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How Tony Stewart Lost a $14.7 Billion Sponsorship to Carl Edwards: The Subway Split Explained

Carl Smith by Carl Smith
January 15, 2025
in Motorsports
Reading Time: 3 mins read
0
How Tony Stewart Lost a $14.7 Billion Sponsorship to Carl Edwards: The Subway Split Explained

Carl Edwards does his signature back flip after winning the NASCAR Nationwide Series race at Nashville Superspeedway in Gladeville, Tenn., on Saturday, April 23, 2011. PHOTO BY JEANNE REASONOVER/THE TENNESSEAN

In the summer of 2008, Tony Stewart, one of NASCAR’s biggest names, faced a significant setback. As he prepared to transition to Stewart-Haas Racing, he lost a lucrative sponsorship with fast-food giant Subway. The deal’s abrupt end—and its subsequent shift to Carl Edwards—sparked widespread speculation and revealed the delicate dynamics of sponsorships in motorsports.


August 2008: A Month to Forget for Stewart

August 2008 was turbulent for Tony Stewart. His team faced a 150-point penalty after being caught attempting to obscure the true horsepower of his car during a Nationwide Series race. Just days later, Subway announced it was cutting ties with Stewart, opting instead to align with Carl Edwards, known as “the fittest man in NASCAR.”

Subway cited a “strategic shift” in their branding as the reason for the change, emphasizing their focus on health-conscious marketing. Edwards, with his reputation for intense fitness regimens and post-race backflips, was the perfect fit for their image. Stewart, by contrast, carried a more rugged, everyman persona—one that insiders speculated clashed with Subway’s desired branding.


The Burger King Conflict

Beyond the official narrative, another factor may have sealed Stewart’s fate with Subway: his rumored negotiations with rival fast-food chain Burger King. Reports at the time suggested that Stewart’s discussions with Burger King as a potential sponsor for his new Stewart-Haas Racing team created a conflict of interest for Subway.

While Stewart’s No. 14 car would debut with Office Depot sponsorship in 2009, Ryan Newman’s No. 4 car—a Stewart-Haas entry—would eventually showcase Burger King branding. This sponsorship, which materialized the following year, underscored the tension between Stewart’s new alliances and Subway’s corporate interests.


Carl Edwards: Subway’s New Face

Subway’s pivot to Carl Edwards was more than just a sponsorship deal—it was a full rebranding effort. The fast-food giant signed a major sponsorship agreement with Edwards, committing approximately $2.25 million as the primary sponsor for three Sprint Cup races in 2009. Additionally, Edwards secured a lucrative personal services contract, earning him between six and seven figures annually.

Edwards, widely regarded as one of NASCAR’s most physically fit drivers, embodied the “eat fresh” ethos Subway wanted to champion. His athleticism and clean-cut image provided a stark contrast to Stewart’s grittier persona, making the decision a calculated marketing move for Subway.


The Aftermath: A Tale of Two Drivers

For Tony Stewart, the loss of Subway may have stung initially, but it didn’t derail his career. Stewart-Haas Racing found success, with Stewart winning his third Cup Series championship in 2011. Meanwhile, Carl Edwards became a key figure in Subway’s marketing campaigns, solidifying his reputation as NASCAR’s fitness icon.

Looking back, the split highlights the complex interplay of branding, sponsorships, and driver personas in motorsports. Stewart’s rugged, relatable image resonated with fans, but Subway’s corporate strategy demanded a face that aligned with its health-focused messaging. The Burger King negotiations only added fuel to the fire, leaving Subway with little choice but to cut ties.


A Turning Point in NASCAR Sponsorships

The Subway-Stewart split serves as a cautionary tale for drivers navigating the sponsorship landscape. While talent and performance are crucial, aligning with a sponsor’s brand identity can be just as important. For Stewart, the experience underscored the challenges of transitioning to team ownership while managing personal and corporate affiliations.

Ultimately, both drivers thrived in their respective paths, but the decision remains a pivotal moment in NASCAR sponsorship history—a reminder that the business of racing is as competitive off the track as it is on it.

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