The ABC surprise.

[Brickman]

INDY RACING LEAGUE EXTENDS TELEVISION PACT THROUGH 2009 WITH ABC SPORTS, ESPN

INDIANAPOLIS, Thursday, May 27, 2004 – The Indy Racing League, Indianapolis Motor Speedway, ABC Sports and ESPN have reached a wide-ranging, multimedia extension of their current agreement.

The announcement was made today by Tony George, president and CEO of both the Indy Racing League and Indianapolis Motor Speedway, Loren Matthews, senior vice president of programming for ABC Sports, and Mark Quenzel, senior vice president of programming and production for ESPN.

The new agreement, which runs until 2009, includes comprehensive coverage of the IRL IndyCar® Series in addition to the IRL Menards Infiniti Pro Series™ races and ancillary programming support along with both network’s traditional extensive coverage of the Indianapolis 500.

The agreement includes distribution rights for IRL-related programming and content on numerous ESPN outlets, including ESPN Classic, ESPN International and ESPN.com, as well as opportunities involving emerging technologies such as pay-per-view, video-on-demand, interactive TV, broadband, video game development and wireless applications. ESPN will hold rights for high definition distribution on ESPN HD and Spanish-language telecasts on ESPN Deportes.

In addition, ESPN International networks retain worldwide rights to televise race coverage to 149 countries and territories. ESPN International will continue as global syndication representative. Current syndication agreements are in place with broadcasters in Brazil, Canada, Germany, Japan, New Zealand, and the United Kingdom, with pan-regional highlights available on Eurosport, the most widely-distributed sports network in Europe.

ESPN and ESPN2 will receive several programming opportunities as part of the agreement, including exclusive coverage of the Menards Infiniti Pro Series and Indy Racing League Banquet, an annual ESPN Original Entertainment special, a Season Preview show and three one-hour Indy Racing League-related specials a year.

ABC Sports has televised the Indianapolis 500 since 1965, and done so live since 1986. Indy Racing League events have been on ABC and the ESPN networks since the League debuted in 1996. ESPN has televised Indianapolis 500 qualifying since 1987, and ESPN2 joined the coverage in 1996.

"Today's announcement reaffirms ABC Sports and ESPN's commitment to IndyCar Series racing,” George said. “ABC Sports and ESPN have played a significant role in the advancement of the Indy Racing League. Their belief in the league via race events and ancillary programming brings the Indy Racing League
long-term stability and offers our fans even more programming than ever before.

“I am particularly proud that today’s agreement with ABC Sports extends its coverage of the Indianapolis 500-Mile Race into a fifth consecutive decade, one of the longest running relationships between a sports entity and broadcast partner."

In the 2004 season, ABC Sports is televising 10 of the 16-race IndyCar Series schedule, including the Indianapolis 500 on Sunday, May 30. ESPN or ESPN2 is carrying six races this season.

“The Indy Racing League is poised for tremendous growth and we look forward to being a part of that,” said Mark Shapiro, ESPN executive vice president, programming and production. “In addition to having the Indianapolis 500, the IRL is a competitive circuit that continues to add the top drivers and expand their sponsorship base. ESPN and ABC Sports’ media platforms provide an unmatched opportunity to grown the national audience.”

With the commitment to expand the IndyCar Series schedule both ABC Sports and ESPN will work with the league to develop a consistent schedule of races designed to grow the sport and increase television ratings. “This agreement comes as a result of creative thinking and a commitment from ABC, ESPN and the IRL to continue to build the Indy Racing League and the Indy 500,” said Matthews of ABC Sports. “We look forward to our long-term relationship with the IRL and to broadcasting the greatest spectacle in racing.” ABC Sports, ESPN and ESPN2 have provided some 33 hours of coverage of the 88th Indianapolis 500 as ABC celebrates its 40th anniversary of coverage of the “Greatest Spectacle in Racing.” ABC's live broadcast of the Indianapolis 500 will begin with pre-race coverage at 11 a.m. (EDT) May 30, followed by flag-to-flag coverage of the race at noon.

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I'm really surprised they were able to renegoiate the contract so early. I don't think their contract was going to expire for a couple years. With the sliding 500 numbers, weak ticket sales, no bubble day excitement, overall lack luster TV ratings for other races, I would have figured ABC would have put the pressure on by signing late in the game rather than early. They must have tied the cost to ratings or they would be crazy to step up to the plate when loggically they should be stepping back.

[Napoleon]

Of course maybe ABC came to the IRL and asked to renegotiate because the deal sucked so much and the IRL did but asked for an extention on the new more favorable terms. For all we know the IRL may be paying ABC now.

In any event this is yet anouther reason to not invest in Disney since the company seems to be run by idiots.

[JoeBob]

Notice the lack of specifics. Such as - how many races will be on ABC?

There's a lot of blabbing about ESPN having "the rights to" extra programming (note that there are no commitments to show anything - just that if they want to, they can.). There is almost no mention of ABC.

