"Warburton determined to get V8s back up to speed" - Fin Review

[GTRMagic]

if anyone had any doubts that Mr Warburton was an ideas man...

Originally Posted by AFR Mon 8/7/13 P42, Sports Review

Warburton determined to get V8s back up to speed
By John Stensholt

Twilight racing scheduled for prime time television is among widespread changes the new chief executive of the V8 Supercars, James Warburton, has planned for the motor-racing circuit.

The V8s are also set to put further international expansion on the backburner and may further consolidate the number of races in Australia. Warburton is also not ruling out further changes to the racing format and potentially a slight shift away from the sport's traditional winter calendar.

In his first major interview since starting as CEO in June, Warburton tells the Australia Financial Review the V8s are performing well on the track, but concedes he has a lot of work to do in order to turn the business of the sport around, including filling the vacant major sponsor position, negotiating a more lucrative broadcasting deal and signing new deals for its races in Queensland and NSW.

"The thing I've found is that the actual sport is in brilliant shape," Warburton says.

"Where we have to focus is the business itself, which is quite weak. The commercial outcomes...and the focus on the business is something I've found to be lacking."

Warburton, who was sacked as CEO of Network Ten in February, says the V8s need to work more closely with the incumbent broadcaster Seven West Media, with which it signed a two-year earlier this year that delivers it $10 million less cash annually than the previous contract.

"It's certainly disappointing for a sport to go backwards," Warburton says. "We are getting one million viewers across a weekend, so if we can improve our product and grow that number further, think about twilights and grow it into primetime, then we can grown revenue and the value of the rights."

Given his background in television - he also worked for Seven in sales roles for more than a decade before leaving in 2010 - Warburton, who says V8 racing can be quite "malleable" for TV, knows the value of a sport being in primetime, hence the search for a way for the sport to race in the twilight.

"I'm a huge fan of twilight racing. If we can increase the interest in our sport and work with our network partners to bring the events into primetime, it is a really crucial part (of the plan) .

"Everyone tells me night racing isn't economically viable, but that just makes me more determined to find a way. We would be, without doubt, spectacular under lights. i will find a way. It brings other nights of the week into question too - it doesn't have to be weekend racing."

Even more important in the short term is the drive for more revenue. It is understood revenue for the V8s which is majority owned by private equity firm Archer Capital, is likely to be about $180 million this year with profits of at least $20million to $25million.

That compares to profits of $30mllion to $35million when Archer paid $160 million to former owners Sports & Entertainment Ltd in 2011 for a 60 percent stake (team owners and former chairman Tony Cochrane own the remainder). The series also needs a major sponsor worth about $3.5million, after Telstra chose not to extend its contract last year.

Warburton says he intends to find ways to better cross-sell to advertisers, something he has experience from at his days as Seven. "I want to be the business of choice for advertisers. I have spent a lot of my life selling integrated properties.

"When you think about what we have got, we've got 237 hours of TV, we have two million going to tracks and 19 million (in total) watching our TV product, so we have a fantastic integrated property for a client to look at."

He also says the V8s will not pursue further international races beyond the current events in Texas and New Zealand nor expend its calendar, a key strategy of previous management.

"This obsession with 18 or any number of events, we are making a departure from that"

Warburton also says the V8s are close to securing an extension to their contract with the Queensland and NSW governments for five races across those states. It is likely the V8s will receive less money from government to support those races.

He also wants to work more closely with car manufacturers, including long-time partner Ford, which is set to cease manufacturing in Australia.

"We will be creating a manufacturer's forum to deal with them day in and day out to ensure we are working closely with them (in terms of) sales and marketing and engagement with teh fans, to make sure they can't walk away from the sport"

Is it strange that the series CEO is so amazingly forthright in a financial publication like the Fin Review, yet the likes of AA/Speedcafe have not been able to eke such thinking from him?

[formerf1champ]

Thank God someone isn't obsessed with overseas races! I wasn't sure about him, I'm not as familiar with him as some of the rest of you are. But I'm somewhat optimistic about what he intends do. I don't mind the idea of going away from right through the winter. Growing up, I thought it was weird the NZ season was over summer, only to realise motor racing seasons, historically, are in the summer and Aussies are the weird ones!

Originally Posted by GTRMagic

if anyone had any doubts that Mr Warburton was an ideas man...



Is it strange that the series CEO is so amazingly forthright in a financial publication like the Fin Review, yet the likes of AA/Speedcafe have not been able to eke such thinking from him?

