Warning on contingency wraps

[Joe Santangelo]

Originally Posted by Robin Lawrence

So I posted about the size of the decal and the contract with NHRA. As someone mentioned it was good that NHRA was stepping up to make sure that the rules were followed.
As to payment, it is up to the individual companies to make the payouts per the postings. When a vendor signs up with NHRA they pay a fee to be a contingency partner. There are other benefits that NHRA provides in those programs as well.
An example would be midway display space as well as tickets to events based on their spend/program.

Several years ago there was a company that posted for several of their products. I was told that they never paid any contingency. Yet they signed up the following year. Since I wasn't directly involved, I won't name the company.

My opinion is that if companies don't pay their postings then NHRA needs to not allow them to post.

I think that this was addressed several years ago. I am sure that someone here knows the full story.

The contingency administrator from my previous employer processes the payments once she received the sheets from NHRA. Once she has all the information such as W9's she submits them to accounts payable to generate the payment. It goes into the payment cycle which can then get the racer paid.
If NHRA is late, or busy with many events, or if our lady missed the window for the next check run it can add time to the process.

Hats off to those companies that set aside a separate account and cut the checks shortly after an event.
If someone doesn't pay let NHRA know. They were very good about follow-up on racers who contacted them when they were not paid.

Robin

Hey Robin. As far as you know, are there any penalties for a company when they don’t pay a racers contingency claim after a racer has provided everything required to collect a claim, or several claims? I don’t believe there is but figured you would know better than me with your experience on the business side. If there were no repercussions for me if i decided not to pay my taxes or other bills, I wouldn’t pay them either.

[Crisco]

Originally Posted by Joe Santangelo

Hey Robin. As far as you know, are there any penalties for a company when they don’t pay a racers contingency claim after a racer has provided everything required to collect a claim, or several claims? I don’t believe there is but figured you would know better than me with your experience on the business side. If there were no repercussions for me if i decided not to pay my taxes or other bills, I wouldn’t pay them either.

Joe, no there isn't any penalties for non payment....at least there wasn't when I was paying.

[Mark Yacavone]

Originally Posted by Crisco

Joe, no there isn't any penalties for non payment....at least there wasn't when I was paying.

I was afraid that I would hear this..
I know of racers who are owed several thousand dollars through the program, but as of today, NHRA has done nothing about it. They are quick to publish the names of RACERS who suspended or fined for safety and /or tech violations.
What about it , NHRA? We know you're out there.

..and for the guys who say they don't race for the money, you just might be in the right place ;-)

[Robin Lawrence]

Originally Posted by Joe Santangelo

Hey Robin. As far as you know, are there any penalties for a company when they don’t pay a racers contingency claim after a racer has provided everything required to collect a claim, or several claims? I don’t believe there is but figured you would know better than me with your experience on the business side. If there were no repercussions for me if i decided not to pay my taxes or other bills, I wouldn’t pay them either.

As said above, there are no penalties for not paying. NHRA was diligent about forwarding the racers complaints or questions when they were not paid.

We had several who were claiming our parts that were fraud. I was tasked with sorting those out. Not fun

As I mentioned I would suggest that NHRA have a non renewal policy on anyone with a clear history of not paying the racers.

Robin

[Stan Weiss]

Originally Posted by Robin Lawrence

As said above, there are no penalties for not paying. NHRA was diligent about forwarding the racers complaints or questions when they were not paid.

We had several who were claiming our parts that were fraud. I was tasked with sorting those out. Not fun

As I mentioned I would suggest that NHRA have a non renewal policy on anyone with a clear history of not paying the racers.

Robin

Robin,
Since you have been on both sides of this. Does NHRA get an money from the poster as part of the program? If this is the case then that would explain why NHRA would not stop non payers from renewing.



Stan

[Joe Santangelo]

Originally Posted by Robin Lawrence

As said above, there are no penalties for not paying. NHRA was diligent about forwarding the racers complaints or questions when they were not paid.

