Active racers forum open for business.
11-30-2003, 01:50 PM
#31
LOOK AT THE LEAD NOW!!!!!
Platinum Member
Very good point SHARKEY!!!!!!!!!!!!
If it turns into another site I think it will not be as valuable and will only hurt this. WHy not just add a new section to the already useful site of Offshore Only????? Create some kind of member status like you did with the uncensored forums and so forth.
DPT
If it turns into another site I think it will not be as valuable and will only hurt this. WHy not just add a new section to the already useful site of Offshore Only????? Create some kind of member status like you did with the uncensored forums and so forth.
DPT
12-01-2003, 12:29 AM
#35
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Mark Mathews,
Thank you for your comments. I wish there were short answers to all of your questions. But there are not.
Think carefully about this: The basic fact is that racing is a business and as such by definition and the reality of business, everyone that participates in the business is out to gain value. In the case of racing the player's are; the sanctioning body, the racers, the sponsors, the promoters, the fans and the community where the race is held.
A good business venture is one where every player recognizes that each of their partners (player's) must win to some degree or the game falls apart when the player's leave. Just like a game of poker where the pot is usually largest when you have more player's, the rewards for racing's player's will be larger as the sport grows.
It's extremely difficult to keep a diverse group of player's satisfied unless they are committed to a central vision and goal even at the expense of some of their own expected rewards.
Enough analogy's though. The reality is racing is expensive! For the racers, the sanctioning body and the promoters. The costs are enormous; hence the need for sponsors.
Take for example in rough numbers the following cost estimates (my guesstimates) to put on "a single" quality event like we all have aspired to achieve;
Prize Purse (current levels) $50 - 100K
TV Show Production Costs $50K
TV Airtime Costs $25 - 50K
Safety Helicopters $8K
Security Costs $10 - 15K
Paid Staff $20K
Volunteer Appreciation $5K
Site Damage Escrow Funds $0 - 20K
Insurance ?
Advertising $20K
Misc. Logistic Costs $5 - 10K
Totals $193 - 298K +
Now multiply that times say 8 national races and add in each of the racers costs and you begin to recognize that this is a big business just to begin to put on the show!
Now look at cash inflows to the sport:
Annual Racing Memberships to Sanctioning Body
Annual Race boat Homologation Fees
Site sanction Fees
Community Tourism Board Contributions
plus:
Corporate Sponsorship Funds
Community Sponsorship Funds
The bottom line is that not even adding in the uncovered (by prize purse winnings) race team costs, without large monetary corporate sponsorships the sport dosen't even break even.
So unless "ALL" the players support the vision and goal and play to the benefit of the team (sport) as a whole the enterprise is doomed to repetitive failure and clublike events. All of the player's have a choice. But becoming part of the team means a commitment. And when some part of the team makes a mistake there needs to be a mechanism for repair without the team falling apart.
Just one further comment regarding your question about me speaking as a corporate representative. I officially do not, because GM has a promotional contract with APBA Offshore, LLC which represents it's agreement with the sport. They expect marketing exposure to help sell GMC Trucks in value returned through the fulfillment obligations outlined in that contract. They are participating players on the team and trust in the management of the organization to fulfill it's obligations, while they focus on theirs and the many other marketing avenues that they pursue in other areas.
On a personal note, I love this sport and will therefore do all that I can personally to help it succeed.
Regards,
Mark Skrzypek
Thank you for your comments. I wish there were short answers to all of your questions. But there are not.
Think carefully about this: The basic fact is that racing is a business and as such by definition and the reality of business, everyone that participates in the business is out to gain value. In the case of racing the player's are; the sanctioning body, the racers, the sponsors, the promoters, the fans and the community where the race is held.
A good business venture is one where every player recognizes that each of their partners (player's) must win to some degree or the game falls apart when the player's leave. Just like a game of poker where the pot is usually largest when you have more player's, the rewards for racing's player's will be larger as the sport grows.
It's extremely difficult to keep a diverse group of player's satisfied unless they are committed to a central vision and goal even at the expense of some of their own expected rewards.
Enough analogy's though. The reality is racing is expensive! For the racers, the sanctioning body and the promoters. The costs are enormous; hence the need for sponsors.
Take for example in rough numbers the following cost estimates (my guesstimates) to put on "a single" quality event like we all have aspired to achieve;
Prize Purse (current levels) $50 - 100K
TV Show Production Costs $50K
TV Airtime Costs $25 - 50K
Safety Helicopters $8K
Security Costs $10 - 15K
Paid Staff $20K
Volunteer Appreciation $5K
Site Damage Escrow Funds $0 - 20K
Insurance ?
Advertising $20K
Misc. Logistic Costs $5 - 10K
Totals $193 - 298K +
Now multiply that times say 8 national races and add in each of the racers costs and you begin to recognize that this is a big business just to begin to put on the show!
Now look at cash inflows to the sport:
Annual Racing Memberships to Sanctioning Body
Annual Race boat Homologation Fees
Site sanction Fees
Community Tourism Board Contributions
plus:
Corporate Sponsorship Funds
Community Sponsorship Funds
The bottom line is that not even adding in the uncovered (by prize purse winnings) race team costs, without large monetary corporate sponsorships the sport dosen't even break even.
