
Farmers Insurance could also elect to use Kasey Kahne is 3 eight-hour production days. Rick Hendrick could also be used in a production, he was only required 1 a single 4-hour session.
Morals clause: Termination pending, “if driver is convicted of any felony, performs any irresponsible act or an act which materially and publicly prejudices sponsor, is convicted of driving under the influence, arrested, charged or indicted for driving while intoxicated, arrested, charged or indicted for any act involving drugs, controlled substances, sexual misconduct or illegal firearms or weapons possession or is convicted of any similar crime.”
Sports Marketing Consultants has issued a lawsuit against Hendrick Motorsports. They argue they were not paid the correct percentage in commissions for landing the deal.
Sports Marketing Consultants received $3.38 on the initial deal. The deal between 2012-14 netted a sponsorship payment of $43.88 million to Hendrick Motorsports.