Majors contract

[jwr914]

Has anyone else read the new contract that the National Office is sending out to the regions/divisions hosting majors events?

They now have language that demands 30% of your sponsorship monies. They just want more money without working for it or returning it to the drivers. Yet the office wants the event host to reduce driver costs and claims they will allow you to keep your funding if you defray driver costs. The whole reason for sponsorship funds is to give better events with less cost to the driver. Too bad the national office just wants more money to support their bankrupt business model. Obviously, they've never done a contract in their lives. If the language is there both parties have to abide by the language, not some unwritten side agreement.

James Rogerson
Houston Region RE

[reidhazelton]

James - can you post the contract? I am going to assume 95% don't have access to it.

If the national office wants more cash, can we start with getting rid of the "podium ceremonies"? If it is not the Runoffs, or maybe the Sprints, it doesn't really matter. I've seen several podiums that are not even full and it looks ridiculous. Personally, I feel like a real idiot up there holding the really, really tiny trophy for beating two or three other guys. I don't even want to go, but that's just me. I'd rather donate the $10 bucks for the "podium" and the sparkling wine to the worker fund.

[marshall9]

I don't understand the original post. 30 percent of what? Is it what the sponsors put up as contingency? That is fair. Or is it 30 percent of what you as a driver/car owner get from marketing yourself to outside sources and obtaining contracts that benefit only your effort and are confidential? The former is a good idea IMO, the latter, socialism.

[BeerBudgetRacing]

can we start with getting rid of the "podium ceremonies"?

Maybe a Gold, Silver or Bronze Star sticker?

[jwr914]

Here is the part of the contract that just runs against the grain of those of us that host events. We work our butts off to keep costs down and someone comes in and wants a percentage of our income. Where the hell do they think sponsorship goes?

v) Any new event-specific sponsor revenue will be shared between National and the Region. This does not include season-long National or Tour sponsors or existing Region event sponsors. For event-specific sponsors, National and Region will share NET revenue in the following fashion:
(1) National-secured sponsorship
(a) National receives 70% of NET
(b) Region receives 30% of NET
(2) Region-secured sponsorship
(a) Region receives 70% of NET
(b) National receives 30% of NET


Right now it looks like Southwest Division is going to pull out of the majors program.

James R.

[RussMcB]

Just claim the NET revenue is $2.

[Purple Frog]

I'm not a math major, but I do know one in Woodstock Georgia.

Whichever group raises the most value in sponsorship pays the most to the other group. That could be considered a disincentive.

If both groups raise the same amount, it is a wash.

In some ways I could envision Topeka being able to use the whole Majors program to attract large national sponsors. (Oops, I'm dreaming again.) Regions almost have to solicit from their local area.

In that scenario using Sebring as an example: Topeka comes to the table with Weathertech, Go Daddy, Goodrich, Hundai, etc. Central Florida comes to the table with Fresh from Florida, Lakeside Inn, Joe's Towing, Kummer Lumber, and Highlands County Chamber of Commerce.

Maybe just let both groups spend what they raise the way they chose?

[Wren]

In some ways I could envision Topeka being able to use the whole Majors program to attract large national sponsors. (Oops, I'm dreaming again.) Regions almost have to solicit from their local area.

But it looks like Topeka doesn't have to share their national sponsors if I understand the langauge that was posted, just the sponsors that Topeka gets for the specific event. I would be surprised if Topeka puts much work at all into getting sponsors for individual majors.

Maybe just let both groups spend what they raise the way they chose?

Makes sense to me. I'm curious on the motivation for this.

[GT1Vette]

As I posted on the Prod site earlier today, this "revenue sharing" is something Prill (SCCA's new COO) has been wanting for two years but I've refused to add it to the Majors contracts. There's no one left in the National office that has any clue what the regions go through to organize and conduct events, but Mr COO thinks he can justify this request.

The simple solution: Refuse to sign the agreement unless they remove that clause. The National office needs the regions a lot more than the regions need the Majors program, and they DO know that!

And I'm a Math Education major, not a Math major...

[John LaRue]

v) Any new event-specific sponsor revenue will be shared between National and the Region. This does not include season-long National or Tour sponsors or existing Region event sponsors. For event-specific sponsors, National and Region will share NET revenue in the following fashion:
(1) National-secured sponsorship
(a) National receives 70% of NET
(b) Region receives 30% of NET
(2) Region-secured sponsorship
(a) Region receives 70% of NET
(b) National receives 30% of NET


Right now it looks like Southwest Division is going to pull out of the majors program.

