The Counterfeiter
Nitro Member
Heard today that papers may be filed with FTC this week. Appears that FTC discourages publicity about filings. That may be why NHRA has been SO quiet about the deal.
Buyout Quietly Proceeding? (1 Viewer)
- Thread starter The Counterfeiter
- Start date
It's official. Here's a link to the SEC filing.
http://www.sec.gov/Archives/edgar/d...14a.htm#a11_17ConstructionOfAgreement__061324
StockersRock
Nitro Member
Anyone else want to print out the form at the very bottom, send it in, and see if you get a cut?
Interesting part about Julie Russell's lawsuit in there (Page F-39)
National Hot Rod Association Professional Drag Racing Series
(a carved-out business unit of the National Hot Rod Association)
NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
(See Accountant’s Review Report)
March 31, 2007 and 2006
NOTE I—COMMITMENTS AND CONTINGENCIES—Continued
An individual filed suit in the District Court of Comal County Texas against Goodyear Tire and Rubber Company, the National Hot Rod Association, and Simpson Helmets, Inc. arising out of the death of her husband, a professional drag racer, after an incident at a national event held at Gateway International Raceway, Madison Illinois. The complaint alleges negligence, gross negligence, fraud, conspiracy and assault. The negligence claims against the Association only were previously dismissed by summary judgment. The plaintiff agreed to dismiss the fraud and conspiracy claims. Thus, the gross negligence and assault claims remain. The Association second motion for summary judgment to dispose of the remaining claims in the case is now pending with the court. Goodyear and Simpson also filed second motions for summary judgment. Subsequently, Simpson settled with the plaintiff and was excluded from any future claims in the case.
The Association’s motion for summary judgment was heard on May 11, 2007 and trial is now set to begin with jury selection on July 9, 2007. Management believes this case will have no material adverse effect on the Association’s and the Series’ future financial position, results of operation or cash flows.
National Hot Rod Association Professional Drag Racing Series
(a carved-out business unit of the National Hot Rod Association)
NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
(See Accountant’s Review Report)
March 31, 2007 and 2006
NOTE I—COMMITMENTS AND CONTINGENCIES—Continued
An individual filed suit in the District Court of Comal County Texas against Goodyear Tire and Rubber Company, the National Hot Rod Association, and Simpson Helmets, Inc. arising out of the death of her husband, a professional drag racer, after an incident at a national event held at Gateway International Raceway, Madison Illinois. The complaint alleges negligence, gross negligence, fraud, conspiracy and assault. The negligence claims against the Association only were previously dismissed by summary judgment. The plaintiff agreed to dismiss the fraud and conspiracy claims. Thus, the gross negligence and assault claims remain. The Association second motion for summary judgment to dispose of the remaining claims in the case is now pending with the court. Goodyear and Simpson also filed second motions for summary judgment. Subsequently, Simpson settled with the plaintiff and was excluded from any future claims in the case.
The Association’s motion for summary judgment was heard on May 11, 2007 and trial is now set to begin with jury selection on July 9, 2007. Management believes this case will have no material adverse effect on the Association’s and the Series’ future financial position, results of operation or cash flows.
Jeremy Hejduk
Nitro Member
So what does this mean for the future of NHRA??
"Dr. Dirt"
Nitro Member
Jaremy,
That, my friend, is the $64. question?
Time will tell but I'll say this. They wouldn't have had an interest in purchasing it if they hadn't believed they could vastly improve it's exposure, fan base and ultimately, it's profitability.
Buddy
Nitro Member
I must agree.... Some people may "fear" the outcome of this deal, but they wouldn't risk the money they are spending if they didn't think they could make this sport a money maker....
CJ Curtsinger
Joker741
Nitro Member
What happened to the lawsuits that were announced against this deal?
I am all for greater exposure, the problem is that Tom Compton is still involved.
I am all for greater exposure, the problem is that Tom Compton is still involved.
That can only higher Everything! Ticket prices, concessions, entry fees for racers, you name it.
"Dr. Dirt"
Nitro Member
Hang on there Joe,
That's not always the case. As a business man myself, I'd rather make $5. off a million people than $20 bucks off a hundred. These folks can't do much worse in the long run than the direction we are headed today, in my opinion.
There's more than one way to skin a cat?
Bobby, in most businesses that's the plan, but in an investor driven Corporation Profit is the ONLY thing that's considered! If I'm wrong I'll gladly eat crow!
Jeremy Hejduk
Nitro Member
Why is it that most changes seem to come at a cost to the fans?? Fan base is mostly what this sport is based upon, correct? I agree that some track owners (such as Bader in Norwalk & Meyer in Texas) proceed to take great care to the fans. I suppose that may be why NHRA has no ownership in these tracks, also. But at the same token, how can NHRA expect to keep fans in the seats when this sport has become so repetitive? For example, I'm a huge fan of Cagnazzi Racing but I can see how monotonous it can be to see the same drivers win EVERY race (KB). Finally seeing guys like Larry Morgan & Kenny Koretsky go rounds actually made Pro Stock exciting to watch again. Seemingly, I pull for the underdog in the Pro classes, guys racing on a shoestring budget. Guys like Bill Shorts and Bob Benza may never get a chance at a championship but maybe this is where we need to make changes to make it a more “competitive” program for drivers & fans alike. OR…screw my monolog and if it ain’t broke don’t fix it!!
