Fox looks for ways to cut costs; Cup TV not heading toward more cable
By Michael Smith - Special to the Sporting News NASCAR Wire Service
Tuesday, November 25, 2008
Fox looks for ways to cut costs
Facing a discouraging ad market, Fox is talking to NASCAR and ESPN about ways the network can save money on its broadcasts of the sport next year. They are exploring potential cost cuts on the production side.
Also, about 20 members of Fox’s sales and marketing team will meet at NASCAR’s New York office to talk about unique approaches that might distinguish the sport from other properties.
“It’s really going to be a half-day seminar on how we can think differently, approach the market differently and provide different opportunities for advertisers,” said Paul Brooks, president of the NASCAR Media Group, from the NASCAR hauler during last week’s season finale at Homestead-Miami Speedway. “What are we missing? What can we do better? We want to make sure we’re looking through all of those opportunities.”
On the production side, Brooks said the sanctioning body will work with Fox to find savings as long as the viewers won’t notice a difference.
“There are additional things we can look at as far as sharing and managing facilities in an even more efficient way,” Brooks said.
Can broadcasters get by with 55 cameras instead of 60? Can they share a production truck over the course of a weekend instead of using multiple trucks? Those are the kinds of cuts the networks will weigh.
“It’s something we’re very cognizant of,” said Rich Feinberg, ESPN’s vice president of motorsports. “Every business has been affected by the economy, and we’re just trying to stay ahead of those things. Our content will still be there, but we’ve got to take a closer look at how we acquire that content. Are there areas where we can be flexible?”
The combined TV rights fee for Fox, ESPN and Turner averages $560 million a year through 2014. Additionally, each of the networks has a multimillion-dollar spend with NASCAR Media Group, which manages the TV compound at each venue and provides additional content, such as unique camera angles and audio.
More Cup races not heading to cable
NASCAR already has a dozen of its 36 Cup races on cable (ESPN and Turner), with the rest being televised on over-the-air networks (Fox and ABC). That’s a mix that NASCAR likes, so don’t expect to see any more of the sport’s big events moving over to cable TV.
Although Speed, which is in 75 million homes, continuously lobbies for Cup races on its network, that doesn’t appear likely. It does have the Sprint All-Star Challenge, which is a non-points event.
“We think the balance as it is today is good,” Brooks said. “We worked hard as we put our TV plans in place to ensure the greatest coverage available for the sport. … We have assurances that the balance will be there moving forward.”
That doesn’t mean the lobbying will stop. Contractually, ESPN does not have the freedom to move the final 11 Cup races off ABC to ESPN. The first six Cup races of its 17-race schedule are already on ESPN.
Camping World helps sell cars
Camping World becomes title sponsor of NASCAR’s truck series in 2009, and CEO Marcus Lemonis said he’s serious about being a good partner. In fact, he says he can help the automakers in NASCAR -- Chevrolet, Dodge, Ford and Toyota -- sell more cars.
In the past, Chevy has been the official car and truck of Camping World’s retail centers, and each time customers bought an RV or towable (travel trailer, camper, etc.), they received a $500 coupon toward the purchase of a General Motors vehicle. Close to 1,000 of those coupons have been redeemed this year, and Lemonis wants to offer the other automakers the same deal.
The trouble is that since Lemonis publicly extended the offer about three weeks ago, he has not heard back from any of the manufacturers.
“I guess we’re selling enough cars and trucks that we don’t need something like this to get excited about,” Lemonis said. “I’ve yet to get a call from a manufacturer.”
Bell tolls for AT&T
Rather than finishing with a bang, AT&T decided to go quietly without any special activation at the end of the season. AT&T executives watched their final Sprint Cup race as sponsor of Jeff Burton’s No. 31 car from a suite over the garages at Homestead-Miami Speedway.
Tim McGhee, AT&T’s director of national sponsorships, said the scene was sad, “knowing that we won’t be back in the Cup series in the foreseeable future.”
With Cingular’s rebranding to AT&T, the Richard Childress Racing sponsor was bumped out of the Sprint Cup Series by NASCAR and its series title sponsor, Sprint. McGhee said it has not been decided whether AT&T will continue its substantial advertising on NASCAR broadcasts.
Lowe’s rings in Johnson’s third championship
With Lowe’s reporting a 24.1 percent drop in third-quarter earnings last week, expect a rather modest celebration of Jimmie Johnson’s third straight Cup championship.
Lowe’s put its Kobalt Tools on sale for 10 percent off during three days last week and a special ring tone has been created that plays a Johnson three-peat song. The ring tone will be available for Lowe’s associates and fan club members. Also, consumers who spend $250 or more on a gift card will receive a limited-edition plaque that commemorates Johnson’s three straight titles.
