Health Of The NHRA Pro Teams... (2 Viewers)

[Jay]

I can tell you this...As someone who is out here beating the doors down for sponsorship of a fuel team (or more than one) in the NHRA, in the last 60 days the same thing has occured that did in Nascar...Sponsors want to pay for the races before the countdown, and then if the car doesn't make the chase, then they want a discount on the "chase" races...I saw it when Nascar did it, and now I am seeing it here...

I am quite concerned, as many of you are, about the health of the NHRA...I, am FAR more concerned specifically with the health of the Pro Teams in the NHRA...

With the exception of adding a few dollars to the champions take this year in each class, they havent raised a single event purse in almost 10 years...Now, at the current numbers, it is my understanding that 10 years ago, you could run a T/F or Funny Car for $750,000-$1,000,000/yr. Well, that being said, I can understand the purse, but now, it is 3-4 times that amount to run one of these cars...And not only has the NHRA not done anything to help offset thaese costs with additional purse monies, but they are now actually going to charge the racers MORE for hospitality spots and souvenir trailer spots...

Let me give you an example...It is my understanding from Glen Cromwell at NHRA that it is $2000 vs. 20% of your sales to have the right to park, and operate a souvenir trailer at an NHRA event. They are now talking about raising that to over $2500.

Furthermore, if you want a hospitality space, it is $2000 per event, unless you commit to the whole season, then its $1500 per event, and you are only allowed one spot per pro team. Now they are talking about raising that too....In addition to that, unless they cater your hospitality with their overpriced food that is unpredictable in quality and sometimes not delivered in time for your guests, you have to pay ANOTHER $750 per weekend to the caterer for lost revenue! I mean, when is it going to stop??? Look at Jagermeister. Their program was very hospitality driven. Wouldn't you think if Max Naylor could have afforded them the opportunity to "pay" him for additional hospitality, that it wouldn't have helped his program? Perhaps he isn't a perfect example (Bill...?), but I know that if you could "rent" 1,2, 3, or maybe even you neded 4 hospitality spots, and were willing to pay for them, shouldn't you be able to? There are teams that generate a fair amount of revenue from this that are going to be affected here. If you want more money, than give us more options...Doesn't that seem fair?

I know that many of you are for the chase, and many of you are against it, but let me give you a couple of facts here...

1.) Nascar's system automatically increases the purse and the championship payoff each year because these items are paid as a direct percentage of the TV and gate revenues of what Nascar and the tracks generate...

2.) The point of the above fact is that in Nascar, as ratings/attendance/revenues increase, they share that with their teams...In NHRA, they havent raised the purse in 8 years (besides the small countown champion bonus of $100,000, but that is meaningless to the other 15 teams...), and now also have items that are slated to go up by 40% next year like hospitality spots and souvenir trailer spots...yet, all these increases, with no increase in the purse...THIS is one of the things that is killing these teams...

The NHRA is doing everything to help themselves, and nothing to help their teams.

If PRO was smart, they would all go to their sponsors and get them to all agree to sit out the first 1,2, or 3 races of 2008 in an effort to unionize the teams to a degree, and create some serious leverage with the NHRA to make them get this right.

Better yet, show up and park, but refuse to race.

If the NHRA says they won't pay, we don't play. If even any, how many events do you think the NHRA could let happen without Bernstin (2 cars), Force (4 cars), Shoe (4 cars), Powers (2 cars), Kalitta (4 cars), etc...

And the sponsors that are on these cars would be fine with it because if this happened, then FINALLY, the NHRA would get a serious amount of national exposure...although, not for the reasons that they would like...

Will this happen...? Most definitely not.

Would it force the NHRA to fix these problems and start paying these teams correctly? For sure.

 

[Tim Kish]

If you think the payout increase in insufficient in the Pro classes, look at the changes in the Sportsman class payouts over the last 25-30 years.

I would agree with the sponsors perspective on not wanting to pay for non-countdown performance as 90%+ of the coverage and interviews since the countdown have focused only on the countdown participants. If it wasn't for upsets you almost wouldn't have known there were others racers there.