Are you saying we should be buying the Fin review for our motor racing news? Because the only time I ever read it is when you quote/link an article.

[Tourer]

Originally Posted by GTRMagic

Is it strange that the series CEO is so amazingly forthright in a financial publication like the Fin Review, yet the likes of AA/Speedcafe have not been able to eke such thinking from him?

Maybe it's because the likes of AA/Speedcafe simply don't ask the right questions?

He definitely has a plan from the sound of that - positive.

[GTRMagic]

Originally Posted by Tourer

Maybe it's because the likes of AA/Speedcafe simply don't ask the right questions?

He definitely has a plan from the sound of that - positive.

Its a solid article, shows off Mr Warburton away from the sound bytes we get on the likes of #7. The business acumen is also clear, acknowledging the deficiencies in the current operation, and having a strategy to change that, and knowing the benefits from those outcomes..

Mr Stensholt seems well across the integration of sport, business and the marketing outcomes for a number of sports, inclufing tennis, AFL, NRL, FFA etc.

When I watched the NASCAR at Daytona at the weekend, it kinda gets you wondering if twilight meetings could work. They work in Speedway..

[FAS33]

it works in a little race they call The Le Man 24hr race too..

[rik]

Originally Posted by formerf1champ

Thank God someone isn't obsessed with overseas races!

Too right.... Texas does nothing for the TV deal, it's totally wrong time of day to give any value to the broadcaster.

[rik]

Originally Posted by GTRMagic

Its a solid article, shows off Mr Warburton away from the sound bytes we get on the likes of #7. The business acumen is also clear, acknowledging the deficiencies in the current operation, and having a strategy to change that, and knowing the benefits from those outcomes..

Sounds like a good way to engage with the big corporate world and find some proper series sponsors.

Wonder if he will be able to convince Ford to stick around?

[Tourer]

Originally Posted by GTRMagic

When I watched the NASCAR at Daytona at the weekend, it kinda gets you wondering if twilight meetings could work. They work in Speedway..

The issue with twilight races has always been the cost of the lighting - if the lighting is not strong enough, the cars run with their headlights on which makes for lousy TV as the cameras only cop the glare of the headlights.

If they can overcome the lighting concerns by one means or another, there's a lot to be said for twilight or evening races - they're good now from a live spectacle point of view, the challenge is providing good TV viewing and therefore taking advantage of the prime time opportunity.

[mountainstar]

Well since TC left the sport's business has been left drifting like a leaky boat at sea without a motor, so this is what it needs.

[Trevor]

Tracks likes Winton, Ipswich and Tassie could be ideal for lights, maybe even Barbagello

[GTRMagic]

I was thinking more about a twilight event at Clipsal... they already fo it for GT, and have done it for the development series in the past...

[Average Punter]

I'm no guru but is a "twilight" race in "prime time" anyway?

[Axeman444]

Originally Posted by Average Punter

I'm no guru but is a "twilight" race in "prime time" anyway?

depends on the time of the year, twilight at Clipsal in February would be 6.30 - 8.30, so probably yes, twilight at Winton in August would be 4.00 - 6.00, so not really

Originally Posted by Tourer

Maybe it's because the likes of AA/Speedcafe simply don't ask the right questions?

He definitely has a plan from the sound of that - positive.

or in Speedcafe's case, waiting for the press release to be issued

[cptkablamo]

Fin Review - more resources (though seemingly fewer by the day) more experienced journos who have danced the dance with bigger badder folks than those at V8 central. They know how to get this kind of news and how to report it. Plus they don't have to rely on V8 supercars for their existence...not a dig at the others but a simple matter of fact in the media world.

Great article though. Seems like the first time in a long time we have got a shred of credibility from anyone from within V8 Supercars. Open and honest interview. Not so surprised that they would give out financial details - I didn't think they would be in such a strong position to be honest. A few twilight races would be fun, concentrating on enhancing Australian motorsport would be fun and I think looking at when the races are, some experimentation could be great for the sport.

[Mixer]

Does nobody else remember the twilight/night race at Calder in '96? It was bloody awesome! I was there though, don't know what the TV coverage was like...

You'd think a track like Winton or QR would be good candidates, because of their fairly compact nature?

A street race would certainly be spectacular but you need someone to get behind it, are you listening Tony Quinn?

[Umai Naa]

Eastern Creek was '96.

