This post is a little dated (2010) but it gives a good behind the scene look at promoting the race track. The author of this post spent several years working at the right hand man to a couple of promoters in the DFW area. He has a very good understanding of the financials of a track.

Postby ReggieF » Thu Jul 29, 2010 8:04 pm

Now let's talk about a rainout.

Insurance - (Note the insurance has to be in the mail before the race night for an established promoter. A new promoter often must have his check to the insurance company before the date of the races)

When you call the rainout is important.

No one in the pits - your entire premium can be applied to the next race night

Open the pit gate - 25 to 30% of the premium forfeit

Hot Laps - 50-65% of the premium forfeit

Any race takes a green flag - 100% of the premium forfeit

C-Stand - about 25-35% of your concession stand supplies for the night cannot be saved and reused. Throw them out or eat a lot of burgers.

Staff costs - most track staff get paid nothing on a rainout, maybe half pay if the races have started.

Security, ambulance and often c-stand workers get paid for the hours worked.
Depending upon the track and locations - you may have to pay a full night ambulance fee. That was the requirement at NTMS which was expensive. Once the ambulance left Tyler for NTMS - we had to pay a minimum 8 hours at $85 per hour.

At a minimum - 40% of the race night costs without the purse is what a rainout costs you. That does not include any weekly costs which are almost all wasted.

You also loose between 3 and 5% of your potential yearly income with a rainout. If you get six rainouts per season - your yearly gross have been cut by 20 to 30%.

You can never make up that income.

The absolute worst for a promoter is to have a rainout after the races have started. The next week the pit gate income will likely be below $700 as everyone comes back with their armbands from the previous week. Probably half the front gate crowd will get in free.

So you've taken two nights income and barely get enough for one good night. You have your good race night full expenses and 30% of the previous rainout night expenses.

Money loser anyway you look at it.

As the posted stated, the promoter is going to open his track twice. When it opens the track twice there are things that he is going to have to pay twice, but he is only going to be able to charge once. A rain out is a money losing proposition. This poster also had a lot of other posts about what it takes to make money as a promoter. The entire thread is at http://www.elbowsup.com/viewtopic.ph...31610&start=10