ISC's TV Revenues To Increase
August 27, 2014 | 9:09 A.M. EST
International Speedway Corp. announced Wednesday that its TV revenues will increase approximately 3.8 percent to $316 million in 2015. (Photo: Getty Images)
International Speedway Corporation today provided additional details on NASCAR’s domestic broadcast rights contracts for its Sprint Cup, Nationwide and Camping World Truck series beginning in 2015, as well as changes to its NASCAR calendar of events for 2015.
In August 2013, NASCAR finalized multi-platform broadcast rights agreements with NBCUniversal and Fox Sports Group for 10 years, beginning in 2015 through the 2024 season, for the broadcast and related rights for NASCAR's three aforementioned national touring series. The agreements include Spanish-language rights and 'TV Everywhere rights', which will allow NASCAR content to stream over the broadcasters-affiliated websites.
Based on information received during sanction agreement negotiations with NASCAR, ISC’s contracted TV broadcast revenues under contracts beginning in 2015 will increase to approximately $316 million, or 3.8 percent. ISC’s contracted TV broadcast revenue for 2014, under the existing contracts, are expected to total $304 million. ISC’s rights revenues under the new contracts are expected to increase between 3 percent and 5 percent over the 10-year contract term, at an average of 3.9 percent.
The net broadcast revenue allocation to ISC reflects no change distribution between stakeholders in the sport’s only shared revenue model: 65 percent to promoters; 25 percent to race teams paid through prize and point fund monies; and 10 percent retained by NASCAR.
“Broadcast rights represent ISC’s largest revenue segment and these recent deals provide us the long-term visibility to continue investing in our business to the benefit of our fans, partners and local communities while continuing to build shareholder value”, stated ISC Chief Executive Officer Lesa France Kennedy. “We are poised to elevate ISC and the sport by having two of the world’s largest media companies – NBC and FOX – promote NASCAR.”
The following NASCAR schedule changes will impact ISC’s calendar of events for 2015:
- The spring NASCAR Sprint Cup weekend events at Phoenix International Raceway will be held two weeks later in March on the 2015 race calendar, moving from the second race weekend in 2014 to the fourth race weekend in 2015;
- The Chicagoland Speedway NASCAR Nationwide weekend events conducted on the third weekend of July in 2014 will be held on the third weekend of June in 2015;
- The Coke Zero 400 Sprint Cup event at Daytona International Speedway will be conducted on Sunday night of the Fourth of July weekend for 2015;
- The Darlington Raceway Sprint Cup weekend events will move from the eighth race weekend in 2014 to the twenty-fifth weekend (Labor Day) in 2015; and
- The fall Kansas Sprint Cup weekend will move from the thirtieth race weekend in 2014 to the thirty-first race weekend in 2015.
“We are excited about NASCAR’s 2015 schedule, particularly moves for Phoenix and Darlington dates,” stated ISC President John Saunders. “While the Coke Zero 400 Powered by Coca-Cola will change to Sunday, July 5, 2015, this will mark the kick-off event of NBC’s return to NASCAR as well as the debut of several new elements of DAYTONA Rising at Daytona International Speedway – 50,000 new grandstand seats along the frontstretch, vertical transportation, concessions, restrooms and social areas.”
Management will provide its perspective on the 2015 media rights revenues and benefits of schedule changes on its third quarter earnings conference call.