NHRA roles for bankruptcy

Chuck Gallagher · 08-01-2020, 07:03 PM

I would be surprised if NHRA filed for any chapter of bankruptcy; however, several years ago there was chatter here in NC that Bruton Smith would be interested in owning the NHRA but not at what they believed it was worth then. Given the current state of the sanctioned racing entertainment business I doubt the market value has gone up.

Chip THELEGEND Johnson · 08-01-2020, 07:50 PM

The Facebook post last night was BS. The person posted it and got his chops busted. Later he posted a correction What if NHRA had yada yada yada.
It did get a lot of attention though.

Greenlight · 08-01-2020, 11:43 PM

Let's use some round numbers of the Covid NHRA:

***Income or income avoidance ***

40,000 licensed drivers at $150/yr. = $6,000,000 yr.

80,000 members (40,000 are lic. drivers) 40,000 x $70/yr. = $2,800,000 yr.

So far, they didn't have to do anything to get the $8.8M. My guess is the National Dragster pays for itself with the advertising, so that may be a wash.

Fees from member tracks (I have no idea what the franchise fee is)???

No $15M payout to Fox to broadcast National Events that only 400,000 people watch.

No huge payouts to TF and FC, and modest payouts to PS. The combined payouts in these classes far exceed an "spectator" income at the majority of races.

******** Expenses *********

Salaries of top brass and board of directors (see tax returns) $5,000,000
Salaries of administrative staff at national headquarters. ?
Salaries of Division Directors, division admin., tech inspectors ?

Rent, utilities, insurance, upkeep at National and Division offices ?
Rent, utilities, insurance, upkeep of tracks owned by NHRA ?

Taxes, legal fees, accounting fees,.... ?

Misc other expenses ?

No payouts in the sportsman classes (I suspect that NHRA makes $$ off the sportsman classes and takes in (entry fee plus crew passes) much more than they pay out, so this may be considered lost income.

Can anyone fill in the blanks on some of the expenses?

08-01-2020, 07:03 PM	#1
Chuck Gallagher Junior Member Join Date: Apr 2013 Location: NC (nothing compares) Posts: 48 Likes: 33 Liked 134 Times in 28 Posts	Re: NHRA roles for bankruptcy I would be surprised if NHRA filed for any chapter of bankruptcy; however, several years ago there was chatter here in NC that Bruton Smith would be interested in owning the NHRA but not at what they believed it was worth then. Given the current state of the sanctioned racing entertainment business I doubt the market value has gone up.

08-01-2020, 07:50 PM	#2
Chip THELEGEND Johnson Member Join Date: Jun 2007 Posts: 284 Likes: 223 Liked 281 Times in 79 Posts	Re: NHRA roles for bankruptcy The Facebook post last night was BS. The person posted it and got his chops busted. Later he posted a correction What if NHRA had yada yada yada. It did get a lot of attention though.

08-01-2020, 11:43 PM	#3
Greenlight Member Join Date: Dec 2004 Posts: 215 Likes: 16 Liked 79 Times in 22 Posts	Re: NHRA roles for bankruptcy Let's use some round numbers of the Covid NHRA: *Income or income avoidance * 40,000 licensed drivers at $150/yr. = $6,000,000 yr. 80,000 members (40,000 are lic. drivers) 40,000 x $70/yr. = $2,800,000 yr. So far, they didn't have to do anything to get the $8.8M. My guess is the National Dragster pays for itself with the advertising, so that may be a wash. Fees from member tracks (I have no idea what the franchise fee is)??? No $15M payout to Fox to broadcast National Events that only 400,000 people watch. No huge payouts to TF and FC, and modest payouts to PS. The combined payouts in these classes far exceed an "spectator" income at the majority of races. ****** Expenses ******* Salaries of top brass and board of directors (see tax returns) $5,000,000 Salaries of administrative staff at national headquarters. ? Salaries of Division Directors, division admin., tech inspectors ? Rent, utilities, insurance, upkeep at National and Division offices ? Rent, utilities, insurance, upkeep of tracks owned by NHRA ? Taxes, legal fees, accounting fees,.... ? Misc other expenses ? No payouts in the sportsman classes (I suspect that NHRA makes $$ off the sportsman classes and takes in (entry fee plus crew passes) much more than they pay out, so this may be considered lost income. Can anyone fill in the blanks on some of the expenses?