The Nitro Circus Comes To Town

It certainly is interesting to watch a series written off as almost dead roar back to life. The Nationwide Series is now a playground for Sprint Cup Series stars who either want to have some fun on a Saturday or support a team in which they have a financial stake. Either way, the result is often horrible racing.

The Nationwide Series gets a fresh start next season with new cars and that has prompted several high profile types to step-up and play. Along with the continuing education of Danica Patrick and the new mega-team of Turner Motorsports, we heard Thursday that extreme sports star and Nitro Circus veteran Travis Pastrana is coming to NASCAR.

Pastrana, pictured above, may not be well-know to some NASCAR fans but it's a sure bet he is known to their children. This young man has blazed a trail through sports outside of the mainstream but strongly embraced by teens. Pastrana is someone who connects with young TV viewers in ways NASCAR can only dream about doing right now.

Add to this equation the fact that Michael Waltrip is probably the perfect owner for Pastrana and it all makes a lot of sense. The quirky Waltrip and the over-the-top Pastrana can bring some much needed national media focus to the Nationwide Series in a flash.

Even at the ripe old age of 27, Pastrana has a fan base that is global and a wonderfully crafted public relations and marketing image. This man is no fool and nothing happens in his life without a detailed sponsorship plan to go along with the project.

Pastrana's father Robert will also bring his personality to the table in the family sport of NASCAR. The elder Pastrana is a native Puerto Rican and a veteran of the US Marine Corps. The cross-over appeal of Travis in so many ways is simply huge.

NASCAR TV is going to love Pastrana because he is the polar opposite of Danica Patrick. Rather than speaking in carefully scripted interviews and supervised media availabilities, Pastrana is an enthusiastic shoot from the hip guy who loves every camera that turns his way.

Even though Pastrana is only doing seven races in 2011, his plans are for 20 races in 2012 with an eye on eventually becoming a full time NASCAR driver. There is little doubt that Pastrana has his eye on the prize and that prize is ultimately the Sprint Cup Series. His owner has a little experience in that world.

For those of you wondering if Pastrana can drive something with four wheels on pavement, click here. This is the type of offbeat and interesting project that Pastrana has done for sponsors like Subaru and Red Bull. These videos spread the news to YouTube users globally of both brand identification and extreme sports.

Click here for a peek at the new Pastrana Waltrip Racing website that includes links to Facebook and Twitter for information on this project. It certainly sounds buttoned up and brings with it just the kind of new blood that the Nationwide Series and the sport in general certainly needs.

We welcome your comment on this topic. To add your opinion, just click on the comments button below. This is a family-friendly website, please keep that in mind when posting. Thanks for taking the time to stop by The Daly Planet.

NASCAR's Online Standoff Continues (Updated)

This is a topic that is near and dear to our heart. It's a topic that has very diverse opinions expressed by those on both sides of the equation. It's time to talk about streaming NASCAR races and other NASCAR video content online.

As you may know, Turner Sports holds a contract to operate the NASCAR.com website that also includes control of online NASCAR video. The current offerings on NASCAR.com include leaderboards, stats and even electronic tracking of cars as they race, but there is no live video.

Each weekend, NASCAR uses a combination of TV partners to originate practice, qualifying and race coverage for its three national touring series. Unlike other professional motorsports, none of that coverage is made available online.

FOX and ESPN have been adamant that any streaming, even of the network's own NASCAR programming with commercials, would undermine their respective network agendas. FOX wants to protect the exclusivity of programming for local stations while ESPN wants to be the sole source of events like The Chase for the Championship.

Click here to see what Time Warner Cable subscribers got recently. It seems that in response to the large amount of consumers using online video sources instead of cable TV, ESPN has changed direction.

In fact, ESPN has gone ahead and started streaming it's networks to TWC customers. Needless to say, that includes NASCAR races and other NASCAR programming. As you may well imagine, this did not sit very well with the folks at Turner Sports.

Having been forced to sit on the sidelines for several years now where NASCAR was concerned, Turner responded aggressively. Registered users and those on the NASCAR.com email list received a surprising note shortly before the Sprint Cup Series race from Talladega began. That is a piece of the email shown above.

Update: The folks at Turner pointed out that the format of the email pictured above is similar to one sent before every Cup Series race. We did not mean to imply that this type of communication was a one time thing.

It was an invitation for computer users to watch the live ESPN coverage of Talladega online at NASCAR.com for no charge. Talk about a shot across the bow.

Sure enough, there was a nice big window with the ESPN coverage. In the blink of an eye, online users had access to a live NASCAR race. Just as ESPN was streaming the race to TWC customers, Turner Sports was streaming the race to NASCAR.com users. ESPN held the TV rights and Turner held the online rights. Both chose to use them. You knew something had to give.

Suddenly, before the race was over the NASCAR.com screen went black. Whether someone from ESPN, NASCAR or Turner pulled the plug is not known. What is known is that the Talladega race never came back online and the next race in Texas never even appeared. The online door had been slammed shut again.