So unless "ALL" the players support the vision and goal and play to the benefit of the team (sport) as a whole the enterprise is doomed to repetitive failure and clublike events. All of the player's have a choice. But becoming part of the team means a commitment. And when some part of the team makes a mistake there needs to be a mechanism for repair without the team falling apart.
Just one further comment regarding your question about me speaking as a corporate representative. I officially do not, because GM has a promotional contract with APBA Offshore, LLC which represents it's agreement with the sport. They expect marketing exposure to help sell GMC Trucks in value returned through the fulfillment obligations outlined in that contract. They are participating players on the team and trust in the management of the organization to fulfill it's obligations, while they focus on theirs and the many other marketing avenues that they pursue in other areas.
On a personal note, I love this sport and will therefore do all that I can personally to help it succeed.
Regards,
Mark Skrzypek
12-01-2003, 08:18 AM
#36
The Illustrious One
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Hey outer42 does that mean I really, really have to sign everything as George W. Bush now????? 
Bro I couldn't resist that one!!!!!
Bro I couldn't resist that one!!!!!
__________________
Dying,....Is the day worth living for!!!!!!
Dying,....Is the day worth living for!!!!!!
12-01-2003, 05:55 PM
#38
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Mark Mathews,
Thank you for taking the time to absorb my rather lengthy thoughts. It's obvious that you have a grip on the issues facing the sport and a practical view of the corrective actions that must be taken.
I wish I could have this dialogue with every racer who truly wants the sport to grow, and if so I am confident that the win / win positions could be established and the teams collectively bound to one vision and direction with unilateral support.
Who knows perhaps that will happen.
Regards,
Mark Skrzypek
Thank you for taking the time to absorb my rather lengthy thoughts. It's obvious that you have a grip on the issues facing the sport and a practical view of the corrective actions that must be taken.
I wish I could have this dialogue with every racer who truly wants the sport to grow, and if so I am confident that the win / win positions could be established and the teams collectively bound to one vision and direction with unilateral support.
Who knows perhaps that will happen.
Regards,
Mark Skrzypek
12-02-2003, 08:42 AM
#39
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To the Marks,
I think you both have some very valid points about the business aspects of racing. Does APBA have a business plan or a mission statement like any other business? (I have never seen one, doesn't mean its not out there) If so then that should be the guiding force like any other business out there. This should address what the goals of the organization will be for the next say, 5 years and in the plan or mission statement address some of the needs of the racers and fans and of racing as a whole group.
Most everyone out there is here because Offshore racing is a great sport and its fun. Its also costly so we all know no one will get rich like playing in the NFL.
Setting up and running a race is also costly and time consuming. We have some terrific people in APBA who do tons of work for really little recognition. Thanks for some of your points of view guys.
I hope that we all can agree work some of this out before next season.
Happy Holidays!!
Jen Youngblood
I think you both have some very valid points about the business aspects of racing. Does APBA have a business plan or a mission statement like any other business? (I have never seen one, doesn't mean its not out there) If so then that should be the guiding force like any other business out there. This should address what the goals of the organization will be for the next say, 5 years and in the plan or mission statement address some of the needs of the racers and fans and of racing as a whole group.
Most everyone out there is here because Offshore racing is a great sport and its fun. Its also costly so we all know no one will get rich like playing in the NFL.
Setting up and running a race is also costly and time consuming. We have some terrific people in APBA who do tons of work for really little recognition. Thanks for some of your points of view guys.
I hope that we all can agree work some of this out before next season.
Happy Holidays!!
Jen Youngblood
12-02-2003, 10:04 AM
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Mark S.---I want to thank-you for your comments and for all of your help in making our event as successful as it was.Only a handful of us know the effort that was put out in order to avoid the boycott and the trials and tribulation we went through because of it.I know it staggered the efforts of our volunteers,hurt our fund raising,and left bitterness with our sponsors.On the other hand I agree with most of the owners group's grievances.I just think things could have waited to off-season.I had a opportunity to speak to their group in Key West and they appear to very organized and plan their own series.I think everybody worked hard to put on a good show and with the small numbers they had did just that.But,where does our sport go now?Three race circuits?I would love to see one, as Billy from WHM put it ,"all the wild animals under one tent"! I certainly believe when I wear the promoter hat that at least our community wants a sanctioned body like S.B.I. or A.P.B.A. to help us put on the show.The liabilities of not having proper insurance and safety in place not to include the vast experience that both organizations have is a major factor. Our fund raising on the state and city levels would not be possible without the national television and having a major sponsor like G.M.C. The sport can leap frog into future growth if the parties can come together, and as you pointed out about the costs involved in producing a race I can assure everybody concerned the thoughts of M.A. and J.C. getting rich off this sport are unfounded.If any one ever does make some money they will sure as hell deserve it.Our community is in the wait and see mode and will have at least one race next year,hopefully two .I'm going racing next year,Somewhere. GARY
