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EVENTS
CNNSI.com GROUP
COMMERCE
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Not so fast FOX loses battle on NASCAR sponsorship logos
By Mike Fish, CNNSI.com DAYTONA BEACH, Fla. -- This sports broadcast business is not tricky stuff, right? If you're FOX, you partner with NBC and Turner Broadcasting on a $2.8 billion deal to put stock-car racing on the tube. You call the shots once the ink dries on the contract. Well, this isn't the NFL. And it sure isn't the NHL. FOX understands the not so subtle differences now. When the network started messing right out of the box with the sport's sponsors, the lifeblood of NASCAR, the governing body sat the TV folks down and suggested they get with the program. The resolution to the tiff is FOX has agreed to present the race cars as is, sponsorship logos and all, in future graphics package during broadcasts. What's it going to cost FOX in potential advertising dollars? No one is saying, but they'll probably have to hustle a little more to make up for lost revenue. "Our sales department is made up of fairly clever folks," said Lou D'Ermilio, vice president of communications for FOX. "I'm sure they'll find ways to please advertisers in some other way."
For months, in spite of promises to the contrary, race-team owners cast a wary eye toward the new TV package, fearful their sponsors might be squeezed by the deal. The brouhaha boiled over during the Budweiser Shootout last weekend when some of the computer-generated cars popped up on the screen without their sponsor logos. By design, the only logos appearing belonged to sponsors who paid FOX for commercial time during the broadcast. "We just wanted to add a bonus for the sponsors who invested in the future of NASCAR on FOX,'' explained David Hill, chairman/CEO of FOX Sports. Hill downplayed the flare up, noting the graphics in question appeared on the screen for a mere 20 seconds during a three-hour telecast. After two days of huddling, NASCAR and FOX officials walked amid the garage area Tuesday arm-and-arm. But make no mistake. Most people feel the racing folks got their way. "My understanding is that all of the graphics will reflect the cars as they are on the racetrack," said Brian France, executive vice president of NASCAR. What you have here is a turf war, one the car owners can't afford to lose. With FOX on the hook for half of the $2.8 billion TV deal, the network understandably is out to grab every commercial dollar it can. They just went a little too hard, a little too fast -- way too early in the commercial marriage.
"We don't blame them," France said. "They have a business to run and they are trying to be as aggressive as they can." Understand, for years, NASCAR teams have enjoyed the free exposure given to their rolling billboards. It's why UPS or Tide or Hills Bros. ante up millions to stamp their colorful logo on a race car. Nobody suggested they also had to buy TV time -- until FOX came on the scene. "We've got to take care of our sponsors or they won't be there," said Rick Hendrick, owner of Hendrick Motorsports and Jeff Gordon's No. 24 DuPont Chevrolet Monte Carlo. "They can go spend their money somewhere else. If we have a sponsor that's been with us 10 or 12 years and they walk away, we'll never get them back." No problem. FOX is promising to play fair in the wake of the initial skirmish. The graphics caper was just a minor bump in the road, all parties agree -- not enough to send the lawyers rushing off to court. "It's not that different than when you build a new house," D'Ermilio said. "When you move in, you find a couple of things that the builder has to come back and fix. It's the same here. But now, everybody is happy."
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