Media companies and broadcasters pay top bucks to stream sports such as NASCAR. Why? The craze and the pull that these sports carry are massive and result in a substantial increase in revenue, especially through advertising. But when Fox finally got its hand on the prized NASCAR rights, things couldn’t have started on a worse note.
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The relationship between Fox Sports and NASCAR began in 2001 after Fox Sports won the bid for the rights. That 2001 season is now 22 years in the past, and their relationship continues to flourish.
Amid all the fanfare that the new broadcasters came in, things started off on a belligerent note between the organization and Fox.
FOX got off to a rocky start when they angered NASCAR, the sponsors, drivers and owners during the broadcast of the 2001 Budweiser Shootout.
FOX chose to not include the sponsors on the starting lineup graphic of the companies that did not buy ad space during the race. pic.twitter.com/cIiVeCh64F
— Seth Sharp (@SethSharp35) December 12, 2022
Fans of the older generation recall that day as clear as daylight and hated the way things were being managed. Here are some of their tweets –
And then doubled down on the "greed" two weeks later at Rockingham when we began the era of "NASCAR Winston Cup Racing From Rockingham on FOX" instead of referring to the ACTUAL races name…
Which, even 20 years later bugs me to death.
— Michael McIntyre 🎤 📻 📹 🏎🏁 🎳 (@racermacRTP1) December 12, 2022
The IRL was guilty of that too, as in the 1997 SAMSONITE 200 being just IRL at Pikes Peak. Sucks for the companies who pay to sponsor the damn race.
— Elliott Lindamood (@Swinebros666) December 12, 2022
I remember that some companies were going to sue because they were expecting exposure and weren’t told that Fox was going to block them.
NASCAR almost had half the field ready to pull out of the next race.
— patrick j kane (@pjkmass) December 12, 2022
I remember this. What a debacle! How did they not understand that advertising is everything in this sport?
— How do you know I'm not Elon Musk? (@BrandonWNichols) December 12, 2022
NASCAR made a mistake by ever going with FOX. Should've stuck with ESPN / ABC.
— Plann3dSpad3s (@Plann3dSpad3s) December 12, 2022
With the possibility of a new broadcaster looming large, fans will hope that all flows smoothly.
Is NASCAR on its way out from the Fox deal?
As per current reports from The Athletic, “The current contracts, which began in 2015, have Fox Sports paying NASCAR a total of $3.8 billion while NBC Sports will pay $4.4 billion under deals that expire after the 2024 season.”
USA Today via Reuters
Oct 2, 2022; Talladega, Alabama, USA; NASCAR Cup Series driver Tyler Reddick (8) leads the field during the Yellawood 500 at Talladega Superspeedway. Mandatory Credit: John David Mercer-USA TODAY Sports TPX IMAGES OF THE DAY
That amounts to a massive $820 million a year. However, all parties to this contract, i.e. NASCAR, Fox, and NBC, are aware of the growth spurt the sport is witnessing and the potential it has to balloon over the next decade.
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With that in mind and the fact that the current contracts are set to expire in 2024, the broadcasters will be sitting down with NASCAR to renegotiate their deal. Having witnessed the NFL agree to a $100 billion deal, and with the NBA also negotiating their media rights, NASCAR knows this is their opportunity to strike gold.
Front Office Sports reported that NASCAR is looking for a long-term deal, preferably on the scale of 8-10 years. Moreover, it will, at the minimum, seek a 10-15% premium which will translate into $900-$950 million a year.
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We must keep in mind that these are conservative figures. The belief is that NASCAR will try its best to get a $1 billion-a-year deal for itself.
