The Anatomy Of A Deal

It's going to be quite a while before that smile leaves the face of NASCAR Chairman Brian France. Amid a rapidly changing sports TV market desperate for product, France struck the motherload.

Here is the full announcement with all the available details provided by both NASCAR and FOX about the new multi-year agreement between the two parties. Read it carefully, as this agreement not only covers the future of the Sprint and Camping World Truck Series, it also previews the changes coming as SPEED TV becomes the FOX Sports 1 cable sports network.

With two full seasons left on their current television contract, NASCAR and FOX Sports Media Group (FSMG) announced today (Monday) an extensive new eight-year, multiplatform media rights agreement that ensures FSMG’s broadcast of NASCAR racing through 2022.

Under terms of the new agreement, FSMG also significantly increases its digital rights to include “TV Everywhere” live race streaming of its portion of the season for the first time ever beginning in 2013.

“NASCAR has been in very good hands and has enjoyed tremendous success the last 12 years in large part because of our fantastic partnership with FOX and FOX Sports Media Group,” said NASCAR Chairman and CEO Brian France. “We are thrilled to be able to extend our relationship in such a significant way for our track partners, race teams, and most importantly, our millions of loyal and passionate fans. This extension with FOX Sports Media Group helps position the sport for future growth as NASCAR continues to be an anchor with one of the world’s largest and most influential media companies.”

As part of the new agreement, which takes effect in 2015, FSMG retains the television rights to 13 consecutive NASCAR Sprint Cup Series points races beginning each year with the prestigious Daytona 500. In addition, FSMG retains the rights to the NASCAR Sprint All-Star Race, the Daytona Shootout, the Duel at Daytona, the entire NASCAR Camping World Truck Series season and practice and qualifying for both the NASCAR Sprint Cup Series and the NASCAR Camping World Truck Series races that FSMG broadcasts.

“We’re extremely happy to have worked closely with Brian and his team at NASCAR over the last few months to expand and extend our relationship for what is without question the most popular motorsport in the country,” said FSMG Co-Presidents and CEOs Eric Shanks and Randy Freer. “NASCAR has been a staple at FOX for more than a decade and we consider it one of the signature sports we cover. With our commitment renewed, we look forward to presenting NASCAR thoroughly, professionally and creatively for many years to come.”

On the digital front, FSMG gains “TV Everywhere” rights starting next season to live stream all FSMG races, along with pre- and post-race coverage, race highlights and in-progress race highlights to events it televises. This portion of the deal was made possible by NASCAR’s reacquisition of operational, business and editorial control of its digital platform, a move that takes effect on Jan. 1, 2013.

“NASCAR fans’ demand and desire for NASCAR content stretches across all platforms and distribution channels,” France said. “As we’ve done with this FSMG extension, we will continue to take the appropriate measures to ensure our fans have access to the sport wherever they are and through all available devices. NASCAR is one of the most accessible sports in the world and this new deal builds upon that in a very significant way.”

FSMG’s new and expanded television and digital media rights agreement with NASCAR includes, but is not limited to:

- An eight-year term from 2015 to 2022. The current FSMG/NASCAR rights agreement began in 2006 and runs through 2014

- Thirteen (13) consecutive points races beginning with the Daytona 500 on FOX

- The Daytona Shootout; Duel at Daytona; NASCAR Sprint All-Star Race; and Daytona 500 Qualifying

- Full NASCAR Camping World Truck Series season

- Right to televise all practice and qualifying sessions for FSMG races

- Ability to re-telecast races on a FOX network and via video-on-demand (VOD) for 24 hours

- Right to ancillary programming including, but not limited to, a nightly NASCAR news and information show as well as weekend at-track shows

- Right to NASCAR branded pre- and post-race shows

- Extensive digital rights beginning in 2013, including:

- TV Everywhere – live digital distribution of all races FSMG has rights to broadcast

- Pre- and post-race coverage

- Race highlights

- In-progress race highlights

- Replays of FOX-televised races

For this agreement, FOX will pay $300 million annually for eight years. That would be a total of $2.4 billion. This is an increase of 33% over the existing contract, but there are some items to note.

While FOX describes the fact that it can offer streaming of races for digital devices in the new agreement, media reporter Joe Flint of the LA Times notes that NASCAR fans will have to be a subscriber of a pay-TV provider to access that content. There is little doubt that provider will be the new FOX Sports 1 network.

As regular readers of this blog know, there is no love lost at the moment between NASCAR and Turner Sports. A nasty fight over digital issues saw NASCAR wind-up spending tens of millions of dollars to buy back its own online rights. NASCAR likes to cash checks, not write them.

