Is drag racing a business?

[ROCKY]

Force could get wealthy on T-shirt sales and personal appearances alone.

 

[mick]

the best salesman wins - no different in drag racing as in
the everyday business world. You mite not like some of the more
successful teams sphewing forth countless sponsors everytime
they have the mic., but believe me, they have worked very
hard to get them and keep them - so they are going to let us
know who makes it all happen for them.
And you wonder why the teams/drivers that have the longest list
of sponsors to thank tend to be out there competing year after year.

 

[BaldyLochs]

I think it's very much a business on many levels. Even the weekend local yokels who treat it as such probably do better at the bank then someone who doesn't. Look at Connie Kalitta. I don't know if the guy has ever broke even since he started in the 50's. In the 80's post-Muldowney years he never missed a beat; always had 2 cars at every event, never sat out a season due to lack of sponsorship - week in and week out parked next to the guys with big name, fancy sponsorships. He finally put the name of his company on the side of his cars as to use as a tax write off, waaaay before Mac Tools or Zantrex-3 or MGM Grand came along. In his case, yes - it's a hobby to this day. A damn expensive one at that. But it's obviously still a business in regards to payroll, taxes, purchasing, expenses, management, logistics, etc.

 

[mick]

please substitute "write-off" with "expense".
I would prefer to think that drag racing as an expensive hobby might
be used as a legitimate business "expense", possibly under
the client entertainment and/or advertising/marketing column.
These are real expenses coming out of real budgets.

 

["Dr. Dirt"]

please substitute "write-off" with "expense".
I would prefer to think that drag racing as an expensive hobby might
be used as a legitimate business "expense", possibly under
the client entertainment and/or advertising/marketing column.
These are real expenses coming out of real budgets.

Point well taken.
My accountant was out of town when I posted but I know how it works for me year-in and year-out. Someday I'll learn the correct terminology.

 

[TJ]

Of the top 10 team in each pro class maybe 70% are paid employees...I worked w/ Armstrong, Bernstein in the 90's and no one was making over 50,000 dollars a year aside from Geoff and Dale..Guger was paid well but we also received a bonus @ the end of the year..On average about $12,000..But I was w/ a winning car..
Most top shelf teams today have alot of employees/interns who are working for experience/free just to be part of the action..
JFR has sooo many employees and have people that will work for free just to be connected...In fact a first year employee signs a contract stating he will never speak to John for the first season just so Bernie knows this person really wants to be there working and not there to be friends w/ Force..
It would blow most fans away @ how little these guys/girls work for...
If you really know how to do bellhousing maintenance you can make up to $60,000 easily but you'd better be good and quick...

 

[Toejam]

Of the top 10 team in each pro class maybe 70% are paid employees...I worked w/ Armstrong, Bernstein in the 90's and no one was making over 50,000 dollars a year aside from Geoff and Dale..Guger was paid well but we also received a bonus @ the end of the year..On average about $12,000..But I was w/ a winning car..
Most top shelf teams today have alot of employees/interns who are working for experience/free just to be part of the action..
JFR has sooo many employees and have people that will work for free just to be connected...In fact a first year employee signs a contract stating he will never speak to John for the first season just so Bernie knows this person really wants to be there working and not there to be friends w/ Force..
It would blow most fans away @ how little these guys/girls work for...
If you really know how to do bellhousing maintenance you can make up to $60,000 easily but you'd better be good and quick...

I don't know how long ago you speak of, but any Top 10 team paying crew members $12,000 per year? They wouldn't make a second race because the entire crew would quit!

 

[TJ]

Joe,

$12,000 was our bonus after the NHRA awards....On average Sheryl's budget for our team was $200,000 for 5 full time employees and a couple of interns who she paid very little like hotel/dinner and if your lucky a plane flight home after the Finals, and we split the earnings/winnings evenly...After talking to Dale/Geoff earlier this year wages have dropped due to the pro-bono type of employees and the budgets today..

 

[Nick Name]

I don't know how long ago you speak of, but any Top 10 team paying crew members $12,000 per year? They wouldn't make a second race because the entire crew would quit!

I guess you missed this part;
"but we also received a bonus @ the end of the year..On average about $12,000..But I was w/ a winning car.."

 

[TJ]

Here is a good example....A certain F/C w/ an 'Oil Company' sponsor pays their crew, minus chief and clutch tech, $400.00 for the weekend...You fly out Weds night, wherever you live, and take the red-eye home Sun night and receive $5000.00 bonus after the awards and you pay for your flight home after the finals..
I know this as I was offered a position w/ this team in 2006...I declined....

 

[none]

I'm amazed how many maters know all the "Inside" financial status of the pro's. I'm sure Conrad would get a big laugh out of all these people that talk about how much of his own money he is spending to race. Same for Snake, Shoe, Force,Bernstein and all the rest of the pros. I suspect most of the pros are at least breaking even.
When the team owners decide it should be our business to know this info i'm sure they will get on here and let us know.
Don't hold your breath!

 

[Toejam]

I guess you missed this part;
"but we also received a bonus @ the end of the year..On average about $12,000..But I was w/ a winning car.."

Good one Jay, my bad!

 

[BaldyLochs]

Paul, if you're referring to me and my somewhat-presumtuous comments about C. Kalitta's situation... I myself can guarantee...I don't think he would "get a big laugh" out of it whatsoever; I think he would tell me to go f*** myself and I'd wind up with a bloody nose!! I know Connie, and he absolutley knows who I am. I mean, for Friggin crap's-sake.... I have the man's name tattooed on my flippin arm! All I was trying to point out is... Connie and his entourage have done quite well... with or without any marquee sponsorship, all the while, more or less calling this something to do on the weekends. It's all good, peace!