As the Academy of Motion Picture Arts & Sciences
prepares to present its Oscar awards Sunday for the best in
filmmaking in '99, THE DAILY announces today its '99 Sports
Industrialist of the Year, recognizing the top performer in
the sports industry. All of our nominees encounter many of
the same challenges facing a top Hollywood producer:
developing a distinctive script that appeals to a broad
base, selecting and trusting some of the top talents in the
industry who can make that script come to life and
overseeing the packaging and presentation of a final product
that speaks to the public. Similar to the painstaking
production of today's films, our nominees face the
formidable day-to-day challenges of the sports business
enterprise. But like Sunday's top winner at the Dorothy
Chandler Pavilion, our recipient emerged among the best of
his contemporaries in '99. THE DAILY's '99 Sports
Industrialist of the Year is NASCAR Senior VP BRIAN FRANCE.
TEAM LEADER: With NASCAR President Bill France Jr.
taking a reduced role in NASCAR's day-to-day operations,
Brian France spearheaded much of the organization's growth
and new initiatives in '99. While NASCAR's structure has
skillful operating heads overseeing its $2B business, Brian
effectively served as a team leader, allowing each to manage
his or her individual departments -- Mike Helton and Gary
Nelson in racing operations, George Pyne in licensing and
marketing and Bray Cary in TV production. Brian continued
to oversee much of NASCAR's thriving marketing division and
was a key player, along with Cary, in the racing series'
defining moment: a multiyear, $2.6B TV rights deal that
increased NASCAR's annual fee by an estimated 400% and
guarantees the sport unprecedented exposure and promotion.
MARKETING GROWTH: One measure of NASCAR's sponsorship
growth under Brian France's leadership is evident by the
fact that in '99 alone, NASCAR reportedly brought in $45M in
sponsorship dollars from about 30 different companies.
France secured vital relationships with such top promotional
partners as Visa, Home Depot and UPS, and renewed its deal
with McDonald's. Other NASCAR newcomers in '99 included
Conseco, Planters and AT&T/Motorola. Support from Visa and
Home Depot, along with increased commitments from key
partners Coca-Cola and A-B, added up to around $100M in
incremental media exposure for NASCAR in '99. Recognizing
that NASCAR is truly a national property, A-B put more
support than ever behind the sport, and Coca-Cola leveraged
by using its "Racing Family" in movie previews in more than
10,000 theaters over the summer, increasing the Q rating of
NASCAR's top stars among the summer's young film audience.
In October, THE DAILY's sister publication, Street & Smith's
SPORTSBUSINESS JOURNAL, released a survey of decision makers
at companies that support sports which showed NASCAR ranked
ahead of every other sports property in terms of its ability
to market itself and service sponsors.
LICENSING: Brian France worked alongside Pyne to steer
NASCAR's successful licensing program, which was expected to
see a dramatic increase in sales to $1.13B in '99, up from
$800M in '97. In licensing fees alone, NASCAR reportedly
brought in about $25M in '99, up from only $1M nine years
ago. Staying on script, France continued to direct an
aggressive licensing and marketing plan, affixing NASCAR's
logo to as many quality products as possible, while keeping
retail demand high. Recognizing that its fan base has
become more educated and affluent, NASCAR extended its brand
by linking with multiple product categories, as evidenced by
its deal with Ping to place NASCAR marks on golf bags and
head covers. Another example of NASCAR's national appeal is
its ability to permeate the urban fashion market, long a
staple for the NBA, NFL and MLB. At the end of '99, France
and Pyne announced NASCAR's largest retail promotion ever --
a venture with Kmart involving more than 100 products from
24 brands, including non-NASCAR sponsors in an effort to
demonstrate the sport's strength among consumers at retail.
Looking ahead, NASCAR is likely to benefit from the
promotional support of Nike, which signed on in '99 to
supply footwear to selected drivers and teams.
