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Author Topic: Followup to my column  (Read 2490 times)
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Desmond
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« on: September 14, 2004, 04:14:51 PM »

Mike Joy has sent me this e-mail with a fuller explanation of how TV networks deal with the names of races.


TV has always sold an ad package to event title sponsors so that their entitlement is recognized in the TV call and on-screen graphics.  The "Buick Open" is only referred to as such because Buick buys the network ad package.
     In auto racing, when the tracks sold the rights individually to the networks, they either got a big check, and the network then sold time to the title sponsor, or they may have chosen to take a smaller TV check and contractually require the network to recognize the entitlement without additional ad purchase.  
     Not all sponsors stepped up, and not all were even offered the opportunity.  For a long time, the June race at Michigan was the "Miller 400".  Because Bud was CBS' racing beer sponsor, and had bought all the available ad inventory for the beer category, CBS called the race the Michigan 400.  Most folks probably never noticed.  Some years the official name was the Gabriel (shocks) 400, or the K-Mart 400, but it was always the Michigan 400 to the CBS viewers.
   The old networks also sold presenting sponsorships, as is commonly done in other TV programming.
    In the new (2001-) NASCAR TV deal, this changed, but only slightly.  FOX, FX, NBC and TNT pay hundreds of millions of dollars to NASCAR and its track, with only two ways of getting it back... (1) ad sales and (2) increasing the number of TNT/FX subscribers, which increases ad rates.  
   The "free" mentions that many companies in the sport had enjoyed disappeared.  The rights fees had climbed so high with little possibility of the networks breaking even, the networks could no longer afford to give away that exposure for free.
    What the new networks can't do, by the terms of the contract, is rename the race like CBS used to do at Michigan.  Every race title sponsor has the opportunity to buy ads on the telecast.  If they decline, the network can then call its telecast "NASCAR Nextel Cup racing presented by XYZ".  When that happens, the network must call the race by its proper name once per hour of the telecast (those mentions don't just "slip" out).
     This is a fair compromise for all concerned.  The race title sponsor doesn't have to buy time to get recognized, but they can buy time and get the full package... its their option.
     Cracker Barrel wasn't happy with the basic exposure and sued FOX.  However, FOX did all that the contract required, and the suit was dropped.
    Realize that the revenue split from the TV network money is 65% to the track, 25% to the posted awards, and 10% to NASCAR.  The track title sponsor money goes 100% to the track.  It seems to me that a smart promoter would have used some of his increased TV money to reduce his title sponsorship fee so that his sponsor could buy the TV ad package and everyone stay happy.
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Buddy Wayne Barefoot, unhappy with Baby Brian's handiwork, finds his true passion.Smiley
Vivian
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« Reply #1 on: September 14, 2004, 04:33:25 PM »

Desmond, thanks for sharing that.

It is really good to know that some of the media is actually reading Speedcouch.  I know their hands are tied as to what we can be shown of tv but maybe, just maybe, we will be able to get a few points across as to what we like to see when we watch.
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ronbarnes77
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« Reply #2 on: September 14, 2004, 06:52:38 PM »

desmond  thanks for enlightening me on something i didn' t  know about until now. it does sound like this is a fair deal for all parties invovled. i just have one question  i wonder if you could ask mike this what if a sponsor doesn't  want to pay the monty but is willing to pay say 80% of full cost? ask him if you can.
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marrtinigirl
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« Reply #3 on: September 15, 2004, 03:32:51 PM »

Ok, that all makes sense, sort of.  The part I have a problem with, though, is the line that the networks could no longer afford to give free mentions to sponsors.  What does that mean?  Does it really COST someone when Allen Bestwick utters the words Interstate Batteries?  It doesn't make sense to say they couldn't afford to do it....They just refused to do it anymore because they were getting money from other people and therefore decided that they should be paid for any mention.  It all comes down to greed, once again, and then they try to explain it like they are losing money so we will feel bad.  Nope, sorry.

And Desmond, I am not knocking you or your explanation, I realize it came from Mike Joy.  But i just typed your name, so now you owe me 5 bucks.  That is what I am going to charge everytime I type someone's name, 5 bucks.

Desmond, Lou, Vivian, Cheryl, Sally, John, Ron, Dick, Kevin...That's a good start, I just made 50 bucks off this one post....I accept check or cash, but do not have a credit card machine yet, so please mail your sponsorship dues as soon as you have a free moment.

Staci (great, now I owe me 5 bucks, too) :oops:
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Vivian
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« Reply #4 on: September 15, 2004, 04:26:24 PM »

Just start a tab for me, please.   :wink:
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marrtinigirl
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« Reply #5 on: September 15, 2004, 04:32:56 PM »

Ok Vivian, no problem.... Oops, you are up to 10 dollars now....I really like this charging people for saying there names, perhaps the networks really got something.  i could sit here and just type names all day and be rich, and then I would have enough money to pay for my carpal tunnel surgery since it is already bad and I can only imagine what my hands will feel like after typing names all day, Vivian.  Ok, I just threw your name in there for 5 more bucks.  15 now.....

