Friday, June 24, 2005

FOX Enters Final Turn Of Record-Setting 2005 NASCAR Package

(From Sports Business Daily -- By Brad Pinkerton)

Heading into its final NASCAR BROADCAST of the 2005 season Sunday with the DODGE/SAVE MART 350 at INFINEON RACEWAY, FOX is projected to set an all-time high for its NASCAR PACKAGE.

Through its 12 NEXTEL CUP SERIES EVENTS through June 19th, FOX has averaged a 6.0/14, up 5.3% from the comparable 5.7/14 last year. FOX projects this year's NEXTEL CUP COVERAGE of 13 races to post a 5.9 final rating, which would set a record for any NASCAR TV package.

FOX points out that the last time a major pro sport recorded an all-time high for a regular-season package was the NFL in 1981.

In a conference call with reporters on Wednesday to trumpet this year's ratings and FOX' final NASCAR broadcast of the season, FOX SPORTS President ED GOREN said, "Breaking even year to year is an accomplishment. Posting a record is a reason to celebrate."

Goren was joined on the call by FOX NASCAR analysts DARRELL WALTRIP and LARRY McREYNOLDS.

Goren said of extending the network's rights deal with NASCAR beyond 2006, "I like our position in the negotiations, but we’ve seen through history that if somebody wants to sign a blank check, you can get the NFL away from CBS, you can get (MNF) away from NBC, you can get the NBA away from NBC. We know that loyalty in this business can be a fleeting emotion when people start throwing blank checks at others." But he added, "I'm confident we're going to work out a new deal. We continue to talk, and that’s always healthy."

Meanwhile, Goren said moving more NASCAR broadcasts to cable "would be a mistake for NASCAR. The place for THE NEXTEL SERIES is network television.”

Goren added of advertiser interest in NASCAR, "We all believed in NASCAR when we started five years ago, but MADISON AVENUE didn't embrace the product the way we did initially." He said that resulted in a low base for ad rates, but as the sport has shown increases in ratings, attendance and merchandise sales, the advertising community "has stepped up year after year, buying into the product at increased rates."

A FOX SPORTS source estimated the current rate for a 30-second ad this season on FOX was $175,000, about a 5% increase from a year ago.

Goren on the multitude of ads shown during races -- "The only way to avoid that is to get rid of commercials, but we're not PBS and the folks at NASCAR aren't running a charity."

He said FOX had tried to convince advertisers to let it show ads in small windows along with live action, but "when the sponsors lay out that money, they want their commercials seen in total."

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