NHRA roles for bankruptcy

[Fireofficer5]

Out of Curiosity, how does a nonprofit file for bankruptcy? Wouldn't they just close.

[Billy Nees]

Originally Posted by Fireofficer5

Out of Curiosity, how does a nonprofit file for bankruptcy? Wouldn't they just close.

They would have to liquidate all of their holdings and pay outstanding debts. The rest of the monies would be distributed among the shareholders (members).
The only outstanding debts that I could think of would be the B.O.D.s salaries, property taxes and insurance. If the NHRA isn't racing then why hasn't the B.O.D. taken voluntary lay-offs along with pay reductions?

[House of Darts]

Putting out a fuzzy statement can be a precursor of things to come. And NHRA was/is still interested in buying Maple Grove. Without a sanctioning body, Stock Eliminator has a new mystique when all the cars line up on a back road and race. Can a wheelstanding SE car still wheelie on a low/no prep crowned asphalt road? Will 2021 be the new 1950's-60's?

[Billy Nees]

Originally Posted by House of Darts

Can a wheelstanding SE car still wheelie on a low/no prep crowned asphalt road? Will 2021 be the new 1950's-60's?

Don't tease! I'm ready!

[Julie Jordan]

Originally Posted by Billy Nees

They would have to liquidate all of their holdings and pay outstanding debts. The rest of the monies would be distributed among the shareholders (members).
The only outstanding debts that I could think of would be the B.O.D.s salaries, property taxes and insurance. If the NHRA isn't racing then why hasn't the B.O.D. taken voluntary lay-offs along with pay reductions?

Excess funds would not go to members. Per by-laws and state law the funds would have to go to another tax-exempt organization.

Bankruptcy isn’t always liquidation/closure. There are reorganizational bankruptcies, which allow an organization to restructure debt under bankruptcy protection.

[Bobby DiDomenico]

Originally Posted by Billy Nees

The only outstanding debts that I could think of would be the B.O.D.s salaries, property taxes and insurance. If the NHRA isn't racing then why hasn't the B.O.D. taken voluntary lay-offs along with pay reductions?

Does NHRA actually pay any property taxes?

[jmcarter]

Perhaps Julie can answer but the property they own in Pomona (i.e. Museum) would be more valuable than others such as Atlanta, Indy and Gainesville but who knows what their debt is. Possibly just all the equipment they own (or lease)? And don’t they still have revenue in the form of membership dues and sanctioning fees from all the tracks? Think their largest liabilities would be BOD salaries and buyouts. Don’t think they will declare Chapter 11 or any other kind of bankruptcy but if they did tracks could still gain sanction via IHRA or ??. If they did the greatest loss would be for all of their great employees. The associations would thrive unless their respective members acted contrary to the best interest of the group. There’s a whole lot of class (and comp) cars that are not going away anytime soon. COVID will not kill Drag Racing, we’re the only ones who can do that.

[Julie Jordan]

Originally Posted by jmcarter

Perhaps Julie can answer but the property they own in Pomona (i.e. Museum) would be more valuable than others such as Atlanta, Indy and Gainesville but who knows what their debt is. Possibly just all the equipment they own (or lease)? And don’t they still have revenue in the form of membership dues and sanctioning fees from all the tracks? Think their largest liabilities would be BOD salaries and buyouts. Don’t think they will declare Chapter 11 or any other kind of bankruptcy but if they did tracks could still gain sanction via IHRA or ??. If they did the greatest loss would be for all of their great employees. The associations would thrive unless their respective members acted contrary to the best interest of the group. There’s a whole lot of class (and comp) cars that are not going away anytime soon. COVID will not kill Drag Racing, we’re the only ones who can do that.

The museum is a separate tax-exempt organization.

NHRA’s tax returns are public. The returns include a balance sheet which shows no long-term debt, i.e. mortgages. The organization owns real property, pays property taxes like the rest of us.

[jmcarter]

Thanks Julie! Hope the races can swing west again this year and Jared can make it back out. Meanwhile you know your old car is in very good hands. Would love to run Vegas this year myself. Bet the Irvings have a race car or three I could run LOL.

[Chuck Gallagher]

I would be surprised if NHRA filed for any chapter of bankruptcy; however, several years ago there was chatter here in NC that Bruton Smith would be interested in owning the NHRA but not at what they believed it was worth then. Given the current state of the sanctioned racing entertainment business I doubt the market value has gone up.