Cycle News - Archive Issues - 2000's

Following is the text to the AMA Pro Racing press release, entitled "AMA Pro Racing announces new partner for AMA U.S. Supercross Championship Series commencing 2003 season" and dated November 5, 2001: "PICKERINGTON, OHIO - AMA Pro Racing has selected JamSports and Entertainment as its new promoter partner for the AMA U.S. Supercross Championship Series commencing with the 2003 season and extending through the 2009 season. JamSports is a division of Chicago-based Jam Productions, the largest independent producer of live events in North America. "The decision was made by the Board of Directors of AMA Pro Racing after evaluating proposals from several companies, including Clear Channel Entertainment, the current promoter of AMA Supercross events. This current promotional agreement between Clear Channel and the AMA expires at the end of the 2002 season. "'We'd like to thank Clear Channel Entertainment for its significant contributions to AMA Supercross over the past several years,' said Scott Hollingsworth, chief executive officer of AMA Pro Racing. 'The board felt this was the appropriate time to take a long, hard look at our expectations for the future of AMA Supercross and, in particular, the type of relationship we should develop with our business partners. Several proposals were considered, but JamSports' stood out, as did the quality of executive firepower they were prepared to commit to the future of the sport.' "Mark Tuttle, chairman of the AMA Pro Racing board of directors added, 'I am pleased that after considering a variety of complex issues, at the end of this arduous process the board of directors reached a decision regarding the best long-term alternative without dIssension,' "Jerry Mickelson, a principal of JamSports, stated, 'We are delighted to have this opportunity to work with the AMA and AMA Pro Racing and appreciate the trust they have shown us by placing part of their 75 years of racing history in our hands. Our objectives are to deliver powerful and successful live events along with great television coverage the platform for tuming AMA Supercross riders into household names. We expect to provide the manufacturers and sponsors value for their investment beyond their highest expectations.' "Tony Dimitriades, also a principal in JamSports, added, 'We are convinced that the growth of Supercross is best accomplished by strengthening even further the relationship among all participants, by respecting the differing points of view and recognizing the contribution of each: "The 2003 season will feature a 16-race schedule at stadiums in major markets, including some major media markets not currently on the AMA Supercross schedule. Early confirmation of some events for the 2003 season will be made in coming weeks and a ground-breaking new television agreement is under development. "The 2002 season of AMA EA Sports Supercross presented by Speed Stick kicks off on Saturday, January 5, at Edison Field in Anaheim, California, in what's sure to be another exciting year of racing. Go to ticketmaster.com for information regarding ticket availability. " Along with its press release, AMA Pro Racing also sent another document, this one titled "Questions and Answers." These are questions asked to AMA Pro Racing by AMA Pro Racing, and again, the ideas contained in the document's text (which follows) are those of AMA Pro Racing, not Cycle News: Q: What are the details of AMA Pro Racing's partnership with JamSports for promotion of the AMA a.s. Supercross Championship series? A: This is a seven-year partnership beginning with the 2003 season and extending through the 2009 season. JamSports will be the exclusive promoter of races that are part of the AMA U.S. Supercross Championship Series. Q: Can you explain bow this new business partnership differs from the current structure and describe how it will benefit the average Supercross competitor? A: The most significant new element is the shared vision both organizations have for the future development of the sport. Under this partnership, both AMA Pro Racing and JamSports have incentive to build the value of AMA Supercross, and the agreement contains a mechanism for sharing that benefit with all participants. For example, the multi-faceted issues related to staging an event in a major media market could serve to illustrate these dynamics. The economics of the event may not appear to be financially advantageous for the promoter, but the value it provides to team, rider and series sponsors and the media may be significant. Our agreement provides an incentive for the promoter to continue with that event, thereby delivering value to all. We also view the teams and riders as our most crucial contributors. It is the job of an independent sanctioning body to maintain a level playing field, provide the safest environment possible and offer commercial assistance to teams and riders so the economic viability of motorcycle racing improves. Our new partnership sets a priority on facilitating development of team sponsors and honoring those commitments. We will also place an emphasis on producing a marketing platform that delivers exposure across all media (live event, TV, print, Internet) and provides value to teams for their sponsors. Q: Why make a change in AMA Supercross at this time? Included with the AMA Pro Racing Press Release was a document entitled "A Brief Look at AMA Supercross and JamSports: Respective Roles." Its text, which follows, contains the ideas of AMA Pro Racing, and not of Cycle News: "As the AMA Supercross championship enters its 28th year in 2002, AMA Pro Racing will continue to manage race operations, rules making and all other sporting functions. The 2003 season and beyond will see AMA Pro Racing undertake a significantly expanded role in which it will manage the marketing and television exposure for the series. Only by taking a more active role in these two important areas can the sanctioning body ensure the commercial development of the sport is shared among the stakeholders in a balanced manner. When teams, riders, promoters and the sanctioning body are healthy a sport can prosper, and balancing the often-competing objectives of these stakeholder groups along with fans - is the role of an independent sanctioning body. "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, and expects to continue this trend. AMA Pro Racing and JamSports will work closely together to determine the most effective means to generate further corporate interest in the sport and, when necessary, seek out other partners who can