Compton on Wind Tunnel next (1 Viewer)
- Thread starter Bobby
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The Counterfeiter
Nitro Member
WHOOPEE.....I wouldn't buy a used car from that guy ......
Let's try to follow this! Founders of Direct TV create a company, sell $150 mil in stock and use $121 mil of those proceeds to create another company to purchase the Professional assets of NHRA in order to create a marketing opportunity. Not sure how they are going to make a profit from this. But, it's not a done deal and requires filing to and approval by the SEC.
I got lost after the first $150 million deal. . . guess I'm just not 'fisticated in big finanacial deals -
Bullet
Nitro Member
The NHRA has NOT been sold. The NHRA has sold some of its ASSETS (Pro Series, Tracks, TV deal, licencing and media etc).
The $121m goes to the NHRA, which still operates as a non-profit organization. A new (public) company has bought the ASSETS and will operate to make a profit for its shareholders.
Non-profit or not-for-profit doesn't mean the organization can't "make money", it means the money made can not be distributed to shareholders/stakeholders.
The $121m goes to the NHRA, which still operates as a non-profit organization. A new (public) company has bought the ASSETS and will operate to make a profit for its shareholders.
Non-profit or not-for-profit doesn't mean the organization can't "make money", it means the money made can not be distributed to shareholders/stakeholders.
Joker
Nitro Member
Paul's right. Trust me, there isint any of us that will see a dime from this. This was no more than Wally cashing out before checking out if you know what I mean. And I think its good actually. I know Ron Capps when asked about it yesterday on the broadcast seemed really upbeat about it aswell. NOt that he wouldnt if he didnt like it either, but he seemed really excited to me.
Todd
Nitro Member
And the way Compton put it was that 121Mil. Will go to secure the long term future of sportsmen racing forever. But I really have to take that with a grain of salt. I can't imagine they are going to only do that with the $$. They've got to also have aspirations to expand that and make the sportsmen racing a more attractive and profitable as a stand alone event for fans. As I enjoy watching this form of racing but it still has much to be desired by an average fan. An average fan DOSE NOT understand nor enjoy watching throttle stop racing all day long. But lets not open that can of worms today. But if they added pro-mod and top-fuel bikes to the ticket I'd diffidently go.
This thing can go many ways. On one hand, it can be the best shot for Pro Drag Racing to really make a leap forward, as these guys really sound like operators. The only scary thing, is that now that this new entity owns the racetracks, legendary venues such as Gainesville and Indy may become nothing more than assets worth flipping if the company finds itself not generating enough profits. I hope that never happens, but this new entity is about profits, not necessarily drag racing.
Jim
Nitro Member
I'm still convinced this is a transaction where certain parties were given a special deal on the material assets of NHRA. The not-for-profit organization will end up with $100. million and the folks who aquire the assets will have a business worth substatially MORE than the amount paid.
Should they "FLIP" the assets (darn well likely) they will enjoy a handsome profit.
If they operate NHRA PRO they ought to earn a very handsome profit too.
I am not a communist - I believe in free enterprise and making a profit but the not-for-profit entity which built NHRA and the one which will survive is not getting "fair value" for the assets given up.
I can't imagine how anyone could give a "fairness opinion" on this transaction.
I guess I'd feel a little better if there was an arrangement in-place where a percentage of any gains down-the-road would accrue to the benefit of NHRA an ensure the continued financial health of grass roots racing (and fairness to the taxpayer too) Still.
Should they "FLIP" the assets (darn well likely) they will enjoy a handsome profit.
If they operate NHRA PRO they ought to earn a very handsome profit too.
I am not a communist - I believe in free enterprise and making a profit but the not-for-profit entity which built NHRA and the one which will survive is not getting "fair value" for the assets given up.
I can't imagine how anyone could give a "fairness opinion" on this transaction.
I guess I'd feel a little better if there was an arrangement in-place where a percentage of any gains down-the-road would accrue to the benefit of NHRA an ensure the continued financial health of grass roots racing (and fairness to the taxpayer too) Still
.I've been wondering about the 20,000+ hours of video in NHRA's archive.
I think it goes to show how poorly managed NHRA has been... that there is that much footage and hardly anything has ever really been done with it. I would think that the hiring of a production company to put together a series of DVDs/videos for sale to the public would have been a windfall for the NHRA coffers.
Instead they sat on that footage for god knows how long.
I think HD's acquiring of NHRA's assets and the Pro Drag Racing should be a huge boost to drag racing in general.
I'm still concerned with the future management of NHRA and how the sportsman racing will be handled.
I think it goes to show how poorly managed NHRA has been... that there is that much footage and hardly anything has ever really been done with it. I would think that the hiring of a production company to put together a series of DVDs/videos for sale to the public would have been a windfall for the NHRA coffers.
Instead they sat on that footage for god knows how long.
I think HD's acquiring of NHRA's assets and the Pro Drag Racing should be a huge boost to drag racing in general.
I'm still concerned with the future management of NHRA and how the sportsman racing will be handled.
NHRA was not for sale when it was Bruton Smith doing the buying. Reason? Because none of the NHRA's current management would have stood a chance of benefiting or retaining their jobs.So back to Compton being on Wind Tunnel...Does anyone really care about all the hot air he is going to blow through it? Not me
As noted above, a lot of people at NHRA just got a little healthier. Tom Compton being at the top of that list in my opinion. So as always, I view anything Compton says with a certain amount of trepidation.
kingcobrafan
Nitro Member
Great post, Greg. I was thinking the very same thing just the other day.
hellfirejim
Nitro Member
Had a thought about this. Since this IS a for profit corporation and they ARE responsible to their investors, what if they "flipped" the 4 race tracks to somebody who would keep them race tracks and preserve them as such?
Now who could that somebody be?????? Maybe a certain mr. smith.
Not as far fetched when you think about it. They can recoup their investment, make a profit, relieve themselves of the responsibility of the tracks and focus on their marketing ideas and come out looking like good guys because they sold them to someone who will not make it housing developments.
Just a thought.
jim
Now who could that somebody be?????? Maybe a certain mr. smith.
Not as far fetched when you think about it. They can recoup their investment, make a profit, relieve themselves of the responsibility of the tracks and focus on their marketing ideas and come out looking like good guys because they sold them to someone who will not make it housing developments.
Just a thought.
jim
Jim,Had a thought about this. Since this IS a for profit corporation and they ARE responsible to their investors, what if they "flipped" the 4 race tracks to somebody who would keep them race tracks and preserve them as such?
Now who could that somebody be?????? Maybe a certain mr. smith.
Not as far fetched when you think about it. They can recoup their investment, make a profit, relieve themselves of the responsibility of the tracks and focus on their marketing ideas and come out looking like good guys because they sold them to someone who will not make it housing developments.
Just a thought.
jim
I have always thought that Bruton Smith was crazy for wanting to buy NHRA. I've had it in my mind that he really only wants the racetracks. Afterall, Bruton's company is in the business of running racetracks, not managing a sanctioning body.
It would not surprise me at all if Bruton ended up with all the tracks, except the lease at Pomona.
