Tuesday, March 5, 2013

The Double-Secret Probation Cable Sports Network


Blast from the past: This story was originally posted last fall when the first rumblings of big movement within FOX were underway. Today, FOXSports1 is being formally announced at the FOX "upfront" sales meeting out West. Twitter users can stay updated on this big topic by following TheDalyPlanet account. It should be interesting to see what is being added and what motorsports series and shows are going away.

When an athlete does something wrong, they get put on probation. When this action is to be shielded from the media, the term is secret probation. But the top of the heap is when someone does something that is so outrageous it deserves a special penalty. Then, it's double-secret probation time.

The logo above is from the FOX Sports 1 network in Australia. As you may remember, FOX executives Rupert Murdoch and David Hill both came from down under with a long history in sports TV. FOX operates multiple sports channels in that nation. Now, one may be making the trek to the US.

The American version of FOX Sports 1 is the double-secret probation cable TV network. This topic is already causing a big mess and the FOX Sports gang is trying very hard to keep it out of the media at all costs. In this day and age, that is next to impossible.

The hot rumor that has been simmering for months is that FOX Sports is set to end the floundering SPEED channel and rebrand that network into the US version of FOX Sports 1. SPEED has never flourished under the network's various management teams and continues trying to be a racing network on the weekends and a lifestyle/reality network on the weekdays.

The big problem for FOX is that ABC, NBC and CBS all have national cable sports networks up and running right now. FOX is far behind on the new sports TV business model and is playing catch-up. In typical FOX style, throwing money at the issue seems to be the order of the day.

Here is an excerpt from a Thursday Broadcasting & Cable story by John Lafayette on what FOX and parent company News Corp are about to pay to buy high-profile programming for the new network:

News Corp. is stepping up to the plate to take a swing at building a national sports cable network that can take on leader ESPN, sliding past Comcast’s NBCUniversal.

NBCU has already rebranded its Versus network as the NBC Sports Channel and has been hoping to get a boost from a new Major League Baseball deal. But according to published reports, Comcast got left in the on-deck circle because it wasn’t willing to pay as much as News Corp., which will be putting a bigger package of games on both its Fox Network and its Speed auto-racing channel, which will be rebranded as Fox Sports One.

Meanwhile, back at the ranch, the COO of News Corp was taking questions Thursday from the media after a communications conference in New York City. Sports was very much on the mind of the reporters. Here is Lafayette's round-up on that topic:

News Corp. COO Chase Carey said reports that the company would convert its Speed channel to a national sports network that would compete with ESPN were "rumors and speculation" at this point.

The latest round of stories about a new national network came amid word that News Corp.'s Fox was near a new deal with Major League Baseball that would give it rights to televise more games than its current deal does.

"We obviously haven't announced anything," said Carey, speaking at the Goldman Sachs 21st Annual Communacopia Conference in New York Thursday.

Carey did say, "We do like the sports business," adding that the company's underdeveloped networks like Speed and Fuel "do give us a real opportunity to do some really exciting things."

SPEED is currently on the air riding out existing contracts, including NASCAR. The sanctioning body's deal with the network is up in 2014 and nothing has been said about the continuation of any NASCAR programming on the new network. That is just not a good sign.

The bottom line is that other sports events being acquired for FOX Sports 1 conflict with the large blocks of Friday through Sunday time SPEED now devotes to NASCAR. While FOX does have other cable network outlets like FX and FUEL potentially available for NASCAR shows, it would seem doubtful that the kind of February to November NASCAR programming now carried by SPEED will return.

It will also be very interesting to see if NASCAR returns to the FOX Broadcast Network for Sprint Cup Series races in the new TV contract without the associated programming on a support network like SPEED. Normally, part of the leverage to carry that type of "shoulder" content comes from awarding the same network or media company the big prize of live races.

It was reported this week that on September 14 FOX Sports filed for a trademark on "FOX Sports 1" with the US Patent & Trademark Office. If the lack of original programming on SPEED and the billions about to be spent on Major League Baseball by FOX did not convince you that change was coming, perhaps trademarking the new network nationally will do it.

Working hard to live up to its double-secret probation status, FOX and News Corp have steadfastly denied any change is taking place. No one in the rank-and-file at SPEED has been told anything. If NASCAR has made any determination of future plans with FOX, the sanctioning body is not saying a word.

