Many people knocked ChampCar for their revenue sharing (time buy) to secure broadcasting of their races but it looks like the merged series is destined for a similar scenario.

Potential IRL TV partners want Indy only

By JOHN OURAND and TERRY LEFTON
Staff writers - Sports Business Journal
Published July 28, 2008 :

Conventional wisdom was that a unified open-wheel racing series would result in a more valuable media property. But five months after the IRL and Champ Car joined together, the series is seeing what has been its biggest asset — media rights — struggling to maintain value.

Both incumbent partner ABC/ESPN and suitor Fox Sports have told the circuit that they are interested in broadcasting only the Indianapolis 500. But the IRL is trying to sell a package that includes at least four other races for broadcast as well.

ESPN and Fox also have told the IRL that they would not pay the same rights fee that the IRL now gets from the Disney companies, about $10 million a year.

ESPN holds the rights for next year, but has given the IRL the green light to shop them. ESPN executives say they lose money on the deal, which has ABC broadcasting six races in addition to the Indianapolis 500, with the rest of the 17-race series going to ESPN or ESPN2.

ESPN has been pitching the IRL on a different model, possibly based on revenue sharing. So far, the IRL is not interested in such an arrangement.

While Fox has had some discussions with the series, Versus has shown the most interest in obtaining a package, which would not include the marquee races, according to several sources.

Meanwhile, the IRL continues its search for a title sponsor, which it needs to add support and credibility to its TV efforts. Sources said that several companies had looked at the deal, including William Rast Jeans, Kodak and Subway, some beverage companies, as well as a company from the financial sector. Izod also considered it before signing on as the official apparel sponsor.

The original asking price for title rights was close to $10 million per year, but sources said it could now be had for $4 million to $5 million, with an additional seven-figure media commitment.

“They have to get away from selling themselves against NASCAR and be sold as more of a lifestyle play that can deliver and win the best demos in its time slot,” said Chris Lencheski of motorsports agency Ski & Co., New York. “If they do that and head for strategy where IRL can be seen on any screen any time, and it is reasonably priced, then they’ll have something very salable.”

Staff writer Michael Smith contributed to this report.

http://www.sportsbusinessjournal.com/article/59646

I remember when the major networks refused to telecast soccer so the leagues partnered with national UHF broadcasters. The opportunity here is to begin discussions with Univision and Telemundo about Spanish language broadcasts of all races.