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  #41  
Old 02-01-2008
Peter Kumble Peter Kumble is offline
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I am not really versed in the structure of corporations but a non profit corp does in fact make a profit, but it is the way that those profits are distributed the differentiates it from a for-profit corp. Also, in a 501c3 not for profit corp, there are no share holders who receive payments on corporate stock.
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  #42  
Old 02-01-2008
clwill
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Quote:
Originally Posted by anotheridiot
A non profit entity ended up being worth 180 million. Guys, how exactally is that non profit?
Non-profit doesn't mean "doesn't make money" or "is always running on a shoestring". It means that the organization doesn't operate for the benefit of the shareholders. It means that it returns profits to either the operation of the organization or to those who it serves.

There are many quite wealthy non-profits going back centuries. Think about the Catholic church, one of the largest landowners in the world. Or big charities such as United Way. Or the wealthiest charity in the world: the Gates Foundation. They all have significant assets. So does NHRA -- some valuable track properties.

The question isn't "how did they get all that money"? We all know that -- anyone who has paid for a ticket or entered a race has contributed. The question is rather "what are they doing with it"? I agree that returning some of this value to those it serves is important, and one could argue that such things as safety developments are a good place to put that money. I wouldn't disagree.

The problem is that NHRA is asset-rich and cash-poor. You can't write a check on the deed to a racetrack. The HDP deal offered a chance for them to turn these assets into cash, which they could use to promote the sport, or to further develop the safety aspects. In that way, this deal was a good thing.

Now with that deal gone, where does NHRA turn? I see three choices: another buyout (Mr. Smith?), a new management team, or business as usual. Same ol', same ol' seems like a bad choice, everyone (including the original HDP investors -- such as Larry...) sees so much potential in this sport to let it just go.

So that leaves us with a new management team or a buyout which would almost certainly bring in a new management team. Hmmm... I hope Mr. Compton has his resume tuned up. If not, I can help -- I help executives polish up their resumes all the time.
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  #43  
Old 02-01-2008
clwill
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Quote:
Originally Posted by Peter Kumble
Also, in a 501c3 not for profit corp, there are no share holders who receive payments on corporate stock.
NHRA is a 501(c)(6) which has different rules -- as I understand it one of those is that there are, in fact, shareholders.
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  #44  
Old 02-01-2008
anotheridiot anotheridiot is offline
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well maybe the non profits cannot go out and mortgage their land or tracks or have different rules towards running their operation that would not be limited in a corporation. They sold the naming rights to Indy to O Reilly. Why not sell the track and get money? Why did it need to be a whole package. Why not run the nhra as a for profit corporation?

I know I am probably wrong, but when I hear not for profit, it doesnt mean it isnt trying to make money. I see it as they have to put the money they make back into the organization and if there is too much to put back that it makes it more difficult to operate, they are on the line of becoming for profit. They put the money in race tracks, office buildings, land. I highly doubt that anyone had a figure of 120-180 million dollars as what rights to pro racing an office building and 4 tracks was worth. Now that the cat was let out of the bag, it makes alot of people look differently at the sport. If they have been able to put 120-180 million into buildings and tracks, why couldnt they put 5-10 million in safety?

What HD wanted to do was to make profits with the assets. Thats why it seems a new approach to the nhra to run as a for profit organization would make the sport grow. They basically have the plan that HD proposed to them of how they were gonna market the sport. why not just carry it out?
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  #45  
Old 02-01-2008
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fuelfan fuelfan is offline
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Hey A.I.,

I've been meaning to ask you what "Castrated by DonDon and Greg Enders" means?

Please explain...
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  #46  
Old 02-01-2008
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Willy Willy is offline
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Interesting comments that were posted on 01/31 & 02/01.

http://messages.finance.yahoo.com/mb/HDP
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  #47  
Old 02-01-2008
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Rowdy Rowdy is offline
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Quote:
Originally Posted by anotheridiot
I see alot of people that were all about this HD deal saving the sport and growing it the hights of nascar now saying its good it didnt happen now. A non profit entity ended up being worth 180 million. Guys, how exactally is that non profit? What this opened the world to was the fact that if the nhra was run like any other corporation, they would be making profit. We all know they are taking no responsibility for the chassis, but they are not certifying certain designs like BME when there is a fill in the blank spec out there.

I also have never met Julie Russell. But some lawsuits are about making responsible parties pay because that is what effects change. If huge companies were never fined or penalized they may start to show no concern for safety issues. Drag racers are men that push the envelope because they have equipment that has been deemed safe. Russell is making sure that Goodyear takes responsibility. it wasnt a chunking problem, an entire outside layer of tire came off the car, collapsed the wing and acted like a javelin. Making them pay is her way of making sure nobody else goes thru what she did. What I said before is a publicly held corporation is opening themselves to this type of lawsuit. They would be sued first and HD would have to get after Goodyear for their share.

Back years ago when nhra knew the tire was not good they started mumbling about going to 1/8th mile races. What did the fans do then? We wont go, we will go to see 330, but not 280. Everyone that complained when the sport knew they were getting into a gray area of safety can be blamed for every top end accident. Every drive wants to go faster and are ready to jump in what is proven unsafe, on questionable tires, in questionable conditions because they do what they want as fast as they can. Most of them live for it, some die for it.

NHRA seperates themselves from Vegas testing because of safety issues and drivers and fans complain that they arent there to support them. What they should have done is announce that events will be delayed if racing conditions get lower than 60 degrees. That would be the right, safe thing to do, but then the "protected" fans would complain when their weekend was cancelled. How close does that compare to a woman making a company pay for a faulty tire?
Very well said. You sell yourself short with your moniker. You are definitely not anykind of idiot that i'm familiar with. Cheers.
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  #48  
Old 02-01-2008
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Quoting Rowdy, "Very well said. You sell yourself short with your moniker. You are definitely not anykind of idiot that i'm familiar with. Cheers."

Motion seconded....
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  #49  
Old 02-01-2008
gary4205
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I'll third that sentiment.
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