How NHRA could survive and really cut costs

Greg Hill · 04-12-2009, 04:25 PM

In tough times you need to cut costs and not raise prices. If it was my call the first thing I would do is move the home office to Indy.They already own a great facility and there is plenty of room to build a building to house the home office. You then could sell the California real estate to help the financials The overhead would go down tremendously just from a change in location. The next thing I would do is make the top job pay $250,000 per year with bonuses for increased participation in the form of new racers. I would change the board of directors from an overpaid bunch of former NHRA employees to reflect what's going on in our sport. Maybe something like 2 track owners, 2 pro racers, 2 sportsman racers, the ceo, the cfo, someone with legal background and maybe 2 people from the industry. This kind of board makeup would be much more in tune with what's going on in our sport and without huge salaries would be less likely to do things just to keep their position. When you start fresh like this you have the opportunity to really cut fat. I would make the home office much smaller and increase the size of the divisional personnel. Because a lot of the divisional guys are part time you could save a ton of money and actually have more people at the races.

Because they basically don't have any national competition they haven't in the past been forced to be efficient. If they were a for profit business in a competitive environment they would of had to do this years ago. The way NHRA is now structured there is no one to hold the accountable for their performance. Even though the board of directors has no ownership position in the company, they can do whatever they want. If management were held accountable to a board made up like I've suggested they would be much more interested in making the company healthy and growing instead of just feathering their own nest. Because of their non profit status instead of paying out dividends to owners or stockholders they have paid out huge salaries to top management and board members and have left very little money in the company to weather tough times. They way the company is organized now it WILL foster corruption and greed. If management were responsible to a board that had interests of making the company serve the members, track owners, racers and the industry better and more efficiently things would change dramatically.

Stocker 2 · 04-12-2009, 05:05 PM

Does anyone know how the management currently at the top of NHRA got control in the first place? Somehow over the years Wally's dream went sour.

X-TECH MAN · 04-12-2009, 05:11 PM

NHRA headquarters wouldnt move......theres no Golf Course in thier backyard at Indy....LOL.

Michael Beard · 04-12-2009, 05:27 PM

Great post, Greg.

Dennis P Chapman · 04-12-2009, 05:43 PM

Is'nt there a golf course by indinapolis speedway not that far away.

Terry Cain · 04-12-2009, 07:13 PM

Seems I can remember a few office trailers at INDY.

Michael Kilduff · 04-12-2009, 08:04 PM

Quote:

Originally Posted by Dennis P Chapman

Is'nt there a golf course by indinapolis speedway not that far away.

Actually part of the golf course is inside the speedway, about 4 holes I think.

Dave Goob Cook · 04-13-2009, 03:41 PM

Quote:

Originally Posted by X-TECH MAN

NHRA headquarters wouldnt move......theres no Golf Course in thier backyard at Indy....LOL.

Not yet, but the turf out in what used to be the campground is just as nice.

CycloneFE · 04-13-2009, 04:10 PM

Greg,

Great post!

I spent 20 years as a volunteer firefighter in a very small district. It was formed in 1959 and the founding members voted to have 3 elected trustees and their salary was $1.00 per year. Once a month the 3 would come to the firehouse and sign checks and do business. Firefighters were paid to train at $3.50 per week and a maximum of 3 weeks per month. All of this was to encourage input of nearly all monies BACK into the district and the best trained personnel.

Several years before I left a fellow got on as trustee and he spoke to several other trustees from more prominent departments that had more money and he voted the trustees be paid several hundred per month. Once the FF's heard of this, there was a pretty big outrage as to who lays their life on the line and is paid, "how much"? Next month the salaries were reversed and all is still the same in the small town, except the trustee did not get re-elected.

Sometimes outrage and speaking ones mind can change things.

PS, the worst thing was the Government stepped in and wanted to get the taxes of the $3.00 paid to the trustees per year.

novassdude · 04-13-2009, 05:09 PM

The only improvement I would see to Greg's suggestion is to put the new head office out in the middle of Kansas centrally located to the country. Should be allot cheaper to build there than Indy.
If the powers that be don't want to move they can quit. Only problem with that is they would give them selves big severance packages and break the bank on the way out the door.

