Cycle News - Archive Issues - 2000's

Cycle News 2001 11 21

Cycle News is a weekly magazine that covers all aspects of motorcycling including Supercross, Motocross and MotoGP as well as new motorcycles

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The AMA Pro Racing/Clear Channel Divorce By THE CYCLE NEWS EDITORIAL STAFF @O@(f)f? @OD(f)[JD[JD@O f]j)®f1®f? ~[j)®[?{Jr:B Charlie Mancuso President Back in May of this year, we reported that AMA Pro Racing (the sanctioning body of EA Sports Supercross) and Clear Channel Motor Sports (the series' promoter) were in the midst of an ugly dispute. Just how ugly that dispute was became clear on Tuesday, November 6, when we received a press release from AMA Pro Racing, announcing that the EA Sports Supercross Series sanctioning body would be parting ways with the promoter as of 2003. This is one of the most important developments in American motorcycling in quite some time, and there is no shortage of opinions on it. To enable our readers to better formulate those opinions, we have collected the reactions from a wide variety of parties directly affected by the news. eN What with mergers and acquisitions, PACE/Supersports has changed to PACE Motor Sports, to SFX Motor Sports, to Clear Channel Motor Sports since the last contract between AMA Pro Racing and the promoter group, and it currently produces all but one of the EA Sports Supercross Series rounds (Daytona is the single exception). Relations between the sanctionjng body and the promoter have long been rocky, and the conflict came to a head with the November 6 announcement by the former that it would be going with a new promoter fOllowing the expiration of the current contract. Clear Channel Entertainment Motor Sports president Charlie Mancuso faxed Cycle News his answers to our emailed questions on Friday, November 9. What was your initial reaction to the news of the AMA's decision? Surprise and disappointment. We have been negotiating for a long time, and we were operating with the specific understanding that before any decision was made, we would meet face to face with the entire Board of Directors. That has not happened yet. Were you also surprised that the nr.ws was made public at this time? Yes. With the recent announcement of AMA Pro Racing's split with Clear Channel, the possibility exists that the sport's top two riders Ricky Carmichael and Jeremy McGrath could end up competing In different series in 2003. How seriously do you feel the AMA pursued an agreement with Clear Channel? I hope they are as serious as we are. We have been negotiating with P.J. Harvey, and he was a very tough negotiator, but in every singie case, he was professional, straightshooting and up-front. The fact we never met with the fUll board is disturbing. You have to ask the AMA how seriously they want an agreement with Clear Channel Entertainment. With regard to the current supercross series, what risks does Clear Channel take, and what contributions does it make? Clear Channel takes 100-percent of the risk to promote and produce all 15 of the events [the Daytona, Florida, Supercross is not produced by Clear Channel). We take the risk to book venues, market the races, run the operations, develop network television and radio distribution, produce, manufacture and warehouse an entire line of merchandise, conduct nationwide marketing and public relations campaigns to expand the sport and reach new customers, and in general we make investments in the events we produce to help grow and expand the entire industry of off-road motorcycle racing. We have over 200 employees. In addition, CCE has risked tens of millions of dollars in acquiring events from other promoters over the past six years. The results of these investments enabled us to significantly improve our contributions in every single area of supercross. The record of our contributions to the industry and to the sport is clear for anyone to evaluate. EA Sports Supercross is by far the most successful motorcycle race series in the world. We believe we have played a major part in the success. Our passion: to maxjmize attendance; our genuine desire: to maintain the purity of the sport of supercross racing and make each week as organized and efficient as possible for each and every team, rider and family member. Through our cash investments, we have been able to significantly Improve and enhance the television exposure of supercross on ESPN2 and ABC. In 2002, there will be four ABC telecasts of the series. ABC is not paying us a right fee; we are risking, investing over $300,000 per program to clear it and air it on the ABC Network. Fifteen-thousand fans around the world listen to EA Sports Supercross live on the Web because we invest in excess of $ 100,000 in losses to develop this. The same with PayPer-View. Our contributions in paying double the amount over and above what the AMA contract calls for in bonus money and privateer funds, etc. The AMA press release states that « ... AMA Supercross will maintain access to all major venues, including those currently on the schedule." Is this possible, in your opinion? We have signed agreements with all the venues we present supercross in. Those contracts are valid beyond 2003. We will definitely be producing supercross events in 2003 and beyond. We hope it is with the AMA sanction. These events will take place with or without the AMA. The AMA press release also states that "AMA Pro Racing has already found a high degree of success in attracting non-motorcycle-industry sponsors such as Chevy Trucks, Mazda, Speed Stick, EA Sports, Progressive Insurance, and MBNA to its championships... " Is this accurate, in your opinion? I cannot respond to the accuracy of AMA comments regarding sponsorships they sell for non-supercross events. I can tell you that every single sponsor of the EA Sports Supercross Series was sold by CCE and is serviced by CCE exclusively. Are you counting on the continued involvement of the factory race teams in your series? Yes, definitely. 6 NOVEMBER 21,2001 • cue I e n e _ s

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