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SOURCE International Speedway Corporation
~Announces NASCAR schedule changes impacting Company for 2015
DAYTONA BEACH, Fla., Aug. 27, 2014 /PRNewswire/ -- International Speedway Corporation (NASDAQ Global Select Market: ISCA; OTC Bulletin Board: ISCB) ("ISC") today provided additional details on NASCAR's domestic broadcast rights contracts for its Sprint Cup, Nationwide and Camping World Truck series beginning in 2015, as well as changes to its NASCAR calendar of events for 2015.
In August 2013, NASCAR finalized multi-platform broadcast rights agreements with NBCUniversal ("NBC") and Fox Sports Group ("FOX") for 10 years, beginning in 2015 through the 2024 season, for the broadcast and related rights for NASCAR's three aforementioned national touring series. The agreements include Spanish-language rights and 'TV Everywhere rights', which will allow NASCAR content to stream over the broadcasters-affiliated websites.
Based on information received during sanction agreement negotiations with NASCAR, ISC's contracted TV broadcast revenues under these new contracts beginning in 2015 will increase to approximately $316 million, or 3.8 percent. ISC's contracted TV broadcast revenue for 2014, under the existing contracts expiring at the end of the 2014 race season, are expected to total $304 million. Further, ISC's rights revenues under the new contracts are expected to increase between 3 percent and 5 percent over the 10-year contract term, at an average of 3.9 percent.
The net broadcast revenue allocation to ISC reflects no change in the historic participation between stakeholders in the sport's only shared revenue model: 65 percent to promoters; 25 percent to race teams paid through prize and point fund monies; and 10 percent retained by NASCAR.
"Broadcast rights represent ISC's largest revenue segment and these recent deals provide us the long-term visibility to continue investing in our business to the benefit of our fans, partners and local communities while continuing to build shareholder value," stated ISC Chief Executive Officer Lesa France Kennedy. "We are poised to elevate ISC and the sport by having two of the world's largest media companies – NBC and FOX – promote NASCAR."
The following NASCAR schedule changes will impact the Company's calendar of events for 2015:
"We are excited about NASCAR's 2015 schedule, particularly moves for Phoenix and Darlington dates," stated ISC President John Saunders. "While the Coke Zero 400 Powered by Coca-Cola will change to Sunday, July 5, 2015, this will mark the kick-off event of NBC's return to NASCAR as well as the debut of several new elements of DAYTONA Rising at Daytona International Speedway – 50,000 new grandstand seats along the frontstretch, vertical transportation, concessions, restrooms and social areas."
Management will provide its perspective on the 2015 media rights revenues and benefits of schedule changes on its third quarter earnings conference call.
International Speedway Corporation is a leading promoter of motorsports activities, currently promoting more than 100 racing events annually as well as numerous other motorsports-related activities. The Company owns and/or operates 13 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; Auto Club Speedway of Southern CaliforniaSM near Los Angeles; Kansas Speedway® in Kansas City, Kansas; Phoenix International Raceway® in Arizona; Chicagoland Speedway® and Route 66 RacewaySM near Chicago, Illinois; Homestead-Miami SpeedwaySM in Florida; Martinsville Speedway® in Virginia; Darlington Raceway® in South Carolina; and Watkins Glen International® in New York.
The Company also owns and operates Motor Racing Network, the nation's largest independent sports radio network, and Americrown Service CorporationSM, a subsidiary that provides catering services, food and beverage concessions, and produces and markets motorsports-related merchandise. In addition, the Company has a 50 percent interest in the Hollywood Casino at Kansas Speedway. For more information, visit the Company's Web site at www.internationalspeedwaycorporation.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.
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