 

[Jay]

If you think the payout increase in insufficient in the Pro classes, look at the changes in the Sportsman class payouts over the last 25-30 years.

I don't know much about them...Can you give us a bit of info on that..?

 

[stanman]

...The NHRA is doing everything to help themselves, and nothing to help their teams. ...

Thank you, Jay!

I said about three years ago that NHRA was no longer a sanctioning body and had in fact become a motorsports entertainment promoter. The fact that they stymie the teams/racers from generating income at the races while padding their own wallets at the teams'/racers' expense is a perfect example of how their only concern is the NHRA's bottom line.

The sale of the "pro" side to HD Partners will only exacerbate this situation.

 

[Tim Kish]

Winner of Super Stock for example in 2007 at a National Event gets $1500 purse prior to any contingencies (Pros are eligible for those too). I'll dig for an exact number but I recall discussion that it paid over $1000 to win back in the 70's. Win 3 events - buy a transmission!!!!

 

[PJ]

ssshhhh its this kind of long range thinking that gets the pro countdown people are worked up

 

[BJN]

Jay, i believe or better yet i know your thread has alot of merit. While Max did have a huge hospitality area, that was up to Jager who they wanted to have in it so i dont know if having more space or more people would have been good. The more people and space, the more more policing you would have to have to make sure nobody was getting out of hand. More space more dollars, more headaches potentially.
Now the additional costs.......i would have to discuss offline. I do know though, given a business plan that said you need 4M to run this but you'll only make 500k to WIN seems alittle off balance.
The costs of doing this business are unbelieveable and not alot of people plan a correct budget. Max is as detailed as anyone. This (racing) is a drug. It consumes your life and your savings to chase a dream some will live but never actually win. This all comes down to the fans. As long as they will continue to buy the tickets, there will be racers to come out here. How many racers? Now thats another question. While all of us here agree the NHRA is a great option to NASCAR, for some reason corporate America is still hard pressed to see that. They would rather spend 10-30M in NASCAR (to follow the jones's)as opposed to a percentage of that here. The NHRA is a buried treasure, and its gettin harder and harder to keep bringing non traditional sponsors to the plate, and when you do......................

 

[Nunz]

Jay you are spot on. The numbers don't add up. What would happen to this sport if the literal handfull of wealthy team owners and sponsors (Evan, Forrest) decided to fight their addiction and go do something else? NHRA has done nothing to help these racers in years, and when they have it's like handing out crumbs. $40,000 to win a national event, $75,000 if it's Indy? Come on. I think Garlits' organization paid $25K to win TF and FC back in '72. That's 35 years ago!!

 

[Professor Dave]

I agree about the increase in the price of hospitality areas and I didn't know about the catering. This is monopoly run wild. The idea of growing a sport is to make it more attractive to sponsors, not less. I may be off base, because I only have a Ph.D. in economics, but what I teach my classes and what seems to be the case generally is that when you raise prices, quantity demanded goes down. Now if there is excess demand, it's ok to raise prices. But I have a hard time thinking that there is excess demand for Powerade drag racing. If so, there would not be so many unemployed drivers. But as I said, what the hell do I know, I only have a Ph. D. in Economics.

 

[Toejam]

NHRA annouced that souvenior trailers will cost $2,500 per race next year up from the $1,500 it cost in '07! I guess the HP effect is in full effect!

 

[none]

Jay you are spot on. The numbers don't add up. What would happen to this sport if the literal handfull of wealthy team owners and sponsors (Evan, Forrest) decided to fight their addiction and go do something else? NHRA has done nothing to help these racers in years, and when they have it's like handing out crumbs. $40,000 to win a national event, $75,000 if it's Indy? Come on. I think Garlits' organization paid $25K to win TF and FC back in '72. That's 35 years ago!!

Some interesting info regarding same:

Tulsa vs. Indy

Tulsa: '72 National Challenge

Tulsa vs. Indy - Who Really Won?

Sometimes the more things change, the more they remain the same...

 

[Von Halen]

I was at that race in Tulsa.

I bet I still have my t-shirt.

