Menu
Media

Does death of merger leave a hole in strategy?

With the Comcast-Time Warner Cable merger nothing but a distant memory, I have to believe that Comcast is having second thoughts about paying nearly $200 million over 10 years to title sponsor NASCAR’s Xfinity Series.

After all, if the deal had been approved, Time Warner Cable would have given Comcast the ability to market its Xfinity service in NASCAR hotbeds where it’s currently absent, like North Carolina and Texas. Some believe the planned merger played a part in Comcast’s sponsorship in the first place. As it stands now, Comcast is marketing its video service through its title sponsorship of NASCAR’s secondary series to many customers who have no access to Xfinity.

I took that theory to a couple of executives involved in the deal — who have worked with NASCAR and have knowledge of the sport’s Comcast relationship. Both told me I am dead wrong. The executives, neither of whom wanted to be quoted, said the potential benefits of the Time Warner Cable merger never came up when Comcast got serious about the sponsorship last year. Rather, the sponsorship deal was always more closely aligned with NBC Sports’ 10-year, $4.4 billion rights deal with NASCAR. Comcast, of course, owns NBC.

Insiders say the potential merger with Time Warner Cable didn’t drive Comcast’s decision to title sponsor the NASCAR series.
Photo by: GETTY IMAGES
As part of the NBC deal, a source said, Comcast had committed to spend up to $10 million annually with NASCAR through marketing support commitments. Getting the title sponsorship of the series counted toward that commitment. Plus, sources said Comcast looked at that title sponsorship even before its Time Warner Cable merger plan was announced.

Top 10 Xfinity Series TV Markets (Fox and FS1)

Market Rating Top cable system(s)
Greenville, S.C. 3.43 Charter
Greensboro, N.C. 2.64 Charter
Raleigh, N.C. 2.49 TWC & Charter
Knoxville, Tenn. 2.49 Comcast & Charter
Charlotte 2.43 TWC & Charter
Richmond, Va. 2.39 Comcast
Birmingham, Ala. 2.21 Charter & Bright House
Orlando 2.19 Bright House & Comcast
Tampa 2.11 Bright House
Nashville 2.07 Comcast & Charter

Source: SBJ research based on Nielsen data


Still, it’s clear that the title sponsorship would have made much more sense if Comcast’s Time Warner Cable merger passed regulatory muster. Comcast is the country’s biggest cable operator, but it had some holes in NASCAR country where Time Warner Cable is strong. The Xfinity Series would have been a great vehicle for Comcast to tout its video service to new subscribers that it was in the process of acquiring.

We pulled TV ratings for the Xfinity Series so far this year on Fox and Fox Sports 1 to see where it is most popular and found that Comcast is strong in four of the top 10 Xfinity Series TV markets: Knoxville, Nashville, Orlando and Richmond. The Time Warner Cable merger would have given Comcast a presence in at least two more big NASCAR markets in North Carolina: Charlotte and Raleigh.

John Ourand can be reached at jourand@sportsbusinessjournal.com. Follow him on Twitter @Ourand_SBJ.

SBJ Morning Buzzcast: March 18, 2024

Sports Business Awards nominees unveiled; NWSL's historic opening weekend and takeaways from CFP deal

ESPN’s Jay Bilas, BTN’s Meghan McKeown, and a deep dive into AppleTV+’s The Dynasty

On this week’s Sports Media Podcast from the New York Post and Sports Business Journal, ESPN’s Jay Bilas talks all things NCAA. Big Ten Network’s Meghan McKeown shares her insight into the Caitlin Clark craze. The Boston Globe’s Chad Finn chats all things Bean Town. And SBJ’s Xavier Hunter drops in to share his findings on how the NWSL is making a social media push.

Learn more about your ad choices. Visit megaphone.fm/adchoices

SBJ I Factor: Nana-Yaw Asamoah

SBJ I Factor features an interview with AMB Sports and Entertainment Chief Commercial Office Nana-Yaw Asamoah. Asamoah, who moved over to AMBSE last year after 14 years at the NFL, talks with SBJ’s Ben Fischer about how his role model parents and older sisters pushed him to shrive, how the power of lifelong learning fuels successful people, and why AMBSE was an opportunity he could not pass up. Asamoah is 2021 SBJ Forty Under 40 honoree. SBJ I Factor is a monthly podcast offering interviews with sports executives who have been recipients of one of the magazine’s awards.

Shareable URL copied to clipboard!

https://www.sportsbusinessjournal.com/Journal/Issues/2015/06/29/Media/Sports-Media.aspx

Sorry, something went wrong with the copy but here is the link for you.

https://www.sportsbusinessjournal.com/Journal/Issues/2015/06/29/Media/Sports-Media.aspx

CLOSE