We had several who were claiming our parts that were fraud. I was tasked with sorting those out. Not fun

As I mentioned I would suggest that NHRA have a non renewal policy on anyone with a clear history of not paying the racers.

Robin

Robin, I appreciate your response.

Next question. If a claim is not paid for a particular class at a certain race for whatever reason whether someone didn’t have the decal, didn’t have the product or flat out did not claim the product for the win or runner up, where does the money that was available for the racer go? Does the company get to keep the money that was available for the racer or does it go to NHRA if it is not claimed by the winner or runner up?

[Dan Bennett]

Originally Posted by Joe Santangelo

Robin, I appreciate your response.

Next question. If a claim is not paid for a particular class at a certain race for whatever reason whether someone didn’t have the decal, didn’t have the product or flat out did not claim the product for the win or runner up, where does the money that was available for the racer go? Does the company get to keep the money that was available for the racer or does it go to NHRA if it is not claimed by the winner or runner up?

Keep in mind that this was from many years ago from a conversation I had with the head of a very large, very prominent parts manufacturer. It may have changed since we talked.

He was really amused at my confusion and outrage after he explained the program to me - and why he hated it but felt he had no choice but to participate.

He told me that the money posted goes to the NHRA as if every winner throughout the year in every class posted was using his products and would be paid out. Seems like they didn't require a lump sum all at once but the contract called for timed payments like business taxes.

What made my mind spin is that he said if a winner was not using his product, there was no refund to him for the money he'd already paid even though the NHRA didn't pay it.

I think I remember he also said that a cut was taken (and added to the total contingency bill) for administration.


He sold very popular products so I assume he decided it was worth such weird conditions.

[1347]

Originally Posted by Dan Bennett

Keep in mind that this was from many years ago from a conversation I had with the head of a very large, very prominent parts manufacturer. It may have changed since we talked.

He was really amused at my confusion and outrage after he explained the program to me - and why he hated it but felt he had no choice but to participate.

He told me that the money posted goes to the NHRA as if every winner throughout the year in every class posted was using his products and would be paid out. Seems like they didn't require a lump sum all at once but the contract called for timed payments like business taxes.

What made my mind spin is that he said if a winner was not using his product, there was no refund to him for the money he'd already paid even though the NHRA didn't pay it.

I think I remember he also said that a cut was taken (and added to the total contingency bill) for administration.


He sold very popular products so I assume he decided it was worth such weird conditions.

I'm not sure when the program was like you explained, but it's not like that anymore. Bobby Fazio had the head of the contingency program on his Class racing today podcast.


All my contingency checks came from the companies after I sent the completed tax forms to them. I even got a letter from Goodyear asking me to cash their check at the end of the year. Maybe I was lucky, but everyone paid me. I believe others I know that qualified for contingency had the same experience. That is not to say others have had the same success.

[Robin Lawrence]

Originally Posted by 1347

I'm not sure when the program was like you explained, but it's not like that anymore. Bobby Fazio had the head of the contingency program on his Class racing today podcast.

I had heard this many times before I was involved with Holley. As stated earlier the NHRA did not collect or hold unclaimed or residual postings.

NHRA gets a fee for each item posted.

In my opinion NHRA has made improvements in the program. They have done a better job of verification and listening to the sponsors and racers. Is there room for improvement? yes,

I strongly believe that they should work to bring back many companies to the program who left for various reasons.

Robin

[KennyAnderson]

As mentioned the contingency payment comes straight from the manufacturer. The last I really was in the know was with Classic Trailers when they were still in business. I don't remember the exact number but the cost to "participate" floored me!!!

I have my own way of ID'ing deadbeat companies. If I did all the right things and wasn't paid. The decal was removed and a replacement was put back on upside down. I was never bothered but I have heard of other racers doing this and being asked to remove the decal.

My favorite is... sorry your ------ is over 2 years old......... Jesus H! If I knew I had to replace it every 2 years I would have never bought this one!