Tom Comptons Letter!

[Woodro Josey]

Open letter to the community from NHRA President Tom Compton

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1/15/2009



Few would argue that the economic times we currently face are of epic proportion. For many, it is by far the most challenging time we have faced professionally or personally. This is a global challenge that has impacted every business and every family. This includes our race teams and their sponsors, our member tracks, our fans and NHRA. Every day we read in the paper how the current economic crisis is affecting the world around us. The sports entertainment industry is no exception. NHRA is no exception.

We enter the 2009 season with several unsponsored national events for the first time in recent memory, a number of unsponsored teams, and everyone in the sport facing unprecedented struggles. We understand the financial hardships being placed on our race teams, our sponsors, our tracks and our fans given the uncertainties that face us.

With that said we must first look at the recent past to truly appreciate where we are today and why we strongly believe that we will be able to overcome the challenges that lie ahead.

In 2007, NHRA had yet another record setting year and the start of 2008 continued to show similar growth. Our much valued partnership with The Coca-Cola Company and Coca Cola Enterprises was extended through 2013 and Full Throttle was named as our series sponsor with a strong and exciting activation plan in the works. We announced a new relationship with IMG, a global sports marketing company, to help secure league and team sponsorship and introduce NHRA Drag Racing to a blue chip list of Fortune 500 companies eager to find out more about our unique sport and incredible value. Television ratings on ESPN2 were up 9% on race day in a time when ratings increases are difficult to achieve in a fragmented television marketplace with ever-growing choices. We were welcomed with open arms by the Charlotte community and the finest drag racing facility in the world, zMAX Dragway in Concord, N.C. The year was such that Sports Business Journal stated, in its November 3-9 issue, that "there's considerable evidence that 10 years from now, the NHRA could look back to 2008 and say it was the sport's pivotal year."

And then, the world sunk into an economic crisis the likes of which most of us haven't seen in our lifetimes. The economic crisis isn't about the sport of drag racing, the tremendous value proposition NHRA has to offer to team or league sponsors, or the incredible ticket value afforded to our loyal fans who attend NHRA Full Throttle Drag Racing events. It's much bigger than that and unfortunately not something anyone can control.

However, as we embark on the journey that lies ahead, it is imperative that we work together. NHRA, for its part, will continue to work with teams to provide support and do what we can to try and enhance value to their sponsors. In addition, we will:

Continue to enforce testing restrictions during the 2009 NHRA Full Throttle Drag Racing Series season.
Remain at 1,000 feet in the Top Fuel and Funny Car categories for the entire 2009 season. Although not implemented as a cost-saving measure, a by-product of the change was cost savings for both nitromethane categories.
Keep rule changes with an economic impact to a minimum in 2009.
Continue to work with the teams to control costs through 2009 and beyond.
Implement the new purse increase of more than $1.3 million.

For fans, we will develop and implement new and creative promotional programs with our sponsors and advertisers to bring fans out to an NHRA Full Throttle Drag Racing event. In addition, at NHRA owned facilities in Pomona, Gainesville, Atlanta and Indianapolis, as well as other participating national event tracks, we will:

Set aside a portion of general admission, each day, at a discounted rate for adults.
Offer free general admission to children 12 and under when accompanied by an adult.
Implement a military appreciation program offering one (1) free Friday reserved ticket to active military personnel with ID at the box office.

We will continue to work with our sponsors to enhance their return-on-investment. Together with IMG, NHRA will continue to reach out to prospective sponsors. Now is the time to make known our value proposition to companies nationwide that want to remain in motorsports and engage our very passionate and loyal fan base.


Finally, now more than ever, NHRA will focus on one goal: to help the racing community, our sponsors, our member tracks, and, most importantly, our fans.


We are well aware of the tough environment facing everyone today. This is a global problem that we must face head-on, together. We are bullish on the sport and strongly believe we have a great product and the most passionate fans in all of sports. Now is the time to work harder than ever before. And that is just what everyone at NHRA intends to do.


We are excited about the upcoming inaugural NHRA Full Throttle Drag Racing season and are pleased to announce that we currently have full fields entered in all three Professional categories and a strong showing in each of our NHRA Lucas Oil Drag Racing Series sportsman categories for the Kragen O'Reilly NHRA Winternationals at Auto Club Raceway in Pomona. We want to conclude by saying to our race teams, our sponsors, our member tracks, and our fans, "Thank you." Working together, we will get through this economic crisis.


If you have any questions or comments, please send them to nhra@nhra.com. We promise to read them and will try to respond in the future on Nhra.com and on the pages of National DRAGSTER.

Tom Compton
President, NHRA


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