The Scoop
STREAMING RACES ONLINE – HELPING OR HURTING THE SPORT?

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Posted on: Thursday September 29, 2022

Shawano Speedway’s Brad Luepke can stream as many as three different races at a time in his “mancave.” (Brad Luepke photo)

Is the online streaming of short track races (on dirt or asphalt) hurting or helping stock car racing in the United States?

As of 2022 several streaming services have gone full tilt and currently serve up events from coast-to-coast 12 months of out of the year. You’ve got Flo Racing, Dirt On Dirt, Dirt Vision and IMCATV, Speedsport TV, RacinDirt for starters. There are others such as XR which broadcasts its own shows.

Each service provides its own ‘niche’ so to speak with some featuring sprint cars, dirt late models, pavement races, so on and so forth.

But has this emergence of being able to watch a race from your cozy couch in your mancave at the click of your fingers on your mobile device helping or hindering both the weekly and series/tour promoters? Or do the pros outweigh the cons when it comes to a racetrack’s bottom line? After all a track promoter cannot sell beer or cheeseburgers to someone who isn’t there.

We reached out to more than one dozen track and series promoters in the Midwest. Some were very hesitant to give any “on-the-record” statement while, yet others were very candid and frank about their “take” on online streaming and its effect on short track racing across the United States. Yet others simply declined (for whatever reason) to respond to an email request.

We’ve also contacted a few seasoned, avid race fans and got their take on the ever-evolving world of online streaming of races. And truth be told the answers are all over the board – from both fans and track promoters alike.

(A DISCLAIMER – as the author of this story I must admit I’ve never once streamed a race online. I have nothing against the online streaming of races either way. I simply don’t have the discretionary time to devote to watching an entire race program either on my phone, laptop or television.)

Bob Schafer of Oshkosh, Wisconsin could be considered a true “superfan” attending more than 250 shows annually across the United States. Here’s Bob’s take on video streaming from the paying customer:

“Having multiple platforms available to sit at home and watch short track racing from coast-to-coast every weekend and probably three other nights per week it has become far too easy to use every excuse in the book to not attend a short track in the area.  If there is a 40% chance of rain why chance it – stay home and set-up three screens to watch various events.  How about the kids have an event until 3 pm on a Saturday – now it’s a matter of dragging them back out to a short track race or choosing to stay home and let them do whatever while watching XYZ Speedway online.  Simple choice.  And how about the ever-increasing price of what seems like everything playing into it – obviously it’s cheaper to sit at home once the subscription is purchased then head to the track, buy a ticket and concessions, and fill the gas tank back up again.

I always hear that streaming services don’t seem to hurt attendance at special events.  I would likely concur with that.  If Beaver Dam Raceway is hosting their two World of Outlaw races attendance is likely not going to wane because those races are also available online.  The issue I see with it is the WoO head down the road the next weekend to a three-night stop in North and South Dakota.  The race fans in Dodge County likely don’t follow the path of the drivers to those races but, if a subscriber, have every chance to sit at home and watch those three races rather than attending Friday-Saturday-Sunday races in their area.  Prove to me this does not have an impact on weekly racing crowds.  There is NO way it doesn’t cut attendance in some way.  No way.

Major league sports can get away with it.  Yet, most get it.  A Chicago Cubs-Los Angeles Dodgers game on regional sports channels is not available outside the general areas of those two teams.  Thus, if you want to watch baseball that night you must turn to the team closest to you or buy a subscription for out of market games.  Unfortunately, the Shawano Speedway can’t get a kick-back from DirtVision when 20% of its normal fan base is sitting at home watching the USA Nationals from Cedar Lake Speedway in early August.  That’s the killer in it.”

Brad Luepke is the marketing director for Shawano Speedway. He’s also a race fan of sorts who’ll stream at times up to three different events in his “mancave.” Luepke brings up revenue sharing in his take on the future of streaming and it’s effect on short track racing:

“(Online streaming of races) It’s truly a double edge sword. It most certainly gives the tracks and the sport more exposure, but in the same case, streaming your weekly shows can affect your fan count. Tracks need to make sure they are getting enough of the revenue share pie to make it beneficial. Whether we like it or not, Streaming is here to stay and will only get bigger. Tracks will need to make sure they are making enough off streaming to cover their bottom line. I also feel we will start seeing area tracks possibly getting together running their own streaming service and do everything in house to utilize the most value they can.”

Dave “Pokey” Schlise of Shawano, Wisconsin while not a superfan like Schafer still works on occasion at racetracks and travels throughout the country to attend short track races 12 months out of the year.

“I think (streaming) hurts tracks overall. If the weather is iffy or cold or hot just stay home and watch a race. Sanctions like USAC, IRA, ASCOC or ASCS all sell their product. So, say you have a family of 4 and USAC is close by. If it cost $100 just for tickets I think 50% of the fans would just stay home.

And the grumpy old guy in me says, why sit in the dusty conditions most tracks have? Plus, Mom doesn’t want to give the kids a bath at 11 p.m. I think the day is coming where tracks will have their own PPV. I mean they already just hang 3 or 4 cameras and tap into the announcer feed for some events.”

Brett Root, president of International Motor Contest Association (IMCA), one of the oldest sanctioning bodies still active in the United States.

“Streaming is all over the board right now. Kind of like the wild west to be honest. Anyone with a camera is attempting to stream events and claim the broadcasting rights. The industry has yet to prove who controls the broadcasting rights. Sanctions, tracks, series and even the racers are all claiming rights.

Some streamers are attempting to lockdown streaming rights at events for 7+ years and even sell the contracts they have for much more money than what the promoter is being paid.

