The exclusive negotiating window between NASCAR and current broadcasters Fox and NBC ended on Monday. It’s very likely NASCAR renews with Fox and NBC, but it’s no surprise that NASCAR wants to allow other companies to come in and make an offer. NASCAR is apparently wasting little time doing just that.
Sports Business Journal’s John Ourand reported that NASCAR executives are meeting “with a host of digital media companies” on Monday and Tuesday this week.
It’s unknown which streaming companies are talking to NASCAR or what kind of package these companies are suggesting, but Ourand is speculating a six-race mid-summer package similar to what TNT used to have.
NASCAR leaning toward streaming isn’t much of a revelation. I talked with SVP of Media and Productions Brian Herbst in September 2021, and he said, “Some streaming element will definitely be in place, and it will play a larger role in the next deal cycle.”
And over the next 20 months, the streaming landscape has changed. Amazon has an NFL game almost every Thursday of the NFL season. MLS has fully embraced streaming, signing a massive deal with Apple. MLB, NBA, and NHL have some sort of national streaming package. Streaming is more important than ever in sports, and that will probably keep going.
I will disagree with Ourand about what could be a part of a streaming package. I just don’t think any streaming package will consist of NASCAR Cup Series races because team owners won’t go for that.
Team owners are already trying to negotiate a higher percentage of TV revenue to offset decreased sponsorship rates. If six NASCAR Cup Series races go to a streaming service, it’s likely to have decreased viewership. Decreased viewership means sponsorships are set to lose even more value during those races. NASCAR ultimately decides whether the owners like it or not, but if the added fee doesn’t offset the expected loss of sponsorship money, they will probably make things difficult.
If I were to speculate, I would say some form of practice comes back for each race, and that plus qualifying, goes to a streaming service. Teams and drivers might not like the additional on-track action, but it’s added content for a streamer, leaves races on network or cable, and gives fans at the track more to see.
Either that and/or moving some Xfinity Series/Craftsman Truck Series races to a streaming service. Obviously, the same issues about sponsorship money apply. Still, sponsorships aren’t as valuable in Xfinity/Truck, so it’s easier for NASCAR to raise the race purse to offset those losses.
It remains to be seen what will happen. It feels like a certainty that something is going to a streaming service, it’s just a matter of what that is.
