NASCAR and RTA are "far apart" on future revenue split

Blaze said:
The drivers are the reason NASCAR is even making money in the first place. They are the reason ticket sell, the reason people watch on tv, etc. If you don’t think they deserve the teams and drivers deserve a bigger piece then I don’t know what to tell you.
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and if you don't think that the car and the ancillary lessioning of equipment and manpower hasn't cut expenses I don't know what to tell you. So there are two sides of the story, The RTA will get a bigger piece of the pie, Nascar will get increased monies from the TV moguls and the world will continue to spin.. yawn.
 
Jorge De Guzman said:
This year has been something! Every week it seems when the circuit gets to the track, some kind of news breaks
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LOL.

Why doesn't NASCAR open up their books? Of course they want to keep the focus on cutting costs so it doesn't eat into their profits, which are going to continue to grow exponentially with the new TV deal.

Let's see how much they make every year and go from there.
 
2 Sweet said:
LOL.

Why doesn't NASCAR open up their books? Of course they want to keep the focus on cutting costs so it doesn't eat into their profits, which are going to continue to grow exponentially with the new TV deal.

Let's see how much they make every year and go from there.
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Number one, they are a private company which means the France family owns Nascar lock stock and barrel. They bought out all of the stock holders shortly after the Brian left. So heavy on the "private"
 
2 Sweet said:
LOL.

Why doesn't NASCAR open up their books? Of course they want to keep the focus on cutting costs so it doesn't eat into their profits, which are going to continue to grow exponentially with the new TV deal.

Let's see how much they make every year and go from there.
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One of NASCARs downfalls (in my opinion) is how sneaky and secretive they’re allowed to be as a private entity now.
 
aunty dive said:
Buy them out.

Everywhere else, franchise holders own “the league” and employ managers.
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This isn't stick and ball would be the first thing that came to mind. The second thing that I can't quit laughing about is picturing the room full of owners with OEMs in tow maybe a gerbil or two trying to figure out what is fair.
 
AuzGrams said:
Endeavor would be a changing of the guard.
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I imagine it currently as a back burner conversation involving Penske, Haas, a couple of other hitters from the RTA and a New Yawk City investment bank or two.
 
StandOnIt said:
This isn't stick and ball would be the first thing that came to mind. The second thing that I can't quit laughing about is picturing the room full of owners with OEMs in tow maybe a gerbil or two trying to figure out what is fair.
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Think big.

Like Roger.
 
aunty dive said:
I imagine it currently as a back burner conversation involving Penske, Haas, a couple of other hitters from the RTA and a New Yawk City investment bank or two.
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That’s good. UFC is a very successful entity from what I see. Doesn’t need Roger Penske.
 
AuzGrams said:
That’s good. UFC is a very successful entity from what I see.
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I don’t know a thing about the combat sports.

What I do know is that currently, there are no franchisees in North America pro sports leagues whining about losing money. Except here in NASHCASH.
 
LewTheShoe said:
Right now, the golf world is going through a similar deal... the PGA/LIV war. No one knows how that will turn out, but the Department of Justice has signalled that it will not allow the PGA to exercise monopoly powers against the upstart LIV league.
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The Saudis aren't attempting to make money with LIV.
 
StandOnIt said:
You may have said it first, but the RTA led with their chin threatening to pull out of the series. Reasonable souls don't want that to happen from both sides, but the power is in Nascar's hands. It is a whole lot easier to find race cars and teams than a whole racing series from scratch.
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I wonder if the new TV contract will include a clause requiring a minimum number of chartered teams to attempt qualifying?

I'm not a network sports exec but if I were one and saw any form of strike on the horizon, I'd already have my bargaining team on a conference call.
 
Charlie Spencer said:
I wonder if the new TV contract will include a clause requiring a minimum number of chartered teams to attempt qualifying?

I'm not a network sports exec but if I were one and saw any form of strike on the horizon, I'd already have my bargaining team on a conference call.
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TV execs are unlikely to be willing to swap Chase Elliott for Bubba Pollard straight up.

