NHRA roles for bankruptcy

jmcarter · 08-01-2020, 04:59 PM

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 · 08-01-2020, 07:03 PM

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.

Chip THELEGEND Johnson · 08-01-2020, 07:50 PM

The Facebook post last night was BS. The person posted it and got his chops busted. Later he posted a correction What if NHRA had yada yada yada.
It did get a lot of attention though.

Greenlight · 08-01-2020, 11:43 PM

Let's use some round numbers of the Covid NHRA:

***Income or income avoidance ***

40,000 licensed drivers at $150/yr. = $6,000,000 yr.

80,000 members (40,000 are lic. drivers) 40,000 x $70/yr. = $2,800,000 yr.

So far, they didn't have to do anything to get the $8.8M. My guess is the National Dragster pays for itself with the advertising, so that may be a wash.

Fees from member tracks (I have no idea what the franchise fee is)???

No $15M payout to Fox to broadcast National Events that only 400,000 people watch.

No huge payouts to TF and FC, and modest payouts to PS. The combined payouts in these classes far exceed an "spectator" income at the majority of races.

******** Expenses *********

Salaries of top brass and board of directors (see tax returns) $5,000,000
Salaries of administrative staff at national headquarters. ?
Salaries of Division Directors, division admin., tech inspectors ?

Rent, utilities, insurance, upkeep at National and Division offices ?
Rent, utilities, insurance, upkeep of tracks owned by NHRA ?

Taxes, legal fees, accounting fees,.... ?

Misc other expenses ?

No payouts in the sportsman classes (I suspect that NHRA makes $$ off the sportsman classes and takes in (entry fee plus crew passes) much more than they pay out, so this may be considered lost income.

Can anyone fill in the blanks on some of the expenses?

GTX JOHN · 08-02-2020, 02:24 AM

Quote:

Originally Posted by 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.

We would love to have you come out our friend and race with
use absolutely any time you like!

There is a rumor that there will be THREE Divisionals at LVMS
AND some other surprises (Stay Tuned!).

Be Well Jim.

08-01-2020, 04:59 PM	#1
jmcarter VIP Member Join Date: Dec 2008 Location: Richmond Hill GA (and Port Ludlow WA) Posts: 4,313 Likes: 2,437 Liked 3,240 Times in 986 Posts	Re: NHRA roles for bankruptcy 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. __________________ Jim Carter 2340 Super Stock 2340 SST/2340 Stock Set another place at the table

08-01-2020, 07:03 PM	#2
Chuck Gallagher Junior Member Join Date: Apr 2013 Location: NC (nothing compares) Posts: 48 Likes: 33 Liked 134 Times in 28 Posts	Re: NHRA roles for bankruptcy 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.

08-01-2020, 07:50 PM	#3
Chip THELEGEND Johnson Member Join Date: Jun 2007 Posts: 287 Likes: 224 Liked 283 Times in 80 Posts	Re: NHRA roles for bankruptcy The Facebook post last night was BS. The person posted it and got his chops busted. Later he posted a correction What if NHRA had yada yada yada. It did get a lot of attention though.

08-01-2020, 11:43 PM	#4
Greenlight Member Join Date: Dec 2004 Posts: 216 Likes: 16 Liked 81 Times in 23 Posts	Re: NHRA roles for bankruptcy Let's use some round numbers of the Covid NHRA: *Income or income avoidance * 40,000 licensed drivers at $150/yr. = $6,000,000 yr. 80,000 members (40,000 are lic. drivers) 40,000 x $70/yr. = $2,800,000 yr. So far, they didn't have to do anything to get the $8.8M. My guess is the National Dragster pays for itself with the advertising, so that may be a wash. Fees from member tracks (I have no idea what the franchise fee is)??? No $15M payout to Fox to broadcast National Events that only 400,000 people watch. No huge payouts to TF and FC, and modest payouts to PS. The combined payouts in these classes far exceed an "spectator" income at the majority of races. ****** Expenses ******* Salaries of top brass and board of directors (see tax returns) $5,000,000 Salaries of administrative staff at national headquarters. ? Salaries of Division Directors, division admin., tech inspectors ? Rent, utilities, insurance, upkeep at National and Division offices ? Rent, utilities, insurance, upkeep of tracks owned by NHRA ? Taxes, legal fees, accounting fees,.... ? Misc other expenses ? No payouts in the sportsman classes (I suspect that NHRA makes $$ off the sportsman classes and takes in (entry fee plus crew passes) much more than they pay out, so this may be considered lost income. Can anyone fill in the blanks on some of the expenses?