How much do sponsors pay NASCAR teams?

Sponsors typically pay NASCAR Cup Series teams from roughly $500,000 to $2.5 million per race for primary logo placement, with full-season primary deals commonly ranging between $15 million and $35 million a year at top teams; associate logo packages generally run from about $250,000 to $2 million per season. In the Xfinity Series, primary rates often fall between $150,000 and $400,000 per race (about $3 million to $10 million for a full season), and in the Craftsman Truck Series between $75,000 and $200,000 per race (roughly $1 million to $4 million per season). These figures are derived from industry estimates reported by team executives and trade outlets in recent seasons and can vary widely by team, driver, market, and deliverables.

What sponsors pay in the NASCAR Cup Series

In the Cup Series—the sport’s top tier—primary sponsorship is the core of most teams’ commercial revenue. Deals are often sold as multi‑race packages across a season (e.g., 10–20 primary races) and can be shared among multiple brands. Pricing varies by competitiveness, driver star power, race selection, and activation rights (hospitality, content, IP usage).

• Top-tier, championship-caliber teams: About $1 million to $2.5 million per race for primary placement; $20 million to $35 million for an all- or near‑full‑season primary package, depending on scope and rights.
• Competitive mid-pack teams: Roughly $600,000 to $1.5 million per race; $12 million to $25 million for substantial season coverage split among brands.
• Developing or smaller teams: Approximately $300,000 to $800,000 per race; $8 million to $15 million for larger seasonal bundles, often with co‑primary positioning.

These ranges reflect recent market norms in the Next Gen era, where inventory is often sliced across multiple partners and pricing is calibrated to performance, reach, and the breadth of marketing assets included.

Xfinity and Truck Series: Lower price points, targeted value

Below Cup, sponsorship remains essential but at lower costs that appeal to growth-stage brands and category challengers. The exposure is smaller than Cup, but the audiences can be highly targeted, and hospitality and B2B opportunities remain strong.

• NASCAR Xfinity Series: About $150,000 to $400,000 per race for primary; roughly $3 million to $10 million for full-season primary with a competitive team.
• NASCAR Craftsman Truck Series: Around $75,000 to $200,000 per race for primary; approximately $1 million to $4 million for a full season, depending on team stature and races selected.

Brands often use Xfinity and Trucks as cost‑effective test beds for creative, content development, and regional programs, or to complement Cup campaigns with added frequency.

Associate and secondary logo packages

Not every deal is a headline-grabbing primary. Associate packages provide consistent brand presence at lower rates, with pricing tied to logo size and placement (e.g., quarter panel, TV panel, B‑post, decklid, uniform/helmet).

• Major associate (large quarter panel or TV panel): About $750,000 to $2 million per season at top Cup teams; less at mid-tier teams.
• Standard associate (smaller panel or B‑post): Roughly $250,000 to $750,000 per season in Cup; proportionally lower in Xfinity/Trucks.
• Race‑by‑race associates: Typically $25,000 to $150,000 per race in Cup, depending on placement, event, and team profile.

Secondary inventory often includes hospitality passes, digital and social content, and limited IP rights, which can lift costs but also improve ROI for brands seeking integrated campaigns.

What determines the price

Sponsor fees are not one-size-fits-all. Teams price inventory based on a mix of competitive, commercial, and marketing variables, often with multi‑year terms and modest annual escalators.

• Team and driver performance: Points position, playoff probability, wins, and star power strongly influence price.
• Race selection: Crown jewels (Daytona 500, Coca‑Cola 600, Southern 500, championship) and marquee markets command premiums.
• Media and content rights: Use of team/driver IP, TV-visible paint schemes, and co-produced content add value.
• Hospitality and B2B: Suites, at‑track experiences, shop tours, and introductions to team partners/suppliers can materially impact pricing.
• Activation scope: Retail promotions, shopper marketing, sweepstakes, and paid media commitments often bundle into the fee.
• Contract length and certainty: Multi‑year deals with escalators may secure better per‑race value and inventory priority.
• Category competitiveness: Heavily contested categories (beverage, betting, telecom, automotive services) often bear higher rates.

The more a deal includes beyond logos—such as robust activation, content, and hospitality—the higher the overall investment, but also the greater the potential return.

How teams allocate sponsorship dollars

While exact budgets vary, sponsorship remains the single largest revenue source for most teams, covering the majority of race operations despite increasing media distributions. Funds typically support a wide range of competition and marketing needs.

• Race operations: Chassis, engines, tires, travel, and shop engineering.
• People: Crew, pit crews, engineers, mechanics, and support staff.
• Driver compensation: Base plus bonuses; personal services days for sponsors.
• R&D and simulation: Performance development, data tools, and testing.
• Marketing and content: Production, social media, fan engagement, and PR.
• Hospitality and partner services: Trackside experiences and B2B programs.
• Overhead: Facilities, equipment, and administrative costs.

