Originally Posted by Jonr:
I don't think your purse number is correct. I think that you are 4-5k light in the purse. I did a quick google search and most $2000 to win and $200 to start were in the 8k to 9K range. While I don't have a point of reference, I think that both your insurance and utility numbers are low.
I also think that your employee costs are way low. There are some both high risk (flagger, track workers) and high skilled (announcer, judges, Pit steward/line up, pit steward/pit shack) that will not work for $40 a night. There are kids working fast food that make more than $40 a night. Finally, you haven't paid the tax man anything to this point.
I forget the exact numbers but the length of years that someone is a promoter is not very promising. I think it was something like 50% of them quit after one season and 75% quit after three years. If promoting a race track was a great way to make money, more people would be doing it.
However, if there was a track that ran sprints and midgets every week, I would definitely attend their races.
You are correct on the track staff. Officials, Flag Man, Scoring, Good Push Trucks, and Maintenance Guy. None of them work for $40 a night. I know what I make per night at each track and what most officials and flagmen make. The operating cost is very high per night and believe it or not concessions and back gate will make for covering the purse and basic operating cost. Front gate and sponsors is where the profit comes in per show. A wise man once said you don't own/lease A track to get rich but to make it a self supporting week to week business while making enough for off season repairs and upgrades. I've looked into leasing a track and came close to doing it this off season but family came first so it will have to wait.