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

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Not to disagree as I do not (in many ways), but the numbers being thrown around should be placed in context for people not involved with marketing/trade shows...

In 1999 a company I worked with paid $14,000.00 to have an overhead sign placed at a trade show. I remember a booth at Comdex (computer industry), back in the 1990s of reasonable size on the show floor could cost hundreds of thousands of dollars.

I know a company (which I will NEVER name) that spent $100,000 for ONE day at a race track for corporate mucky mucks to race around a circle...

The costs need to be placed in context in order to have intelligent discussion, in my opinion.
 
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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.

How about a bunch of teams run an IHRA event INSTEAD of an NHRA event on the SAME weekend....Good thought, Jim....
 
Not to disagree as I do not (in many ways), but the numbers being thrown around should be placed in context for people not involved with marketing/trade shows...

In 1999 a company I worked with paid $14,000.00 to have an overhead sign placed at a trade show. I remember a booth at Comdex (computer industry), back in the 1990s of reasonable size on the show floor could cost hundreds of thousands of dollars.

I know a company (which I will NEVER name) that spent $100,000 for ONE day at a race track for corporate mucky mucks to race around a circle...

The costs need to be placed in context in order to have intelligent discussion, in my opinion.

So be specific...I am not sure I am following your path here....
 
This is why NHRA pays ESPN $10,000,000-$12,000,000 per year to put it on...It isn't so much though, that ESPN doesn't care..It is a direct reflection of the fact that there isn't enough demand to create the ratings that would make it attractive enough to ESPN to pay a licensing fee to the NHRA to put the shows on the network. This responsibility falls squarely on the shoulders of the NHRA...The best case scenario would be for NHRA to HELP the teams and not continue to hurt them in the many ways that they do...They also need to raise the sportsman purses, and double the pro purses...This would allow for HUGE pro fields thus making the show amazing for the fans....

They should also re-engineer the cars to have a bigger diaper system or (I am not a technical guy, please forgive me...) whatever they need to completely eliminate these oil downs...Then they could get MUCH better TV...I happen to know people at CBS and NBC that would do a deal with the NHRA in a second! Granted, its still a time buy FOR NOW, but the coverage is MUCH better than it is now, and the major OTA (over-the-air) networks are still able to "trip" over ESPN's ratings because of the fact that they have 100% coverage as well as the fact that they are much lower on the dial (as ridiculous as that sounds, this is a fact, by the way...). The networks will also include promos to run during the week to promote the telecasts...Granted it is double the price of ESPN, but the viewership is more than double, and the prestige level of the sport goes WAY up...Not to mention the fact that they could generate more sponsorship dollars, as well...Many great sporting events started as time-buuys and then were offered network deals as a result..In fact, some of the biggest college bowl games are STILL time-buys...If the network offers you money, you can either take it, or realize that you have something special, put the RIGHT people in place to sell it, and make it all yourself...

A perfect example would be the Supercross series on CBS...Now THAT series has their chit together...And they sellout everywhere they go, they sell every spot on the telecast, and do a terrific job getting and keeping sponsors..

Of course though, the "I know it all and do it best" attitudes in Glendora will never take this seriously, though...

Here would be the best case of all scenario....IHRA and NHRA merge, and Bruton Smith and Evan Knoll are partners...You expand the schedule to include the top 20 events in NHRA and the top 8 in IHRA for a total of 28 events...All the sportsman classes get their hour on SPEED each week....On Saturday, you run a 2 hour Pro qualifying show at about 2:00 or 3:00 PST with the last hour live (of course, you will have to adjust the schedules a bit for this)...Then on Sunday, there is a 1 1/2 hour countown show live on SPEED every Sunday from 9:30am-11am PST....At about 3:00 or so, you come on FOX and run a 2 hour Eliminations show, with the finals live at the end...You add a Tuesday night Recap show with a panel of drivers, etc...

Now...THAT is the TV schedule that the NHRA needs, and you know what? I know the numbers well, and I can tell you that this can be had for about 30-40% more than what they are paying ESPN right now, but they get WAY more airtime, run a lot of live stuff, and get Network airtime for the big show...THAT would make this sport grow for sure...I mean lets not reinvent the wheel...This is close to what NASCAR did and i guess IT worked, right?

God, we need Bruton Smith....HE and Evan get it...!
 
