Wednesday, July 25, 2012

AJ Allmendinger "B" Sample Fails: Updated

Tuesday evening just prior to 9PM ET a press release was forwarded to the media from NASCAR. Here is the copy:

"AJ Allmendinger, driver of the No. 22 car in the NASCAR Sprint Cup Series, has been suspended indefinitely from NASCAR for violating the sanctioning body’s substance abuse policy."

On July 24,Allmendinger was found to have violated Sections 12-1 (actions detrimental to stock car racing) and 19 (NASCAR’s substance abuse policy) of the 2012 NASCAR rule book.

As outlined in the rule book, NASCAR next will provide Allmendinger a letter outlining a process for reinstatement. By agreeing to the letter, he will be allowed to participate in the Road to Recovery Program.

The surprise in this announcement was that both Allmendinger's spokespeople and many media members had been relating that the results of this test would not be available until late Wednesday or early Thursday. The timing of this announcement, long after regular business hours on the East Coast, is just as awkward as the original notice of a substance abuse policy violation only hours before a Sprint Cup Series race.
 
At 9:45PM, ESPN's Marty Smith passed this along on Twitter: Allmendinger's agent stated the sample was "within nanograms" of accepted tolerance. (That) they're unsure whether to fight or do NASCAR recovery program.

Minutes later a full statement was released at 10PM ET from Tara Ragan, AJ's longtime business manager. It reads:

"Aegis Analytical Laboratories in Nashville has delivered the results of the 'B' sample test for Penske Racing driver AJ Allmendinger, which confirmed the results of the 'A" test"

"This was not the news we wanted to hear and we will work to get to the source of what may have caused this. To that end, we have secured the services of an independent lab to conduct thorough testing on every product within AJ's home and motor coach to find what might collaborate with his test, which created results that were within nanograms of accepted standards. We are working closely with NASCAR and Penske Racing to identify the next action steps in this process."

"We continue to be extremely grateful by the breadth and scope of support for AJ from his fans and partners. We would like to again thank NASCAR, Penske Racing and all our sponsor partners for the open communication, and for helping us at every step in this process. We expect to have further updates in the upcoming days."

The next stop for Ragan was the SiriusXM Radio NASCAR channel. She repeated the content of her statement but then answered the question most fans and media have been asking.

SiriusXM radio: Do you have any plays to reveal what the substance is?

Ragan: It’s a good question. I don’t have the answer to that right now. I agree with you. It matters to us. It matters to him. I think, for sure, you’re right, there are things that have various connotations to them. We want to get to the bottom of it. I believe that will be the case. Until I get the secondary report and we do that with the lab, which is going to start first thing in the morning. again it’s kind of like a needle in the haystack, so I don’t really know what it is we’re looking for what it is that we’ve got.’’

The paragraph above was transcribed and made available by reporter Dustin Long of SI.com and Athlon Sports. Thanks to him for the content.

Wednesday brings a 3PM version of the NASCAR Now program on ESPN2 and a 6PM live Race Hub program over on SPEED. It should be interesting to watch how these two very different networks approach the issue.

Ms. Ragan has been a public relations professional throughout this ordeal and often allows facts to emerge by simply disclosing others. In saying Allmendinger was slightly over the limit for a stimulant, she pushes aside the issue of illegal drugs and alcohol. By controlling the information flow and not allowing Allmendinger to speak with the media she removes the potential for his words to take on different meaning. That potential was on display with the Jeremy Mayfield suspension and subsequent media mayhem.

Update: Early Wednesday morning Allmendinger took to Twitter for some messages. Here they are:

"I just want to say thank you first and foremost for all of u sticking by me. Please dont think me being (silent) means i havent been reading all ur support."

"And man, it means more than u will ever know. Im sorry we even have to have this going on. But i promise ..i will do whatever it Takes to get to the bottom of this and get back our there no matter what. Thanks guys."
This post will continue to be updated on Wednesday with whatever information becomes available. In the meantime, we invite your opinion on this topic. Comments may be moderated prior to posting.

Tuesday, July 24, 2012

A Changing Of The Guard At FOX Sports

As the story goes, Humpy Wheeler's daughter Patti introduced Aussie David Hill to the sport of NASCAR. Hill was under orders from News Corp. chief Rupert Murdoch to plant the FOX Sports flag in the states. Hill took one look at the Charlotte Motor Speedway, the loyal fans and the spectacle of 43 cars at high speed and was hooked.

The result was a franchise called "NASCAR on FOX." Familiar TV faces like Darrell Waltrip, Larry McReynolds and Jeff Hammond have Hill to thank for their careers after racing. The sport has Hill to thank for coming along at a key moment in NASCAR history and as they say, "growing the franchise."

Sports Emmy awards followed and Hill expanded the FOX Sports brand far beyond the world of NASCAR. The colorful Hill was a marked contrast to the monochrome network sports executives who prowl the mean streets of New York City. Hill decided to set-up shop in Los Angeles, have an adult beverage or two and speak his mind.

After more than a decade at the helm, Hill has most recently been the chairman of the FOX Sports division. Things started to change when a young executive named Eric Shanks left DirecTV and joined FOX Sports as president in June of 2010. Six months later, FOX veteran Randy Freer was named co-president of the newly formed FOX Sports Media Group with Shanks.

These two would now be in charge of all the networks, brands and digital properties involved with FOX Sports. The power had shifted to a different generation of executives who spoke the digital language and were concerned with brand marketing and image. The handwriting was on the wall.

Monday it was made official that Hill was moving on. He will become an Executive Vice President of News Corp. itself. Hill will be working on international projects and new business. For the first time since he came across the pond, David Hill's influence will be gone from FOX sports.

