PRO racers and HD Partners (1 Viewer)

[john]

This meeting should be good. Anyone care to speculate on the Pro's concerns?

Torco Racing Fuel's Competition Plus.com - Drag Racing's Internet Magazine - HD PLAN HITTING THE FAN?

 

[Nunz]

I'm sure the list of concerns is long. Think about it, the very teams and owners who make up the Pro side of NHRA were blindsided. I'm not saying it can't be a great thing, but there are huge unknowns out there, from sponsorship, purse, and track issues, to much, much more. The new owners want to expand the schedule, meanwhile, the biggest problem the pros face right now is how to participate in the current 23 race schedule and avoid bankruptcy. I don't want drag racing to become like NASCAR, but geez, those guys are building serious net worths driving stock cars, while drag racers historically spend their net worth to stay on the track. There has to be a happy medium. Sorry for rambling, bottom line is I'm sure there's a lot to talk through.

 

[Bullet]

In my opinion HD Partners are getting one hell of a deal!!

4 racetracks for $121m!!

Too cheap in my opinion... but I don't know much.

 

[FalconRacer]

Maybe PRO will make a counter offer and buy out HD ??

 

[jackass]

BIg concerns i see ...Money.. what part the drivers will get from this?.. stay the same or get more....

Another item... how much will the Pro Drivers have to give up to be part of it.... how much of their likeness or name rights will they have to give to benifit from it...

Hd is going to want the right to use the names and images of the drivers and teams for leverage and promotion with new sponsor partners... but at what cost to the teams/drivers? wil it be a situation where if you don't pay to take part you won'tget the required or needed exposure for your sponsors?... or wil it be let us use you and we will get you a percentage and gaurentee you the exposure...

How do you decide who gets what and how much...??

NASCAR has a clause in there liscence agreements for the NASCAR drivers/team/ crew hard cards that by signing to give NASCAR the right to use you and your likeness in promotions.... Some teams get some royalties ...most dont..... interesting to see how this works its way in tothis deal....

Billy

 

[megadeth]

This is going to get interesting if this deal falls through Tom Compton might have to give you know who a call back and make a deal!

I won't mention his name but his initials are B.S. and he has a great rapport with the Pro Teams and is well liked!

 

[hellfirejim]

What I think is most remarkable about this is the teams have put aside the personal fueds and egos and have decided that it is time to work together. This is something that should have happened long ago. As has been said if the players don't come to play then all HD has is the 4 tracks and the bag. Now not to say that the pro teams will boycott the races but think about how much leverage they have now compared to what they had before. The new group is a FOR profit deal and they HAVE to produce for their stockholders. If the teams play elsewhere then there will be no profits.

Of course history has shown that getting a bunch of racers to do anything together is like herding cats........however we now have the businessman side of this coming to the table and these guys are serious. That game is how they made all their money and NONE of these guys are dummies. It should be really interesting how it turns out as for once their future is in their own hands.

jim

 

[Jim]

Hmmm....HD is getting such a great deal, perhaps the Pros should get some equity?
I'm still burned up that the board of directors is allowing the most valuable assets to be transferred for , what appers to be, pennies on the dollar.
I don't know who (the remaining not-for-profit entity?) is getting screwed but I can certainly see who's getting the deal of a lifetime. Just curious who, if any, of the current management ends up, not only with a job for life but, a pile of cash too.

 

[Angelo]

I look at this as a great opportunity for the NHRA and the Pro Teams. If you read the comments made on this subject, most of them refer or compare to NASCAR.

Hmmmm, lets look at this in comparison for a moment...
Is NASCAR doing all that bad?
Are their teams under-funded?
Are their drivers under-paid?
Do their fans get as much bang for their buck as NHRA fans?

No, No, No and a big fat woppin' Heck NO!!! Try to focus from a positive perspective. My hope is that this new venture will position NHRA to leap-frog NASCAR. Imagine NHRA Race Day airing on NBC, CBS or ABC on Sunday morning.

Sunday morning drag racing could be the next Monday Night Football. Just a little food for thought...

 

[Bobby Bennett]

Angelo ... you had me going until the Monday Night Football part. NFL rocks ! lol

 

[headporter]

The most important thing about this deal is Nothing.... The ink is not even dry yet.. we got 5.5 months before it's close to being done, if you read the real info. When the SEC says ok.. then Maybe it's a done deal. So for no it's smoke and mirrors.

IMHO if this does go through and there is not a 100% increase in the Winners Purse. And they extend the season.. There better be a Walmart close by to by Rope, because they will need it right before going BK.

If you look at the REAL #'s for racing Fuel. A lot of talk is 5-10k per run. So thats 40k just to make 2 laps Fri. 2 on Sat. If your in the show. Sure you get what.. last I heard 7500 for Fuel... 4k for Pro Stock. Wow your only in the hole 32 Fifty.. Nice numbers so far.