There's nothing in that press release that would refute a statement like this: "all races but Indy will be shown on ESPN2."

Compare this press release to the last one: http://www.indyracing.com/press/2001/series/tv-09022001.php

[RaceGrrl]

Good point, JoeBob. I was thinking the same thing.

[EVL29]

Man,ABC sure lucked out,eh?

I wonder what their winning "bid" was? :gomer:

[Racewriter]

Notice the lack of specifics. Such as - how many races will be on ABC?

There's a lot of blabbing about ESPN having "the rights to" extra programming (note that there are no commitments to show anything - just that if they want to, they can.). There is almost no mention of ABC.

There's nothing in that press release that would refute a statement like this: "all races but Indy will be shown on ESPN2."

Compare this press release to the last one: http://www.indyracing.com/press/2001/series/tv-09022001.php

Yep.

And I bet those rights fees are waaaayyyyy down...

[JoeBob]

Read the "ringing endorsements" from ESPN execs here: http://www.indyracingleague.com/indycar/news/story.php?story_id=2875


Q: How does this new arrangement affect the Infiniti Pro Series, the coverage of that series?

QUENZEL: We've committed to televising the Infiniti Pro Series. There are 12 races this year, and we're going to televise all 12 of them. We understand, you talk about the long-term growth of the league, the key to that is obviously televising the future stars of the Indy Racing League. We've committed to that, and we're doing it.

What they're already doing is compressing 60 minute races into 30 minute shows, then airing them 2 weeks later at 2AM on ESPN2.


Q: Ken, any increased presence on “SportsCenter?” I know it's tough because you're getting pulled. Can “SportsCenter” during the week of the 500 get more time, can they talk about that instead of the match that Agassi lost?

UNGAR: First of all, I would argue that we have “SportsCenter” upstairs for three weeks, to some degree. We don't -- the “SportsCenter at Indy” that we've been here for now for the last 21 days or so is a major commitment on our part. We don't do that for hardly anybody. We do it for major, major sporting events. This is one of them. The “SportsCenter” brand being attached to that show is a big deal, candidly. As it relates to “SportsCenter,” I think it -- I do we do get a fair amount of coverage on “SportsCenter.” It is a difficult time of the year. I mean, as you know, we're into NBA playoffs, NHL playoffs, the baseball season, the Triple Crown. There's a lot of things going on. I do feel from my perspective, would I like to see more? Yeah, I would like to see more. I think you would like to see more as this deal. I don't think I can sit here and tell you unilaterally there's going to be two, three, four more minutes. But I think you'll see a strong representation on “SportsCenter.”

Candidly, the only reason that they're doing a daily show from Indy is that the previous TV contract required it. The only reason the SportsCenter name is attached to it is because they canned the RPM name.

[RichK]

We've committed to that, and we're doing it.

You can FEEL the excitement! :laugh:

[KobySon]

I see they've backed up behind Toney's horse again.

[cart7]

“This agreement comes as a result of creative thinking and a commitment from ABC, ESPN and the IRL to continue to build the Indy Racing League and the Indy 500,”
:rofl: Oh, this is a good one. :rofl:

[Madmaxfan2]

PROOF THAT TG IS AN IDIOT, STILL. Even if he adopts Road courses with real cars, one will know about it. TG needs to step down, this action is further proof he is clueless.

[fourrunner]

NUMBER 4 NETWORK RE-UPS WITH IRRELEVENT RACE

Claiming they want to be there when the "Titanic" sinks. ABC the 4th rated, and sinking, Broadcast Network stated Today that they want to be there for the End of both the Indianapolis 500 & the Indy Racing League.

Calling it the ultimate in Reality TV, ABC said that the Indy 500 and the Indy Racing League are like watching a Train Wreck and that people just Love watching a Train Wreck. Especially when the Engineer is a complete Moron, and has no idea what he's doing.

"We're Number 4 behind FOX & slowly sliding below the WB, said The current President of ABC for at least the month of May. We're similar in attitude, and we're both fading fast. Plus with a sub 1 rating for Qualifying and Bump Day .... Indy could be our networks highest rated show this year."

Tony, who was with some of the drivers washing each others hair, could not be reached for comment.

[Chaos]

oh well, i will still probably not be watching...

[Wally]

Your killin me runner...... :D

[Jag_Warrior]

Of course maybe ABC came to the IRL and asked to renegotiate because the deal sucked so much and the IRL did but asked for an extention on the new more favorable terms. For all we know the IRL may be paying ABC now.

In any event this is yet anouther reason to not invest in Disney since the company seems to be run by idiots.

Several months ago, ABC announced they were going to be coming down hard on sports programming that couldn't deliver ratings or ad revenue. I want to say the NHL and IRL were mentioned by name, but I can't recall the exact wording. But I think we discussed the article here (or on 7thGear).

