Bruton Still Interested (1 Viewer)

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I hadn't seen any discussion on this quote from Jeff Wolf's column ten days ago. He's quoting Bruton Smith.



"Smith also wants to buy the NHRA, although the organization's top officials insist it is not for sale.

'Absolutely, I want to buy NHRA,' he said. 'Everybody at NHRA knows how to reach me and I know how to reach them.

'When they are ready for me, I'm ready for them. We have the check partially made out already.'

"The deal, he said, would include most if not all of the four NHRA-owned dragstrips."

'We know the facilities they want to include will give us a challenge, but we will then make those special,' he said. 'Drag racing fans in those markets will be proud of what we do. We'll do it and we'll do it first class.' "



After my first trip to the amazing Strip at Las Vegas, this quote is even more interesting. The difference between, say, Indy and Gainesville and Bruton's track is akin to that between Schumacher's championship Top Fuel car and Don Garlits' original Swamp Rat.

Both serve the same purpose, but one does it a lot better.

There's still the question of the fallout bound to occur from the huge amount of money that would change hands. The last reasonable version I saw was that with the current structure of NHRA, the board members would receive the money as they are ostensibly the owners of the organization.

There's a black hole as to exactly what would happen and who would benefit, and I have to believe that's for a reason.

I'd love for someone with direct knowledge to correct me if I'm wrong regarding who would receive that payout if the NHRA was ever sold.

(edited for better clarity)
 
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I think the main obstacle to the sale is Wally Parks. When wally passes, hopefully not for a long time for his sake, Tom Compton won't be able to dial Smith's number fast enough. As to who gets the money? its SUPPOSED to be the members but we know that won't happen
 
I think the main obstacle to the sale is Wally Parks. When wally passes, hopefully not for a long time for his sake, Tom Compton won't be able to dial Smith's number fast enough. As to who gets the money? its SUPPOSED to be the members but we know that won't happen


Don't worry, NHRA will be taken "private" or out of tax exempt status before the sale happens (if it happens), ensuring the members will get squa-doosh.
 
I for one think that Bruton Smith could be the best thing to happen to NHRA since Wally Parks. Everything I’ve read about the man leads me to believe that he has a definite vision of the future the NHRA and he has the budget to promote it the way it deserves to be promoted. Making the NHRA a for profit business will change a lot of things. I think 98% of the changes will be for the better of the sport.


Dan
 
'Public' accountability lays it all out on the table. Right or wrong, there'll be no speculation as to what the dollars are going towards. As a publicly traded sanctioning body, their financial reports and tax filings will be public information.

I can tell you from personal experience that I've announced at Indy (NHRA's crown jewel) and Vegas (Bruton's jewel), and there is a WORLD of difference in every aspect of the tracks! The control tower, racing surface, track management, personell, concessions, and the entire facility. The Smith tracks are always neat as a pin, very organized and clean. I'm not saying Indy is a dump, but few would deny that Columbus (NHRA owned) is nothing short of embarrassing.
 
Don't worry, NHRA will be taken "private" or out of tax exempt status before the sale happens (if it happens), ensuring the members will get squa-doosh.

To the best of my understanding, most of NHRA is already out of tax exempt status. There's the part that owns the tracks, one involves the production of races, and various other tax strategies handle other parts of the association.

I believe that the only remaining section of NHRA that is still a non-profit organization is the core that directly deals with membership.

I wish I could find the piece, but I seem to remember someone researching the details and finding numerous pieces of NHRA, mostly in a for-profit tax status, but with actual ownership never really spelled out.

Since it's a private company (i.e., no stock is issued to the general public) only the IRS knows for sure and with the new confidentiality laws I'm not sure how much the IRS is able to disclose even if someone knew the right questions to ask.

Which brings up a question. Bruton's a businessman and like any other, expects to make a profit. I doubt that he would have any interest in the non-profit membership group but would likely be concentrating on the track ownership and race promotion areas. If my understanding is correct, those parts may not necessarily be part of the NHRA in the way most of us think of it.

You can't really use his dealings with NASCAR as an analog since they don't deal in membership to the general public like the NHRA does.

I bet Asher would know more but also would bet he's not about to get involved in the discussion once again. It's come up over the years but I've never seen a legitimate, definitive account of who owns what.