The new FOX agreement paves the way for FOX to possibly buy the rights to the races currently in the TNT package and present that "summer six pack" on FOX Sports 1. Remember, those races are already being seen on a cable TV network. In theory, it would just be a channel change for fans. In reality, NASCAR would love it.

Finally, the clear language in the agreement surrounding practice and qualifying sessions speaks to those races being televised by FOX. As we mentioned in past weeks, TNT has never carried those sessions and ESPN has been hit and miss at best for that network's races.

It would be improbable to believe that FOX would want a branded network like FOX Sports 1 to carry the practice and qualifying sessions for races on TNT and ESPN. Under the SPEED banner, it made sense as the network was dedicated to motorsports in theory. That is about to change.

Finally, what becomes of shows like RaceDay and Victory Lane? In the New World Order, RaceDay would spend two hours promoting a race airing on TNT or ESPN once the FOX portion of the season is done. Tough to believe FOX Sports 1 would actively promote a Sprint Cup Series race running against NFL football on the FOX Broadcast Network.

It's going to be interesting to watch all this shake out, but one thing is clear. FOX has moved into the national cable sports business in a big way and used NASCAR to bring a large body of content to it's new network.

Despite it's ongoing issues, NASCAR struck paydirt with FOX. ESPN and TNT chose to pass on these early negotiations and will not make their intentions known until several months into the 2013 season.

We welcome your opinion on this topic. Comments may be moderated prior to posting.

NASCAR Classic: Field Of Streams

The murky world of online video streaming has been something that NASCAR had avoided. From the start of the existing NASCAR TV contract in 2007, online streaming of actual races was simply not allowed. NASCAR went for the money and sold all the digital rights to the sport, including the ability to stream content online, to Turner Sports.

Over the past several seasons some limited video offerings like RaceBuddy crept into the picture but actual races were never shown, only isolated cameras. ESPN offers the WatchESPN app, but all that does is allow existing ESPN subscribers access to the network's various feeds online.

Now things are about to change. The new guard at NASCAR bought back the digital rights this January, several years before the existing contract was about to end with Turner. While NASCAR may have been several million dollars lighter in the wallet, the move was long overdue. NASCAR will launch a new official website and an entirely new digital strategy in 2013.

A key part of this rollout will be complete NASCAR Sprint Cup Series races streamed online. But how these races will be made available is the issue. Click here for a recent USA Today article where new FOX Sports Media Group executive Eric Shanks says that FOX will begin streaming its Sprint Cup Series races next season.

While ESPN and TNT are cable networks to which viewers must pay and subscribe, FOX is an FCC regulated over-the-air broadcast network that operates with local stations nationwide distributing its content. The issue has long been that live streaming of races, even if controlled by zip code only to the US, would not be able to carry the same commercial inventory sold for TV.

Former FOX Sports chief David Hill said the local TV stations would revolt if the NASCAR product they carried was also available online. He also said it would ruin the ability of FOX to make back the money it paid to get NASCAR through national TV ad sales.

Having the new management group at FOX confirm streaming for 2013 in whatever form is one of the most significant improvements in terms of digital technology the sport has ever seen. Finally, the Daytona 500 on your iPad or android phone. After all these years of digital disaster, the sport is waking up.

If Shanks is kicking the door open, it is going to be up to NASCAR to decide if another audience is going to be served. There are folks who would pay a small fee to view a Sprint Cup Series race online from start to finish without commercials. NASCAR currently provides such a feed for TV viewers outside of the US called the world feed.

Since US commercials cannot be shown in other countries for obvious reasons, there has been a world feed for several years originating for Cup races. The idea would be to package the commercial-free races either as an entire season or a la carte for digital users to access. It would be no different from the current Trackpass and Raceview packages now offered by NASCAR, but this time it would be actual race video.

What this does is open the door to a new group of fans who want to interact with more than just a three hour live TV telecast where perhaps a bored announcer reads some fan tweets on the air. The younger set wants all the digital technology bundled, a social media-friendly platform available and the live video with no commercials.

As the off-season begins, details of what NASCAR will offer next season in terms of online video will certainly emerge. Hopefully, there will be a full slate of offerings outside of the content controlled by and limited to the existing TV partner websites and apps. It will be important to get as much news and "support programming" online as well. Imagine the Friday activity from the tracks streamed for free to build interest for the weekend races.

It probably should have happened years ago, but give NASCAR credit for taking control and working to get the digital side of the business organized. This story will continue to unfold over the next three months leading up to Daytona.

We welcome your opinion on this topic. Comments may be moderated prior to posting.

NASCAR TV: The Cart Before The Horse

The word is on the street that FOX Sports is back in the driver's seat with NASCAR. The Sports Business Journal suggests that FOX is about to announce a new TV contract with the sanctioning body. The current agreement expires at the end of 2014.

