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UglyDogRacing
Thu Sep 15th, 2011, 10:51 AM
Motorcycle Roadracing Association Cancels Round #8 in October

After careful consideration, the MRA Board of Directors announced at the General Membership Meeting last night that Round 8 at High Plains Raceway, October 8 & 9, 2011, has been cancelled. The final race of the season will be this weekend, September 17 & 18 at Pikes Peak International Raceway in Fountain, CO.

Following a continual decline in both race entries, and entry fees per racer throughout the 2011 Season the MRA has chosen to forego the final round of the year. Given the drop in participation and uncertain Colorado weather in October, the risk of another significant event loss is just too great to justify.

MRA President Tony Baker assures members: “The MRA is absolutely solvent and financially stable, even taking into consideration the certain loss we will suffer at Round 7 this weekend. There is no financial crisis at this time; however, it is important that we do not make choices which could put us in crisis or imperil the 2012 Race Season. Taking an additional event loss this late in the season would most certainly jeopardize our ability to properly fund the 2012 series.” He continues: “Colorado continues to suffer from a high jobless rate & slow economic recovery; layoffs, bankruptcies and foreclosures have not yet hit bottom it appears. Unfortunately this is having a direct impact on a significant portion of our membership, as even our ‘dyed in the wool, never miss a round’ racers have been skipping rounds or are absent altogether in 2011. The MRA appreciates the support and participation of all of our members, racers, visiting racers, and series sponsors during this season. We look forward to an exciting final round this weekend, and will be announcing our 2012 Season Schedule in the very near future.”

The MRA is dedicated to promoting safe and competitive motorcycle road racing events for enthusiasts in Colorado and the surrounding area. The MRA is now on Facebook at Motorcycle Roadracing Association. Join our group and stay up to date on the latest racing news. For more information go to www.mra-racing.org (http://www.mra-racing.org/) or call the MRA hotline at 303-530-5678.

tecknojoe
Thu Sep 15th, 2011, 10:52 AM
Damn. I really didn't want to see that. Hopefully numbers will be strong in the spring

Sully
Thu Sep 15th, 2011, 11:09 AM
:(

asp_125
Thu Sep 15th, 2011, 11:11 AM
Dislike, but understandable given the circumstances.

Bueller
Thu Sep 15th, 2011, 12:28 PM
Wish they would have dropped PPIR if they were cancelling one.

Zach929rr
Thu Sep 15th, 2011, 12:52 PM
Sound decision by the MRA IMO. I'm hoping the same thing doesn't happen to CSS or RMMM next year.

UglyDogRacing
Thu Sep 15th, 2011, 01:24 PM
Wish they would have dropped PPIR if they were cancelling one.


PPIR is cheaper for the MRA and the greater uncertainty with our weather in Colorado played a part in the decision.

t_jolt
Thu Sep 15th, 2011, 01:33 PM
so does this mean the days goes back to HPR to what ever they want with?

Graphite675
Thu Sep 15th, 2011, 01:40 PM
PPIR is cheaper for the MRA and the greater uncertainty with our weather in Colorado played a part in the decision.


I posted over on the MRA forum but will ask the same question here. What is the biggest cost driver for the MRA, Track rental?
I love HPR but if it's costing us a arm and leg to run there maybe we should try for more rounds at PMP/PPIR and less at HPR next year? I would rather race those tracks then not race at all?

I am some what new to Colorado and have already found it to be very expensive to race/track ride compared to other places I have been and was wondering why? I assume it it the track rental driving most of that cost?

JP

.

Sean
Thu Sep 15th, 2011, 01:44 PM
Man, that's a bummer. It sucks when there are a lot of good, hard working people behind an organization and it can't work out the way you want. Like Zach said, it's a smart move, just probably not an easy decision. Wish I could have gotten out to watch more of the races.

MetaLord 9
Thu Sep 15th, 2011, 01:46 PM
That sucks and I'm sure they hated to do it too, but I'd always rather there be more races in the future than have one more this year.

UglyDogRacing
Thu Sep 15th, 2011, 02:10 PM
I posted over on the MRA forum but will ask the same question here. What is the biggest cost driver for the MRA, Track rental?
I love HPR but if it's costing us a arm and leg to run there maybe we should try for more rounds at PMP/PPIR and less at HPR next year? I would rather race those tracks then not race at all?

I am some what new to Colorado and have already found it to be very expensive to race/track ride compared to other places I have been and was wondering why? I assume it it the track rental driving most of that cost?

JP

.

Track rental is the highest expense, followed by insurance. Alot of other expenses besides those: ambulances, corner workers, gate workers,etc. To run a race weekend at HPR, it costs the MRA approximately $33,000. PPIR costs us around $28,000 but we keep the garage rental amount which brings in around $3000. So about an $8000 difference.

The problem with doing more rounds at PPIR and PMP is that our attendance is less than when we race at HPR. This weekend our total pre-entries are 96, about 40 less than where we need to be to break even.

Bueller
Thu Sep 15th, 2011, 02:47 PM
I understand the weather but starting the season early and ending late is always a crap shoot, but the attendance is always going to be a problem at PPIR. I am only going because I was hoping there would be a good enough showing to make #8 happen.

Graphite675
Thu Sep 15th, 2011, 02:58 PM
The problem with doing more rounds at PPIR and PMP is that our attendance is less than when we race at HPR. This weekend our total pre-entries are 96, about 40 less than where we need to be to break even.