Michael Smith is a reporter with SportsBusiness Journal.
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38 responses to "Fox looks for ways to cut costs; Cup TV not heading toward more cable". Post a Comment.
bob chalmers said:
Nov 25, 2008 at 3:36 PMThis sure isn't a surprise. NASCAR is killing itself. Fanbase has to be down. There is only about 6-7 drivers that win everything. Get rid of the free ride every week for 35 drivers and make everyone quailfy. Right now there is no incentive to be in front at the beginning of the race and if any of the 35 crash they still make the race. Phooey lets race! Give 20 points to the pole winner and 10 to 2nd then impound all cars every week. Keep any driver that is in the top 20 in points from driving in the Nationwide series. Go back to drivers driving Fords, Chevrolets, Dodges or Toyotas and let them set them up and drive. Quit racing clones of each other. NASCAR has become boring. There is no reason that the way it is right now that Jimmy Johnson couldn't win another 3 in a row. Oh yea get rid of the final 10 races that don't mean anything to 31 other drivers and go back to racing for the whole year for the cup.
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» Confirm Abuse Reportsaid:
Nov 25, 2008 at 3:58 PMNASCAR could continue to lower costs to the teams by going with a common engine program. NASCAR passes out the motors to each team based on previous weeks qualifying (not finishing order). This would remove the cost of an engine program for teams, plus level the playing field. And, could possibly increase chance of other teams winning a race each week, thus improving TV ratings because it's not the "same ol' same ol'" week after week.
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» Confirm Abuse ReportDavid Annand said:
Nov 25, 2008 at 4:10 PMSprint exiling ATT while competitively for Sprint makes sense in this economic climate it has hurt not just the team but it could hurt Fox and the other networks with possible advertizing.
Report as AbuseCut back on the prerace shows. Having 6 announcers at the track is crazy and makes for distracting coverage. SpeedTV already does a better job in the prerace anyway. You can also end up starting the races earlier.
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» Confirm Abuse ReportPaul Williams said:
Nov 25, 2008 at 4:23 PMThe fans would be better served if they put ALL the races ESPN/ABC had this year on Speed Channel. First of all, we'd get some decent race coverage. Second, we'd always know what channel the race was on FOR THE WHOLE RACE. And third, we wouldn't tune in at the time race coverage was to start and then have to sit through 30 minutes of Podunk U beating Joe's College & Bait Emporium 78-0. The guys on Speed Channel have always given excellent coverage.
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» Confirm Abuse ReportRose Sweeney said:
Nov 25, 2008 at 4:41 PMI totally agree-bring the races back to Speed Channel. They're coverage is awesome & are totally dedicated to racing & not football or Funniest Home Videos or anything else.
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» Confirm Abuse ReportArt Garrett said:
Nov 25, 2008 at 5:35 PMI think the biggest draw back for the SPEED Channel is its not in HD yet, which really draws back the picture quality. I also agree that its ABC and FOX that need to cut back on the bus load of announcers they have.Do you know how much they must spend on hair spray alone??!!
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» Confirm Abuse ReportWerner Boehmert said:
Nov 25, 2008 at 5:47 PMhow much do all those silly graphics cost that take up half the screen...quit watching qualifying, only thing matters is those outside of the top 35...my group which goes to 4 races a year no longer goes to see qualfiying...used to be a time when it was free to go...why fight in the traffic to watch 8-10 cars try to qualify...
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» Confirm Abuse ReportMike Hill said:
Nov 25, 2008 at 5:51 PMHell, get rid of the network coverage its horrible anyway. I think Speed would do a better job,and MRN radio coverage is just fine with me also.
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» Confirm Abuse ReportSheila Hawley said:
Nov 25, 2008 at 5:54 PMNot everyone gets Speed. Personally, I watch it all the time. All I ask, is that the Networks treat this sport like they treat football. They would never move to another channel for the end of a football game. You're right about the announcers. They think they are so funny, when they are just annoying. I also agree we should get rid of the top 35 rule and let the fastest 43 cars race. But I don't like impounding the cars. I want to see practice.
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» Confirm Abuse ReportWerner Boehmert said:
Nov 25, 2008 at 6:42 PMeveryone tought that ABC/ESPN would do a great job when they got the races back and that didn't happen...what would make anyone thing that Speed is the answer?...
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» Confirm Abuse Reportbill thompson said:
Nov 25, 2008 at 6:54 PMreduce pre-race bs and SAVE MONEY .let top 20 have spots......
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» Confirm Abuse Reportbill thompson said:
Nov 25, 2008 at 6:58 PMi left another comment but it was sensored apparently by the powers that be. don't think everyone gets shown,they don't. check your histories!!!