It's pretty clear that there are some discussions going-on behind the scenes that feature NASCAR's biggest TV partner in ESPN and NASCAR's online partner in Turner just squaring off like the two Jeffs on the backstretch.

Turner issued a statement to us that addressed the issue:

One of our goals as a programmer is to make sure our audience receives an optimal viewing experience, regardless of the platform. We continue to have productive conversations with our NASCAR partners to develop opportunities and a model that supports the fans desire to consume content on multiple platforms for the 2011 Sprint Cup and Nationwide series.

That is a very polite way of saying that it's time for ESPN, FOX and even SPEED to wake-up to the fact that making NASCAR content available online should have happened years ago. Whatever the model, it has to happen for 2011.

In this day and age there is no excuse for a sport like NASCAR not to stream every single live telecast for the entire season. There is no excuse for the sport not to offer shows like NASCAR Now and Race Hub online.

Click here for a 2007 offering from the first season of The Daly Planet. It is titled "NASCAR Fans Turn To Internet As TV Networks Fail To Deliver."

In the first year of the new NASCAR TV contract, hardcore fans had no daily show on SPEED, two complete clowns on ESPN2's NASCAR Now and no designated post-race coverage on live race telecasts. SPEED was dark, ESPN was confused and only the Internet provided relief.

Now, four seasons later, we are still fighting to get even one Sprint Cup Series race streamed online as the sport suffers through an incredible downturn in TV ratings, popularity and attendance. That's a sad commentary on the inability of NASCAR's media partners to address the growing reality surrounding them.

Let's hope for the sake of the sport that cooler heads prevail and we can begin 2011 with a fulltime online TV application for NASCAR programming. Streaming may well hold the key to getting fans to return to the sport by making additional cameras, technology and information available in addition to the single channel TV feed.

We should have an update on this topic prior to Homestead. At this point, neither of the final two Sprint Cup Series races will be made available online. In an age of laptops, desktops, and iPads it seems almost amazing that this struggle continues.

As usual we welcome your comments on this topic. To add your opinion, just click on the comments button below. This is a family-friendly website, please keep that in mind when posting. Thanks for taking the time to stop by The Daly Planet.

NASCAR Fans Got Fleeced By US Fidelis

Last year we were livid with ESPN analyst and NASCAR owner Rusty Wallace when he chose to take on the US Fidelis extended vehicle warranty company as a primary sponsor for one of his Nationwide Series teams.

The company was run by felons who were reported to be actively engaged in fraud through deceptive advertising, misleading direct mailings and illegal phone solicitation. Click here for the Today Show report on US Fidelis back in 2009.

Wallace and his son Steven made a personal appeal through a series of TV commercials for NASCAR fans who needed help with expired warranties on their vehicles to choose US Fidelis.

Thousands of fans responded to the Wallace family and bought the US Fidelis product. The average cost of a US Fidelis extended warranty was three thousand dollars.

Needless to say, the whole thing smelled bad from the start. One year later the company is closed, the extent of the scam has been exposed and Rusty Wallace Racing has moved on to other sponsors.

For those of you who may have fallen victim, here is the latest official information on US Fidelis:

The Washington Attorney General’s Office spearheaded a multistate settlement with the former owners of U.S. Fidelis that ensures the Atkinson brothers will never again sell auto service contracts or telemarket in 11 states. The agreement also severely restricts how the duo advertises any other product or service and requires them to turn over nearly all their assets.

The business practices of U.S. Fidelis, which operated as National Auto Warranty Services and Dealer Services until its bankruptcy last spring, have been widely reported. More than 400,000 consumers nationwide paid the Wentzville, Mo., company thousands for overpriced service contracts that were sold through illegal and deceptive means. Its founders, Missouri brothers Darain and Cory Atkinson, are accused of plundering $101 million in corporate assets for their own personal gain.

“U.S. Fidelis suckered consumers through a multitude of lies while its owners, the Atkinsons, drained money out of the company to maintain a lavish lifestyle,” Attorney General Rob McKenna said. “This settlement helps ensure they won’t harm Washington consumers again.”

Attorneys general sued the defunct company and the Atkinsons shortly after March 2010. Assistant Attorney General Mary Lobdell, with the Washington Attorney General’s Consumer Protection Division, led the investigation.

The states accused the defendants of a variety of illegal actions stemming from deceptive junk mail, illegal telemarketing robocalls and misleading TV ads. They alleged the company’s solicitations misled consumers to believe their auto warranties had expired or would soon expire and confused customers into thinking that they were being contacted by a manufacturer or other entity affiliated with their original vehicle warranty. Many consumers who were led to believe they were purchasing a warranty providing “bumper to bumper” coverage of all major repairs later found the contracts full of exemptions.

“Only a vehicle manufacturer can provide an extended warranty,” Lobdell said. “U.S. Fidelis hooked consumers by using a multitude of lies, including describing expensive service contracts as ‘extended warranties’ provided on behalf of specific manufacturers.”