So we go a Couple few rounds on Sunday Add in another 10 if your Lucky... If your REAL lucky and Win.. Wow it's 50k plus Qualifying money.. So you OUT 80 k but you made 60k... Now if you Blow up 2-3 Engines.. Yikes !!!!! You now have and Net Gain of we will just say.. On the Lean side. - 15k for Rotating Assy Figure 30-45k per engine if you toss a Blower and Block.

You do the Math. Add more races, Add more Truck Fuel, And more Hotel cost, Add more related travel expense, Add more ticket cost for your sponsers, And on and on.

Where does all this extra $$$$$ come from ????

Skuza tee short sales.

 

[none]

The most important thing about this deal is Nothing.... The ink is not even dry yet.. we got 5.5 months before it's close to being done, if you read the real info. When the SEC says ok.. then Maybe it's a done deal. So for no it's smoke and mirrors.

IMHO if this does go through and there is not a 100% increase in the Winners Purse. And they extend the season.. There better be a Walmart close by to by Rope, because they will need it right before going BK.

If you look at the REAL #'s for racing Fuel. A lot of talk is 5-10k per run. So thats 40k just to make 2 laps Fri. 2 on Sat. If your in the show. Sure you get what.. last I heard 7500 for Fuel... 4k for Pro Stock. Wow your only in the hole 32 Fifty.. Nice numbers so far.

So we go a Couple few rounds on Sunday Add in another 10 if your Lucky... If your REAL lucky and Win.. Wow it's 50k plus Qualifying money.. So you OUT 80 k but you made 60k... Now if you Blow up 2-3 Engines.. Yikes !!!!! You now have and Net Gain of we will just say.. On the Lean side. - 15k for Rotating Assy Figure 30-45k per engine if you toss a Blower and Block.

You do the Math. Add more races, Add more Truck Fuel, And more Hotel cost, Add more related travel expense, Add more ticket cost for your sponsers, And on and on.

Where does all this extra $$$$$ come from ????

Skuza tee short sales.

I suspect when the pros throw out a dollar figure of the "per run" cost for the season they are using numbers from past years with an adjustment for inflation etc. If they blow up some stuff at a given race the cost has allready been plugged into the cost per run.
As far as the additional money to run two more events I think the answer is fairly simple, Either the sponsors have to kick in more money or the purses must go up. The sponsors are getting more exposure so it's not a bad deal for them.
Hopefully the new deal will work out for the racers and all parties concerned.

 

[Angelo]

Skuza tee short sales.

What's a "Tee Short Sale"?

 

[Jeff]

Maybe it's worth a clarification . . . There are several government agencies that can say whether or not deals get done (Federal Trade Commission, FCC, along with provisions of acts like HSR, etc.) but the SEC is not one of them. The Securities Exchange Commission simply deals with publicly traded securities in the U.S. and how companies issuing such instruments disclose their financial information (for example, is the "stock" Enders is selling something that the SEC will see as a publicly traded security . . . no). The SEC does not say YES or NO to an asset acquisition.

I would think that the terms of their deal document, successful execution of due diligence, and other items aside from clearing any meaningful government hurdles are all that remain for this deal to be done.

Let's hope the impacts are positive for everyone.

 

[infoman]

While it is true the SEC does not approve or disapprove of the asset acquisition, the SEC does have a key role to play in the process.

The next step is the submission to the SEC of the proxy on which the shareholders will vote. HDP anticipates that submission to be completed by 30 June. They expect final SEC approval of the proxy to take 3-4 months, then another month to get materials out to the shareholders before holding the crucial shareholder vote, expected sometime in the 4th quarter of this year. [For perspective, the prospectus for the Initial Public Offering that will fund this transaction went through 8 revision cycles over a 5-plus month period before gaining final SEC approval.]

The signing of definitive agreements moves the deadline for the required shareholder vote from 7 Dec 2007 to 7 June 2008, but all parties obviously want the issue decided before the end of 2007. No less than 80.000% of voting shares must approve or this deal fails.

This is not a "done deal."

 

[willy]

While it is true the SEC does not approve or disapprove of the asset acquisition, the SEC does have a key role to play in the process.

The next step is the submission to the SEC of the proxy on which the shareholders will vote. HDP anticipates that submission to be completed by 30 June. They expect final SEC approval of the proxy to take 3-4 months, then another month to get materials out to the shareholders before holding the crucial shareholder vote, expected sometime in the 4th quarter of this year. [For perspective, the prospectus for the Initial Public Offering that will fund this transaction went though 8 revison cycles over a 5-plus month period before gaining final SEC approval.]

The signing of definitive agreements moves the deadline for the required shareholder vote from 7 Dec 2007 to 7 June 2008, but all parties obviously want the issue decided before the end of 2007. No less than 80.000% of voting shares must approve or this deal fails.

This is not a "done deal."

Thanks for the info, Len.

And oh...welcome to the Mater!!