HEMI6point1
Nitro Member
How the h*ll was Darrell's accident "assault?"
G'ginna
Nitro Member
Quote:
Originally Posted by Bobby Miller
Hang on there Joe,
That's not always the case. As a business man myself, I'd rather make $5. off a million people than $20 bucks off a hundred. These folks can't do much worse in the long run than the direction we are headed today, in my opinion.
There's more than one way to skin a cat?
You're both right. A large corporation is out to make money. However, if they need to show a loss against their profits for tax purposes it would help them to have a business that runs at a loss (at least for awhile.) You would be able to see a perfect example of this in Warren Buffets 2007 annual report letter. Not sure if it is still online, but I have a copy saved and it is quite educational.
In addition, even large corporations know that if they run their customers off (in this case fans) they will not be profitable, so they will price at what they determine that the market will bear. In this case, they will have to make a decision in what market they will compete. Do they want the original fan base and build on that, or do they want to completely alter their market profile and fan base?
Originally Posted by Bobby Miller
Hang on there Joe,
That's not always the case. As a business man myself, I'd rather make $5. off a million people than $20 bucks off a hundred. These folks can't do much worse in the long run than the direction we are headed today, in my opinion.
There's more than one way to skin a cat?
Bobby, in most businesses that's the plan, but in an investor driven Corporation Profit is the ONLY thing that's considered! If I'm wrong I'll gladly eat crow!
You're both right. A large corporation is out to make money. However, if they need to show a loss against their profits for tax purposes it would help them to have a business that runs at a loss (at least for awhile.) You would be able to see a perfect example of this in Warren Buffets 2007 annual report letter. Not sure if it is still online, but I have a copy saved and it is quite educational.
In addition, even large corporations know that if they run their customers off (in this case fans) they will not be profitable, so they will price at what they determine that the market will bear. In this case, they will have to make a decision in what market they will compete. Do they want the original fan base and build on that, or do they want to completely alter their market profile and fan base?
Nate
Nitro Member
Yep and if you read over the paper work filed that is a lot of what they plan to do.
I guess I never read it that way. The part that stood out for me is that 50% of the revenue from 2006 came from spectator admissions. That seemed a lot to me, considering that less thatn 25% came from sponsor revenue (with a large chunk coming from a few heavy sponsors). That leaves somewhere between 20-25% for concessions, shirts, etc.
The first area I would like to see grow (increase revenue) would be on the sponsorship end. I think we can all agree that this is an area that HD will focus on first. According to the filing, they are proposing a tremendous growth opportunity to the shareholders. Hopefully this can tie in somehow to the race teams, but I doubt it. Will probably be an indirect effect for them like increased attendance and recognition.
Next, the marketing of the NHRA Pro Series through shirts, decals, etc. We again can all agree that current NHRA folk fail to do this for the fan and driver/team currently. How easy is it to buy a shirt online and not at the track? With a little HD investment (and cut), both race teams and HD will benefit from this increased revenue.
Finally, ticket prices may or may not change. The approach I take is that HD doesn't want to price themslves out of the market (with the market being the publics discretionary dollars). Initially, I only see a few changes to the ticket structure. I can see higher prices that include certain privlidges (like all-access,front row,etc). I wouldn't assume any ticket increases until HD and the public can view the product as a larger commodity and increased demand. Things to look for: necessity for additional seating at events, complete sell outs, and the need for additional dates/shows. Once this happens, the market will allow and absorb the ticket increase. We have seen this in all forms of sport over the last 20 years (Nascar,NFL,MLB).
I am excited to see changes with HD. Apparently, certain investors feel that if a little capital is thrown in a couple directions, the results can relate to huge profit.
NHRA did a good job growing the sport recently, but it is time to hand over the reins and allow the sport to grow like a true business. Hopefully all parties (investor, racer, and spectator) benefit from these changes.
Perhaps they plan on going the way of Clear Channel and Monster Truck racing. They own half the trucks and create the larger than life drivers (Like WWE) for the kids. This puts people in the stands and controls costs. Next time you go to a drag race that has Monster trucks check out the rigs they will have Clear Channel stickers on them. Grave Digger is one that has been owned for the last couple of years. Dennis Anderson sold out becuase of costs.
HD could own the cars and teams and put in drivers and own all the sponsor dollars. I don't think it could happen but you never know.
HD could own the cars and teams and put in drivers and own all the sponsor dollars. I don't think it could happen but you never know.
Jeremy Hejduk
Nitro Member
And also seems to pre-determine the winners & champions. No competition. Hence why Bob Chandler and Bigfoot aren't in this series. Not that PENDA is any better, but I'm not sure they own the trucks. On the other hand, we could start a whole new thread on how the economy itself is destroying sports like this...