Hill was also key to establishing SPEED in Charlotte, NC and pushing for it to become the official NASCAR TV Network. While that part of the plan did not work out, there is no doubt that the very existence of SPEED is due to its core of NASCAR programming.

Shanks and Freer are said to be actively negotiating with NASCAR on a new TV contract. There have even been hints that FOX wants more Sprint Cup Series races. The key question in the overall equation is the future of SPEED itself. Rumors are swirling that FOX will close SPEED, rebrand it as a general sports cable TV network and use it to chase ESPN in the program rights marketplace.

SPEED currently carries the vast majority of the practice, qualifying and support programming for NASCAR. When there is heavy lifting to be done, from the Hall of Fame to the All-Star Race, NASCAR relies on SPEED. Certainly no new TV contract will be put in place without a strong foundation of what is called "shoulder programming" from SPEED or the newly branded sports network.

While Hill was outspoken and opinionated, the new management duo is focused and calculated. What becomes of FOX Sports, SPEED and the company's relationship with NASCAR will be revealed before this year is out. There are many interested parties waiting for that answer.

While Hill did tinker with start times and bring us Digger, the vast majority of his NASCAR influence revolved around promoting stock car racing to a larger audience. He ushered the sport through an uncertain time with gimmicks like the Hollywood Hotel and created personas like "Ole DW and Larry Mac." There was a time when "NASCAR on FOX" was king.

Hill will remain based in LA, so there is little doubt that Shanks and Freer may wind-up having frequent conversations with the cantankerous Aussie when he thinks of yet another idea that seems perfect for the NASCAR on FOX coverage. Some things will never change.

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

Thursday, July 19, 2012

The SiriusXM Consumer Nightmare

NASCAR recently agreed to a five year contract extension with SiriusXM Satellite Radio. The sanctioning body is just one of a host of "content providers" that supply the service with programming for the various channels.

This most recent agreement also allowed SiriusXM NASCAR content to be streamed online. This had been a frustration of fans for many years. The move was a part of NASCAR's broader digital agenda to reclaim and control the rights to its own content.

"A dedicated NASCAR channel is important for our teams, tracks, drivers and sponsors and is crucial for fan engagement and audience growth," NASCAR Chairman Brian France said in a March 2012 media release. "Being able to simulcast SiriusXM NASCAR Radio online to subscribers nationwide will allow us additional opportunities to take our product to new fans in new places."

While SiriusXM has a strong history of diverse content, the company also has a growing reputation in another area. That area is consumer fraud. Over the years, many NASCAR fans have emailed about illegal billing practices, deceptive phone calls and poor customer service.

A working group of Attorneys General from 28 states began investigating SiriusXM for deceptive billing and customer solicitation policies back in 2010. The majority of the consumer complaints had a theme. They involved unauthorized credit and debit card charges.

The SiriusXM business is driven by the subscription revenue of users. Advertising revenue plays a minor role in this "pay radio" business model. The current investigation focuses on what is called "billing continuous subscriptions." This practice has reportedly raked in millions of dollars for SiriusXM from people who find themselves unable to stop the billing cycle.

Let's start at the beginning. Folks who sign-up for a trial offer with SiriusXM are asked to provide credit card information, even if the trial is free. The reason is that at the conclusion of the trial period SiriusXM automatically turns the trial into a full subscription and begins to auto-charge the user. There is no notification.

Existing subscribers who have already provided credit or debit card information are confronted with a well-rehearsed scenario when they try to cancel the service at the expiration of an annual contract. Either electronically or via telephone, they are assured that the subscription has ended. Then, a new charge appears on their credit card and the scam begins.

The Internet is littered with posts about the financial nightmares caused by the fraudulent behavior of SiriusXM. The scenarios are endless. Common citizens who trusted a company with a service now find themselves trapped in a world where dollars are being removed from their bank accounts without permission and for services confirmed as terminated.

Click here to take a peek at the Pissed Consumer website. The Sirius XM content is extensive and revolves around the same theme of fooling the consumer or failing to stop billing after confirmation of terminated service. It's just one of many online resources that address this issue.

The newest twist in this saga has raised eyebrows once again with online billing at the heart of the issue. Frustrated consumers who simply cannot stop the SiriusXM charges to their credit or debit cards usually cancel the card and have the bank send a new one. It might cause some work to change other accounts and billing, but this move should stop unauthorized charges since the old card is now cancelled. Well, think again.

Click here to read one of the many posts online about SiriusXM continuing to process payments on a cancelled credit card if the financial institution allows the transaction. In the world of online banking, this is a new risk that is very real.

The tips to deal with SiriusXM are basic. Before entering into any agreement, no matter how temporary, review the entire user agreement. The auto-review is buried in the paperwork and gives SiriusXM an out on most billing issues. Just like the extended auto warranty companies, SiriusXM walks the fine line between what a customer is being told on the phone and what is the legal bottom line in the agreement.

Do not disclose your credit card information to SiriusXM. Pay in full for any agreement with another form of payment. Credit and debit card deductions made from your bank account are immediate and the vast majority of consumer complaints revolve around money that has already been transferred. The possibility that you are going to recover funds is small.

Finally, document the services for which you have contracted. SiriusXM has a variety of options in terms of access to content and also how that content is delivered. Failure to specifically understand the satellite and online delivery agreements may bring additional charges.

After years of pushing hard to get the SiriusXM NASCAR channel available online, this positive change seems bittersweet when the company's solicitation and billing philosophy is based around what are essentially unfair business practices. A simple change in corporate culture could solve these problems and rid the company of this unfortunate stigma.

Happy to have your thoughts on this topic or experiences you have had with SiriusXM. Comments may be moderated prior to posting.