TV deal was on low end of scale
By Don Coble| Morris News Service
Thursday, December 29, 2005

While NASCAR continues to celebrate its new eight-year, $4.48 billion television contract, investors aren't so sure it's a good deal.

The new agreement represents nearly a 40-percent increase over the current contract, but some wonder whether NASCAR got enough.

Even NASCAR chairman Brian France admits NASCAR will never catch the National Football League as the most popular sport on television. But at No. 2, stock-car racing could have demanded more, said one financial analyst.

"We believe the announced contract is on the low end of the expectations," said Joseph Hovorka of Raymond James Financial.

NASCAR will get about $400 million a year once the new contract starts in 2007. That's well short of the projected $573 figure Wall Street expected. Once the contract was signed, some Wall Street companies recommend its clients sell shares of International Speedway Corp., the company that owns half the race tracks in NASCAR.

ISC dropped $5.70 a share when the contract was announced two weeks ago and hasn't recovered.

PETTY OFF TO FAST START: Petty Enterprises, along with its new all-star cast, just completed its first test session.

The team worked out at Kentucky Speedway with hopes of getting new driver Bobby Labonte, new crew chief Todd Parrott and new team manager Robbie Loomis to get to know each other. All three have won NASCAR Nextel Cup Series championships.

"I'm just real excited to work with Todd and all these guys," Labonte said.

Parrott said he doesn't expect the same kind of growing pains that usually come with a major shakeup.

"Not to say that we're not looking for great success right off the bat, but I'm throwing things at him, he's feeling it and that's good," Parrott said. "Just from some things he's said this morning, I think it's going to be a great year."

The Petty team was allowed to test at Kentucky since that track doesn't host Nextel Cup Series races. The first official test will come in two weeks at Daytona International Speedway for the Daytona 500.

EARNHARDT AUCTION: One lucky fan got the opportunity to work a day at Dale Earnhardt Inc.

The team took bids for a fan to spend a day behind the scenes at the race company that fields cars for Dale Earnhardt Jr. and Martin Truex Jr. The winner got to sweep floors, fetch tools, work in the fabrication and engine shops and shine cars.

Proceeds from the auction benefited the Dale Earnhardt Foundation.

From the Thursday, December 29, 2005 edition of the Augusta Chronicle
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