So, to me there are two major questions. First, what are the assets of the NHRA? Second, who owns them?

And I'll once again end this message with the hope that if I am incorrect, someone will set me straight.
 
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Aw man, are we gonna spend the off season hashing this to death again????


Like I said in my original post, I'd really be interested in the exact details of NHRA ownership. I didn't realize that Bruton was still making purchase comments so it was news to me that the issue was still alive. Then again, I don't get out much.

Are "we" going to hash this to death again? I dunno, doesn't look like "you're" going to but who knows what the rest of the maters take interest in.

Seeya on another thread.
 
If Smith does buy the NHRA he should abolish the new point point system.

I doubt Smith will change the points system, he in angling to get as many NASCAR "Chase" races as he can at his tracks now. He has one at Texas and one at Charlotte, and he is working to get a second date here in Vegas, one that will be in the "Chase". If he bought the NHRA, you could be sure he would do the same thing. He would have Indy, Vegas 2 and Pomona in the NHRA's chase format, you could bet the Bristol race would suddenly be a fall event to be in the Chase too.
 
NHRA is still a tax-exempt organization under IRS code section 501(c)(6). The museum entity is tax-exempt under code section 501(c)(3), thus classified as a charity. As such, you are entitled to view the latest tax returns filed for each organization by submitting a request to NHRA. Drag Racing Online does that each year and has an article about the information reported on the tax returns.

A 501(c)(6) organization is basically a business league. A business league, in general, is an association of persons having some common business interest, the purpose of which is to promote that common interest and not to engage in a regular business of a kind ordinarily carried on for profit. Trade associations and professional associations are considered business leagues.

In addition, the organization must be primarily engaged in activities or functions that are the basis for its exemption. It must be primarily supported by membership dues and other income from activities substantially related to its exempt purpose.

Although NHRA is a membership organization it is run by a Board of Directors. There is no legal requirement that membership in this type of organization entitles a member to voting privileges.

Under California and Federal law the proceeds from the sale or dissolution of a tax-exempt agency do not inure to the members or organizers. Instead the proceeds must go to another, similar, tax-exempt organization. In addition, there are certain filing procedures that must be initiated with the California Secretary of State in order to dissolve a nonprofit.

Every year there are all these rumors running around about how NHRA's bigwigs are going to sell out and pocket the proceeds. As a racer, NHRA member and 25+ years as a CPA, I'm telling you this isn't the case.
 
I had heard a number of years ago that NHRA was no longer was a non-profit and I know for fact that it's refered to as a "company" by people that work there. I have heard many more people insist that they still are.

If anyone thinks they make their money on membership dues....well, I have news for them.$$$
 
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Every year there are all these rumors running around about how NHRA's bigwigs are going to sell out and pocket the proceeds. As a racer, NHRA member and 25+ years as a CPA, I'm telling you this isn't the case.

Julie,

Please accept my utmost thanks. That was the educated and detailed response I was after all along.
 
A little high jacking is in order but Smith's name and the high jinks used to settle lawsuit with the France family is fleshed out in this article about NASCAR.
I only brought it up as Smith's suit and it's outcome including the Rockingham buyout details are interesting as are the political issues.
I for one know the writer is largely correct in that department.
Burning a lot of fuel does have a political favorite and look out folks and get out your check book to start the fight to keep racing alive again.
We had some tough battles in the late 90's and early 2000's I expect them to be resurrected again.
http://www.alternet.org/story/44515/
 
Like I said in my original post, I'd really be interested in the exact details of NHRA ownership. I didn't realize that Bruton was still making purchase comments so it was news to me that the issue was still alive. Then again, I don't get out much.

Are "we" going to hash this to death again? I dunno, doesn't look like "you're" going to but who knows what the rest of the maters take interest in.

Seeya on another thread.

Sorry Dan. I should have been less cynical when I made my post. I apologize for the tone and content of it.

I'm not sure if you were around but in the previous incarnation of this board, this subject was completely, thoroughly, and absolutely beaten to death. The thread got quite lengthy, and many people were absolutely convinced that the sale of the NHRA to Bruton was going to happen "any day now." Never happened. Not even close. Julie's reasoned and informative response, (As apposed to my acid tongued response.) lists the reasons why a "sale" would be much harder to do than many people seem to think.
 
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