As I read this any sponsorship that is secured by the National Office is shared with the Region (30%) and vice versa. It is event specific -

[Purple Frog]

Butch,
There are other forums out there than Apexspeed? You have multiple loyalties? Here I always that you were an oversized formula car guy...

Somehow I have great difficulty picturing you teaching a middle school arithmetic class. I picture prison sentences within the first semester, and not for the students.

I guess there is a reason you are in Woodstock and not Topeka. LOL

OK, back to the regularly scheduled rant.

[JohnPaul]

sponsors? what sponsors?? is this a joke?

[rave motorsports]

This topic makes me glad we race Regionals in a National series. We can compete against the fastest cars in the nation for less entry fees without all the National meddling.
Bill Gray
#213 Evolution FST
#214 Evolution FST

[butch deer]

So If the host region gets someone to pay for the workers dinner than 30% of the bratwurst and potato salad gets shipped to Topeka?

[M.Sauce]

The simple solution: Refuse to sign the agreement unless they remove that clause. The National office needs the regions a lot more than the regions need the Majors program, and they DO know that!
Butch- Thanks for your help with the National Office on this Majors Program. I personally think they do not realize what a Region goes through to put on a race. In my
years on the BOD I found a disconnect with the Regions and what they are asked to do by the National office to put on races. The National office is nothing without the Regions to do the heavy lifting.

[GT1Vette]

Butch- Thanks for your help with the National Office on this Majors Program. I personally think they do not realize what a Region goes through to put on a race. In my years on the BOD I found a disconnect with the Regions and what they are asked to do by the National office to put on races. The National office is nothing without the Regions to do the heavy lifting.

And that lack of knowledge (and hence appreciation) for what the regions go through to put on races is one of the major (pun intended) reasons I resigned, and it was certainly a factor in Terry's departure. No one left in Topeka has ever put on a race weekend with even 50 entries, much less 200+, and they act like it's as simple as clicking an icon on their computer screen.

They'll either figure it out or they won't. In the meantime the strong regions will continue to have successful events in spite of the National office, certainly not because of it.

As always, YMMV...

[M.Sauce]

Butch- The thing I worry more about with the Majors is the fact that as more and more competitors don't want to travel as far and don't have the Regional numbers to support multiple racing Regions like SW, Midwest and Rocky Mountain. As car counts drop the Racing Regions become less successful and their reserves are depleted there will be less Racing Regions and fewer races which ultimately will hurt car counts even more as competitors get discouraged and go some where else or quit all together.
Our Midwest Majors race schedule will require me to travel 6000 miles to run all the races. Too many days away from work and too much travel costs. My average tow is a thousand miles round trip if I do the Majors. If I am in Houston or South Texas it is even more. Not feasible for me and my daughter and not much thought process in my opinion from whoever conjured up this program.

[Anthony Tabacco]

Thanks to one of our Region members for giving me a heads up on this; I was not aware of it, and I am checking to see if we received a similar letter. And everyone would do well to heed Butch's comments. But this is a small potatoes land grab next to some of the other revenue enhancement tools they are sharpening right now. Do the math on the revised 2015 sanction/insurance fee schedule vs. 2014 your Region will have to cough up, and take care to note how you calculate "per event" vs. "per car". This was just released and it was after our (every Regions I imagine) 2015 entry fee schedule had already been published to our members incidentally. The increases ranged from $2,800- $5,500 increase per event on the examples our Board looked at.

Anthony Tabacco

[GT1Vette]

Thanks to one of our Region members for giving me a heads up on this; I was not aware of it, and I am checking to see if we received a similar letter. And everyone would do well to heed Butch's comments. But this is a small potatoes land grab next to some of the other revenue enhancement tools they are sharpening right now. Do the math on the revised 2015 sanction/insurance fee schedule vs. 2014 your Region will have to cough up, and take care to note how you calculate "per event" vs. "per car". This was just released and it was after our (every Regions I imagine) 2015 entry fee schedule had already been published to our members incidentally. The increases ranged from $2,800- $5,500 increase per event on the examples our Board looked at.

Anthony Tabacco

Anthony (and all) - take that issue up with your BoD member. I had departed the premises by then, but my understanding is the Club Race staff proposed a sanction fee similar to 2014 (per weekend for Regionals, per entry for Majors) but that was rejected soundly by the BoD. I was not part of any discussions and I'm CONFIDENT the BoD is way smarter than I am, so you'll have to get the justification for the 2015 program from them.

