[KMS2683]

I posted this on another message board and saw there have been discussions on this board about car counts so I thought I would post it here as well.

Why are race tracks struggling for cars counts? It’s simple, the economy. I read on message boards all over about how to “fix” a certain series or a certain division at a local track to help increase car counts. All the solutions revolve around rule changes, cost containment measures, etc. Sorry, but the best run series or race track with the most racer friendly promoter and cost effective rules is only going to have a slight benefit to increasing car counts at this time. In the short term two things or at least one of two things would need to happen. The current purse structures come into line with the cost of racing or racing costs come back down to the current purse structures. Unless one or both of these things happen, reduced car counts are going to be the norm until the economy recovers. Rule changes, cost containment measures, etc., may be beneficial for a long term sustainability of a series, division, or race track but for the short term will only have minimal impacts. Here’s a common scenario that has played out across the Country for the average Saturday night racer:

A driver has a good paying job along with his spouse having a part time job that helps to add “disposable” income. This driver races at the local short track in the street stock division and is very economical in costs. The driver is spending $300 to $400 a weekend to race. The track pays the winner of his division $400 with three-fourths of the field getting $50 to $100. Now a few years ago spending 3 times more than what was taken home was not looked at as closely because a driver had solid household income and was willing to “lose” money for the love of being able to race, plus he knew some smaller local businesses that would throw in services or cash along the way to help offset the costs (loss). Suddenly, the economy crashes, his wife loses her job. His job is safe, but he no longer has overtime, so his take home income has decreased. Then if things were not bad enough, the local businesses that help him out, not only could not help any longer, but some where out of business all together. No longer can the “loss” be absorbed. So now the local track wants to increase car counts and implements new cost saving rules which accounts for a savings of $100 per race for the driver. Now the drivers losses are $200 vs. $300. Getting closer, but the driver figures he still could only make 6 to 8 races out of the 15 total races. In the end the costs for a partial season are not worth it and the driver figures it best to save all that money and just park the car or even sell the car.

The above scenario can be used for any division or series, just increase the costs accordingly, but the discrepancy between costs and the revenue remains relative. The impact has been greater on asphalt racing but dirt racing has been affected as well. Some tracks have seen increased car counts in the lower divisions, as premier division drivers move down to keep racing but the overall car counts have dropped. Dirt tracks have seen some increases as asphalt racers have moved to dirt racing to save costs.

In my opinion, the more likely to happen in our lifetime option would be the increase of purse structures to match expenses of racing. Unfortunately, achieving higher purses falls into the proverbial catch 22. Much to most peoples amazement, track promoters are NOT getting rich. Just like the economy has hurt the racer, the stagnate economy is also hurting the promoter. People are just not spending money, period. All forms of entertainment have been hit hard. A promoter needs a solid front gate in addition to a solid back gate to survive. When the front gate gets slimmer and slimmer, there is no way to increase the purse which in turn would increase the back gate, hence the catch 22.

Since I feel finding a cure for cancer would be easier and quicker than finding a way to reduce costs of racing to meet current purse structures I will not even go into depth on this subject.

Most people, including myself, have never experienced an economic situation like the one we are currently encountering. Racing has had to endure economic downfalls in the past, but this could be the toughest test to date. If you look back during the 70’s energy crisis and the farming and housing crisis in the 80’s you will see that car counts in a lot of areas of the Country were far less than today or at least far less than a few years ago when times where good. Racing survived those times, and there is no reason it won’t this time around except racers and race fans have to adjust their perspective of what is “considered” a good car count until the economy recovers and car counts start to once again increase.

Dan K

[ryoung99]

Dan K,

You are somewhat correct in your statement, but what I can tell you is that this "blip" is more than just a blip. There are a few reasons why that is the case... allow me..

Our Federal Government has a budget deficit in excess of $1 Trillon dollars.. that mean they have to borrow more than a Trillon dollars (on top of the current debt). The continued escalation of the National debt has a significant impact on our ability to recover. There is only so much cash available to loan to governments, business, and individuals. When there is significant additional demand on that cash there will be a liquidity crunch. Not enough cash for the demand, which is exactly where we are. Loans to build business, buy houses, etc. is dried up and very difficult to come by, thus we are moving to a cash based economy and cannot grow via leverage which means slower growth or in this case recovery. Even though the Fed has effectively kept interest rates low the lack of availble cash has created a stagnated economy.