Even with increased media rights money entering the system starting in 2025, teams generally still rely on sponsorship for the majority of their annual budgets.

Recent context and examples

In recent years, industry reporting has pegged top‑team Cup primary deals in the low-to-mid eight figures annually, often spread over 12–20 races and paired with associate partners for the balance. Historic, high-visibility packages—such as the pre‑2023 candy brand program at a leading team—were widely estimated above $20 million per season. Trade press and executives have also cited common Cup per‑race primary ranges of roughly $500,000 to $2 million since the introduction of the Next Gen car, with the very top opportunities exceeding that band for tentpole events. Specific contract figures are rarely disclosed, but these ranges are consistent across reporting from outlets such as Sports Business Journal, The Athletic, and Forbes, as well as team sales decks shared with prospective partners.

Practical guidance for brands considering NASCAR

For marketers weighing an entry, aligning objectives with the right inventory and activation is critical to value. The steps below reflect how brands commonly approach decision-making.

• Define KPIs: Decide whether the goal is national reach, retail lift, hospitality/B2B, or content/community.
• Match level to goals: Use Cup for maximum scale; consider Xfinity/Trucks for cost‑efficient frequency or regional strategies.
• Prioritize races: Anchor around tentpoles and key markets; fill with complementary events for sustained exposure.
• Bundle activation: Negotiate IP, content, and hospitality to amplify the logo investment.
• Pilot and scale: Test race‑by‑race or partial‑season packages before committing to multi‑year terms.
• Measure and optimize: Track media value, lead generation, retail tie‑ins, and hospitality outcomes to refine future buys.

This approach helps right‑size spend, improve ROI, and build a compelling business case for multi‑year partnerships.

Bottom line

Most NASCAR Cup primary sponsorships cost mid‑six to low‑seven figures per race and low‑ to mid‑eight figures for robust seasonal packages, with Xfinity and Truck deals priced substantially lower. Actual fees depend on team, driver, race mix, and the depth of activation. While figures vary, these ranges reflect current market expectations reported across the industry.

Summary

Expect to pay roughly $1 million to $2.5 million per race—or $15 million to $35 million for a comprehensive season—at top NASCAR Cup teams, with mid‑tier teams and lower series offering more economical options. Associate packages typically run $250,000 to $2 million per season in Cup. Pricing is shaped by performance, race selection, and activation rights, and sponsorship remains the primary funding source for team operations even as media revenues grow.

Is NASCAR sponsorship worth it?

Whether live at the track, on television, or in print, your brand will gain valuable exposure by being an active participant in the NASCAR Series events throughout the season. Advertising & Promotion: As a team and driver sponsor, there’s no limit to the number of ways you can leverage your sponsorship.

How are NASCAR teams paid?

NASCAR teams primarily generate revenue from corporate sponsorships, which cover the majority of their costs and are crucial for their financial survival. Other sources of income include a share of the television money allocated to teams, a portion of the prize money from races, and merchandising and licensing fees from selling team-branded products. 
Primary Revenue Streams:

• Sponsorships: Opens in new tabThis is the most significant income stream, with companies paying to have their logos on cars, drivers’ suits, and team equipment, as well as for media and event promotions. 
• Television and Media Rights: Opens in new tabNASCAR has massive broadcast deals, and a portion of this revenue is distributed to the teams. This money is distributed based on factors like championship finishes and performance over the past three years, not evenly. 
• Race Winnings (Purse Money): Opens in new tabTeams receive a share of the total prize money for each race they enter. The owner receives this money and then distributes it to the driver, crew chief, and other team members according to their contracts. 

Other Income & Business Models:

• Merchandise and Licensing: Opens in new tabTeams sell a variety of official merchandise, such as apparel and souvenirs, with a share of the sales going to the team. 
• Business-to-Business (B2B) Relationships: Opens in new tabMany successful team owners have other businesses, such as car dealerships, and use their racing teams to market these businesses and establish B2B connections for their other ventures. 

Financial Challenges:

• High Operating Costs: Opens in new tabRunning a NASCAR Cup Series team is incredibly expensive, and in recent years, the costs have outpaced revenue, with some reports suggesting that many teams are not profitable. 
• Dependence on Sponsorships: Opens in new tabTeams are heavily reliant on securing sponsors to cover their massive expenses, and a lack of sponsorship can be detrimental to a team’s ability to compete. 

How do sponsorships work in NASCAR?

His salary is generally paid for by the sponsor, which gets a certain number of scheduled appearances out of the driver in return. The driver will also split race-day winnings with the team, and there are usually incentives for winning big races — like the Daytona 500, for example.

How much does FedEx pay to sponsor NASCAR?

A full-season primary sponsorship reportedly costs up to US$25 million among the top teams in the Cup Series, with FedEx running on Hamlin’s car at 13 races last season. This produces a rough estimate of around US$10 million in sponsorship spend from FedEx.