[rickb99]

I don't know anything about the Majors nor do I understand how it came to be (or why) compared to Nationals

But it does sound like the club has at this point figured out how to destroy amateur road racing.

"No one left in Topeka has ever put on a race weekend with even 50 entries"

Are you serious?? Used to be most of the staff came in from the field, what happened??

[allof6]

This is typical of any large corporation or company. It is always easier to increase there bottom line by taking something away from the employee. SCCA is taking from the regions instead of being creative enough and go out and get new sponsors.

Why do you need SCCA for anymore?

[reidhazelton]

Majors program came about from a survey sent to membership after the Runoffs in 2012(I think it was 12). Basically, what was learned was that competitors wanted larger fields and better competition. So, rather than achieving that by implementing the 2.5 rule (ridiculously low...2.5 entries. Really?) they chickened-out and decided it would be better to pull more competitors from a larger geographic area in an attempt to get bigger fields rather than cut the wanker classes and incorporate them into other stronger classes. Well, that means longer tows and more days off work. They positioned Majors for those who can afford to take off work and travel, and not for the low budget racer.

This is what we are left with. The CenDiv, where I race, has it really good for the Majors schedule. Other areas, like Texas, Colorado...not so much. Have fun towing to NOLA for a Major.

Same national program, just a new name, longer tows, less track time, and a "podium" celebration. I was really hopeful of the Majors program, but it seems to just be an expensive national event. Just my 2 cents.

[budawe]

The increases in fees is based on a billing change and not cost increases. In 2014 the office used a simple per sanction fee of $1100. This was based on 80% of events being double weekends and that most regions were using two sanction numbers per weekend. They had been using double sanctions to help drivers get their participation requirements increased from double weekends. The BOD has revised the participation requirements to solve this issue.

Seeing that regions could save money by dropping one sanction number, many converted their double weekends to a single sanction. This resulted in many regions paying half of what they had been paying in prior years and resulted in a significant reduction in cost recoveries experienced by the national office.

If one looks at the total sanction budgets between 2014 and 2015, there are no significant increases in spending. The increases that some regions are seeing are a result of converting to a per car basis.

The per car fees are: sanction $15, insurance $33 and volunteer fee of $6. None of these fees are revenue to the national office but represent the recovery of costs in conjunction with putting on road race events. A example would be the cost in conjunction with the maintenance of the GCR and CRB. The volunteer fee is collected by national to provide a discount on membership fees for volunteers based on the numbers of weekends they have worked.

Entry fees vary greatly around the country, but the $54 in fees is generally a small number considering the insurance coverage and rule process we receive. The total SCCA budget is nearly 8.5 million dollars and the sanction fees collected are just over $200,000 or 2% of the total. While costs for some regions may rise as a result of changing the recovery process, and I understand the challenges that presents, please don't forget that some regions experienced significant savings in 2014 that likely weren't passed on to the competitors.

[jwr914]

After conferencing with Lisa and Eric, we've come to an amicable understanding and the Southwest Division will host both NOLA and TWS as a Majors event. I should have posted earlier except I've been in discussions with the Tilke Group all day about track renovations and a new build. I'm afraid I let fun get in the way of club business.

James Rogerson
Houston Region RE

[reidhazelton]

Well that's and interesting turn of events.

Care to elaborate on what deal was reached? Seems a pretty drastic swing, and I am sure everyone wants to know what occurred to make it happen and how two sides came together. Was the "I share 30% of mine and you share 30% of yours" scrapped?

I see those who know at the bottom of the page here....

[stonebridge20]

I see those who know at the bottom of the page here....

Not anymore.

[bobmelvin]

Well that's and interesting turn of events.

Care to elaborate on what deal was reached? Seems a pretty drastic swing, and I am sure everyone wants to know what occurred to make it happen and how two sides came together. Was the "I share 30% of mine and you share 30% of yours" scrapped?

I see those who know at the bottom of the page here....

Well, there goes Hazelton stirring things up again. You go Reid!

I'd also love to know why the change of reasoning. We're (here in CO) trying to figure this one out too.

Bob Melvin
FF VD

[reidhazelton]

Not anymore.

Theeeeerrrrrre baaaack......

Bueller...Bueller...anyone...Bueller?