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NASCAR Sprint-Cup Series
CUP: SEC Filing Reveals NASCAR Track Terms
TV money for NASCAR tracks, teams increases to $585 million; Dover paying $5-6M for Cup races, according to SEC filing
Bob Pockrass  | http://www.scenedaily.com  |  Posted January 09, 2012   Charlotte, NC
Dover International Speedway and it's terms with NASCAR were revealed in a SEC Filing. (Photo: LAT Photographic)
If Dover International Speedway’s sanction agreements with NASCAR are an indication, NASCAR has kept the tracks’ sanction fees and contribution to the race purse flat for 2012 and is requiring the same conditions from its tracks in 2012 as it did in 2011.

Dover Motorsports filed its 2012 Sprint Cup sanction agreements last week with the U.S. Securities and Exchange Commission and disclosed estimated television revenues and purse and sanction fees.

Its purse and sanction fees for 2012 are $6.236 million for its Sprint Cup race in June and $5.567 million for September, compared with $6.097 million for its spring 2011 race and $5.45 million for the fall.

Its television revenues, before its contribution to the purse, are estimated to be $13.573 million for June 2012 and $11.242 million for September 2012. That represents about a 3.4 percent increase over its estimated 2011 television revenues.

That figure is consistent with International Speedway Corp. projections earlier this year that the overall NASCAR television rights would go up about 3.5 percent for 2012, from $565 million to $585 million. Of the $585 million, an estimated $548.5 million (93.75 percent) is for Sprint Cup races, while the rest is for Nationwide ($33.6 million) and truck events ($2.9 million).

The NASCAR television revenues are split three ways – 65 percent to tracks, 25 percent to competitors through the purse and 10 percent to NASCAR. Tracks actually get 90 percent of the television revenue and then the competitor allotment is included in the track’s contribution to the purse.

Not including what it gets from the NASCAR television contract, Dover is paying approximately $2.46 million in purse and sanction fees for its June race and $2.44 million for its September race. Its contributions are virtually flat – up about $11,000 for the year when compared with 2011.

NASCAR didn’t immediately respond to questions about whether the Dover sanction agreement is consistent with other tracks’ financial commitments.

Because it has only two Cup events, each sanction agreement is such an integral part of Dover Motorsports’ financial performance that it must file those with the SEC while the two biggest publicly traded track operators (International Speedway Corp. and Speedway Motorsports Inc.) do not have to file.

Both ISC and SMI spokesmen declined to comment on whether its tracks’ contributions to the purse and sanction fees remained flat for 2012, and a NASCAR spokesman would not publicly discuss NASCAR’s business matters with tracks.

The actual sanction fee that goes directly to NASCAR is not disclosed in Dover’s documents filed with the SEC, just what it pays combined for purse and sanction fees.

Purses for NASCAR races – which primarily include what the track pays, the television allotment to the competitors, plus contributions from contingency sponsors – vary by track, with nine races in 2011 paying more than $6 million (including TV money) to the field. Nineteen of the 36 races had purses between $4.7 million and $5.2 million (including TV money). Dover’s races had purses of $5.74 million for its spring 2011 race and $5.07 million for its fall race.

The standard 2012 sanction agreement for Dover had no new provisions from its 2011 sanction agreement. Sanction agreements do not change considerably from one track to another.

The sanction agreements cover everything from track responsibilities to what NASCAR will require television networks to do.

Among the television requirements:

• NASCAR will require the television network broadcasting the event to use the official event title, excluding any presenting sponsors, at least once during the opening segment of the telecast and at least once during each hour. It cannot sell title sponsorship for the race or use another name of the race at any time and must use the name of the facility as the track mandates.

• The networks get 300 tickets to the race, one suite, a logo on the infield grass and a one-page ad in the program.

• Local television coverage is limited to no more than two minutes of video footage from the race and must be used within 96 hours of the event.
Dover International Speedway will host two NASCAR Sprint Cup Series events in 2012. (Photo: Getty Images)

Among the other provisions:

• Insurance: Tracks must carry $50 million per occurrence of spectator injury, property damage, legal liability, product liability and advertising liability and $1 million in medical malpractice liability insurance. If a track doesn’t provide coverage, NASCAR can obtain it at the promoter’s expense or cancel the event. Television networks must have NASCAR and the track listed in its general liability insurance policy with $1 million per occurrence and $2 million for the year.

• While NASCAR can ask for any improvements to the track, the track is responsible for all claims arising from the safety of the event. Tracks cannot make improvements to the track (resurfacing, sealing, painting) or to barriers, fencing, the garage area, pit area, or race control without NASCAR approval. The start/finish line must be freshly painted for the race.

• NASCAR does not guarantee the number of cars in each event nor bear responsibility for the financial success of the event.

• Tracks must consult with NASCAR on all race weekend entertainment, national anthem singers, the prerace invocation, grand marshals, honorary starters, celebrities, sports figures and political representatives who take part in prerace ceremonies.

• Tracks are responsible for jet driers, operation of jet driers and all security, including 24-hour security of the garage area.

• Tracks must adhere to the NASCAR testing policy and cannot allow any race-car practice of any kind seven days prior to the event without NASCAR approval.

• NASCAR gets 225 reserved grandstand seats and 325 parking passes for officials and competitors near the garage area plus 50 near the suites.

• Tracks can use drivers’ likenesses to promote an event, although all use is subject to NASCAR approval. NASCAR has approval over victory lane backdrops and any use of all NASCAR marks. Tracks can’t enter into any agreements in conflict with the series sponsor or official fuel supplier.

• NASCAR can cancel the race if, among other things, the track fails to pay financial guarantees, changes ownership, files for bankruptcy or engages in any activity that “NASCAR determines to be detrimental to the sport or to NASCAR.”

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DAYTONA PRESEASON THUNDER TESTING: During the Jan. 12-14 test sessions at Daytona International Speedway, fans can submit questions and comments through Twitter @SPEED (http://www.twitter.com/speed) using the #daytonatesting hashtag.
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