Cars and stars.
 
2 Sweet said:
It's impossible to impose a salary cap in auto racing. Why should those with the deepest pockets be forced to limit their resources even further? NASCAR is extremely fortunate to have owners like Hendrick, Gibbs, Penske etc. who are willing to do whatever it takes to be the best.
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RTA profit-sharing? It doesn't help the big teams if they don't have anyone to race against.
 
Charlie Spencer said:
I wonder if the new TV contract will include a clause requiring a minimum number of chartered teams to attempt qualifying?
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Well, the RTA has retained representation for the media negotiations. And so has NASCAR, separately. That was posted a few weeks ago by Adam Stern, iirc. So the RTA seems to believe they at least have a seat at the table.

Second, I certainly don't think a full or partial sale of NASCAR can be ruled out. As I posted earlier today, the France family was looking for an exit strategy just a few years ago. They didn't find one sufficiently lucrative, but the reasons they thought about selling are probably still around. There are many valid reasons why family companies often get sold as the owners get older.

Third, @Jorge De Guzman earlier posted a tweet that said, "NASCAR wants teams to agree to a budget cap or some other cost-control measure to discuss giving more revenue." And the teams have said they are open to a spending cap. So it's likely, IMO. But it won't be a salary cap as that would violate price fixing and employment laws that are quite clearly established.

Stick & ball sports often have salary rules on certain employees, mainly rookie contracts. They can get away with that because there is a players union and collective bargaining. I don't see driver unionization and collective bargaining of driver contracts in NASCAR's future. JMO.
 
aunty dive said:
A reminder that as current broadcast contracts near their end, the revenue stream is almost $1 Billion per year. New agreements are expected to pay more.

So ... currently $100 Million to NASCAR. They might consider some cost cutting of their own.
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Seems fair if they take that 10% and give it to the teams
 
A NASCAR split a la IRL is not crazy. It wasn't doable 10 years ago- it is today. 10 years ago you needed a TV deal and tracks that held 80,000+ people. Now there are options. Online streaming for viewing. CBS and ESPN back in the picture of wanting motorsports coverage if you go the TV route. There are self-sustaining tracks all around this country that don't need the huge amounts of $$$ today's NASCAR tracks do. "But the sponsors don't want to be shown on a podunk short track". Sponsorship in NASCAR is essentially dead. What you see today is B2B deals that bring in a very small percentage of revenue compared to 15, 20 years ago. The money comes from the TV deal. The TV deal money is mostly going to the MASSIVE tracks we race at today. 100+ acre monstrosities that make money 1 or 2 weekends a year and would lose millions of $$ a year if the TV dollars weren't going to them. I believe that's the key issue- the tracks. Other tracks around the world PAY THE SACTIONING BODY to run at their speedway. From the dirt tracks in North Carolina to the massive F1 modern behemoths. Even in NASCAR's own ranks- the roots levels, the tracks pay NASCAR to bring the Modifieds or the ARCA tours there. We don't need 150,000 seats in the house now. We don't need 100,000. We don't even need 50,000 save for the marquee events on the schedule. The current model worked when attendance records were being set and sponsorship money was flowing in. Those have dried up. Either the teams fight for the scraps of the TV deals, or reverse back 30 years to the model the rest of the racing world uses.... I own a racetrack. I'll pay you $1,000,000 to bring your series here. That supports much of the purse as well. I'll sell tickets to cover my costs.... 15,000 seats going for $70 a pop covers $1,000,000 with a small profit. Online streaming revenue can be split 50/50. Right now what's happening is the TV money is being used to cover the losses of the tracks that are no longer profitable with the current attendance figures.

My unique perspective of 2 cents....
 
