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I know, I thought it was called SPEED Channel…

Sports Business Journal has an interesting article regarding the potential of NASCAR creating its own cable network after its television contracts end with FOX, TNT and ESPN/ABC in 2014.  It is an interesting concept since there is an existing cable network (News Corporation-owned SPEED) that largely does the same thing. 

Lots can change in the next few years, but given NASCAR’s faltering attendance and ratings in the past two years (FOX’s NASCAR ratings are down at least 10% year-over-year so far with two races left in its package), one wonders if NASCAR’s decline in popularity is a temporary hiccup or a sign of a larger problem.  The downturn in the economy can explain away many of the empty seats at various tracks as fans, who often drive many miles to see their favorite racer, choose to stay at home to save money.  However, as Michael Hiestand, the TV critic for USA Today, has said, and I am paraphrasing here, staying away from the race track is one thing, but it doesn’t cost someone to sit on the couch at watch the race. 

Another concern is the lack of sponsors this year.  Again, some of this is understandable given the economic environment, but there have been signs that some long time sponsors, such as Kodak, think that big ticket sponsorships of racing teams, which cost somewhere between $15-25 million, are no longer worth it.  This has led to lay-offs and mergers among the race teams and cars (some in the Sprint Cup Series, and many more in the Nationwide and Camping World Truck Series) running without sponsors on the hoods and back panels.  The lack of sponsorships has also affected the TV networks who have been challenged in selling ads and have been cutting production costs (notice a lack of blimp shots recently?).  Finally, consider the future of General Motors and Chrysler.  In short, the “win on Sunday, sell on Monday” strategy of Detroit is under serious challenge.

In short, NASCAR has some problems it needs to solve in the near term.  How it solves those problems will help determine whether the channel becomes a reality.