04-12-2009, 04:25 PM	#1
Greg Hill VIP Member Join Date: May 2006 Location: Louisville , KY Posts: 1,995 Likes: 68 Liked 279 Times in 68 Posts	How NHRA could survive and really cut costs In tough times you need to cut costs and not raise prices. If it was my call the first thing I would do is move the home office to Indy.They already own a great facility and there is plenty of room to build a building to house the home office. You then could sell the California real estate to help the financials The overhead would go down tremendously just from a change in location. The next thing I would do is make the top job pay $250,000 per year with bonuses for increased participation in the form of new racers. I would change the board of directors from an overpaid bunch of former NHRA employees to reflect what's going on in our sport. Maybe something like 2 track owners, 2 pro racers, 2 sportsman racers, the ceo, the cfo, someone with legal background and maybe 2 people from the industry. This kind of board makeup would be much more in tune with what's going on in our sport and without huge salaries would be less likely to do things just to keep their position. When you start fresh like this you have the opportunity to really cut fat. I would make the home office much smaller and increase the size of the divisional personnel. Because a lot of the divisional guys are part time you could save a ton of money and actually have more people at the races. Because they basically don't have any national competition they haven't in the past been forced to be efficient. If they were a for profit business in a competitive environment they would of had to do this years ago. The way NHRA is now structured there is no one to hold the accountable for their performance. Even though the board of directors has no ownership position in the company, they can do whatever they want. If management were held accountable to a board made up like I've suggested they would be much more interested in making the company healthy and growing instead of just feathering their own nest. Because of their non profit status instead of paying out dividends to owners or stockholders they have paid out huge salaries to top management and board members and have left very little money in the company to weather tough times. They way the company is organized now it WILL foster corruption and greed. If management were responsible to a board that had interests of making the company serve the members, track owners, racers and the industry better and more efficiently things would change dramatically. __________________ Greg Hill 4171 STK

04-12-2009, 05:05 PM	#2
Stocker 2 Member Join Date: Nov 2002 Posts: 137 Likes: 0 Liked 1 Time in 1 Post	Re: How NHRA could survive and really cut costs Does anyone know how the management currently at the top of NHRA got control in the first place? Somehow over the years Wally's dream went sour.

04-12-2009, 05:11 PM	#3
X-TECH MAN Banned Join Date: Dec 2007 Location: Lake Placid, Florida Posts: 3,203 Likes: 1,047 Liked 235 Times in 110 Posts	Re: How NHRA could survive and really cut costs NHRA headquarters wouldnt move......theres no Golf Course in thier backyard at Indy....LOL.

04-12-2009, 05:27 PM	#4
Michael Beard VIP Member Join Date: Sep 2002 Location: Columbus, OH Posts: 4,060 Likes: 0 Liked 13 Times in 9 Posts	Re: How NHRA could survive and really cut costs Great post, Greg. __________________ Michael Beard - NHRA/IHRA 3216 S/SS

04-12-2009, 05:43 PM	#5
Dennis P Chapman VIP Member Join Date: Jun 2007 Location: Toms River NJ Posts: 1,594 Likes: 415 Liked 53 Times in 25 Posts	Re: How NHRA could survive and really cut costs Is'nt there a golf course by indinapolis speedway not that far away. __________________ Dennis P Chapman 1904 STK NHRA National Record Holder Car Owner.

04-12-2009, 07:13 PM	#6
Terry Cain Senior Member Join Date: Feb 2008 Location: Georgetown, Indiana (close to Louisville, KY) Posts: 776 Likes: 530 Liked 230 Times in 106 Posts	Re: How NHRA could survive and really cut costs Seems I can remember a few office trailers at INDY. __________________ Terry Cain ???? STK tcain19689585@gmail.com

04-13-2009, 04:10 PM	#9
CycloneFE Senior Member Join Date: Feb 2007 Location: Decatur Illinois Posts: 634 Likes: 0 Liked 2 Times in 2 Posts	Re: How NHRA could survive and really cut costs Greg, Great post! I spent 20 years as a volunteer firefighter in a very small district. It was formed in 1959 and the founding members voted to have 3 elected trustees and their salary was $1.00 per year. Once a month the 3 would come to the firehouse and sign checks and do business. Firefighters were paid to train at $3.50 per week and a maximum of 3 weeks per month. All of this was to encourage input of nearly all monies BACK into the district and the best trained personnel. Several years before I left a fellow got on as trustee and he spoke to several other trustees from more prominent departments that had more money and he voted the trustees be paid several hundred per month. Once the FF's heard of this, there was a pretty big outrage as to who lays their life on the line and is paid, "how much"? Next month the salaries were reversed and all is still the same in the small town, except the trustee did not get re-elected. Sometimes outrage and speaking ones mind can change things. PS, the worst thing was the Government stepped in and wanted to get the taxes of the $3.00 paid to the trustees per year.

04-13-2009, 05:09 PM	#10
novassdude Senior Member Join Date: Mar 2002 Location: usa Posts: 752 Likes: 204 Liked 136 Times in 49 Posts	Re: How NHRA could survive and really cut costs The only improvement I would see to Greg's suggestion is to put the new head office out in the middle of Kansas centrally located to the country. Should be allot cheaper to build there than Indy. If the powers that be don't want to move they can quit. Only problem with that is they would give them selves big severance packages and break the bank on the way out the door.