Something has to happen.
The quality of the sport has been sucking for two decades.
Chase bullschit, fake yellows, then a goofy stick n ball playoff format where everyone gets a participation championship, fake-yellow-stage-yellows, less fans in the grandstands, new car that bounces off of soft walls but hammers the pilot…
NASCAR has been collecting big money while slowly schitting the bed for 20-some years. Now they’re negotiating bigger media contracts and giving the stars bread crumbs.
I hope something dramatic happens soon. The new car sucks. Slower lap times but quicker corner speed, crap-dirty-air racing is boring AF.
Quality of racing has been steadily declining with every greedy NASCAR gimmick change.
I’m glad the owners and drivers are finally asking WTF is going on.
Rant over.
 
BobbyFord said:
Something has to happen.
The quality of the sport has been sucking for two decades.
Chase bullschit, fake yellows, then a goofy stick n ball playoff format where everyone gets a participation championship, fake-yellow-stage-yellows, less fans in the grandstands, new car that bounces off of soft walls but hammers the pilot…
NASCAR has been collecting big money while slowly schitting the bed for 20-some years. Now they’re negotiating bigger media contracts and giving the stars bread crumbs.
I hope something dramatic happens soon. The new car sucks. Slower lap times but quicker corner speed, crap-dirty-air racing is boring AF.
Quality of racing has been steadily declining with every greedy NASCAR gimmick change.
I’m glad the owners and drivers are finally asking WTF is going on.
Rant over.
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It's never over lol continuous loop.
 
BobbyFord said:
RTA is going to make something happen.
NASCAR cannot exist without quality race car drivers.
Quality race car drivers don’t necessarily need NASCAR.
We’re going to find out.
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This whole thing has nothing to do with the quality of drivers. Racing is the one sport that talent doesn't matter at some level. If all the current drivers quit today they'd have no problem finding drivers for a race tomorrow.

Good or bad nascar holds the power. They own the series and most of the tracks. The price of charters shows people want to be here under the current business model. If owners start not showing up it wouldn't be hard to find someone to replace them.

Sent from my SM-G991U using Tapatalk
 
Speedbowl14 said:
A NASCAR split a la IRL is not crazy. It wasn't doable 10 years ago- it is today. 10 years ago you needed a TV deal and tracks that held 80,000+ people. Now there are options. Online streaming for viewing. CBS and ESPN back in the picture of wanting motorsports coverage if you go the TV route. There are self-sustaining tracks all around this country that don't need the huge amounts of $$$ today's NASCAR tracks do. "But the sponsors don't want to be shown on a podunk short track". Sponsorship in NASCAR is essentially dead. What you see today is B2B deals that bring in a very small percentage of revenue compared to 15, 20 years ago. The money comes from the TV deal. The TV deal money is mostly going to the MASSIVE tracks we race at today. 100+ acre monstrosities that make money 1 or 2 weekends a year and would lose millions of $$ a year if the TV dollars weren't going to them. I believe that's the key issue- the tracks. Other tracks around the world PAY THE SACTIONING BODY to run at their speedway. From the dirt tracks in North Carolina to the massive F1 modern behemoths. Even in NASCAR's own ranks- the roots levels, the tracks pay NASCAR to bring the Modifieds or the ARCA tours there. We don't need 150,000 seats in the house now. We don't need 100,000. We don't even need 50,000 save for the marquee events on the schedule. The current model worked when attendance records were being set and sponsorship money was flowing in. Those have dried up. Either the teams fight for the scraps of the TV deals, or reverse back 30 years to the model the rest of the racing world uses.... I own a racetrack. I'll pay you $1,000,000 to bring your series here. That supports much of the purse as well. I'll sell tickets to cover my costs.... 15,000 seats going for $70 a pop covers $1,000,000 with a small profit. Online streaming revenue can be split 50/50. Right now what's happening is the TV money is being used to cover the losses of the tracks that are no longer profitable with the current attendance figures.

My unique perspective of 2 cents....
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One little problem, you havent paid anybody yet. Track workers, advertisement, taxes per seat, insurance, general repair and upkeep etc......
 
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