Racing, NHRA/IHRA, and the Economy: I got questions

cutta · 02-27-2013, 02:34 PM

Okay, so many people have complained about the deficiencies in both racing organizations but recently had an interesting thought that maybe some of the cause of those issues. Now this happens to fall outside the realm of governing and more along the lines of pure economics. So I've read on here how many individuals including my father were able to race at a time were winning your gas money or leaving the track with a profit was very common. I got to thinking about no increases in payouts, and steady increases in fees, just the general pull and tug of benefits, costs, and profits, when insurance costs popped in my mind. The extent to which insurance legalities extend is pretty massive compared to the 50's and 60's. So now I'm thinking about true evaluations of then vs. now in relation to that. Some of you know this and some of you do not, but when comparing two time periods, you must adjust for inflation to bring the past values to current values or bringing current values to the past.
I would like to see a costs to costs comparison of the insurance costs that NHRA/IHRA must pay now vs. then to see:
How extensive of an effect has this been financially to the NHRA/IHRA in trying to offer more benefits to the racer?
I would not be surprised at all to find todays costs multiples and multiples higher than then.

Rarely do we as racers ever attempt( or at least from what I've seen and heard) to establish how much money the organization has to spend in order to do what they do per event. Is it a losing battle?

Add, lack of sponsors, increased racing costs outside of racing fees(fuel, engines, trailers, travel, etc), and lack of racers due to the economy to the mix and you've got what seems to be a pretty sad situation. Anyway, it just happened to be something I was thinking about and thought I would add it to the forum for some convo. This was more so a deep thought pondering moment than a wishing death on racing moment so don't be alarmed, I'm as optimistic as they come.

PS: If anyone has the expertise to this analysis, please share.

02-27-2013, 02:34 PM	#1
cutta Member Join Date: Jul 2008 Location: Little Rock, AR Posts: 347 Likes: 0 Liked 5 Times in 2 Posts	Racing, NHRA/IHRA, and the Economy: I got questions Okay, so many people have complained about the deficiencies in both racing organizations but recently had an interesting thought that maybe some of the cause of those issues. Now this happens to fall outside the realm of governing and more along the lines of pure economics. So I've read on here how many individuals including my father were able to race at a time were winning your gas money or leaving the track with a profit was very common. I got to thinking about no increases in payouts, and steady increases in fees, just the general pull and tug of benefits, costs, and profits, when insurance costs popped in my mind. The extent to which insurance legalities extend is pretty massive compared to the 50's and 60's. So now I'm thinking about true evaluations of then vs. now in relation to that. Some of you know this and some of you do not, but when comparing two time periods, you must adjust for inflation to bring the past values to current values or bringing current values to the past. I would like to see a costs to costs comparison of the insurance costs that NHRA/IHRA must pay now vs. then to see: How extensive of an effect has this been financially to the NHRA/IHRA in trying to offer more benefits to the racer? I would not be surprised at all to find todays costs multiples and multiples higher than then. Rarely do we as racers ever attempt( or at least from what I've seen and heard) to establish how much money the organization has to spend in order to do what they do per event. Is it a losing battle? Add, lack of sponsors, increased racing costs outside of racing fees(fuel, engines, trailers, travel, etc), and lack of racers due to the economy to the mix and you've got what seems to be a pretty sad situation. Anyway, it just happened to be something I was thinking about and thought I would add it to the forum for some convo. This was more so a deep thought pondering moment than a wishing death on racing moment so don't be alarmed, I'm as optimistic as they come. PS: If anyone has the expertise to this analysis, please share. __________________ Adriel Paradise, Paradise Racing Team Driver/Crew Chief(at least my dad claims me to be) B.S. Mechanical Engineering, University of Arkansas Last edited by cutta; 02-27-2013 at 02:37 PM.