Many IMCA tracks stream their own events. IMCA.tv’s streaming model is a PPV model. We use the Riivet platform. We also offer a subscription model for the “replays”, but we do not broadcast any events live that are not PPV.

Streaming can be used to capture revenue the promoter may never get otherwise. A race fan in California is not going to drive to Boone weekly to watch racing, but our model has proven they will purchase the stream.

The local race fan may stay home and watch the PPV too. That’s the downside. It’s also why IMCA.tv refuses to offer a live “subscription” model that offers racing for pennies on the dollar. If the racetracks aren’t too careful, they will incentivize race fans staying home, watching the stream at a reduced price, and sending most of that money to the streamer and not the promoter. It’s a lose – lose if the promoter is not careful.

Payment to the promoter varies depending on the event. Location (time zone), track, the event, staffing, equipment needed (no internet), travel and the quality of the show all matter. IMCA.tv operates under profit splits. The events with the most viewers make the most money. Those with no viewers make none. The sub model is much different. The sub model attempts to pay the track fairly, but that model may underpay a great event and overpay a poor event. It’s why most tracks are moving to a PPV model. It’s much more transparent and especially so for racetracks with great reputations and great racing.

Regardless, streaming is here to stay. How exactly it will impact the industry is still yet to be determined. The tracks that are doing it correctly, are finding a great deal of value in it.”

Gregg McKarns, General Manager of Madison International Speedway (MIS), Midwest Tour and Angell Park Speedway (Sun Prairie, WI)

“The Tour is part of Speed Sport Network, MidwestTour.tv monthly subscription and they handle all production.  Madison and Angell Park rely on the visiting series to broadcast if they see fit and then pay a fee back to track, ranging from $500-$2000 depending on event.  I am not yet sold that weekly racing needs to be streamed.  We do NOT own any of our own cameras/production equipment.  We have a race to run, we owe it to the fans/drivers that our attention is concentrated on that task.

For the tour we get a flat fee based on the event and then pay that to the event promoter which a lot of times is us.  We share once the threshold has been met but have been reinvesting that back into the streaming business, some fun historic broadcasts are coming soon, Jumbotron, etc.

Rainy/cold nights can be a challenge.  Some models work in conjunction with the front gate while others seem to give it away……time will tell as this is still new to most of us.  While I do not like giving an option of not being there, I understand that some sometimes one is unable to attend.  The good thing is that is makes all of us (or should) look at our operations and encourages us to make ‘Can’t Miss’ events throughout the summer to make sure fans go through the gates.  It is concerning seeing some of the crowds at events that are streamed around the country, that said others that are streamed have been home runs as well.  Maybe it has always been that way with the crowd turnouts but now it is on the internet for everyone to see.

I enjoy having a quality broadcast via streaming to represent our products, the drivers like it, the fans seem to enjoy it.  We have streamed our specials for half a dozen years or more now and today’s stream product is head and shoulders above even 2019’s.”

Bill Weinaug handles Sales, Marketing and Promotions for Plymouth Dirt Track (PDTR) in Plymouth, Wisconsin

“At PDTR we do not offer steaming for our weekly shows however some of the outside touring series that come in do. We do not provide any equipment to them as they bring their own in. The series is totally responsible for the broadcast other than tapping into our microphones to use our announcers for play by play.

The cons of live streaming outweigh the pros in our opinion.  First, some of our regulars stay home to watch multiple series instead of coming to the track. This reduces income at the gates and concessions areas. It also hurts the local community itself from the standpoint of fans not using local restaurants, gas stations, hotels and other forms of shopping.”

(Back to the author here) – One touring series and weekly track promoter (who did not want to be named) suggested a “blackout” within a 150-mile radius of any racing event. But truth be told logistics with something of that nature leave more questions than answers at the end of the day.

I’ve always maintained racing is like a three-legged stool. All three legs need to be strong for the sport to survive. One leg consists of the paying customers – the race fans. Another leg is the participants who have time and money into their respective operations.

The third leg is the actual track promoters themselves. Like the race teams they’ve got true skin in the game and provide the “playground” for the racers to put on a show. When one of these legs breaks or falters in any way, shape or form, the program suffers.

This discussion leads to another topic I’ve talked about more than once and that is the future of weekly racing. I’ve opined more than once that chasing a weekly points championship has lost its luster and fewer and fewer racers are committing to that weekly grind compared to 20 or 25 years ago.

With that being said, special events have become a higher priority at many dirt tracks in Wisconsin than the weekly show. I point to a track like The Hill in Sturgeon Bay, Wisconsin that have run an abbreviated schedule. It’s enough of a schedule to keep the lights on, keep the local teams racing and maybe prevent the team of promoters who have a true skin in the game from burning out.

And if more tracks continue to take more weekly nights off and focus more on bringing in higher dollar special events that carry more financial risk you can bet your bottom dollar the online streaming services will be more prevalent than ever.

As I stated earlier, I’ve got nothing at all against online streaming of races. But it’s not an exact science by any means. As promoters mentioned at the top of this story as an industry, we’re traveling on unchartered waters with this. And the successful track and series promoters will make the most prudent decisions in the coming years to remain financially solvent and in the black. Time will tell.

At any rate I’ll still maintain that NOTHING beats being there. You cannot capture the smell of the burgers sizzling on the grill, or the hot buttered popcorn popping, or smelling the methanol fumes or getting your shoes full of clay. Or visiting with friends and sharing a cold one with a friend and betting on the races.

Nothing beats live entertainment and enjoying a short track race in person. Watching a race on your tablet at home can never replace that. Get out and support your local short track in person whenever possible. And if circumstances prevent you from being there in person, the online live streaming will continue to provide an option for those fans for many years to come.

Discover more from Joe Verdegan | joeverdegan.com

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