timebombkal
Nitro Member
IHRA DONATES TO ST.JUDE
- Thread starter timebombkal
- Start date
Steve Wayne
Nitro Member
So cool!!!! And before anyone chimes in with the tax write off bs, pretty sure the IHRA lost more than enough money last year that they didn’t need a $10m write off! This is just a really good dude being a really good dude! Anyone sitting back hoping this guy fails with the IHRA needs their a$$ beat.
timebombkal
Nitro Member
A lot of money flowing in a short amount of time,
Do you think he is buying the tracks with cash? He would not be the first to get himself over-leveraged and go under because of that.
ironpony
Nitro Member
Honestly yes I do, the people I have been around that are at that success level do not use debt. That is like giving away X percent of your bottom line and they just don't do it. My guess is with what he has done at this point of his life he is sitting on several hundred million and using it to advance his desired outcome.
He is more than likely close to making enough in interest income to personally fund his operation without going backwards. JMO based on life experience.
We can find out soon if he paid cash or borrowed. Other people's money is also widely used by successful people. The trick is to use and manage it wisely.
I don't care about his personal financial status. What I care about is if this is all for real or if he is another Evan Knoll.
Assuming he is legit, I have two concerns:
1) He is over-leveraged and expanded too quickly. If it catches up to him, that could mean the end of IHRA and the loss of several tracks.
2) He decides he no longer wants to tie up his money in drag racing and bails. Who knows who would buy the tracks and for what purpose?
I don't care if he goes belly-up and loses everything. It's all his decision. I don't want to see others hurt in the process, as happened with Knoll.
ironpony
Nitro Member
Well this is my take on businesses borrowing money based on my experience, my opinion.
The people borrowing money are doing well but need others to invest so they can maintain their perceived success. They have not reached the level in their field of business.
The people that have made it use their own money because they do not need others money to do what they want too. They also have to back their companies with their own assets, generally privately held.
Then the huge conglomerates, with board members, just borrow money because they can and will screw over everyone below as needed. Play the numbers game on paper to inflate stock pricing.
Also finding out what he paid, if you do some digging you will find the transactions show $0 for sale prices, great atty.s keeping things hidden ?? the ownership has changed but no sale prices listed. People like him tend to keep business very private and keep very trusted employees around him.
Chili
Nitro Member
I don’t have any short term concerns involving IHRA but it probably isn’t long term sustainable. That’s awesome that they are paying out $13 million on the drag racing side in 2026. If they only make $5 million and lose 8 million it can’t continue forever. 10 years, 80 million, 20 years, 160 million. He may be prepared to lose that much and as long as everything is great on the business side he could maybe afford the losses. But eventually there will be a point where it is no long sustainable. It might be 30 years down the road but it will happen.
Now it won’t happen if there is a profit being made. Even if it’s $1 every year, then it’s sustainable. NHRA has a big sponsor paying the bill and yes there are some at the top getting “fat” salaries. Even with the salaries the NHRA is breaking even year to year.
Common sense says you need to spend equal or less every month/year than you bring in. If you are personally spending $1000 a month more than you are making, how long can you go? Some might be 30 years and others might be 3 months. We don’t know how long Daryl can go and how much he is losing. We do know at this point in time he is losing money on the IHRA venture. At some point for it to last it will need to break even.
Now it won’t happen if there is a profit being made. Even if it’s $1 every year, then it’s sustainable. NHRA has a big sponsor paying the bill and yes there are some at the top getting “fat” salaries. Even with the salaries the NHRA is breaking even year to year.
Common sense says you need to spend equal or less every month/year than you bring in. If you are personally spending $1000 a month more than you are making, how long can you go? Some might be 30 years and others might be 3 months. We don’t know how long Daryl can go and how much he is losing. We do know at this point in time he is losing money on the IHRA venture. At some point for it to last it will need to break even.
Rocket Man
Nitro Member
there are a lot of assumptions in that last post.
Steve Wayne
Nitro Member
EXACTLY! The ones who can’t get over the Evan Knoll thing and give this guy a chance are just like the women who treat their new guy bad because the last one was a liar and cheater.
He who ignores history is doomed to repeat it.
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