IHRA cancels some 2026 events (4 Viewers)

[65 Goatboy]

Amen. The IHRA has a negative cash flow regarding all of the dragstrip purchases, operating expenses, payroll etc.
When total cash disbursed is greater than total cash received, insolvency is in progress.
Remember, the new and improved IHRA was supposed to dethrone the NHRA. lol.

Nothing is unraveling any start up business is going to outlay 10x's what they take in the first few years. Yes he overpromised some of his capabilities on getting things done but that is what people of his type do.

90% of all drag strips are running in the negative numbers, that is why they are closing down regularly. We now have a guy willing to spend his own money to try and save some of them.

Again in the first years of a business they are going to have negative cash flow and should have a reserve of 5 years to get things up and running. He also has his other income lines which generate 100-150 million a year so he is not flying blindly.
IHRA was supposed to give racers another place to race.

Also please remember NHRA has zero income and is a charity sponsored by Mission Foods, take that away and NHRA disappears immediately so NHRA is in no better shape financially than IHRA. In fact IHRA has a person with a successful businesses to fund it not relying on handouts.

I'm guessing James has never started a business but Ken has. I became a 50-50 partner in a fairly new business. We didn't show a profit for awhile but that didn't mean we weren't "making money". If you sell something for more then you paid for it you can put that "profit" back into the business. If your expenses and cost of goods sold are more then gross sales you are not showing a profit but doesn't mean you are going broke or out of business you just aren't putting anything in your own pocket. You can withdraw just what you need to live or maybe a spouse will help. If you are frugal and know the business you are in you should eventually start making money. Our business made us a good living for over 30 years.
None of us know Darryl's person finances. Someone in a similar industry said his business doesn't make enough to support the IHRA. Ok, maybe he is independently wealthy, maybe he has silent partners.....I'm not jumping on the assumption band wagon.

 

[mgty3whlr]

Also please remember NHRA has zero income and is a charity sponsored by Mission Foods, take that away and NHRA disappears immediately so NHRA is in no better shape financially than IHRA.

Anyone remember when Coca-Cola pulled from NHRA before the contract ended? NHRA was in a Bad situation when that happened and if Marcus Lemonis didn't step in, I'll bet NHRA would have back burnered a whole bunch bunch of stuff.

 

[Joe]

What im saying is it was better than any of last years racing spectator count

There were quite a few spectators at both Dunn races. I’ll be back in Oct.

 

[Custom Body Fan]

Also please remember NHRA has zero income and is a charity sponsored by Mission Foods, take that away and NHRA disappears immediately so NHRA is in no better shape financially than IHRA. In fact IHRA has a person with a successful businesses to fund it not relying on handouts.

That is incorrect. The NHRA had revenue (gross income) of $97 million in 2024 and similar income in prior years. A couple million comes in from the title sponsor (currently Mission) and the rest comes from other income streams. $97 million is a lot more than $0. Also, the NHRA is a not-for-profit, but it’s not a charity. You are thinking of a 501c3, whereas the NHRA is a 501c6.

Details on the NHRAs revenue and expenses are here https://projects.propublica.org/nonprofits/organizations/951686172

 

[Butch]

So are you saying.
Money's for nothing and the Checks are free?

 

[Joe]

That is incorrect. The NHRA had revenue (gross income) of $97 million in 2024 and similar income in prior years. A couple million comes in from the title sponsor (currently Mission) and the rest comes from other income streams. $97 million is a lot more than $0. Also, the NHRA is a not-for-profit, but it’s not a charity. You are thinking of a 501c3, whereas the NHRA is a 501c6.

Details on the NHRAs revenue and expenses are here https://projects.propublica.org/nonprofits/organizations/951686172

How much of that is unpaid contingency money?

 

[Dennis]

Amen. The IHRA has a negative cash flow regarding all of the dragstrip purchases, operating expenses, payroll etc.
When total cash disbursed is greater than total cash received, insolvency is in progress.
Remember, the new and improved IHRA was supposed to dethrone the NHRA. lol.

Show me a startup that doesn't operate in the red right out of the gate.

 

[ironpony]

That is incorrect. The NHRA had revenue (gross income) of $97 million in 2024 and similar income in prior years. A couple million comes in from the title sponsor (currently Mission) and the rest comes from other income streams. $97 million is a lot more than $0. Also, the NHRA is a not-for-profit, but it’s not a charity. You are thinking of a 501c3, whereas the NHRA is a 501c6.

Details on the NHRAs revenue and expenses are here https://projects.propublica.org/nonprofits/organizations/951686172

And at the end of the year after the salaries and bonuses to burn any profits there is zero income hence the charity status.

 

[Rasn1320]

Anyone remember when Coca-Cola pulled from NHRA before the contract ended? NHRA was in a Bad situation when that happened and if Marcus Lemonis didn't step in, I'll bet NHRA would have back burnered a whole bunch bunch of stuff.

always wondered how they made out in court over this???

 

[Custom Body Fan]

Was

And at the end of the year after the salaries and bonuses to burn any profits there is zero income hence the charity status.

That is incorrect. First, the NHRA is not a charity. Contributions to the NHRA are not tax deductible. That’s because they are a 501c6. Secondly, no non-profits, even charities (most are 501c3’s) are required to spend all their income each year. It’s a common belief, but it’s not correct. This article refers to charities, but it applies to 501c6 firms like the NHRA too. https://www.boardeffect.com/blog/50...h-money-should-nonprofits-have-in-their-bank/

 

[Custom Body Fan]

How much of that is unpaid contingency money?

That info would be on their balance sheet, but since NHRA is private details are not available. This does show https://projects.propublica.org/nonprofits/organizations/951686172 that they’ve got $87 million in assets (tracks, equipment, cash, etc) and $27 million in liabilities, which is where unpaid contingency fees would be.). It they are never going to be paid they eventually would be converted to an asset.

 

[Ponyhntr]

How much of that is unpaid contingency money?

None. Contingency is paid by the manufacturers directly to the racer. NHRA doesn’t see any of it.

And at the end of the year after the salaries and bonuses to burn any profits there is zero income hence the charity status.

Not a charity. It’s a non-profit. Which is different.

 

[mick]

with the decrease in remaining '26 events, i hope some of the FC and TF players will consider
attending one or more of the next 3 nhra races, all of which annually struggle to have full fields.