GROWTH INITIATIVES: Following the successful production
of '98's 50th Anniversary initiative, France continued to
show creativity in developing programs to extend NASCAR's
footprint across the U.S. One of the most intriguing was
its partnership with CBS, TNN and Westwood One on "NASCAR
Rocks," a 31-city summer concert tour in both race (Las
Vegas, Dallas) and non-race markets (Pittsburgh, Boston and
Seattle) headlined by the Allman Brothers Band. France also
helped create "NASCAR Racers," the themed TV animated series
developed with Saban Entertainment, which was introduced in
November on Fox and registered strong ratings among youths
during February "sweeps." Late in '99, France developed
another add-on for corporate partners with the participation
of up to 50 licensees in the fully-integrated media
campaign, "NASCAR 2000." Finally, France continues to lead
NASCAR's savvy PR campaign, keeping the sport in the news
with cover stories in publications ranging from Fortune to
POV to TV Guide, while making sure the sport's telegenic
stars remain part of our pop culture lexicon through
exposure via a broad range of media outlets.
TV DEAL: France's finest hour in '99 centered around
his and Cary's handling of the TV rights negotiations. Early
in '99, NASCAR said it would consolidate its TV rights
starting in 2001. France then spent much of the year
working with Cary to convince track owners, who had
previously handled TV negotiations for their own races, that
a consolidated TV package would bring each of them
additional value and dollars. The two negotiated from a
position of strength, as '99 TV ratings were very healthy --
a 5.5 average network rating and a 4.1 average cable rating.
France and Cary also had data demonstrating NASCAR's rating
strength in such non-NASCAR markets as Pittsburgh, Tampa and
Philadelphia, supporting their argument that the sport was
truly national in scope. After months of talks, NASCAR
announced in November a six-year contract with NBC/Turner
and an eight-year deal with Fox. While France argued that
money wasn't a factor, he easily accomplished his primary
goal of increasing TV rights fees. In '99, NASCAR's total
TV revenues were $100M, but the new deal will bring roughly
$400M annually to NASCAR, track owners and teams. France
also achieved his secondary goal of increased exposure.
Early estimates have more than 70% of NASCAR Winston Cup and
Busch Grand National races on network TV starting in 2001,
and both agreements were backed with promises of heavy
promotion. But the mega-deal also left NASCAR on the
defensive, as longtime fans accused it of being greedy,
wondering how it could leave loyal stalwarts CBS, TNN and
ESPN behind. NASCAR countered that the dollars were not
comparable and the new partners offered a promising media
and promotional platform impossible to ignore. But France
and Cary did not rest on their laurels, and at the end of
'99, NASCAR announced a multimillion dollar deal with XM
Satellite Radio to create a 24-hour NASCAR radio station.
CHALLENGES: With France and his team leading the way,
NASCAR seems poised for further growth in 2000 and beyond.
Additional marketing partners, greater network TV promotion
and an emphasis on attracting more young fans all bode well
for the future. But like the set of a major motion picture,
day-to-day difficulties exist, and, so far in 2000, NASCAR
has taken its share of hits that come with success. A
dispute over media credential rights, a possible battle over
licensing and merchandising rights to young drivers and
empty seats early in the 2000 Winston Cup season have led
some to wonder if NASCAR has peaked (#9). But all sports
experience cycles, and perhaps the greatest challenge for
France and NASCAR would come if R.J. Reynolds' status as
title sponsor of the Winston Cup series changes due to the
government's Master Settlement Agreement, under which RJR
will be allowed only one brand sponsorship. With his father
battling cancer, the question of succession is constantly
asked of France, who is 37. He said last year, "[NASCAR]
may be too big and too complicated in the future for one
sheriff." It might be, but in '99, France artfully helped
produce, write and direct an experience worthy of an Oscar.
ALL-STARS: It's virtually impossible to select just one
award recipient, and we would like to recognize other
candidates for their notable achievements in '99: MARLA
MESSING -- for her role in making the '99 Women's World Cup
a truly historic event; NBA ENTERTAINMENT -- Its creation of
NBA.com TV could forever alter the way sports leagues
present their product and control their content; ESPN
President GEORGE BODENHEIMER -- Despite challenges to ESPN's
perch atop the sports media landscape, Bodenheimer steered a
course further embedding the ESPN brand into our daily life.
The brilliant "SportsCentury" series alone is enough to
warrant kudos; SFX SPORTS GROUP -- Recently acquired by
Clear Channel, SFX strengthened its power base through an
aggressive growth strategy that resulted in a powerful one-
stop shop for sports entertainment (THE DAILY).
