NASCAR is set to begin exclusive negotiations with current broadcasters Fox and NBC at the beginning of 2023.
FoxSports and NBCSports pay NASCAR a total of $820 million yearly under a long-term contract that is set to expire at the end of the 2024 season.
NASCAR could demand a combined $900 million to $950 million yearly under its next contract, according to sources.
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The two NASCAR broadcasters are in the middle of an exclusive negotiation window that lasts until March of this year.
According to “Sports Business Journal,” the exclusive negotiating window is expected to end without a deal.
The reason being NASCAR also is examining the possibility of developing a third package that the organization could sell to one of the deep-pocketed streaming companies.
Amazon is the favorite to be the most aggressive streamer to pursue NASCAR rights.
Just like NBA, NASCAR may break off an exclusive streaming package. The acquisition of a streaming partner could benefit NASCAR boost its overall rights fees.
.@FoxSports and @NBCSports want to renew their @NASCAR TV deals past 2024, and @Amazon is the most likely candidate to pursue a third package that NASCAR might carve out for a streaming company. – @Ourand_SBJ.
🔲 NASCAR could complete a deal by fall.
📰:https://t.co/nynlKHcjr3 pic.twitter.com/639SazhxTx
— Adam Stern (@A_S12) January 30, 2023
NASCAR’s senior vice president of media and productions Brian Herbst refused to comment on how much NASCAR is pursuing.
But NASCAR is “bullish” on the upcoming negotiations, coming off a season in which TV viewership rose 4%, he said. The race circuit’s relationship with broadcast partners Fox and NBC has never been better.
“We work really closely together, both from a scheduling perspective, but also just in terms of how they monetize the sport. Whether that’s pushing more brands and advertisers to spend on Fox and NBC,” Herbst said.
“Fox had their third consecutive year of ad revenue increases in 2022. NBC had their second consecutive year of ad revenue increases in 2022. So it’s working for them — both from a viewership and an ad revenue perspective.”
NASCAR will be seeking a 10% to 15% increase in rights fees for its next long-term media deal.