The states also accused the defendants of violating Do-Not-Call laws and using technology to bypass caller ID and mask the origin of sales calls, refusing to allow consumers an opportunity to review the complete written service contracts, denying valid refund requests, improperly obtaining consumers’ personal information and violating state licensing and registration laws.

Washington filed its version of the settlement today in Thurston County Superior Court. The Atkinsons denied any wrongdoing but agreed to surrender at least 90 percent of their assets pursuant to a related bankruptcy agreement, including assets from 20 related corporations. The settlement also requires the Atkinsons to comply with a lengthy list of restrictions on future business and marketing practices. Specifically, they are prohibited from:

Telemarketing in any of the participating states.
Marketing or selling motor vehicle service contracts (unless employed at a dealership, and then only in connection with the sale of a specific vehicle).
Misleading consumers about the source of an offer.
Misrepresenting their relationship with a consumer.
Representing that an offer is “exclusive” or “final” unless it can be substantiated in writing.
Disproportionately targeting consumers 65 or older.
Selling or providing personal information obtained from a consumer to unaffiliated companies for marketing purposes without the consumer’s consent.
Additionally, the settlement requires the defendants to provide sufficient disclosures in solicitations, honor a consumer’s request to be removed from a mailing list and comply with laws and regulations related to fair business practices, credit offers, privacy rights and licensing and registration requirements.

The Atkinsons each owe Washington more than $4.6 million in civil penalties, as well as about $300,000 for costs related to the investigation and litigation. With the surrender of their assets, any recovery will come from the U.S. Fidelis bankruptcy. The states continue to negotiate with the bankruptcy estate to benefit creditors and consumers.

The following states participated in the settlement: Arkansas, Idaho, Iowa, Kansas, North Carolina, Ohio, Oregon, Pennsylvania, Texas, Washington and Wisconsin.

BACKGROUND

U.S. Fidelis was the nation's No. 1 extended-warranty dealer for autos and a primary NASCAR sponsor before its collapse. State attorneys general began investigating U.S. Fidelis in 2008. The company declared bankruptcy on March 1, 2010. The states – whose earlier attempt to negotiate a settlement had stalled – filed their lawsuit soon after the bankruptcy announcement.

In October 2010, a federal bankruptcy judge approved a settlement that requires the Atkinsons to give $10.5 million to U.S. Fidelis and surrender millions in additional assets, including Darain’s 40,000-square-foot mansion, a 50-foot yacht and 10 other boats, 11 autos and 14 motorcycles. The bankruptcy settlement was conditioned on the states’ agreement to settle claims with the Atkinsons.

In addition to the lawsuits filed by the state attorneys general, Verizon sued U.S. Fidelis for making 3 million illegal calls to cell phone customers over seven months in 2008, and BMW and Subaru brought a lawsuit for trademark infringement. U.S. Fidelis’ contracted telemarketer, Voice Touch, was sued by the Federal Trade Commission for robocalls. In March, Voice Touch agreed to pay more than $655,000 in consumer restitution and is banned from telemarketing.

Federal investigators continue probing whether U.S. Fidelis committed any criminal wrongdoing.

Any way you slice it, this was dirty pool where NASCAR fans were concerned. The dollars given to US Fidelis after the personal appeal of Rusty and Steven Wallace will probably never be returned. Wallace has been mum on the subject.

As we originally pointed out last year, Wallace barely escaped a much greater penalty for his choice to associate with the Atkinsons and US Fidelis. In late 2009, the Federal Trade Commission extended the rules covering the liability of celebrity endorsers where products were concerned.

The new rule is "both advertisers and endorsers may be liable for false or unsubstantiated claims made in an endorsement." In other words, the celebrity faces selling a product or endorsing a service are just as liable if the product or the service turns out to be fraudulent or a scam.

In trying to guard consumers against exactly what happened with US Fidelis, the FTC said the following. "The determination of whether a speaker’s statement is an endorsement depends solely on whether consumers believe that it represents the endorser’s own view."

In very plain words, Wallace and his son personally endorsed US Fidelis in ads that were specifically targeted at the very brand loyal NASCAR fans. It is impossible to estimate the amount of money US Fidelis made directly from the Wallace TV commercials and the NASCAR fan base.

Ultimately, the Chapter 11 filing of US Fidelis in March of 2010 showed that the company still owed Rusty Wallace Racing slightly more than 500 thousand dollars. So, maybe what goes around comes around after all. Any way you look at it, that's dirty money.

Links to references on this topic are listed below. Happy to have your comments. This is a family-friendly website, please keep that in mind when posting. Thanks for taking the time to stop by The Daly Planet.

Scenedaily.com - US Fidelis Owes Rusty Wallace
Daly Planet - Trouble Brewing For Rusty Wallace And US Fidelis Sponsor
Bnet.com - FTC Considers Extending Ad Jurisdiction
Bnet.com - New FTC Rules For Bloggers And Celebrities
STLToday.com - US Fidelis Founder Goes From Prison To The Pinnacle
STLToday.com - Former Owners Of US Fidelis Settle With 11 States