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» Confirm Abuse Reportbill thompson said:
Nov 25, 2008 at 6:58 PMi left another comment but it was sensored apparently by the powers that be. don't think everyone gets shown,they don't. check your histories!!!
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» Confirm Abuse Reportbill thompson said:
Nov 25, 2008 at 6:58 PMi left another comment but it was sensored apparently by the powers that be. don't think everyone gets shown,they don't. check your histories!!!
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» Confirm Abuse Reportbill thompson said:
Nov 25, 2008 at 6:58 PMi left another comment but it was sensored apparently by the powers that be. don't think everyone gets shown,they don't. check your histories!!!
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» Confirm Abuse Reportbill thompson said:
Nov 25, 2008 at 6:58 PMi left another comment but it was sensored apparently by the powers that be. don't think everyone gets shown,they don't. check your histories!!!
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» Confirm Abuse Reportbill thompson said:
Nov 25, 2008 at 6:58 PMi left another comment but it was sensored apparently by the powers that be. don't think everyone gets shown,they don't. check your histories!!!
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» Confirm Abuse Reportbill thompson said:
Nov 25, 2008 at 6:59 PMi left another comment but it was sensored apparently by the powers that be. don't think everyone gets shown,they don't. check your histories!!!
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» Confirm Abuse Reportbill thompson said:
Nov 25, 2008 at 7:00 PMthe multiples were because it wouldn't take it!!
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» Confirm Abuse ReportPhil Greene said:
Nov 25, 2008 at 8:39 PMDracut Phil
Report as AbuseThe best way to view NASCAR on tv
is with the sound off. How many times
can they repeat!!!!loose in
tight in the middle
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» Confirm Abuse ReportKenneth Farley said:
Nov 25, 2008 at 9:00 PMThis article was about Networks cutting costs, not NASCAR. I can tell you an easy way to cut substantial costs from your Network, get rid of Rusty Wallace and that other bufoon doing color commentary. Rusty is not a good broadcaster, he's always talking about himself. And that line about a common engine program, do you want to kill what's left of NASCAR's diversity? Might as well watch an ARCA race. I say take the reins off the horsepower, make the cars look like the real thing, and dump Toyota. Who knows, this whole country will go to hell if the government doesn't offer the auto industry loans. That deal about their private planes was a cheap shot. And the financial flies commercial? I think not.
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» Confirm Abuse Reportbill thompson said:
Nov 25, 2008 at 9:30 PM.i'll try again. cut the set spots to 20 so the jr fans don't get upset, god forbid jr crash or have a flat, they would never hear the end of him not making a race!!! THE BS AT THE BEGINNING OF THE RACE IS VERY COSTLY ,GET RID OF 3/4 OF IT, SAVE MILLIONS!!!!!ABC SUX ON COVERAGE, SO DOES ESPN.... Speed is so much better , but still too long...FOX RULES .but they could lose waltrip. does nascar make money off every minute of repeat commentary? they must or we'd all save money with less!!!!!! if you don't buy into the media BS ,costs could be cut by millions and this article wouldn't need to be writen!!!!!! I LOVE NASCAR!!!!!!!!!!!!!!!!!!
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» Confirm Abuse Reportjohn english said:
Nov 25, 2008 at 11:35 PMBy mid season there will only be 30 cup cars on the track so the bums that cause most of the accidents will not be there. Races will be over sooner and save money. Cut the number of races to 30 would help. They could do like the IRL does. Tv coverage dosen't start until command to start engines and ends as soon as driver steps from car and mutters a couple of sentences.
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» Confirm Abuse ReportSarah Oxfurth said:
Nov 26, 2008 at 1:29 AMWhile I'd like to see races on SPEED, I have to say that I hate to see so many races on cable, esp. a six-week stretch of nothing but cable. Core race fans are often blue-collar workers and many don't have cable. Leaving them out for so long without a race just sucks. And I LIKE all the coverage. I have something to watch from Friday through Sunday night-I love it. I love every minute of it. I honestly don't get complaining about there being an abundance of coverage-I mean seriously, if you don't want to watch 2 hours of coverage before the race begins-try something new-change the channel.
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» Confirm Abuse Reportsaid:
Nov 26, 2008 at 2:25 AMBob chalmers said it all way to go bob
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» Confirm Abuse Reportterry ruth said:
Nov 26, 2008 at 9:09 AMBring back ...stock car racing...Fords Chevy's....let them innovate and compete like they use to....not this look a like... run a like... junk they drive now. Real fans would come back and dealers would sell on Monday. Oh for the days of real thunder... 21 Mercury and the 43 Dodge screaming off turn 4.....