Calder was '97

Here's hoping some awesome night-time liveries like this one appear:

[Mixer]

Originally Posted by Umai Naa

Calder was '97

Right you are!

[GTRMagic]

Did anybody notice AdCafe referencing this very article in its latest 'news' story

[mountainstar]

Originally Posted by Mixer

Does nobody else remember the twilight/night race at Calder in '96? It was bloody awesome! I was there though, don't know what the TV coverage was like...

You'd think a track like Winton or QR would be good candidates, because of their fairly compact nature?

A street race would certainly be spectacular but you need someone to get behind it, are you listening Tony Quinn?

I have all those old night races from the 1990's on DVD and they were fantastic. The sport certainly needs something like that again.

[GROUPA]

I went to both the V8's & Super Tourer races @ Calder...I remember Skaife running Coopers & Lybrand livery...the racing was great except stumbling around in the dark on the back straight in the mud on the hill for the 2 litres

Clipsal would be ideal and Ipswich & Winton

While we are at it and given ANDRA is back at Calder whoever runs Calder should put some coin into the place and have the V8's return under lights.

[D.R.T.]

Good to see the PR machine is on song.

Considering the fortune of the previous 5 or so CEO's - I think people should be waiting a little longer before getting on the bandwagon

But the hangover from the 2007 - 2012 period still lingers.

All the best Mr Warburton.

[eduardo1]

Originally Posted by GTRMagic

Is it strange that the series CEO is so amazingly forthright in a financial publication like the Fin Review, yet the likes of AA/Speedcafe have not been able to eke such thinking from him?

Different messages for different publications. When talking to AFR he's talking to Archer and the companies he wants commercial support from.

Plus, coming from the TV & Corporate world, he potentially has trust with the AFR from previous roles that hasn't been built yet with the motorsport outlets.

Early days, but I'm seeing a lot of similarities between him and Dave Smith in the NRL. Not getting drawn on the sporting minutiae, which is the province of Speedcafe/AA etc, rather talking to the business community as his role is a business one, not a sporting one. He has delegates and subject experts to advise him on sporting & technical considerations but will only step in on overarching 'brand' issues (ie: like Smith with the Origin/NRL fighting rule).

I don't get every publication every week, but has any specialist motorsport publication done a genuine in-depth interview with him yet?

[eduardo1]

Originally Posted by Tourer

The issue with twilight races has always been the cost of the lighting - if the lighting is not strong enough, the cars run with their headlights on which makes for lousy TV as the cameras only cop the glare of the headlights.

If they can overcome the lighting concerns by one means or another, there's a lot to be said for twilight or evening races - they're good now from a live spectacle point of view, the challenge is providing good TV viewing and therefore taking advantage of the prime time opportunity.

Other issue is fan safety in a venue which is not stadium seated. Could you really imagine traipsing around Eastern Creek in the dark? You'd have broken limbs galore as everyone tripped over. Even when they did it in 96 it was a half-track race.

I'd love to see it, but there'd be very few events that it could realistically work at.

One that would make a lot of sense would be Homebush though. It's in summer, so daylight savings. It's got a lot of permanent lighting there already because it's used to having people there at night. Unsure about how easily it could be lighted from a track perspective though. But it would also be a great way to finish the season, plus you'd have a seamless crossover from racing to the concert.

But then, they're already losing so much money on that event, not sure they'd want to keep chucking more piles on the fire.

[paydirt]

What about the vibe that he might consider mid-week racing? Probably wouldn't suit some tracks or spectators, but a consideration none the less..

[Malfunction Junction]

Originally Posted by eduardo1

Other issue is fan safety in a venue which is not stadium seated. Could you really imagine traipsing around Eastern Creek in the dark? You'd have broken limbs galore as everyone tripped over. Even when they did it in 96 it was a half-track race.

I'd love to see it, but there'd be very few events that it could realistically work at.

One that would make a lot of sense would be Homebush though. It's in summer, so daylight savings. It's got a lot of permanent lighting there already because it's used to having people there at night. Unsure about how easily it could be lighted from a track perspective though. But it would also be a great way to finish the season, plus you'd have a seamless crossover from racing to the concert.

But then, they're already losing so much money on that event, not sure they'd want to keep chucking more piles on the fire.

I would suspect that the best chance of a night V8 street race would be on the support card for Singapore. Should be an even more successful effort than Abu Dhabi. Oh wait......