International Speedway Provides Additional Detail on Beneficial Impact of NASCAR Television Rights Contracts
December 07 2005 - 4:29PM
PR Newswire (US)
~ Average Annual Industry Rights Fees Expected to Increase
Approximately 40% ~ DAYTONA BEACH, Fla., Dec. 7
/PRNewswire-FirstCall/ -- International Speedway Corporation
(NASDAQ:ISCA) (OTC:ISCB) (BULLETIN BOARD: ISCB) ("ISC") today
provided details regarding NASCAR's recently announced domestic
broadcast rights contracts for its NEXTEL Cup, Busch and Craftsman
Truck series, as well as other related programming. The combined
eight-year (2007 through 2014) agreements are expected to total
approximately $4.48 billion for the industry. As such, the average
annual rights fee is expected to approximate $560 million per year,
an estimated 40 percent increase over the current average. The
rights fees are expected to increase between three and five percent
annually over the eight-year period, which suggests a 2007 industry
rights fee of approximately $470 to $500 million. Broadcast of the
NASCAR NEXTEL Cup Series events will be split between FOX, ABC,
ESPN, TNT and Speed Channel. Highlights include (based on the
current schedule of 39 races): Championship Points Events * FOX
will air the Daytona 500 and the next 12 points events; * TNT will
carry six consecutive races in June and July; and * ABC and ESPN
will broadcast the final 17 events, with all 10 races in the Chase
for the NASCAR NEXTEL Cup to be aired on ABC. Non-Championship
Points Events * FOX will carry Daytona International Speedway's
Budweiser Shootout; and * Speed Channel will air the Gatorade Duel
at Daytona and the NASCAR NEXTEL All-Star Challenge. The NASCAR
Busch Series will be broadcast on ABC, ESPN and ESPN2, with no less
than four events on ABC. In addition, Speed Channel will remain
home to the NASCAR Craftsman Truck Series with the exception of two
races, which will be broadcast by FOX. "These agreements further
drive fan and media awareness for all three major NASCAR racing
series, which helps fuel long-term attendance and corporate-related
revenue growth for ISC," said Lesa France Kennedy, President of
ISC. "Approximately two-thirds of the NEXTEL Cup schedule will air
on network television, and the Busch series gains increased
continuity through a season-long presence on sister networks ABC
and ESPN. More importantly, the entire industry will significantly
benefit from the long-term visibility and strong cash flow
generated by these agreements, and will further ISC's ability to
grow its business and increase value for shareholders."
International Speedway Corporation is a leading promoter of
motorsports activities in the United States, currently promoting
more than 100 racing events annually as well as numerous other
motorsports-related activities. The Company owns and/or operates 11
of the nation's major motorsports entertainment facilities,
including Daytona International Speedway in Florida (home of the
Daytona 500); Talladega Superspeedway in Alabama; Michigan
International Speedway located outside Detroit; Richmond
International Raceway in Virginia; California Speedway near Los
Angeles; Kansas Speedway in Kansas City, Kansas; Phoenix
International Raceway in Arizona; Homestead-Miami Speedway in
Florida; Martinsville Speedway in Virginia; Darlington Raceway in
South Carolina; and Watkins Glen International in New York. Other
motorsports entertainment facility ownership includes an indirect
37.5% interest in Raceway Associates, LLC, which owns and operates
Chicagoland Speedway and Route 66 Raceway near Chicago, Illinois.
The Company also owns and operates MRN Radio, the nation's largest
independent sports radio network; DAYTONA USA, the "Ultimate
Motorsports Attraction" in Daytona Beach, Florida, the official
attraction of NASCAR; and subsidiaries which provide catering
services, food and beverage concessions, and produce and market
motorsports-related merchandise under the trade name "Americrown."
In addition, the Company has an indirect 50 percent interest in a
business called Motorsports Authentics, which markets and
distributes motorsports-related merchandise licensed by certain
competitors in NASCAR racing. For more information, visit the
Company's Web site at http://www.iscmotorsports.com/ . Statements
made in this release that express the Company's or management's
beliefs or expectations and which are not historical facts or which
are applied prospectively are forward-looking statements. It is
important to note that the Company's actual results could differ
materially from those contained in or implied by such
forward-looking statements. The Company's results could be impacted
by risk factors, including, but not limited to, weather surrounding
racing events, government regulations, economic conditions,
consumer and corporate spending, military actions, air travel and
national or local catastrophic events. Additional information
concerning factors that could cause actual results to differ
materially from those in the forward- looking statements is
contained from time to time in the Company's SEC filings including,
but not limited to, the 10-K and subsequent 10-Qs. Copies of those
filings are available from the Company and the SEC. The Company
undertakes no obligation to release publicly any revisions to these
forward-looking statements that may be needed to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. The inclusion of any statement in this
release does not constitute an admission by International Speedway
or any other person that the events or circumstances described in
such statement are material. DATASOURCE: International Speedway
Corporation CONTACT: Wes Harris, Senior Director, Investor
Relations, ISC, +1-386-947-6465 Web site:
http://www.iscmotorsports.com/
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