It’s the TV Ratings Stupid

NASCAR and IndyCar screwed themselves with so many races on obscure cable TV channels

NASCAR killed itself with the most recent new TV deal, and so did IndyCar by no going to a 100% network TV deal.

Not that there wouldn’t still be huge problems without it, ratings would still be down even on broadcast/over the air, and NASCAR attendance would still be way down.

But we really think this was the last straw for many companies, or the one that justifies re-thinking their sponsorship in NASCAR.

Putting so many races on obscure cable channels, in a sport that relies on viewers to attract sponsorship, was the ultimate in short-term thinking – both for NASCAR and IndyCar.

Compounding the problem was chasing big dollar signs when signing the contract, but ignoring the fact that, to recoup their investment, the networks would have to incessantly bombard fans with interruptions and commercials, which just cannot be done in this age with all the alternatives people have for commercial-free entertainment. People will just turn the race off.

This, of course, further killed whatever smaller ratings there would’ve already been from both the obscure TV networks and just the decade-long decline in NASCAR’s popularity.

And poor ratings means it’s cheaper to advertise on the NASCAR TV broadcasts itself rather than a race team; why bother spending $25 million for a rolling billboard that’s not on screen most of the time, when you can get dozens of time more exposure through ad buys.

How many NASCAR advertisers during the broadcast, either in commercials or broadcast sponsorship (O’really pit reporters, etc) actually sponsor a race car? Now go back 1-15 years and see how many that was. Sure there’s always been some, (Walmart) but watching the ads now we are amazed how many are not sponsors of a race car.

NASCAR and IndyCar TV ratings

Yup, with the new NASCAR TV deal, everyone got a nice payday, but none of that goes back into the sport, it’s just profit-taking.

Even if team owners got more TVmoney, how many are willing to use that to run their cars. Few, I bet. they see that as gravy, meanwhile, the new TV deal severely devalued the sponsorship experience, and it’s killed ROI.

Message to IndyCar: Keeping so many races on NBCSN was a grave error in judgment. 100% of the races needed to be on NBC.

Message to NASCAR: Keeping so many races on NBCSN and FS1 was a grave error in judgment. 100% of the races need to be on network TV.