TRAC's Demise Part 2- timing is so crucial in business.
Look at the shift in NASCAR's popularity between 2001-2002 when TRAC was trying to get going and now.
From 2/21/2001
TV loses $100M on NASCAR
Despite ratings success, NBC/Turner drops about $50M and Fox even more Fox, NBC and Turner Sports collectively lost more than $100 million on NASCAR during the first year of a six-year, $2.4 billion television contract despite leaving their own ratings projections in the dust, network sources said.
NASCAR was arguably the leading success story in sports television this year from the standpoint of ratings and critical acclaim, with broadcast ratings up more than 25 percent. But the losses point to the strongest evidence yet that the current economic climate makes it almost impossible for networks to make money on even their best sports properties. In terms of NASCAR, though, network executives say they're OK with losses in the short term.
The NBC/Turner joint venture lost close to $50 million, network sources said, while Fox, which paid a higher rights fee for the more attractive first-half coverage, is widely thought to have lost even more.
None of the networks would comment on the losses. They agreed the year was one of both satisfaction and disappointment.
"We're a victim of the marketplace, the same way everybody else is," said Mark Lazarus, president of Turner Sports.
COMPARE to 2004-2005
Nascar Finale A Ratings Bonanza
Tuesday November 23, 2004 5:34pm
(Sports Network) - NASCAR's new "Chase for the Championship" format turned out to be a television ratings success.
NBC's Sunday afternoon telecast of the Ford 400 at the Homestead-Miami Speedway earned its highest ever rating - 5.6 rating/11 share.
NASCAR has quietly replaced the NBA as one of the nation's top-rated televised sports.
Since NASCAR jumped onto Fox and NBC, weekly races have drawn audiences that have more than doubled the ones watching regular NBA games and have handily beaten pro-basketball's playoffs.
There already are signs. In June, Nextel Communications (nasdaq: NXTL - news - people ) agreed to pay roughly $700 million over 10 years (see "Nextel's Push To Talk Profits") to replace the sport's longstanding title sponsor, Winston, which had paid $200 million for a five-year deal. The Nextel deal set a record for sports sponsorship deals, and the wireless telecom had to fight with McDonald's (nyse: MCD - news - people ) and Coca-Cola (nyse: KO - news - people ) for the privilege of paying this king's ransom.
Do you think ISPO will be able to find big name sponsors for "ATD" racing show?
AI
