The IRS and NHRA, you gotta see this.

[joe176]

Originally Posted by Greg Hill

Oh and a few other things. In the last three years they have doubled the price on chassis certification, raised the price on membership and liscenses, and raised entry fees, all in the worst economy in my lifetime.

I agree 100% Greg..not the right thing to do !!!!!

[Greg Hill]

Originally Posted by Tony Curcio

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.

No one knows how this will turn out and I can assure you there are other things that could happen than what you outlined. How about maybe we end up with our voting rights back.
Then the members can elect a board who can hire management who will run the organization in a responsible and fair way.

[RJ Sledge]

Long time ago my Daddy ask me if I knew the difference between "a pig and a hog", being about 5 years old I had no clue. He then defined the difference to me,....."a pig gets fat......and a hog gets slaughtered" was his answer. If you think about it, that is just what happened with the higher ups at NHRA and I believe they are headed for the slaughter house door.

I hope that the innocent people that work hard everyday at NHRA do not suffer, but have very little compassion for the greedy ones.

There must be a better way to operate this organization than what we have been experiencing lately, I just hope that it not too late to do something about it.

Well said Greg Hill.

RJ

[joe176]

Originally Posted by Tony Curcio

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.

I'd rather put mufflers on my car and drive it to car shows than give my hard earned money to a bunch of crooks if thats what this ends up being !!!

[Alan Roehrich]

I have to wonder why it is people are so convinced that sportsman racing cannot survive, and even thrive, without the pro circus. You know, to hear some people talk, you'd think that drag racing never even existed before the entire program was taken over by the multi million dollar chinese fire drill that is the professional circus freak show.

If nothing else, the marketing job NHRA has done on the average sportsman racer, selling him on the idea that he is nobody without the traveling pros, ranks right up there with Madoff, and the guys at Enron, you have to give them credit for that.

I mean, where would we be without some guy riding around shooting t-shirts into the stands with an air cannon, and getting people to run around in circles pouring sports drinks all over themselves until they get dizzy and puke? What would we do without that horrendous racket they call music blaring out of the speakers during all that down time, and the "announcer" screaming about the points standings? You know, maybe it would be completely impossible to actually race cars without all that added "mind numbing entertainment".

[Ed Wright]

But, how many paying spectators would there be? Sadly, nobody pays to watch us. Look in the stands when the fuel cars are done. Heck, hardly any of them watch Pro Stock. Nobody watches the Alky cars either. Even fewer the index cars, which I understand. :-)

[Alan Roehrich]

Originally Posted by Ed Wright

But, how many paying spectators would there be? Sadly, nobody pays to watch us. Look in the stands when the fuel cars are done. Heck, hardly any of them watch Pro Stock. Nobody watches the Alky cars either. Even fewer the index cars, which I understand. :-)

The question is: Why?

And the answer is: Because no one spends any money or time to promote us.

NHRA spends millions to promote Top Fuel and Funny Car. If they spent a million dollars to promote anything else, I'd be surprised.

Spectators do not buy tickets to see us because no one is selling tickets to see us.

The only marketing that caters to Stock and Super Stock is the marketing by companies that sell parts to us.

The most time NHRA has dedicated to us is when they've explained to us that "no one watches you because they are not smart enough to understand the classes". That's a Hell of a way to think and talk about your fans.

Well, maybe I wasn't being quite fair there. They've also spent plenty of time telling us that we "don't generate a profit", and that we "take up way too much time and space that would be better utilized by the pros".

And like I said, they've sold the racers on that very idea.

[X-TECH MAN]

Originally Posted by Ed Wright

But, how many paying spectators would there be? Sadly, nobody pays to watch us. Look in the stands when the fuel cars are done. Heck, hardly any of them watch Pro Stock. Nobody watches the Alky cars either. Even fewer the index cars, which I understand. :-)

All I can say is we had a ton of spectators at the "US Class Nationals" about 10 years ago and there was not a single Pro car or circus act on the grounds. Sportsman racing will and can survive if the racers want to support it and its run and marketed correctly. You might find you can walk away with more round and win/runnner up money without having to wait 6 months for a company to send you decal money either with a true sportsman association and race event. You just wouldnt get the oppertunity to run in the Pro/Alky/Jet car oil/kerocine if thats what you would prefer.....LOL. The sky isnt falling yet. The NHRA isnt the only option on the block and without them holding the good tracks hostage such a venue could and would be run at the better tracks ! I never could understand the die hard NHRA mentality I guess. You guys must really like taking it up your shorts. If this offends you then Im sorry but some need to sit back and re think what your addicted to.

[Tom Meyer]

Look at PINKS they filled the stands , You know the difference between sex and rape, salemenship. Nhra has been raping us all these years, but keep selling it to us. We on this site wine all the the time but untill we do something it will never change. Tom

[Alan Roehrich]

Originally Posted by Tom Meyer

Look at PINKS they filled the stands , You know the difference between sex and rape, salemenship. Nhra has been raping us all these years, but keep selling it to us. We on this site wine all the the time but untill we do something it will never change. Tom

Tom,
Something is being done now. Whether or not it will work out in our favor remains to be seen. But even now, there are just as many people whining about something being done as there are supporting it.

The true test of it all will come IF things fall our way, and something is done about NHRA being taken from its members. Then we'll find out if people want to do something, see something done, or whine about it.

The question is, if it comes to pass that NHRA once again becomes a true membership run organization, how many people will step up to actually try to improve our situation, how many will support those who do, and how many will either complain, or do nothing at all.