It's pretty easy to understand why FOX wants to get this deal done. The company is about to kill the cable network we now know as SPEED. FOX uses words like "rebranding" to explain this change, but the bottom line is that the only TV network originally dedicated to motorsports has failed.

Once NASCAR allows FOX to sign on the dotted line for Sprint Cup Series races, SPEED will become the FOX Sports 1 cable network and carry sports of all types. The implied promise by FOX to NASCAR is that there will still be NASCAR programming on the new network. Unfortunately, history tells a different tale.

The very reason SPEED moved from Stamford, CT to Charlotte, NC years ago was to become the official NASCAR cable TV network. Prior to that transition, SpeedVision carried a variety of programming related to cars, boats, planes and motorcycles.  The new company buying the network made no bones about the fact their agenda was NASCAR. That company was FOX.

FOX was so committed to NASCAR that it became a partner in the official TV production arm of the sport, then called NASCAR Images. It was all going to be so perfect. FOX would continue to carry live Sprint Cup Series races, be a partner with NASCAR in TV production and open a 24 hour cable TV network to show those programs.

Well, a funny thing happened on the way to NASCAR nirvana. Things quickly fell apart. FOX and NASCAR quietly parted company in the ownership of NASCAR Images. SPEED's management parade then saw an eroding of the commitment to motorsports and the rise of reality/lifestyle programming.

Ultimately, SPEED became a two-headed monster that made no sense. Motorsports on Friday through Sunday and some of the worst reality and lifestyle programming ever produced for American television on Monday through Thursday. All the while, the SPEED management never saw the big picture.

Now, it's NASCAR's turn to either remember the past or get burned by it. Once FOX has a signed deal for the Sprint Cup Series events, there is absolutely no incentive for the company to make NASCAR programming a priority for the new FOX Sports 1 network. As veteran fans know, this type of support or shoulder programming is vital to the sport.

From January through November, SPEED is the official TV network of NASCAR. Even without a Sprint Cup Series points race or any Nationwide Series events, SPEED is NASCAR's most important TV partner. Whether it is practice, qualifying or pre and post-race programming no network comes close to SPEED.

The network has single-handedly kept the Camping World Truck Series alive with sparkling old school coverage aimed directly at the TV viewer. Free from agendas and full of characters, SPEED makes the rag-tag series come to life with hardcore coverage of just plain racing.

The new agenda of FOX Sports is to use the millions of homes already subscribed to SPEED as a platform to chase the ESPN franchise and revenue stream by developing the FOX Sports 1 network. Broadening the agenda of the new network by adding mainstream sports like Major League Baseball, college football and news will deeply affect motorsports in general.

In the current TV deal, NASCAR went for the dollars and the results were not good. The sanctioning body was forced to buy back it's own digital (online) rights from TV partner Turner. ESPN has buried the Nationwide Series every year once college football begins and the network's Chase coverage has been panned.

FOX comes in with a splash at Daytona, makes a lot of noise about itself and then goes away. The only broadcast TV network left in the entire TV contract, this season FOX featured the Waltrip brothers and their self-promoting agendas. It's not hard to imagine that Darrell and Michael may be in the TV booth together in the new deal.

A NASCAR on FOX announcer hinted months ago on Twitter that FOX may be expanding the amount of Sprint Cup Series races the network covers in the new contract. It is no secret that there is no love lost between NASCAR and TNT after years of digital tension between the two companies that ultimately cost NASCAR tens of millions of dollars. Those 6 TNT races may be on the negotiating table.

The bottom line is that making a new deal for Sprint Cup Series races on FOX without locking in a full season of support programming on FOX Sports 1 would be a huge mistake. You can't sell the bacon without the sizzle and losing the practice, qualifying and news programs that now air on SPEED would be a disaster.

Many TDP columns were written asking SPEED to expand NASCAR programming to weeknights. The answer was no. The concept of a weekday morning NASCAR news and interview show, perhaps in cooperation with MRN/Sirius radio, was panned. The idea of a nightly NASCAR news show was openly mocked for years. Now, these issues have come full circle.

FOX is simply a company chasing higher profit margins through the conversion of an existing specialized cable TV network to a  general sports network. The company is not partners with NASCAR. FOX wants Sprint Cup Series races for its broadcast network until other sports can fill Sunday afternoons.

When the news of this new FOX deal with NASCAR emerges, keep an eye on what else is included other than the races. That should be a clear-cut sign of just how well NASCAR negotiated and also what real agenda of FOX emerges after the money changes hands.

We invite your opinion on this topic. Comments may be moderated prior to posting.