contribute to the commercial growth of the series, its teams and riders. Through the management of marketing and television, AMA Pro Racing can address the needs of team sponsors at events and during the broadcast, a powerful combination that will lead to new opportunities for all. "JamSports' role has been tailored to its strengths - the production and promotion of live events and the development of stronger ties to the music and entertainment industries. JamSports' experience In managing large tours in stadiums throughout the U.S. and internationally ensures AMA Supercross will maintain access to all major venues, including those currently on the schedule. JamSports intends to deliver a highly entertaining environment for fans, with new twists to extend the evening's festivities, and provide several forms of entertainment. "JamSports principals' extensive contacts in the music, television and motorsports areas are expected, over time, to provide unparalleled opportunities to cross-promote the sport to new audiences. Leading this charge will be Tony Dimitriades, currently the manager for Tom Petty and the Heartbreakers, among other entertainers. Tony's experience developing and extending the careers of his clients will serve well the stars of AMA Supercross - its riders. "JamSports will also manage, with significant input from AMA Pro Racing, the merchandising surrounding the Supercross series. It is the intent of both parties to create a collaborative merchandising campaign with the teams and riders, providing a common mechanism for the distribution of approved Supercross, team and rider licensed goods at events and other channels of distribution. We expect this effort to add significant value to participants over time, especially those outside the top five who have relatively fewer opportunities. "The vision shared by JamSports and AMA Pro Racing was extremely important in the decision making process. In managing the careers of its artists and racing driver clients, JamSports' perspective on the competing interests of promoters and participants is entirely consistent with AMA Pro Racing's perspective. The structure of the agreement between the parties provides incentives for both to build and develop the AMA Supercross brand while including the teams and riders in the growth of the sport." A: AMA Pro Racing's existing contract with PACE/SFX/Clear Channel expires at the conclusion of the 2002 season, and negotiations have been ongoing for some time. After considering proposals from a number of potential partners, including PACE/SFX/Ciear Channel, the AMA Pro Racing Board deter· mined that the approach offered by JamSports is best suited to meet our mission of developing our racing series on a balanced basis with shared benefit among promoters, participants and the sanctioning body. Q: What effect will this have on the 2002 season? A: None. Our working relationship with PACE/SFX/C1ear Channel at the event level has been very good, and we expect that to continue this year. We will put every effort into making the 2002 season the best yet, and we are confident that PACE/SFX/Clear Channel will do the same. Q: Will current venues remain on tbe AMA Supercross schedule in 2003? A: Work is just beginning on producing dates, cities and venues for the 2003 AMA Supercross Championship Series and we expect many of these events will be held at familiar locations. In upcoming weeks, we will announce the new cities that will be included in the 2003 season, and we expect to finalize the balance of the schedule soon thereafter. JamSports has long-standing relationships with top venues throughout the country, so the ability to obtain contracts with stadiums for Supercross events will not be an issue. Q: Does this partnership mean that AMA Pro Racing is now in the race promotion business? A: No. Throughout the 27 -year history of AMA Super. cross, various companies, including PACE, SRO, Micky Thompson, International Speedway Corp., Speedway Motorsports and others have promoted AMA Supercross races. AMA Pro Racing, after a long and deliberate review process, has simply selected a new promoter for the AMA U.S. Supercross Championship Series. Q: What will this mean for riders, teams and sponsors involved in AMA Supercross? A: The AMA championship has long been the most sought-after title in Supercross racing. That reputation has resulted from a number of factors, including the AMA's 77- year history of running national championship racing programs, the AMA's 27 years of developing the Supercross concept, the commitment made by motorcycle manufacturers to showcase their products in this series, and the exceptional level of talent brought to this series by riders from the United States and overseas. All of those factors have com· bined to make the AMA U.S. Supercross Championship Series not just one of the most exciting forms of motorsports on earth, but also a great opportunity for sponsors looking to promote their products to an enthusiastic audience. We expect this partnership to enhance every element of that previous success, meaning that the AMA U.S. Supercross Championship Series will offer greater opportunities for riders to develop into internationally recognized stars, for manufacturers to demonstrate the technical proficiency built into their machines, and for sponsors to be connected wit.h racing at the most professional level. Q: You note that the new partners at JamSports have a long history of developing the careers of musical artists. How can this experience and skill benefit a Supercross competitor? A: Bujlding and enhancing careers is just as vital for artists as it is for Supercross racers. JamSports' expertise in increasing exposure for musical artists such as Tom Petty can be applied to the stars of AMA Supercross. Jam will work with the riders' managers to develop plans benefiting individual racers and the entire sport. Q: What effect will this partnership have on the televi· sion package for Supercross racing? A: AMA Pro Racing and JamSports are hard at work on a new television package that dramatically increases exposure for the sport. We expect to significantly increase the television fan base and, as a result, improve the public awareness of our sport and its riders. Q: Will that new package include pay-for-view events, or do you anticipate securing airtime on broadcast and cable networks? A: With our anticipated television package announcement, there will be no need for fans to pay to watch AMA Supercross on TV. cycle n • vv s NOVEMBER 21, 2001 7

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