NHRA Laying off some people??

[NHRADeuce]

If that is the case as far as Compton and Light go, then who are we comparing them to when it comes to their so-called "status" within the industry? Nascar, F1? There is no comparison. We are not talking about a Fortune 500 company for crying out loud! Your statement is made in a tone that seems to be acceptance because that is "what everyone else does". But does it make it right?

In comparison to execs at other $100M companies. It is a non-profit so they do make a bit less than their for profit counterparts, but their salaries are well within normal ranges for companies that size. I'm sure you could look up CEO and exec salaries somewhere, but I bet that most CEOs at companies that size are pulling down a cool million a year or more.

DISCLAIMER - I have no idea what kind of revenue most of these companies have, but here is a list of CEO salaries. There are some surprisingly low, some out of this world.

Compensation by Industry

 

[The Counterfeiter]

NASCAR has had full fields but at some of the races, the last few spots were filled by low-budget teams who qualify, start the race and break on the first lap. They collect qualifying money and have low expenses.

The "Start & Park" teams in NASCAR not only receive qualifying money, they are paid for competing. The LAST place finisher usually gets in excess of $65K - $317K at Daytona, $142K at the Brickyard Media will never show coverage of these teams' pits, because there is usually nothing there. No crew, fuel, tires or tools. A dirty little secret.
Hendrick domination is killing attendance and TV ratings. When the huge TV contracts run out, watch for big trouble in NASCAR land!

 

[DE3]

In comparison to execs at other $100M companies. It is a non-profit so they do make a bit less than their for profit counterparts, but their salaries are well within normal ranges for companies that size. I'm sure you could look up CEO and exec salaries somewhere, but I bet that most CEOs at companies that size are pulling down a cool million a year or more.

DISCLAIMER - I have no idea what kind of revenue most of these companies have, but here is a list of CEO salaries. There are some surprisingly low, some out of this world.

Compensation by Industry

Again, who are you comaparing them to in the industry, namely motorsports type entertainment? Never mind other $100m companies, that is apples to oranges in my eyes because most are publicly traded. In that link, of the few salary compensations I looked at, most had taken a minimum of 15% cuts, and I saw one that was 95%. NHRAs stance has been to layoff those on the bottom who really mattered and did it more because they liked it, certainly not for the money. Have you seen what those folks got paid for the long days they put in? What are they really saving? Then on top of that, they raise national event entry and crew pass fees, DOUBLE chassis cert fees, and hike membership costs. And that's what you see. Did you know that some wizard now decided that all cars running 7.49 and quicker need to have an SFI-15 suit. Triple the cost of a -5 with no apparent explanation as to why it's needed! There are ALOT of people out there that are affected. And we're supposed to feel good because he took a 10% cut? Ever see the list of "vice presidents" in ND? IMO, the hacking needs to start at the top, not at the bottom, where the people who really run the show are. End of rant.

 

[Jon Asher]

Christopher Williams’ post outlining how a randomly selected 100 people would respond to the question of 1,000 foot racing is probably among the sharpest and most cogent ever posted on this site. He nailed it.

Most people come to the races for the show aspects and have little clue or even interest in the actual racing, so those people who are suggesting 1,000 foot racing is keeping people away are, in my opinion, incredibly naïve.

Yes, a small percentage of those staying away are doing so because of the 1,000 situation, but that percentage has to be miniscule.

I may not personally like the 1,000 foot thing, but it’s something we have to live with – until the racers and NHRA find a solution to slowing the cars to the point where we can return to full quarter mile racing. If that doesn’t happen – and it may not – then we have to mentally adjust to the shorter track, and NHRA can help by having new records and points awarded for records in both elapsed time and speed.

Brent Friar is also correct on two counts – the small number of people who really care about the 1,000 foot deal, and the suggestion that there should have been cuts in the top positions, not just the worker bees who make NHRA “happen.”

There are a significant number of factors impacting national event attendance, and I believe the economy is at the top of the list. The national unemployment numbers are over 10%, and the real numbers are even higher because some people have given up even looking for work. Some major cities are reporting unemployment rates as high as 15%. This is a serious problem, and it’s definitely impacting drag racing.

NHRA isn’t alone in this troubled world of revenue streams. Watch a NASCAR race and mentally compare it with a year ago. If you don’t see a lot more empty seats this year – a lot more than last – you’re not watching closely enough. TV ratings are down for NASCAR and NHRA. The All Harley Drag Racing Association not only dropped races, they’ve reduced their purses twice this season.

I completely disagree with Jim Young’s comment that the Hendrick organization is killing NASCAR attendance and ratings because of its domination. Dale Earnhardt, Jr. didn’t come close to qualifying for the Chase yet remains NASCAR’s biggest draw and most popular driver. He delivers more than 50% of the total souvenir sales in NASCAR.

