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Re: The IRS and NHRA, you gotta see this.

I wouldn't be too sure that you just pay fines when you operate a 501(c) as a for profit entertainment corporation. There may be other significant penalties and sanctions. If the violations are serious enough, and flagrant, the board can be removed completely.

Re: The IRS and NHRA, you gotta see this.

Quote:

Originally Posted by MikeFicacci (Post 234974)

Quite possibly nothing is going to change after NHRA pays some sort of fine but if somehow NHRA loses its sanction, Division 1 will be fine operating under some sort of Dave Ley controlled Divisional Series. Division 1 has 128 cars at just about every National Events, Divisional, and Open series race.

Plus I like the idea of one guy who is committed to the sport running the show and not someone who paints NHRA cars on the side.

Agree 1000%. That would be a great deal with Dave in charge.

Re: The IRS and NHRA, you gotta see this.

Quote:

Originally Posted by Alan Roehrich (Post 235005)

Wonder what the two new board members think of this?

If a press release gets issued about one of them leaving for "personel reasons" we will know.

Re: The IRS and NHRA, you gotta see this.

its definitely going to be interesting to watch

Re: The IRS and NHRA, you gotta see this.

Just ran across this.

DRAW PAYS OUT A WHOPPING 220K IN 2010!

The 2011-2012 BOARD of TRUSTEES for the Drag Racing Association of Women includes Vicki Aswege, Kevin Bennett, Karen Comstock, Carol Gibbs, Beth Hyatt, Elise Mauntel, Sarah McLemore, Rosalee Noble, Pat Shaeffer, Yokie Van Vallis, Ashley Yost and Tracy Winters. The alternate Board Members are: Allison Kuhn and Lynne Van Vallis.

Wouldn't it be nice if the racing side of the sport had people you could trust.

Re: The IRS and NHRA, you gotta see this.

Quote:

Originally Posted by A100 (Post 235069)

a little over 15k average each? i don't see a problem here.

Re: The IRS and NHRA, you gotta see this.

Are you sure that's not the annual payout to needy/sick racers?

Re: The IRS and NHRA, you gotta see this.

THE $220,000 DRAW PAYOUT IS TO INJURED RACERS---not DRAW personnel----Comp387

Re: The IRS and NHRA, you gotta see this.

Quote:

Originally Posted by Toby Lang (Post 234440)

Part of the complaint says that the NHRA compensation arrangements may be excessive.

As an example they use the 2006 compensation of Mr. Thomas Compton. In 2006 Mr. Compton was paid $712,317. They say the average compensation paid to CEOs at the ten largest trade associations was $642,447. So, Mr. Compton was paid 9.8% more than the average.

I don't know if the NHRA operates like a for-profit business or not, but Mr. Compton's salary doesn't seem that excessive to me when compared with the others. If he were making 30-50% more than the average I would say yes, that's excessive, but less than 10%?

Also, could it be possible that the anonymous client has the initials BN? :)

-Toby

Tom Compton made over $700,000 a year????? Dang,.... I bet there are some track operators that don't even make that much !! That's getting up there in hemi engine builder
territory !

Re: The IRS and NHRA, you gotta see this.

There is no way this can ever turn out well for racers if the IRS rules that NHRA is not eligible to be a non-profit.

At best, NHRA would be forced to begin paying tax on funds from operations, which will increase costs by 35%, and those costs will be passed along to YOU. How is that good?

And that's only a best-case scenario. The IRS can impute back taxes for as far back as the statute of limitations allows, which could be 7 or even 10 years in some cases. Plus penalties and interest. The organization would either have to shut down, sell out, or seek new capital from a public offering, if the market will support it. None of these are good choices.

A publicly traded entity must, by law, maximize profit for its shareholders, or face lawsuits. The hard truth is that the national events generate piles of cash from spectator and sponsor revenue. The back-gate from sportsman racing is a small fraction of the total.

A for-profit NHRA may have no choice but reduce or eliminate sportsman racing. Not because it loses money, but because the resources can be used more profitably on professional categories. This would certainly be the case if it was owned by a publicly traded corporation.

Some of you think a sportsman-only, combo-racing organization would be preferable. But I can tell you without fear of contradiction that the quality race tracks that were built in the 1990's could never have been funded if they didn't have the prospect of a cash producing NHRA national event to show the bankers and investors. And say goodbye to sponsorships that underwrite some of the pro-sportsman operations in full.

Worst of all, they might have to close down. And to shut it down would be absolutely criminal. Garlits, Prudhomme, Muldowney, Jenkins, Sox, Nicholson- all NHRA legends- 50+ years of history and tradition could be lost, all because some cranky, short-sighted individual thinks Dallas Gardner and Tom Compton make too much money. You'll wish that was your biggest problem.