2001 TV Deal
Note: News links on the 2001 TV deal are down the page
2001 Tentative TV Schedule is here
Next year major changes will take place. The two networks that played the major role over two decades inventing NASCAR television coverage, ESPN and CBS, will be replaced by two newcomers: Fox and NBC.
Details include:
- Each network will get half of the races. Fox will get the first half of the season. NBC gets the second half, starting with the July Daytona race.
- Coverage of the Daytona 500 will alternate each year, with Fox getting the 2001 race.
- Expect 2/3 to 3/4 of the races to be on network TV. Races not on the broadcast networks will be on TBS (NBC races) and FX (Fox races).
- Revenue from the deal increases from $244 million in 2001 to $534 million in 2006. The average annual revenue to NASCAR is well over $400 million, with some claiming the average could be as high as $467 million.
- While many fans were upset that ESPN and CBS lost the rights, insiders say that their bids were close to $100 million annually under the winning bids from Fox and NBC.
- The contract is broken down into three categories: The Daytona 500, 13 “premium” races, and 21 “standard” races. I am not sure where the new races in Chicago and Kansas City fit in, as they are not reflected in these numbers..
- The payout formula is 65% to the tracks, 25% to the competitors, and 10% to NASCAR.
- In 2000, the last year of the old TV contracts, the total annual TV revenue for Winston Cup races is $100 million. One example of the money under the old system is Las Vegas, where the track had a 5-year deal with ABC for $7 million a year.
The big power broker who put this all together is Bray Cary, NASCAR's vice-president of broadcasting. He has quickly become one of the most influential people in all of motorsports.
Past 2001 TV Deal News
Forbes' Article Takes NASCAR to Task
"With a new $2.4 billion television deal, NASCAR's France family seems to be zooming ahead. But there's trouble 'round the bend," is the lead-in to the uncomplimentary story, "Flameout?", in the August 21 issue of Forbes. Other details:
Fox and NBC will have to increase ad rates by 50% next year, something which Forbes says they are unlikely to get.
"NASCAR will take in $240 million, and International Speedway $750 million, over the life of the TV deal."
Brian France Gives Update on 2001 Television Deal
Speedvision has a good Q&A with Brian France, who discusses many issues regarding how the television details are shaping up. Among the items he discussed:
All final details should be set within the next 60 days. "We're trying to pull it all together at once. That's the Internet channel, all the things that go on, international rights, pay-per-view . . ."
The reach, in terms of the number of households, of the F/X Network is still not where it should be, but that will hopefully be all set by February.
NASCAR is working closely with Fox and NBC to make sure that the networks are ready to go strong out of the gate.
More Details, More Question Emerge on the 2001 TV Deal
As reported by Mike Mulhern in terrific articles at JournalNow:
Fox and NBC will have a hard time making a profit, at least initially, on NASCAR.
Where will Bill Weber and Neil Goldberg, two people at the top of their craft, go?
There seems to be disagreement over who owns the historical footage of NASCAR races. This, along with other factors, may delay The NASCAR Channel.
Who will head up NASCAR's TV production? Some people think it may be Patti Wheeler, a producer at TNN, and Lowe's Motor Speedway president Humpy Wheeler's daughter.
Pre-race shows will be an hour and post-race shows will be a half hour.
Only media from the broadcasting network will be allowed in the garage during the times of the two shows. Drivers would have to stay in the garage available to the media for the half-hour after the race.
Links
NASCAR's announcement of the deal (NASCAR Online)
Fox Sports' announcement of the deal (Fox Sports)
Turner Sports' announcement of the deal (CNN/SI)
A Q&A about the 2001 TV deal (That's Racin')
How NASCAR compares to other sports' broadcasting revenue (Fox Sports Biz.com)
"Hot commodity: NASCAR's TV coup could benefit other groups " (FoxSports Biz.com)
Feature story about NASCAR TV honcho Bray Cary at the Charlotte Business Journal
"Big Brother Comes to NASCAR" by Monte Dutton (Gaston Gazette)
What Kyle Petty thinks about the TV deal (Petty Enterprises and Race2Win)