Read the last two sentences of Don Eckel’s post. He’s right.

Jon Asher

 

[Jim]

There are a significant number of factors impacting national event attendance, and I believe the economy is at the top of the list. The national unemployment numbers are over 10%, and the real numbers are even higher because some people have given up even looking for work. Some major cities are reporting unemployment rates as high as 15%. This is a serious problem, and it’s definitely impacting drag racing.

In addition, Jon, the highest unemployment rates are in what have been some of NHRA strongest markets, such as Las Vegas. It's not as bad here in the northeast US, but that would really only affect Reading and Englishtown. I'd like to know how attendance was at those two races compared to previous years.

Jim

 

[DrRocket]

(Regrding QB Vick)

I think a lot of the heat he took was unjustified.

Are you serious Mike???!!!

So you think that electrocuting dogs while they hang by the neck is OK???? You think that having the "fighting dogs" attack "training dogs" is ok? And you think that his violating drug prohibitions while on bail is a minor thing?

You've a much looser definition of "behaving yourself" than I do. I consider this man a loose cannon, and I'm convinced we'll be reading about him again in the future. And NOT in the positive sense.

 

[vegasnitro]

In addition, Jon, the highest unemployment rates are in what have been some of NHRA strongest markets, such as Las Vegas. It's not as bad here in the northeast US, but that would really only affect Reading and Englishtown. I'd like to know how attendance was at those two races compared to previous years.

Jim

I can tell you they must be expecting a big crowd at Vegas 2, as they are offering no type of "fan relief" tickets for that event, and we are presently at 12.2% unemployment in Nevada.

 

[clwill]

I can tell you they must be expecting a big crowd at Vegas 2, as they are offering no type of "fan relief" tickets for that event, and we are presently at 12.2% unemployment in Nevada.

That's a bummer, but it's not an NHRA venue, it's Bruton's place. They haven't offered any "fan relief" anywhere have they?

 

[mw6789]

(Regrding QB Vick)
Are you serious Mike???!!!

So you think that electrocuting dogs while they hang by the neck is OK???? You think that having the "fighting dogs" attack "training dogs" is ok? And you think that his violating drug prohibitions while on bail is a minor thing?

You've a much looser definition of "behaving yourself" than I do. I consider this man a loose cannon, and I'm convinced we'll be reading about him again in the future. And NOT in the positive sense.

I meant the heat PETRINO took for leaving Atlanta for God's sake. I hate what Vick did (as a dog owner and dog lover---guarantee you my dog has a better life than lots of people). I meant the heat Petrino took for leaving because he no longer had Vick for quarterback.

 

[vegasnitro]

That's a bummer, but it's not an NHRA venue, it's Bruton's place. They haven't offered any "fan relief" anywhere have they?

Yeah, they were the first place to offer fan relief tickets, $19 GA at Vegas 1. They also offered cheap bundles for Bristol and Concord.

 

[Toejam]

I can tell you they must be expecting a big crowd at Vegas 2, as they are offering no type of "fan relief" tickets for that event, and we are presently at 12.2% unemployment in Nevada.

Chris, even though the Fall race draws better than the Spring race. I think your right, I would be shocked if the crowds in Vegas are anything like in the past. Even though many fans go to Vegas for the Vacation aspects, I'm sure most are hometown folks.

 

[clwill]

Yeah, they were the first place to offer fan relief tickets, $19 GA at Vegas 1. They also offered cheap bundles for Bristol and Concord.

Oh, didn't know that. Huh, doesn't make sense to not do it for V2. Is it normally better attended?

 

[Old Guy Rookie]

Oh, didn't know that. Huh, doesn't make sense to not do it for V2. Is it normally better attended?

It may also depend on how tickets are currently selling as well. If they aren't going as fast as expected, you may see "fan relief" coming into next week. It all depends. YMMV

 

[NHRADeuce]

Again, who are you comaparing them to in the industry, namely motorsports type entertainment? Never mind other $100m companies, that is apples to oranges in my eyes because most are publicly traded. In that link, of the few salary compensations I looked at, most had taken a minimum of 15% cuts, and I saw one that was 95%. NHRAs stance has been to layoff those on the bottom who really mattered and did it more because they liked it, certainly not for the money. Have you seen what those folks got paid for the long days they put in? What are they really saving? Then on top of that, they raise national event entry and crew pass fees, DOUBLE chassis cert fees, and hike membership costs. And that's what you see. Did you know that some wizard now decided that all cars running 7.49 and quicker need to have an SFI-15 suit. Triple the cost of a -5 with no apparent explanation as to why it's needed! There are ALOT of people out there that are affected. And we're supposed to feel good because he took a 10% cut? Ever see the list of "vice presidents" in ND? IMO, the hacking needs to start at the top, not at the bottom, where the people who really run the show are. End of rant.