I think you're probably right. If they had time left on the current contract, it's likely ABC approached the IRL with new (lower) figures and made them an offer they couldn't refuse. I'd be curious to know how many KY Jelly clauses ABC put in this contract.

[pineapple]

...I'd be curious to know how many KY Jelly clauses ABC put in this contract.

:confused: Why would ABC need the lube clause? Seems to me it's the IRL that should be the ones thinking about their anal state in this case.

[Rob]

ABC = Always Broadcasting Crap

[Chief]

My take on this: The IRL has mortgaged everything it has regarding broadcasting (including broadband multimedia, gaming, etc.) in an effort to outlast the competition and give the impression of IRL stability. Giving licensing away in exchange for broadcasting consideration is effectively the same thing as starting the IV drip on one of Dr. Kevorkian's "Suicide Machines". Foolishly FTG took the contract in what now could be an Eisner/Disney/ABC controlled IRL/Indy 500.

Combine this with the "illusion" that Terry Lingner wants to create for the EArL and you got the makings of absolute failure.

[Napoleon]

Good points JoeBob, Chief and Jag.

As I read the releases and all this really smells like a renegotiation where the IRL took less favorable terms then what they had through the end of 07 previously.

[Ankf00]

well ABC let NBC take some NHL rights, and they're paying millions less for ESPN's NHL rights, they'd probably cut IRL fees by something similar

[Kahauna Dreamer]

Doesn't really matter; ¥RL events will probably still get yanked in favor of "World's Strongest Man" or billiards or Japanese little league, or shuffleboard, or cheerleading, or... :rofl:

[Steve99]

Q: One of the big things that's gaining like a younger audience, are you planning on doing any lifestyle shows separate from the segments that go on in races, 30-minute show on ESPN 2 that's weekly that's lifestyle?
QUENZEL: As part of this deal [blah, blah, blah]


Are they going to make a "Dangerous Ovals" show? How much will they offer Bronte to defect? They have already tried for CART tracks, announcers (TK), and production company. Do they ever get an original idea?

[KLang]

Do they ever get an original idea?

Flying cars?

[Steve99]

Flying cars?

:waves hand in front of KLang's face: There are no flying cars.

[Railbird]

TG whored out the 500 to get the rest of the series broadcast when this contract started. I'm guessing with the Indy ratings drop, and rest of the series' ratings nonexistant, the price of poker has gone down quite a bit. The numbers will come out eventually and it should be interesting.

Kind of a smart move on their part considering that the lack of racefan interest is pretty clear and it isn't like another network is standing in line to become the next "partner"

[dando]

well ABC let NBC take some NHL rights, and they're paying millions less for ESPN's NHL rights, they'd probably cut IRL fees by something similar
Beat me to it, Ank. Frankly this is not surprising @ all. W/NBC and Fox splitting NASCAB, FTG was left with only one dance partner. CBS is really not viable w/o a secondary outlet for races other than Indy. I'm certain a fair portion of this deal must be revenue-sharing based, with some money up front for Indy. I'd doubt this deal averages double figures in the millions for the full term.

-Kevin

[Brickman]

TG whored out the 500 to get the rest of the series broadcast when this contract started. I'm guessing with the Indy ratings drop, and rest of the series' ratings nonexistant, the price of poker has gone down quite a bit. The numbers will come out eventually and it should be interesting.

Kind of a smart move on their part considering that the lack of racefan interest is pretty clear and it isn't like another network is standing in line to become the next "partner"

I agree. I don't think the IRL could get the same deal during the next two years. 2009 is a long time to repair or finish off open wheel.

[JT265]

IIRC, when I was ridng the short bus to remedial math, ;) this was called fun with numbers. Something like this.....

ABC: ToeKnee, we own you until '07, and even shuffling your leaque onto the deuce is costing us large. We can't even sell promo time for "Boobs in a Bottle" infomercials in one of your spots and make any money. Further, we here at Corporate are getting increasingly frustrated by your inane ramblings on your fanboy site under the pseudonym of "deFender", and it has to stop. And for God's sake, QUIT CALLING US A PARTNER!!!!!

Mumbles: Huh?

ABC: We have however come up with a solution that meets our mutual needs, and here it is. The money we agreed to pay you for the rights to the 500 will now be amortized over a further two year period, at no cost to us, and we will agree to broadcast the rest of your races at our option on one of our properties, providing that the broadcast meets certain revenue levels, determined by us. Please sign where instructed and initial same, guaranteeing any shortfall in sales will be met by IMS Properties.

Failure to execute these documents today will make this the 88th and final running of the 500 Mile Race on broadcast television.

Any questions?

Mumbles: Uh, if there is any money left over that is due us, will it be in the right currency??

ABC: Now ToeKnee, that's a big IF, but yes, it will be in the right currency.

Mumbles: Uh, okay. FRED!!!! Bring me my signature template and a Sharpie!!!