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» Confirm Abuse ReportCallaway said:
Nov 26, 2008 at 9:38 AMThis has nothing to do with the economy it has to do with the quality of racing not being up to par and the over promotion of the the golden goose. Used to be a treat to see qualifying it was simple Neil Bonnet or Buddy Baker tossing out funny anecdotal remarks now it's become it's own tedious show. And frankly having Larry Mac with his own tech show is over the top explaining what spring rubbers do or the effects of negative camber on a short track. It's the product Nascar is putting out and the plodding tedious production style of the stick and ball networks who haven't a clue that racing requires something different than the WNBA or MLB to make it interesting.
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» Confirm Abuse ReportRonald Schwalbe said:
Nov 26, 2008 at 10:20 AMWAYS FOX can CUT COSTS: - Get rid of ALL the expensive, distracting computer generated cartoons and distractions - like that childish, useless "Gopher" thing - all the pops, bells, and whistles and floating balloons that distract the viewers and add NOTHING to the broadcast but expense - - - Use only two guys in the booth MAX !!
Report as AbuseWAYS FOX can ATTRACT MORE VIEWERS: -quit aiming for the ten year old demographic and at least PRETEND you're talking to adult race fans.
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» Confirm Abuse Reportterry ruth said:
Nov 26, 2008 at 10:26 AMLess talk more action....fast cars passing the guys who didn't do their homework and now have to figure it out.....it's lack of ...real cars and real competion thats boring the fans....it's IRL all over again....boring look alike run alike clones...on parade...
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» Confirm Abuse Reportterry ruth said:
Nov 26, 2008 at 10:46 AMIf..."everything and everyone is the same..no true competition "...can kill communism.....it can kill NASCAR
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» Confirm Abuse ReportKeith Johnson said:
Nov 26, 2008 at 12:05 PMChase stinks! Lucky dog rule stupid! Top 35 a sham! Fans tired of this and it shows.
Report as AbuseNo qualifing kills teams trying to make the race and they are all quiting. Only 30 teams with sponsors for 2009. NASCAR has dug itself into an overpriced hole.
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» Confirm Abuse Reportterry ruth said:
Nov 26, 2008 at 1:38 PMLook on you tube at Carl and David Pearson racing and talking.....when he ran some laps at Darlington with the Silver Fox driving the #21.... all Carl could talk about was wishing he could have raced back then in that Mercury. Pearson said the races were fun and the fans new it.......it's the racing not the talking that counts!!!!!
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» Confirm Abuse ReportKaren said:
Nov 26, 2008 at 8:06 PMYes and no, I like the driver interviews before/after the race. If you want to save costs go with Fox only and give the boot to Andy Peatree and Kyle Petty. Kyle has no idea what he's talking about and Andy is unashamedly in the boat for Kyle Busch. Derral Waltrip will be taking the place of both of them as of Daytona. Just my plan of action...
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» Confirm Abuse Reportbill thompson said:
Nov 26, 2008 at 8:54 PMwaltrip is the worst of all, that's why they nicknamed him "jaws", he's always talking but nothing intelligent ever comes out of his mouth!!!!!!!!
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» Confirm Abuse ReportANDY GRAY said:
Nov 26, 2008 at 10:41 PMNot everyone gets cable? What year are we in again? Is NASCAR really about people maybe seeing it on a channel and then becoming a fan? Haha...no, don't think so. I don't surf through the channels, stop on, lets say soccer, and become a fan. If I wanted to watch soccer, I would. Not just surf through the channels. I think we are receiving more NASCAR races on Network TV than ever before.
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» Confirm Abuse Reportterry ruth said:
Nov 27, 2008 at 12:06 PMI agree on the Waldrips...Darrel is an idiot but he could drive....Micheal is an idiot who can't drive....get rid of both.
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» Confirm Abuse ReportSarah Oxfurth said:
Nov 27, 2008 at 9:37 PMAndy-I didn't say people surf through channels and become a fan. I said many of the CORE fans-blue collar workers- do not have cable. My parents just got cable this year--they've been NASCAR fans since the early 80s. I have only had cable the past few years myself. I'm 34. but, I had bills to pay and children to raise. I've only recently gotten to where I can really AFFORD to waste $70/month on cable! Yes, we have lots of races on network, and it wouldn't bother me so much if it was a race here and there on cable-but it's EVERY race for six straight weeks! To me, that's obnoxious.
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» Confirm Abuse ReportBecky Deline said:
Nov 30, 2008 at 8:00 PMI could not agree with you more Terry. Get rid of the Waltrips. Both of them are the big idiots.
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