Change eventually comes to all media properties and in the digital age of new technology this is really no surprise. It's just a shame that NASCAR was never allowed to be the centerpiece of SPEED over the last decade.  It just makes one wonder why these two companies were never able to use that kind of cooperation to grow their own internal brands.

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

Sunday, January 27, 2013

Repost: The Art Of The Spectacle

Spectacles need fundamental elements. Drama, danger and a large crowd are three things that the folks at Redbull assembled on Sunday afternoon. For several hours the social media buzz moved from the NFL to something else. That something else was a spectacle of the highest order.

A man was going to do what was clearly dangerous. He was going against the odds. He had courage, desire and a single-minded focus. Despite our bravado, the vast majority of us would never do what he was about to do. It was the perfect stage to keep the undivided attention of millions around the world.

Perhaps like many families, we stumbled across the Redbull Stratos project through news reports and social media mentions. We went to the website of the live mission first, then added the Discovery HD Channel telecast as a second screen. We also actively chatted with others on Twitter as things unfolded. Three screens for one special event viewed spontaneously.

The drama of watching Felix Baumgartner slowly drift up toward the edge of space was heightened by the camera shots of his wife and family members. The announcers built the suspense. The fundamental idea that he was going to jump out of his capsule and free-fall some twenty-four miles back to earth with just a parachute was hard to grasp.

Every spectacle needs moments. Eventually, the capsule reached the height needed for the record attempt. After adjusting the cabin pressure, the live video from inside the capsule gave us the first moment. The door opened and there, in all its High Definition glory, was earth. It was a long way down.

As Baumgartner finished his final checklist, he slid his feet out of the capsule door. Across the world, folks watching on every single kind of device from TV's to cell phones got the very same feeling. This guy was actually going to do it right now. The sense of danger was very real, even if the only thing I had to ride was my couch.

The video showed Baumgartner standing on the small ledge outside the capsule. The angle switched to one from overhead looking down. Key to the tension from the start of the event were the pictures. Then, with a small lean forward, he was gone. It was actually happening.

That moment of being terrified, thrilled and amazed all at the same time felt familiar. As Baumgartner hurtled toward earth risking his own life in front of my eyes it hit me all at once. This is the way I used to feel about a Sprint Cup Series race. This heart in your throat can't stop watching excitement is what got me into NASCAR.

The cheers went up when Baumgartner's parachute finally opened. There was still a long way to go but at least things were going according to plan. The thrill had changed into an appreciation of just how much effort had gone into this one event. Now it was time to see if he could bring it home.

From twenty-four miles up Baumgartner eased his way back to solid ground and just for good measure, he stuck the landing. My viewing partner and I looked at each other. Without saying a word, we both knew what had happened. We had shared a unique moment with each other from just being there.

That is the way I used to feel when a top-notch NASCAR race was over. It could be a high-speed run at Michigan or a short-track slugfest at Richmond. The drivers were ready and willing to take a risk to win. The drama would unfold with the announcers and pictures playing a key role. The story developed without any of us knowing the result.

The real key to making this work was that each race was a spectacle. Each race offered an individual challenge that would last until the final turn of the final lap. Fate and luck would play a role that was yet to be determined. The danger was real, the intensity was high and sport was driven by the personalities involved.

I stopped enjoying Sprint Cup Series races a while ago and stopped watching live telecasts this season. Rather than let the spectacle of each unique event unfold, things seem to be centered on simply getting in position to participate in the post-season Chase for the Championship. Team decisions are centered on what can be lost, not gained, by taking risks.

Inside the Chase, it's even worse. The announcers are caught-up in trying to promote the playoff format at the expense of the actual event in progress. The stories of most of the teams in the field are rarely told, regardless of the racing value. Teams not in the Chase just don't matter, despite the fact those drivers are taking the same risks and working just as hard as the chosen twelve.

I miss that lump in the throat feeling when watching racing. When Baumgartner leaned forward and stepped off the ledge, you knew he was committed. You knew he was willing to take a risk. It was pure spectacle. Maybe someday racing will change back to embrace that style of celebrating every event in a unique fashion and let the season championship be a result of risk rather than calculation.