Now couple that with the decline in the market, creates a larger labor force (why?) The rate that individuals are moving from the work force to retirement has slowed. This transition plays a vital role in keeping un-employment rates low. Why is that... retirement is not unemployment (they are out of the work force). Retirement makes room for individuals entering the workforce. When you have an economy that has slowed down, thus not creating as many jobs (or potential job reductions) and you slow the rate of retirement (due to a loss in retirement savings) it creates higher unemployment which creates more forclosures, etc. A tough spiral to move out of when there is limited liquidity in the market (which has been the case for a few years now, but there is a lag between the liquidity drying up and the effect on the economy).

I could go on for hours about this, but in the end we are going to face a much slower recovery. Thus now is the time to review racing practices and see if there is a better way. The easiest thing we can do is say it will get better when the economy does, but I for one am not willing to wait that long and from what I have seen the promoters cannot wait that long either.

Did you know that theater revenues are up? People look for less expensive entertainment during times like these, staying closer to home etc. If revenues can go up for theaters it can do the same at race tracks, but the promoter needs a product and 8-12 midgets is not that product.

Do yourself a favor and stop listening to the politicians tell you when the economy is going to recover and listen to Warren Buffet, his predictions will be more accurate. From what he says and where I sit, the general growth is going to be very slow and it will take a decade (maybe more) to get back to the wealth levels our country was operating under the past few years.

I hope that I am wrong, only time will tell.

[Bostonian]

In my part of the country both spouses work full time jobs. That is if they still have a job. I own my own business. I am a licensed Contractor/Carpenter. I have had to work alone now for the better part of 3 years. In the past I had built multi million dollar homes now I do small jobs and repairs . Because of lousy weather in June I had 6 days I could work. So far in July I'm up to 8 days! A few years ago I tried to be a crew member for the ISMA team that Bobby Santos III drove for. I had to stop though because I couldn't afford to keep my two employee's so I could go to the races. As most know ISMA is a touring series so I would need to miss work thur/fri half a dozen times in a season. I can't be working on a home and then on Wednesday say to the owners, if it doesn't rain I'll be back on Monday. The reason why I'm saying this is I wanted to become an owner myself some day! Now I get to sit in front of my computer and watch Bobby race online. I don't think this is what I had in my plan! LOL

As long as the top series are having a tough time finding sponsors the numbers of teams in the smaller series will struggle to survive. If HD continues to struggle do you think they will cut back from Nascar before the Woo team?

As for the politicians. I stopped listening to them years ago their all

[Charles Nungester]

The purses haven't matched the economy in 30 years so that argument holds no merit.

The second point is, Travel cost skyrocketed almost double in one year. I know a ton of long time teams that just hung it up and sold off.

Theres been a lot of entry level buying as well. From what I've seen the Quarter/TQ/Mini ranks are healthy, Some of these guys want to move up as their age and talents allow.

I was sitting in front of a dad and his two kids at the Florence mscs race, both race minis at 35 raceway. The Boy was "I WANT TO DRIVE ONE" so bad. Well on dads dime thats cool with him. If he really wants it, He'll find a way. For now, He's only 12

Joblessness and Mortgages, Yeah, there is some effect, Stock market too. Im sure some owners lost half what they had without the racing deal just like most of us did.

Racing will go on until Cap and Trade and quite honestly. I don't see it surviving that. That will tripple fuel cost and every other bill and purchase you make

---------- Post added at 09:38 AM ---------- Previous post was at 09:32 AM ----------

Jim, I do not want to go political here. But look closely. Its not just the Dems. Check your Repub voting records as well.

Run yourself or put your sensable bill paying neighbor in. IM SICK OF POLITITIONS PERIOD! If their health care bill is so great, Why woudln't they pass the amendment to join it themselves????

[badgerfan]

well said Chuck. As a pretty diehard rightwinger I am now convinced that ALL politicians are inevitably corrupted by the desire for power and control. Some may believe they have our interests at heart but they loose all objectivity in their lust to protect themselves and their party or positions. Did anyone notice what is NOT on the Dem or Repub table during the health care talks? No one will discuss repealing the federal law prohibiting our government from negotiating pharmacutical prices. Thats just insane but the big lobbyists have the fix in everywhere on that. Also there will be no discussion making it legal to reimport American made drugs from Canada or any other country where they sell for a fraction of what we pay here. Big business is not democrat or republican. They do what they need to do to buy influence in both aisles, with money they are allowed to milk out of us with the smiling approval of your smiling leaders.