• by Wayne Friedman , December 8, 2005

The hot TV sports package, NASCAR, has inked over $500 million dollars per year as part of a series of new eight-year deals with existing partners Fox and TNT, and new partners ABC Sports and ESPN. For Fox, the deal is valued at over $200 million per year, according to analysts, which includes 13 regular Nextel Cup races plus the big Daytona 500 race each year. Currently, Fox alternates airing the Daytona 500 every other year with NBC.

ESPN and ABC are the new NASCAR partners, and will pay just under $300 million for 17 races, including "Chase for the Cup," the 10-race NASCAR playoff that will air on ABC. The Disney networks will replace NBC--which, with Fox, has been the broadcast partner for NASCAR over the last several years. TNT will continue with NASCAR, paying $80 million for a new package of six races. The new deals start in 2007.

Sports media analysts say that with these new deals, NASCAR has command of major license fee increases--anywhere from 30 percent to 40 percent. For some time, NASCAR has been on the biggest-rated national aired sports programs--only NFL games are rated higher.

This year so far, Fox has earned a Nielsen Media Research 6.4 household rating/14 share--which is up from the 5.6 rating/14 share numbers a year ago. Fox also earns healthy young male numbers, averaging a 5.2/20 for men ages 18-49--a key advertising selling demographic.

NBC has also earned big numbers, averaging a 5.3/11 in household numbers this year. NBC's male viewing is somewhat lower--a 3.5/13 so far this season for men ages 18-49. Broadcast ratings have stayed in this range or grown over the last several years.

With ABC Sports and ESPN also spending significantly more, the prospect of raising prices to advertisers have been considered. But the large license fee hikes aren't nearly what media agency executives are considering when it comes to TV advertising increases.

"Nothing warrants those kind of price increases," said Larry Novenstern, senior vp and director of national broadcast for Deutsch. "Advertising shouldn't have to pay the pass along. It's still a supply and demand situation."