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

Repost: US Fidelis - Fleeced NASCAR Fans See Justice

Rusty Wallace and his son Steve looked NASCAR fans right in the eye. On a series of TV commercials several years ago, the duo promoted the extended auto warranty company US Fidelis. The company's website had pictures of the two as anchor images on the homepage. This NASCAR sponsorship was a key part of the company's marketing efforts.

The Wallace father and son made it personal. They assured fans on the TV commercials that the Wallace family could vouch for US Fidelis. Thousands of NASCAR fans trusted the Wallaces and signed-up, believing the extended warranties would cover almost everything. Unfortunately, it was all a lie.

"Trouble Brewing For Rusty Wallace And US Fidelis Sponsor" was a Daly Planet column from June of 2009. Click on the title to read it. Various media outlets had begun to report on the reality of US Fidelis. NBC's Today Show dropped a bomb with a look at what was happening inside the company. That video can be seen by using the story link above.

"Will NASCAR Learn From US Fidelis Collapse?" was the next column posted here in March of 2010 when the US Fidelis empire came crashing to earth. Click the title to read the story. The company had filed for bankruptcy and there was almost certainly going to be criminal charges coming for two of the company founders, Cory and Darain Atkinson.

What was not contained in the subsequent lawsuits and legal actions against US Fidelis were the names Rusty and Steve Wallace. While Rusty Wallace Racing was still owed over $500 thousand in sponsorship dollars when US Fidelis collapsed, that was the least of the worries for the Wallace family.

Federal law changed in the last decade in response to celebrities and athletes endorsing products and companies that were lying about goods and services. "Both advertisers and endorsers may be liable for false or unsubstantiated claims made in an endorsement," is the language of the new law.

This time, the Wallaces walked away with only a dent in their racing wallets. The much larger dent was in the wallets of NASCAR fans across the nation who unknowingly helped to contribute to the over $100 million in cash that the Atkinsons plundered in this scam before it was ended.

"NASCAR Fans Got Fleeced By US Fidelis" was the TDP column on this topic from November of 2010. Click on the title to read it. "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,” said Washington State Attorney General Rob McKenna at the time. A multi-state task force had finally brought the Atkinsons to justice.

On Tuesday, Cory Atkinson plead guilty to fraud and tax evasion in Federal Court. He was sentenced to three years in prison. In ten days, he is expected to again plead guilty to state charges of fraud and should receive an additional four years in jail. His brother Darain, the mastermind of the scam, is expected to spend twice that amount of time in jail when he is also sentenced later this month.

As you can see from the reader comments on the 2009 and 2010 columns, it was quite apparent that something was up with this NASCAR sponsor from the start. Who can forget the endless replays of the Wallace family TV commercials and the unsolicited phone calls that were made by US Fidelis nationwide.

These days, Rusty's NASCAR racing is limited to his appearances in the Infield Pit Studio for ESPN. His race team is closed and his son is out of the Nationwide Series. It seems that perhaps the US Fidelis debacle has been long since forgotten by the NASCAR media.

The lasting damage from this incident is twofold. First, the financial impact felt by NASCAR fans who believed the sales pitch and contracted for extended service warranties with several thousand dollars paid upfront. They may never view Rusty and Steve Wallace quite the same way again.

Secondly, NASCAR thrives on brand loyalty and often uses that term when courting major sponsors. Wallace is a high-profile TV analyst and now a Hall of Fame member. This was not a backmarker hawking diet pills or bbq sauce to pay the tire bill. It was a well-known NASCAR personality selling a vehicle-related product directly to the fan base.

Did NASCAR learn a lesson? That has yet to be seen, but perhaps if Rusty Wallace Racing was alive and well right now the doorbell would be ringing with yet another notice of a civil lawsuit. After all, in today's world the consumer has just as much right to sue the endorser as they do the company providing the product.

At least the ugly end of the US Fidelis episode may give pause to drivers, media personalities and owners in terms of thoroughly researching the companies and products they choose to endorse in the future.

Additional links to the US Fidelis story are furnished below. We invite your opinion on this topic. Comments may be moderated prior to posting.

US Fidelis Co-Owner Gets 40 Months In Prison - ABC News

US Fidelis Co-Owner Makes No Apology, Blames Others as He’s Sentenced - KMOX/CBS

US Fidelis co-owner Cory Atkinson sentenced on tax and fraud charges - KDSK (with video)

Cory Atkinson sentenced to 40 months in prison on federal fraud charges - St. Louis Business Journal