Warning on contingency wraps

[Dan Bennett]

Originally Posted by Joe Santangelo

Robin, I appreciate your response.

Next question. If a claim is not paid for a particular class at a certain race for whatever reason whether someone didn’t have the decal, didn’t have the product or flat out did not claim the product for the win or runner up, where does the money that was available for the racer go? Does the company get to keep the money that was available for the racer or does it go to NHRA if it is not claimed by the winner or runner up?

Keep in mind that this was from many years ago from a conversation I had with the head of a very large, very prominent parts manufacturer. It may have changed since we talked.

He was really amused at my confusion and outrage after he explained the program to me - and why he hated it but felt he had no choice but to participate.

He told me that the money posted goes to the NHRA as if every winner throughout the year in every class posted was using his products and would be paid out. Seems like they didn't require a lump sum all at once but the contract called for timed payments like business taxes.

What made my mind spin is that he said if a winner was not using his product, there was no refund to him for the money he'd already paid even though the NHRA didn't pay it.

I think I remember he also said that a cut was taken (and added to the total contingency bill) for administration.


He sold very popular products so I assume he decided it was worth such weird conditions.