<img src="http://www.nitromater.com/gallery/files/5/713.jpg" alt="713" align="left"borders="0"/>
Thursday, 30 August 2007 - (Sydney, NSW) The Management Group of Western Sydney International Dragway wish to clarify their position in relation to the future on-going management and control of Drag Racing in Australia, in particular consideration and observation of the Straight Line Events (SLE) proposal for control of the sport's professional categories.
After carefully considering and reviewing the impact of this proposal to race teams, the potential to increase the revenue stream is entirely dependent on the performance of series and platform sponsorship. Of note is still the onus on competitors to engender sponsorship streams moving forward under such an arrangement. Alternatively the revenue from the tracks (sanction fee) is guaranteed, with guaranteed increases moving forward.
The proportional increase in revenue to race teams under the SLE offering is excessively small in comparison to the 33% management fee required from total revenue, not profits to SLE's Manager. It is unreasonable to expect that the growth in real dollar terms for management is directly proportional to the total revenue without consideration of the performance of the financial management of the Group One Racing Series.
We believe it is acceptable to pay for administration costs with a performance based profit sharing to ensure prudent financial management. It would also be acceptable to have a board review the financial management of the "Group One Management Entity".
In summary, based on the current submission from SLE, with a poor financial return for tracks and teams alike, a revenue based management fee rather than performance on financial management, less TV exposure for the indicated costs and factionalisation of license and non-licensed competitors, the proposal divides the sport, does not reward the investment of the competitors, their families, officials, volunteers, members, track operators and Governments.
To attempt to work towards a heads of agreement with MOU's that do not provide sufficient financial benefit (both track or racer/team MOUs) is not workable. The additional financial information provided is neither documented within the MOU nor does it provide any greater direct financial benefits to either the tracks or the teams. The proposal does not consider the considerable investment from ANDRA, the tracks and the teams in providing a definitive return to all parties and therefore is unworkable.
From the sport's lowest point in 1999, three years after competitive drag racing ceased in Sydney, the sport in 2007 has now grown by 262%. This is worth considerably more than the SLE Proposal and therefore we are not in a position to support it in the interests of our sport.
Western Sydney International Dragway is committed, through Drag Ltd;
. To review Drag Ltds membership to permit greater contribution from within the sport and also those that are independent of drag racing.
. Develop a Marketing and Sponsorship strategy.
. Implement appropriate Research and Media Surveying to assist into Sponsorship development for all stakeholders (particularly competitors).
. Improve prize money through Sponsorship support.
. Review the current ANDRA structure and its resources to provide greater regulatory flexibility.
Western Sydney International Dragway Clarifies Its Position On The S L E Proposal.
Thursday, 30 August 2007 - (Sydney, NSW) The Management Group of Western Sydney International Dragway wish to clarify their position in relation to the future on-going management and control of Drag Racing in Australia, in particular consideration and observation of the Straight Line Events (SLE) proposal for control of the sport's professional categories.
After carefully considering and reviewing the impact of this proposal to race teams, the potential to increase the revenue stream is entirely dependent on the performance of series and platform sponsorship. Of note is still the onus on competitors to engender sponsorship streams moving forward under such an arrangement. Alternatively the revenue from the tracks (sanction fee) is guaranteed, with guaranteed increases moving forward.
The proportional increase in revenue to race teams under the SLE offering is excessively small in comparison to the 33% management fee required from total revenue, not profits to SLE's Manager. It is unreasonable to expect that the growth in real dollar terms for management is directly proportional to the total revenue without consideration of the performance of the financial management of the Group One Racing Series.
We believe it is acceptable to pay for administration costs with a performance based profit sharing to ensure prudent financial management. It would also be acceptable to have a board review the financial management of the "Group One Management Entity".
In summary, based on the current submission from SLE, with a poor financial return for tracks and teams alike, a revenue based management fee rather than performance on financial management, less TV exposure for the indicated costs and factionalisation of license and non-licensed competitors, the proposal divides the sport, does not reward the investment of the competitors, their families, officials, volunteers, members, track operators and Governments.
To attempt to work towards a heads of agreement with MOU's that do not provide sufficient financial benefit (both track or racer/team MOUs) is not workable. The additional financial information provided is neither documented within the MOU nor does it provide any greater direct financial benefits to either the tracks or the teams. The proposal does not consider the considerable investment from ANDRA, the tracks and the teams in providing a definitive return to all parties and therefore is unworkable.
From the sport's lowest point in 1999, three years after competitive drag racing ceased in Sydney, the sport in 2007 has now grown by 262%. This is worth considerably more than the SLE Proposal and therefore we are not in a position to support it in the interests of our sport.
Western Sydney International Dragway is committed, through Drag Ltd;
. To review Drag Ltds membership to permit greater contribution from within the sport and also those that are independent of drag racing.
. Develop a Marketing and Sponsorship strategy.
. Implement appropriate Research and Media Surveying to assist into Sponsorship development for all stakeholders (particularly competitors).
. Improve prize money through Sponsorship support.
. Review the current ANDRA structure and its resources to provide greater regulatory flexibility.
