NASCAR advertisers can expect to see rate increases as
a result of yesterday's TV rights deal, according to CNNfn's
Allan Dodds Frank. Fox Sports TV Group Chair David Hill,
when asked if advertisers would have to pay more: "Yeah,
double. Double. At the very least, and probably triple."
NBC Sports Chair Dick Ebersol, to Hill: "Wait a minute. Why
are you putting a cap on those prices?" Ryan Beck & Co.'s
Dennis McAlpine: "What you've got with NASCAR is a very
strong appeal to a young male adult. You've got one of the
few sports that has shown any growth at all in television
ratings." Steiner Sports Marketing's Brandon Steiner: "It's
a little bit of a gamble for the networks, but a huge
upside" (CNNfn, 11/11). The HOLLYWOOD REPORTER's Stephen
Battaglio reports that the "challenge of making money on the
deal is daunting." The TV advertising "pie" for the '99
NASCAR races "only totaled" about $150M, with about $9M
generated by the Daytona 500. Mediacom co-Managing Dir of
Ad Buying Jon Mandel: "Advertising is a small piece of this.
They may lose money on old-fashioned advertising on the
network. But what were the alternatives out there? You're
either going to run informercials or lose money trying to
put on other programming." Mandel called the deal a boost
for FX and FSN: "Now they have a certain legitimacy in cable
sports that they didn't have before" (HOLLYWOOD REPORTER,
11/12). ISI VP/Corporate Development Eric Bechtel said the
networks are going to have to raise ad rates: "You are going
to see an attrition in the number of companies who have been
loyal to the sport a long time and cannot afford to step up
to those dollars" (Newark STAR-LEDGER, 11/12).