As motorsports begins to settle\ndown towards a full season of normalized racing, the focus turns to off-track\nbusiness matters This month we will take\nanother look at the money aspects of entertainment on racing \u2013 where they stand\nand what\u2019s lies ahead.<\/p>\n\n\n\n
The reason media matters is the\ndollars it brings to the sport and its contribution to financial coffers of\nindustry stakeholders.<\/p>\n\n\n\n
Ticket sales and concessions has\nlong been the primary driver of revenue for tracks. As these areas has\nstagnated the growth of broadcast dollars has exceeded these categories.<\/p>\n\n\n\n
The early season races have\ndelivered strong ratings across the board this year. There will be week to week variances based on\nthe venue, weather and landscape of competitive programming.<\/p>\n\n\n\n
For each race, agencies typically\nreport Total Audience Delivery which represents the combined viewership of broadcast\/cable\nand streaming platforms.<\/p>\n\n\n\n
IndyCar viewership is at its\nhighest in almost two decades. They are up over 30% compared to last year. Thru\nthe first three races IndyCar is averaging 1.148 million viewership.<\/p>\n\n\n\n
Nascar is also showing\nimpressive numbers. There are averaging\n4.76 million viewers, an increase of 17% over the first eight races of the 2022\nseason.<\/p>\n\n\n\n
The ratings for Formula One has\nbeen solid. The global footprint of the\nseries creates variability with late \/ early start times. Thru the early races Formula One is averaging\nin excess of 1.0 million viewers, up over 20% from the prior season.<\/p>\n\n\n\n
The Netflix series, Drive to\nSurvive has bolstered the popularity of Formula One, especially in the United\nStates. Season 4 launched prior to the\nbeginning of the 2022 calendar, with skyrocketing popularity. It brought the\nsport into the homes of a whole new audience, who became captivated by a canid\nbehind the scenes inside look at the drivers and teams. <\/p>\n\n\n\n
The production team behind the\nseries, Box to Box Films is fielding inquiries from many sports properties\nincluding the PGA and Tour de France. \nNascar, IndyCar, and other sanctioning bodies have film crews at tracks\nand race shops gathering content for multi-channel platform distribution.<\/p>\n\n\n\n
Several of the broadcast deals\nfor motorsports are expiring over the next few years.<\/p>\n\n\n\n
Sports remains a desirable\ncategory due to it favorable characteristics \u2013 live content, appointment\nviewing, and audience demographics. <\/p>\n\n\n\n
Media companies heavily on\nsports content. Rights deals continue to rise.<\/p>\n\n\n\n
The NFL remains the most\nlucrative property will annual rights fees at $10 billion per year. Multiple entities are involved in the latest\nten year contract the goes from 2023 to 2033. \nFootball games are broadcast four nights a week and the Super Bowl\nattracts over 100 million viewers.<\/p>\n\n\n\n
The next closest league is the\nNBA at $2.6 billion per year, followed by the MLB at $1.6 billion, and NHL at\n$625 million. The Premier League is at $450 million for US rights.<\/p>\n\n\n\n
The current deal for Nascar is\nat $820 million annually. The ten year deal was signed in 2015 and expires\nafter the 2024 season.<\/p>\n\n\n\n
Several factors will come into\nplay \u2013 long term deals provides stability, traditional revenue splits (tracks –\n65%, teams \u2013 25%, and sanctioning body \u2013 10%) may be reallocated, the dynamics\nof multi-channel distribution (broadcast vs streaming).<\/p>\n\n\n\n
The global value of Formula One\nmedia rights deals exceeds $650 million. \nViewed in over 100 countries, the average global viewership was 60.3\nmillion per race.<\/p>\n\n\n\n
In the US, ESPN has carried\nFormula One since 2018 with a non-traditional contract. The current deal\nexpires in 2022. <\/p>\n\n\n\n
Record viewership and\nattendance, new US races, are raising expectations for Formula One\u2019s US based\nowners, Liberty Media. That renewal may be up to $75 million per year.<\/p>\n\n\n\n
Motorsports retains a prime\nposition in the media rights deal pack. A long term solid results track record\nbode well for next set of negotiations.<\/p>\n","protected":false},"excerpt":{"rendered":"
As motorsports begins to settle down towards a full season of normalized racing, the focus turns to off-track business matters This month we will take another look at the money aspects of entertainment on racing \u2013 where they stand and what\u2019s lies ahead. The reason media matters is the dollars it brings to the sport […]<\/p>\n","protected":false},"author":5,"featured_media":913,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"http:\/\/businessofspeed.com\/index.php?rest_route=\/wp\/v2\/posts\/911"}],"collection":[{"href":"http:\/\/businessofspeed.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/businessofspeed.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/businessofspeed.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"http:\/\/businessofspeed.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=911"}],"version-history":[{"count":1,"href":"http:\/\/businessofspeed.com\/index.php?rest_route=\/wp\/v2\/posts\/911\/revisions"}],"predecessor-version":[{"id":912,"href":"http:\/\/businessofspeed.com\/index.php?rest_route=\/wp\/v2\/posts\/911\/revisions\/912"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/businessofspeed.com\/index.php?rest_route=\/wp\/v2\/media\/913"}],"wp:attachment":[{"href":"http:\/\/businessofspeed.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/businessofspeed.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=911"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/businessofspeed.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}