We have determined that moving from Versus to network television in 2010 would provide each IndyCar team an opportunity to acquire additional sponsorship in the amount of $987,930. Unfortunately, we also know that this valuation must be wrong.
The 2010 schedule includes night races at Texas, Chicagoland, Kentucky and, for all intents and purposes, Motegi. No network is going to air an IndyCar race in prime time at any price. Therefore, four of the twelve races in question must be carried on cable.
In addition, Texas is the lone night race that has consistently attracted a substantial audience. That event beat the Tour De France and Lance Armstrong on Versus in 2009.
Regrettably, other night races have not produced similar results. We would therefore argue that at least some of the ratings decline in recent years is likely due to the events at Kentucky and Chicagoland having been moved from Sunday afternoon to Saturday night. This is an interesting and important issue for later discussion.
The question that must be answered is this: how many additional viewers can the IRL reasonably expect to get if the four night races are aired on a cable channel that offers greater reach than Versus? Regardless of what that number might be, we should expect that the IRL will not get the 914,750 additional viewers that it can anticipate getting on network telecasts.
Thus, the expected value of additional sponsorship to each team must be something less than $987,930. We should also keep in mind that IndyCar races will be more difficult to find. It will have deals with ABC, perhaps another broadcast network, and at least one cable network.
There will be no on-air promotion for the events that do not air on ABC. This is a time-buy, after all. Networks are in the business of promoting properties in which they have invested.
And we still have not addressed the issue of probability. How many teams can we expect to actually sell additional sponsorship in an amount that is less than $987,930?
The IRL knows that it will get Paul Tracy and GEICO, so that's one. Six more must be certain before the league can even consider switching. Why? Because Versus is contractually obligated to pay the IRL $6 million for 12 races in 2010. If no more than six teams are able to acquire something less than $987,930 in additional sponsorship, then the IRL would do better by handing over checks in that amount to those six teams. And we haven't even begun to consider how the league and the teams might share the cost of switching.
It is likely that the teams want this to happen; Robin Miller probably would not have written about it if that were not true. Thus, Terry Angstadt, Tony Cotman, Brian Barnhardt and staff have a new and unforeseen issue that requires immediate resolution. As we are all aware, IRL management is dealing with more than a few ongoing difficulties. It now has another one.
We invite citizens to tell us what management should do.
Perhaps the guys in the IZOD shirts don't have it so easy.
Roggespierre
The 2010 schedule includes night races at Texas, Chicagoland, Kentucky and, for all intents and purposes, Motegi. No network is going to air an IndyCar race in prime time at any price. Therefore, four of the twelve races in question must be carried on cable.
In addition, Texas is the lone night race that has consistently attracted a substantial audience. That event beat the Tour De France and Lance Armstrong on Versus in 2009.
Regrettably, other night races have not produced similar results. We would therefore argue that at least some of the ratings decline in recent years is likely due to the events at Kentucky and Chicagoland having been moved from Sunday afternoon to Saturday night. This is an interesting and important issue for later discussion.
The question that must be answered is this: how many additional viewers can the IRL reasonably expect to get if the four night races are aired on a cable channel that offers greater reach than Versus? Regardless of what that number might be, we should expect that the IRL will not get the 914,750 additional viewers that it can anticipate getting on network telecasts.
Thus, the expected value of additional sponsorship to each team must be something less than $987,930. We should also keep in mind that IndyCar races will be more difficult to find. It will have deals with ABC, perhaps another broadcast network, and at least one cable network.
There will be no on-air promotion for the events that do not air on ABC. This is a time-buy, after all. Networks are in the business of promoting properties in which they have invested.
And we still have not addressed the issue of probability. How many teams can we expect to actually sell additional sponsorship in an amount that is less than $987,930?
The IRL knows that it will get Paul Tracy and GEICO, so that's one. Six more must be certain before the league can even consider switching. Why? Because Versus is contractually obligated to pay the IRL $6 million for 12 races in 2010. If no more than six teams are able to acquire something less than $987,930 in additional sponsorship, then the IRL would do better by handing over checks in that amount to those six teams. And we haven't even begun to consider how the league and the teams might share the cost of switching.
It is likely that the teams want this to happen; Robin Miller probably would not have written about it if that were not true. Thus, Terry Angstadt, Tony Cotman, Brian Barnhardt and staff have a new and unforeseen issue that requires immediate resolution. As we are all aware, IRL management is dealing with more than a few ongoing difficulties. It now has another one.
We invite citizens to tell us what management should do.
Perhaps the guys in the IZOD shirts don't have it so easy.
Roggespierre
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