With regard to the souvenir trailers....I would suspect that NHRA is still pissed because they had to allow the teams to have those trailers, rather than force them to sell their stuff through NHRA. God forbid NHRA shouldn't get every penny they can from everyone.

Think about it, ever since the big wigs at NHRA have been bean counters rather than former racers, or those who understand from wince we came, the sport has been going down hill. I, too, have serious doubts that HD will make it any better.

Ma Green
 
Does IHRA run at any tracks that you could get a top of the line fuel car down?

What good would it do for all of the hitters to show up at an event just to do a smoke show.

Jay
 
Does IHRA run at any tracks that you could get a top of the line fuel car down?

What good would it do for all of the hitters to show up at an event just to do a smoke show.

Jay

I have heard that Rockingham is a first-class facility. I don't follow IHRA close enough to comment on others though...
 
I have heard that Rockingham is a first-class facility. I don't follow IHRA close enough to comment on others though...
Billy Weeks and I had this discussion a few weeks ago (no pun intended :) ). I'd hardly call Rock a 1st class facility, a descriptor I reserve for the likes of Vegas, but Billy thinks it could definitely host an NHRA event. It's been a few years since I've been to Rockingham but I would place it just below Dallas in terms of facilities. It's a beautiful place for a race though, I wouldn't mind taking a trip back there!
 
So be specific...I am not sure I am following your path here....

What I am saying is the associated marketing costs in drag racing are not out of line in comparrison with other forms of activities and are actually a "bargain" compared across the board with what companies generally spend trying to increase sales and visibility for their product lines.

I actually have two pink plastic chairs in my house, crafted by some "momentarily famous" designer to promote some sort of shaving device that originally cost about five hundred apiece ( there were actually two dozen chairs produced). The chairs were created for a single trade show and after their use they were stuffed into a warehouse where they sat for a year. I got them for free when they were being thrown out to make room for more useless stuff.

Corporations waste a significant amount of money on useless crap (the cost of doing business), and something like a few thousand dollars for a hospitality trailer is basically "nothing" in the total scheme of things even though it seems like a lot when I contrast the costs with my household budget and day job.

I remember attending a four hour "party" one year on the "Streets of New York" (in the Vegas NY NY Casino) where a group had rented the entire "Streets of NY" for four hours, for four hundred people, with open bar and open food... Imagine the costs of that event in comparison with what we are talking about here??????? Oh yea... It was a Saturday night too.....

However purse size and media are two areas that in my opinion, require immediate attention. As much as I may not like the countdown concept, I wager a great many people watching the race (part time fans), didn't care about the old format or the new one but simply enjoyed an exciting event (value judgement aside).

I think it is well past time for some serious consideration to major print, television, and internet media to have a compelling reason to cover professional (and to some degree local) drag racing.

The obvious public service message (take it to the track) is human interest but not newsworthy (until some street racer drives into a tree), but the comparative (compared with other automotive sports) "safe" nature of local drag racing, the wide demographic coverages, the faithfulness of sponsor support by the fans, and the generally communal (family) atmosphere of the events more than offsets the inherent downtime of the activity.

I think hands on marketing will be growing in leaps and bounds as we enter a point in our society where people commicate through non human means more than in person. Drag racing, far more than NASCAR, is poised to take advantage of a "road show" approach to this type of marketing format, due to the accessibility of the teams.

So... We need a few more non automotive sponsors, a few more nicknames
(remember Snake, Mongoose, Big daddy, Wild Willie), and a few Wheaties box covers... We need the promote the USA nature of the activity with roots in safety rather than a celebration of moonshine running, and a place for our teenagers to go where there is less chance of them drinking than at the local clubs.

I don't want to ramble anymore but we need fresh blood. Just watching john Force at the finals made me realize (once again) how fragile we all are and how much a single defining event can change all of our fortunes (for better or worse). We have bigger fish to fry than the countdown numerical inaccuracies. We need more people to enjoy what we do and corporate money follows the buyers (the people).
 
...The costs need to be placed in context in order to have intelligent discussion, in my opinion.
Ted,

Put into context... over the course of next year's 24 race season, that's $60,000 that goes to NHRA instead of teams for a souvenier trailer.

Drag race teams are not multi-billion dollar corporations that have multi-million dollar advertising budgets. Figuring a $2 million budget for a single car team, that $60,000 goes a long ways when you consider it is 3% of their total budget.
 
