Who pays the losses of the club?

The concept is great but I'm not sure it really works when you have a significant nut to crack. The racers will want paid, the power company will want paid, fair board will want paid, insurance company will want paid etc., regardless of whether it was a good night or bad one. Who's writing the check on the bad ones?

I'm not that familiar with track turnover in Indiana, but just here in Central Illinois we have had Jacksonville, VCS, Farmer City, Lincoln, Kankakee and probably a few others that have changed hands within the past two years -which indicates that they likely weren't making enough to keep going.

So, I put together a little chart. My numbers might be off (in fact they might be way off). But my assumption is that a regular night of racing costs $20,000. Assuming you run a $1,200 to win class, a $500 to win class, a $250 to win class and a $100 to win class, your purse is going to be in the neighborhood of $12,500. My guess on insurance is $2,500. Assume track rent of $1,500 and then I'll throw in another $3,500 of Wages, fuel, maintenance, equipment repairs, security, ambulance, utilities, advertising etc. So lets take $20,000.

I'm not figuring concession profit into this because I'm going to call that the absolute minimum fair profit for running the business, taking the risk, investment of time, interest on loans, headaches etc. My guess is that a track hopes to make money on beer and soda and break even on the food and cost of preparation. My guess also is that 1,000 beers and 1,000 sodas is a really good night. So figure the profit on those after sales tax deduction and lets let our promoter at least stick that in his pocket because it's not going to be enough to make a bad night into a good one in most cases anyway.

Now, lets charge $12 in the grandstand and $25 in the pits.

Take a look at the chart attached as an image below and tell me where VCS falls on a typical night of racing. I have no idea and that's why I ask. But unless you are one or two spots away from the green, I think you are going to have a pretty big hill to climb.

Of course it can be done, but suddenly attracting 200 more paying fans than the guy who tried before you isn't easy. It usually takes some time and expense. Can you afford a lot of time in the red trying to build yourself to the green? Most people who try don't have a lot of time to waste in the red.

Another interesting thing I found when running these numbers is how much more green the chart becomes at $15 admission for a regular show - even by losing some fans due to the higher price. I know people think that $15 is too much to spend for a regular night of racing... and I tend to agree. But looked at from another perspective, assume that after rainouts a track actually races 15 times a year. Assuming that you go every week, the season is going to cost you a whopping $45 more. Yes, that's real money.... but if that $45 a year is the difference between your local track being open or closed, wouldn't you find the $45 pretty well spent at the end of the day?

Again... I might be WAAAAAYYYY off on all of this because I really have no clue on the numbers.... so feel free to correct me if I'm wrong. I'm just throwing it out there.

promoter_charts.jpg

Only off about $3,000. I spoke with Kankakee promoter Tom Smith a couple of times last year and he said with exect figures the payout for all 5 divisions put together for 1 night takes about $17,000 + for the payout and if you include track lights comes out to about $18,000 thats what I know about Kankakee not sur on the other tracks but the money figures are probably in the same range at other tracks as well.

Nathan, it takes more than just prize money to put a show on at VCS. $20,000 is about the nut you have to have each night there. You have to rent the track, rent the pit area, rent the concession stand, make a deal to get access to the river for water, pay a flagman, announcer, scorers, ambulance service, push trucks, wreckers, track prep, advertising.....and that's if you can get volunteer help for corner works, pit stewart, a line up person, ticket takers, sign in helpers etc. And to get started in 2011, you have to find a scale, water tanker to haul water from the river, water truck to spray the track, grader, sheeps foot and the rest of the equipment. And the policy from K&K each night for insurance was $1100.

And as the promotor.....this is a full time job during the season. Where is his salary for the blood sweat and tears, and risk if your come up short. If you cleared $1000 a night, 15 shows = $15,000. And a rain out really turns your numbers upside down. Perishable food and track prep...out the window. Dizzy yet Nate?

Bloard, Danville is about the most unemployed town in Illinois, yet as I took ticket money at the gate on our Oct 9th show, rarely was there a car came in with only one guy. Most were familys, or dads and sons, and many couples. So asking for more than $12 on a weekly show could be suicide.
Again, all this is possible but it takes a lot of work, and a lot of help and organization.

Kenny Schrader told me in August if I help promote even one race, I'd never sign into another track with the same attitude. Boy was he right.

Steve