contingency

[goinbroke2]

Originally Posted by Jim Wahl

I'm sorry, I will NEVER understand why a sponsor would rather pay the contingency money to NHRA at the end of the year instead of the racers who support their companies! There is no good outcome to stiffing the racer! It's a lose/ lose situation. I have noticed a big reduction of decals on cars in the last couple of years. I myself have reduced the amount my right about half. When I won the Southeastern National Open at the end of '09 I got NO contingency payout from anybody! It's really amazing how good some of these guys are at putting you off. NHRA is no help, after all, they get the money if you don't! Jim

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Jim, companies send their checks to the NHRA (a non-profit) and get a tax receipt then write it off. If they send it to you directly they get squat unless the file it under advertising expenses or some other way and then have to justify it/prove it etc. Easier for them to send it to a non-profit and pick up their receipt for the accountant.

[C and W Racing]

Personally, I think any contingency sponsor should send the money to NHRA at the begining of the year. As people win and runner up, NHRA verifys you have the decals and product, and pay you at the same time you get paid for the win or runner up. We as racers, no longer get jurked around waiting on checks, and NHRA will still make out because not everyone will have all the product that is posted for. If the funds are posted, and someone wins, NHRA is not entitled to keeping money owed you just because a posting company can use it for a write off. They will now be able to write all of it off and NHRA keeps the excess anyways
Chuck

[Chad Rhodes]

Originally Posted by C and W Racing

Personally, I think any contingency sponsor should send the money to NHRA at the begining of the year. As people win and runner up, NHRA verifys you have the decals and product, and pay you at the same time you get paid for the win or runner up. We as racers, no longer get jurked around waiting on checks, and NHRA will still make out because not everyone will have all the product that is posted for. If the funds are posted, and someone wins, NHRA is not entitled to keeping money owed you just because a posting company can use it for a write off. They will now be able to write all of it off and NHRA keeps the excess anyways
Chuck

that would eliminate a whole lot of smaller sponsors from even considering it.

[C and W Racing]

Originally Posted by Chad Rhodes

that would eliminate a whole lot of smaller sponsors from even considering it.

I understand that not everyone posts for every race. If you are a smaller company and you decide to post for a particular race, maybe payment has to be paid say a month before the race takes place. Personally, I am tired of advertising for companys year round with the hope that I might be paid if I win or runner up. Its at the point to where people need to get paid if they are playing by the rules.
Maybe everyone that gets paid should post who pays and that will be the decals that we all start running and leave the other ones off of the car. No one should have to jump through hoops to get paid.
Chuck

[Randall Klein]

Maybe the laws are different in California, but in Nebraska, any unclaimed monies (i.e., gift cards, contest winnings) are not the property of the store (or offerer) but reverts to the State as unclaimed money.

jus sayin'

[nickh]

Great point Chuck

[Michael Kilduff]

Originally Posted by Ed Wright

A list of non-paying contigency sponsors would help guys determine who's decals to bother with.

And who's products not to use also, possibly.

Out of curiousity, has anyone attempted to negotiate contigency deals with companies off the list and outside of the reach of the sanctioning bodies? And if so, what strategies might bring success?

[FED 387]

do not know about Ihra but "some" companies are known to have run a "sorta contingency" program outside of Nhra---do not have a list but if ya ask around maybe on the QT ya can find out

[Capri]

In the last 2 years I only had one company stiff me and that was LoKar. Why? They claim the dont make the product in a locking transmission dipstick for a Ford, so how can they pay money for it?

Other than that, no issues with anyone.

Thank you to those who do take care of the racers when it comes time to get paid.

[NewHemi]

Sorry, I missed the question earlier...

Yes, Mopar paid $400 for each item they usually pay.

In spite of the economy, and state of the auto industry, Mopar is stand up when it comes to supporting racers.

David
The New Hemi Guy