Over the last calendar year NASCAR has made some very public moves that have fundamentally changed the sport. After a decade of declining attendance and television ratings NASCAR appears to be more worried about protecting itself than growing the sport.
A recent SEC filing by the publicly owned operators of Dover international Speedway exposed new details in the sanctioning agreements between NASCAR and the tracks it races on. The new language, reported by ESPN’s Bob Pockrass, clearly states that any track that hosts a Sprint Cup date cannot have any other series that has similar cars as NASCAR’s Sprint Cup cars.
"Promoter covenants not to promote, host, conduct or stage, nor allow any third party[s] to promote, host, conduct or stage, a stock car racing event at the Facility that attempts to duplicate, emulate, imitate, copy, simulate and/or mimic the NASCAR Sprint Cup Series; or uses the same or similar race vehicles, rules, competitors, trademarks, trade dress, and/or ‘look and feel’ of the NASCAR Sprint Cup Series; or would create confusion in the public; or would in any way dilute the stature, impact and value of the Event"
This new language comes with the fact that for the first time NASCAR secured five year sanding contracts with all tracks that host Sprint Cup dates. Up until now sanctioning contracts were year to year, creating some instability for the shrinking number of independent tracks, like Dover, who’s majority of income comes from its NASCAR dates.
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Why is this new language important? NASCAR itself is privately owned by the France family, while publicly traded International Speedway Corporation owns and operates 12 facilities that comprise half the Sprint Cup Schedule. The France Family Group owns more than 65% of ISC and holding the majority of management positions within led by CEO Lesa France Kennedy.
NASCAR is also in year two of the longest television contract it has ever signed, ten years. With its ratings in steady decline NASCAR was able to secure a hefty increase in its rights fees with longtime partner FOX and returning network NBC. The way the television revenue is split has stayed consistent for decades, 65% goes to the tracks, 25% goes to the purses and the remaining 10% to NASCAR itself.
In the 90’s Indy car racing found itself falling well behind NASCAR as Americas favorite motor sport. Its team owners represented by CART, and third generation Indianapolis Motor Speedway chairman Tony George feuded to the point of splitting indy car style racing apart. The battles fractured the fan base, further sending indy style racing into a spiral that they are just now bringing to lift out of.
It appears Brian France is trying to keep NASCAR from the same fate. Its adoption of the new charter system represents a seismic shift for NASCAR who long rejected the concept. Now team owners have a larger say in the sport and a more secure revenue stream. The new language in the sanctioning contracts eliminates the chances of any competitor to NASCAR stock car style racing from having a high speed venue to compete.
NASCAR racing itself has seen a decline in popularity by virtually every measure for a decade. The Harris Poll rating most popular sports showed Auto Racing hitting high of 11% in 2005 but down to just 6% of americans now saying auto racing is their favorite sport. Its television ratings have fallen just about as equally. NASCAR’s Super Bowl, the Daytona 500 garnered 18.7 million viewers in 2005, where as in 2016 just 11.4 million viewers tuned in. Tracks attendance issues have plagued NASCAR in recent years with no less than ten tracks having reduced seats since 2009.
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When you look deeper in the television numbers you see the section of audience that NASCAR has lost, the younger fan. During the same period of NASCAR decline, UFC and Soccer have steadily increased by reaching the younger fan in totally different manners.
UFC has been able to build its audience on brash raw emotion from its fighters. That same emotion used to be on display in NASCAR with drivers like Darrell Waltrip, Dale Earnhardt and Tim Richmond just to name a few. NASCAR became so sponsor dependent, they were forced to clamp down on the emotions of the drivers to protect the sponsors. In recent years NASCAR has tried to loosen the reigns on its drivers, but a full generation has come through the ranks taught not to be emotional.
Soccer’s popularity with young people has been pointed to something that NASCAR has totally missed the boat on, video games. FIFA 2016 was released on September 23rd 2105 and finished all of 2015 as the 8 ranked video game of the year in just three months! NASCAR has not had a completely new console game release since NASCAR 14.
Of all the investments that NASCAR has made to try and improve its product, it has missed the obvious. An investment by NASCAR to develop a state of the art video game for mainstream users is the easiest and quickest way to reach kids. A mobile application to go with it allowing networked play would be an instant success. It would also help get NASCAR’s stars on the minds of tomorrows fans.
The NBA has also made great strides in attracting a younger audience of late by getting its stars in a several popular shows for kids and tweens. Lebron James, Chris Bosh, Chris Paul and Duane Wade have increased their fan base by appearing on popular Disney and Nick shows. That is something NASCAR could easily do with its broadcast partners.
If NASCAR wants to be serious about growing its fan base again, the younger audience is there. They just need to know how to reach them.