Get-rich-quick Staci
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sally
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« Reply #6 on: September 15, 2004, 05:53:12 PM »

HEY!  Since it "costs" the networks to mention sponsors, do you think that they are  keeping a tab for every driver they interview that mentions their multiple sponsors?  Now I understand why Jr just said "Hi" to all his family members at Bristol instead giving a sponsor list!  Do they charge DW every time he mentions DW.com and sells a t shirt?  WOW! this opens up a whole new area of revenue for the networks, doesn't it?
 :wink:
Sally
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Cheryl
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« Reply #7 on: September 15, 2004, 07:20:41 PM »

Quote from: "marrtinigirl"
i could sit here and just type names all day and be rich, and then I would have enough money to pay for my carpal tunnel surgery since it is already bad and I can only imagine what my hands will feel like after typing names all day, Vivian.


Oh Staci!  You are just too funny!   :lol:  :lol:  :lol:

Just what I needed on a dreary rainy day here in Maryland!  Perhaps you can turn "internet mentions" into one of those "cottage industries" and make a big enough fortune to buy a race team or maybe buy up the TV contract for NASCAR when it comes up for renewal.  Hey!  That's an idea, you can call your network "name mentions done here" or something.   Cheesy

Cheryl
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marrtinigirl
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« Reply #8 on: September 17, 2004, 02:51:16 PM »

Yes, I really think the networks are on to something with this charging for mentioning...

Unfortunately, I have yet to see any money, so I will have to do a little more research and find out what kind of people I need on the payroll to make sure I collect.  I need some sort of strong arm or something I can threaten people with if they don't pay me.  Because I am getting the feeling that no one is taking me seriously.

Hmmm, this is going to require some serious thought.  But, until I get some moeny, I can't really "afford" to think about it, either.  You know it costs everytime I even think about anyone.  Precious, well, we'll call it "air-time" in my brain.  (Yes, Lou, I opened that door just for you.  And you owe me five more bucks for the thought)

Just heed my words, start paying or ELSE!!! :twisted:

And don't ask or else what, you wouldn't want to find out.  (Mainly because I don't know.)

Still waiting for payment, Staci
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Vivian
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« Reply #9 on: September 17, 2004, 04:58:41 PM »

Staci, can I barter with you?  I will do your payroll tax reports if you just cut me some slack and credit my tab each time... Tongue
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marrtinigirl
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« Reply #10 on: September 19, 2004, 02:51:33 AM »

Aw, damn, I gotta pay taxes on this?  Well that's it, I am going to have to raise the rate to 7.50 everytime I type someone's name to cover the taxes.  I just found out this morning (actually found out last night due to the PAIN) that I pinched a nerve in my neck on top of my carpal tunnel.  So I have very limited use of my right arm, which makes typing difficult.  Luckily, though, all of the important letters (a,s,s,) are left handed.  But anyways, it is going to be a lot more work than I thought to just type names, so I will have to charge more.  I apologize.

Yes, Vivian, I will cut you some slack if you keep track of the taxes.  I appreciate the offer and put you on the payroll effective immediately.  Do you know anyone who can strong-arm people into paying?

Not getting any richer, Staci
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Cheryl
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« Reply #11 on: September 19, 2004, 04:44:59 PM »

Quote from: "marrtinigirl"
I just found out this morning (actually found out last night due to the PAIN) that I pinched a nerve in my neck on top of my carpal tunnel.  So I have very limited use of my right arm, which makes typing difficult.  


Owww!  I sure hope that goes away soon, Staci.

Cheryl
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marrtinigirl
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« Reply #12 on: September 19, 2004, 05:06:30 PM »

Thank you, Cheryl. The only good thing is I got some nice painkillers, so if my posts make even less sense than usual, you'll know why, Cheryl.

A cool 15 bucks, just like that.   :lol:
Staci
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sally
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« Reply #13 on: September 19, 2004, 11:01:30 PM »

You may need to ignore what she says for the next few days...her pain meds are REALLY good.  But I nitoce that she can still keep count of her name mentions, can't she?

Sally
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Cheryl
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« Reply #14 on: September 19, 2004, 11:40:23 PM »

Quote from: "sally"
You may need to ignore what she says for the next few days...her pain meds are REALLY good.  But I nitoce that she can still keep count of her name mentions, can't she?

Sally


She's still young... It's easy to remember stuff even when you're heavily medicated or drinking when you're under 40.   :lol:

Cheryl
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