 

[BlueStangGT]

I agree about the increase in the price of hospitality areas and I didn't know about the catering. This is monopoly run wild. The idea of growing a sport is to make it more attractive to sponsors, not less. I may be off base, because I only have a Ph.D. in economics, but what I teach my classes and what seems to be the case generally is that when you raise prices, quantity demanded goes down. Now if there is excess demand, it's ok to raise prices. But I have a hard time thinking that there is excess demand for Powerade drag racing. If so, there would not be so many unemployed drivers. But as I said, what the hell do I know, I only have a Ph. D. in Economics.

Dave, I completely agree. There's no doubt that this latest increase will once again test the "elasticity of demand" theory. As long as NHRA has customers that are willing to pay, they'll keep bumping the rates. I wonder if this will be the proverbial straw that breaks the camel's back.

 

[Jay]

Dave, I completely agree. There's no doubt that this latest increase will once again test the "elasticity of demand" theory. As long as NHRA has customers that are willing to pay, they'll keep bumping the rates. I wonder if this will be the proverbial straw that breaks the camel's back.

The real problem here is that this doesn't really effect the fan nearly as much as it completely screws the team owner...They are already comitted to their sponsors for the hospitality and the souvenir trailers as part of their program...All I can equate this to is that the NHRA is kicking the teams when they are already down...The NHRA knows that these teams have to do the souvenir trailers and hospitality..All this will prove to do is add insult to injury by saying, "We know you have to do these things no matter what, but just because we can, we are going to force you to pay another $40-$50,000 per year for it...and we aren't going to do ANYTHING for you to give you an opportunity to offset it "

In my opinion, that is B.S! If the NHRA has to even CONSIDER gouging their teams in ANY way for this stuff, and THAT revenue is so important to them, then this sport is in much bigger trouble than any of us ever realized...

 

[PJ]

Do I say it........


No I should play nice......

Maybe someone needs help with a new car payment......dayum I couldn't help myself

 

[none]

As I see it NHRA has and will keep taking until people wake up. You have to understand that they only are in it for the money. The people (Like US) that have spent our money and time on this sport are the fools and they know it.

 

[67 Cuda]

It is a shame that TV (ESPN) will not try to push NHRA Drag Racing more. The reason NASCAR is as popular as it is because of TV. The number of hours of TV for NASCAR is huge. There must be at least 5 or 6 shows that just discuss NASCAR, or what the teams are doing, or the behind the scenes, or who knows what. If every other add on ESPN was for NHRA drag racing I would bet you would see bigger fields, more money, more sponsors, etc. I think NHRA needs to cut a deal with FOX or SPEED for TV coverage. Then we might see some changes. ESPN does not really seem to care about drag racing.

 

[Jay]

It is a shame that TV (ESPN) will not try to push NHRA Drag Racing more. The reason NASCAR is as popular as it is because of TV. The number of hours of TV for NASCAR is huge. There must be at least 5 or 6 shows that just discuss NASCAR, or what the teams are doing, or the behind the scenes, or who knows what. If every other add on ESPN was for NHRA drag racing I would bet you would see bigger fields, more money, more sponsors, etc. I think NHRA needs to cut a deal with FOX or SPEED for TV coverage. Then we might see some changes. ESPN does not really seem to care about drag racing.

That is exactly 100% the truth...

 

[none]

There would seem to be a perfect oppurtunity in 2008. Through their infinite greed, the "GLENDORA GANG" has opened a door. I would have to believe most if not all sponsorship agreements are in place based on a 23 race season. Race 24, forced down the teams throats, would not be funded (or even considered) in those agreements.................. I say, PARK EM TO MAKE A STATEMENT..............who could blame them.

 

[club]

I would like to see one of the big pro teams give NHRA a wake up call.

Imagine if Force, Schumacher or Kalitta were to send their whole organization over to an IHRA event for one race on an off weekend. I would sure like to be a fly on the wall at NHRA HQ on the following Monday.

This scenario doesn't appeal to me as much as it once did with the addition of an 1/8th mile event in IHRA. An 1/8th mile is not a drag race just a drag.