I think its fair to charge teams for the extra space and trailers and such but the fees they are charging are much too high
 
I think its fair to charge teams for the extra space and trailers and such but the fees they are charging are much too high

But as you increse the charges to the teams, 3rd grade economics also suggest that the teams revenue has to have growth as well...

The NHRA is doing NOTHING to help them do that, in fact, quite the contrary, and we will see the results of that very soon...

A simple example would be to raise the purse..The NHRA hasn't in almost 10 years...But the costs have almost TRIPLED in that time..

Also, one thing that nobody has pointed out yet, and I don't know the answer to this, maybe someone can help me here...The NHRA has probably raised the ticket price for fans AT LEAST double in the last 10 years with NO increse of the purse for the teams that are THE REASON that anyone shows up in the stands in the FIRST place...

How much was a Sunday ticket in 1997? Anyone know...? I will guess maybe $30? MAYBE $40 tops? So if it is $60 today, using my example, then the purse should raise proportionately, right?

The NHRA claims that attendance is up each year too...So higher ticket prices, more fans, yet still paying the racers terrible, welfare-like purses...Doesn't sound like a formula for sucess now, does it...

Now, I only speak for myself here, but if I was a racer in the NHRA at national events, I would feel like I was being pissed on and slapped in the face by the NHRA for raising the ticket prices and pocketing the ENTIRE difference without any regard for the teams that struggle to come out and GIVE the fans the show.

After all, we don't pay $60 to come out on Sunday and watch Tom Compton make runs in his new Bentley, do we...? No! We come to watch the teams...
 
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no no no I wasn't saying that the current price is correct. All I meant was that I don't have a problem with them charging to rent that space. Raising the price is bad especially when the teams get no benefit for that price ie more sales, more prize money and such.

I got the impression from some post that no price should be charged. I think its fine to charge just not 2k or whatever the new price is.
 
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...

One way to deal with that is to negotiate the sponsorship on the basis of not making the countdown and adding a bonus if you do.

As to your other points, they make a lot of sense to me ( so some would say that means you are doomed :) )

Jim
 
As long as NHRA has customers that are willing to pay, they'll keep bumping the rates.

NHRA has three different sets of customers -- fans, racers and sponsors. Their willingness to pay is independent of one another one one hand, yet very dependent on each other on the other hand.

It will be interesting to see which of the three customer groups reaches its limit first, and how it affects the other two.

Jim
 
I happen to know people at CBS and NBC that would do a deal with the NHRA in a second!

There is no way that I would believe that the American LeMans Series gets better ratings than NHRA drag racing. But ALMS will have two races on NBC for the 2008 season and three races on ESPN. They had races on NBC and CBS this year.

Jim
 
This was the first effect of the Countdown I predicted last year, that sponsors would cut back year long dollars and payout bonuses for making the Countdown. NHRAs folly was that they created a 2 level countdown format, giving sponsors 2 levels of oppurtunity to reduce the money treams get upfront. NASCAR increased the Chase to 12 teams because of the drop in sponsorship dollars, will NHRA respond in kind?
 
One way to deal with that is to negotiate the sponsorship on the basis of not making the countdown and adding a bonus if you do.

As to your other points, they make a lot of sense to me ( so some would say that means you are doomed :) )

Jim

It doesn't work that way, unfortunately...You still have the same costs...

Here is an example...Jim, I have just nominated you to be my Funny Car crew chief...I am going to pay you $180,000 base ($7500 per race), plus I will give you 10% of what the car makes. BUT, if the car doesn't make the Countdown, I expect you to remain tuning the car for the last 8 races, although you will do so with no pay? Ready to get started...?

Oh, and Alan Johnson, your blocks & heads are great, and I'm buying a bunch, but if the car doesn't make the top 8, I can only pay you for 2/3 of the parts I bought, ok? Awesome...your a racer too, so I knew that you would understand, good buddy...!

Oh...and of course, the bank...I know I just had you finance $1,300,000 for trucks, trailers, vehicles, and shop equipment for my new race team, but if my car doen't make the countdown, I'm sure that you will understand that I can only make 2/3 of those $30,000 monthly payments payments, right....? Great! So you'll let me skip $120,000 worth of payments? OK...cool...Where do I sign?

Obviously, I had fun with this, but you get the point. If you do a deal contingent on making the countdown, that is just as much a disaster as if you did it based on a championship. Sponsors would sign up all day, but 15 of 16 in each category would get a free ride.
 
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