You must not have read my first post. Short recap - NHRA execs should have taken DEEP cuts before laying off anyone.

My point is that they may indeed have take those cuts. I know several of the people who were laid off and I have spoken with one of them at length. As I understand it, the brass has taken very large cuts and if that is the case, then I will applaud them. Nice thing is that we'll know for sure when the tax forms are filed.

As for what NHRA execs are compensated, no matter what type of comparison you want to draw, their salaries are well within typical exec compensation packages even if you are considering charitable organizations - of which NHRA is not, non-profit is not the same but that's been covered here in detail before and I am not a lawyer.

I don't find myself agreeing with Asher much, but he pretty much nailed it. I am sure we'll be able to count on him and the rest of the NHRA journalist to nail the NHRA execs to the wall if they didn't take substantial paycuts in light of the situation.

 

[Jim]

You must not have read my first post. Short recap - NHRA execs should have taken DEEP cuts before laying off anyone.

Do you know whether all the people who were laid off were needed?

Jim

 

[JB3]

If that is the case as far as Compton and Light go, then who are we comparing them to when it comes to their so-called "status" within the industry? Nascar, F1? There is no comparison. We are not talking about a Fortune 500 company for crying out loud! Your statement is made in a tone that seems to be acceptance because that is "what everyone else does". But does it make it right?

Not a question of right or wrong Don ... It's business. Doesn't matter if its a Fortune 500, Private Owned or Non Profit. Business leader salaries are continuously bench marked against what is "average" and they are thusly compensated. It's the way it is !! Everyone needs to get over that.

 

[Paul]

Not a question of right or wrong Don ... It's business. Doesn't matter if its a Fortune 500, Private Owned or Non Profit. Business leader salaries are continuously bench marked against what is "average" and they are thusly compensated. It's the way it is !! Everyone needs to get over that.

Jim, there is one big difference here. In most companies, there are clear checks and balances in place to force out high salaried employees if the company is underperforming. In the case of standard "for profit" companies, if a company is really underperforming (like the NHRA has been doing for many years) the share holders can exert pressure to replace both board members and high level employees.

In the case of non-profit 501(c)(6) companies like the NHRA, it is supposed to be the members of the organization that force replacement of board members and CEO's if the organization is not doing well.

But the NHRA board has managed to "short circuit" this important function by a two pronged approach.

The first prong is they have kept under wraps the true nature of the NHRA as a 501(c)(6), which by legal requirement is supposed to be be primarily controlled by its members. Most NHRA members just aren't aware of this fact.

The second prong is that a while ago they had a membership vote performed that appears to me to be on shakely legal ground to put this "neutered" membership control of the organization into the companies bylaws.

It doesn't make sense for any company not to have a "checks and balances" mechanism in place to replace high level employees when the company isn't doing well.

High salaries may be warranted when an employee is under the gun to perform, but they don't make any sense in this case where the only board themselves decide their own salaries and futures.

I think it would be in the best interest of the NHRA if its members realized that they can strongly influence its direction and started directly using this influence.

 

[DE3]

Not a question of right or wrong Don ... It's business. Doesn't matter if its a Fortune 500, Private Owned or Non Profit. Business leader salaries are continuously bench marked against what is "average" and they are thusly compensated. It's the way it is !! Everyone needs to get over that.

And there-in lies the problem Jim. Acceptance of inflated salaries, or compensation, based on some "benchmark average", instead of performance. If performance is good, then the salary is warranted, it should be a pay cut or sayonara.

 

[Jim]

If performance is good, then the salary is warranted, it should be a pay cut or sayonara.

Define good performance?

Good for customers? Good for racers? Good for the organization?

What is good for one group is often at odds with what is good for others.

Jim

 

[DE3]

Define good performance?

Good for customers? Good for racers? Good for the organization?

What is good for one group is often at odds with what is good for others.

Jim

There really should be only 2 items to take care of in general. Take care of the customers AND racers and that alone will help the organization take care of itself. Personally, I feel like it is a pretty good value for customers(fans) in relation to what it costs to attend other sporting events. And they have made efforts to have reduced pricing at some events. Sure attendance may be down, but it's a sign of the times. But I think the story is a little different from the racer side of things. Rising costs and the uncertainty of if and when you'll get to run at a National are some of the issues. And it's not always weather related. And now tech poeple are few and far between because NHRA keeps letting more and more people go in that area.