Yeah I noticed that people don't seem to want to come to PMP/PPIR as much. I know some have safety issues with PPIR but I think most just don't want to make the drive from the Denver area? They figure it's only a round or 2 so they can take the points hit or missing 2 rounds is no big deal. Maybe if more rounds were down here they would reconsider? $8000 per round is a big price difference between PPIR and HPR.

Not to get into the politics of this but has HPR considered dropping the rental rate at all? Seems to me bringing in some money in is better then bringing in none at all?
I love HPR but I have ridden Barber for pretty much the same $ that it costs to ride HPR and there is a big difference between the 2.

Times are tough and I just hope everyone can do there part to help out next year. My fear is all the cost increase will be passed down to the racers and we will have a even worse turn out?

.

vort3xr6
Thu Sep 15th, 2011, 03:13 PM
Yeah I noticed that people don't seem to want to come to PMP/PPIR as much. I know some have safety issues with PPIR but I think most just don't want to make the drive from the Denver area? They figure it's only a round or 2 so they can take the points hit or missing 2 rounds is no big deal. Maybe if more rounds were down here they would reconsider? $8000 per round is a big price difference between PPIR and HPR.

Not to get into the politics of this but has HPR considered dropping the rental rate at all? Seems to me bringing in some money in is better then bringing in none at all?
I love HPR but I have ridden Barber for pretty much the same $ that it costs to ride HPR and there is a big difference between the 2.

Times are tough and I just hope everyone can do there part to help out next year. My fear is all the cost increase will be passed down to the racers and we will have a even worse turn out?

.


One of my big questions I always wanted to ask was "Who is making money?".

Is it the investors of HPR? Track management? Supply and demand states that you lower a price when demand falls, so who is making money and needs to take the hit?

UglyDogRacing
Thu Sep 15th, 2011, 03:19 PM
I'll defer answering the HPR questions in the previous two replies to Glenn next time he is on the forum.

vort3xr6
Thu Sep 15th, 2011, 03:29 PM
Doesn't even have to be HPR. Is it really necessary to charge a $20,000+ track rental for any track. I understand they need to stay in business as well, but if they are pulling in a 20% profit margin while clubs and members are suffering and dropping, than something isn't right.

UglyDogRacing
Thu Sep 15th, 2011, 03:42 PM
Track rental isn't that much.

Here's a breakdown of expenses posted by Tony on MRA forum-

Track rental is between $6K and $11K

Insurance is either $2200 or $4200

Board Pay is about $3k (we ONLY get paid on race weekends, not any other time during the year)

Ambulances are about $2400

Cornerworker Crew / Staff Food and Perdiem/hotel is $2500

Cornerworker pay is $3500

Trophies are $700

Gate staff is $750

ROR payout is $1500 - $2000

Refunds and credits run about $1100

vort3xr6
Thu Sep 15th, 2011, 03:47 PM
That isn't that much, considering maintenance, track setup, cleaning, facilities, etc.

Just an expensive sport I guess. Gonna get into water polo, or knitting.

tecknojoe
Thu Sep 15th, 2011, 04:06 PM
I know some have safety issues with PPIR

yes

rybo
Thu Sep 15th, 2011, 04:26 PM
No one is really making any money at this.

HPR is owned by the clubs that race at is as a part of CAMA (Colorado Amateur Motorsports Association) and is the replacement for a much older, and no longer viable Second Creek Raceway.

The sport is high risk, so the insurance company is making some money on the deal, but when they have a loss, it's generally a big one.

The track was expensive to build - somewhere close to the $3M range. The clubs and private donors (most of them members of at least one of the clubs) funded the downpayment, but there is still a significant loan to service.

Yes, it's an expensive sport, and in all honesty I've done a fair number of expensive sports over the years. What I've discovered is that when you put the word "racing" in front of whatever it is that you want to do, it gets exponetially more expensive and exponetially more fun.

s

Graphite675
Thu Sep 15th, 2011, 04:45 PM
The track was expensive to build - somewhere close to the $3M range. The clubs and private donors (most of them members of at least one of the clubs) funded the downpayment, but there is still a significant loan to service.



I don't claim to be a financial guru but this is where I'm confused?

HPR is normally $11K. Now that round 8 is cancelled they are getting $0 but still have a loan to pay. Why not reduce it to $5K, we can run round 8 and HPR still makes something?
Something is better then nothing right?

I see this in retail as well right now. You would think with money being tight like it is retailers would be discounting product to move it but most are not and they are not selling anything? People seem to be holding out for top dollar?
To me I would think it is better to sell 10 items at a discount then to sell 1 at full price?

.

.

vort3xr6
Thu Sep 15th, 2011, 04:53 PM
I don't claim to be a financial guru but this is where I'm confused?

HPR is normally $11K. Now that round 8 is cancelled they are getting $0 but still have a loan to pay. Why not reduce it to $5K, we can run round 8 and HPR still makes something?
Something is better then nothing right?

I see this in retail as well right now. You would think with money being tight like it is retailers would be discounting product to move it but most are not and they are not selling anything? People seem to be holding out for top dollar?
To me I would think it is better to sell 10 items at a discount then to sell 1 at full price?

.

.

I work in the car business. We know this concept VERY VERY well.

Bashed
Thu Sep 15th, 2011, 05:29 PM
Ah crap! I was hoping I would at least get 1 round to attend.
Stupid no insurance drivers.:x

Welp, time to look forward to next season.

flyingmonkey
Thu Sep 15th, 2011, 08:42 PM
I am really sad to see that the last round is cancel but at the same time I am glad that someone is taking in consideration the future of the association.
I am looking forward for the 2012 season and planning to participate more.

bluedogok
Thu Sep 15th, 2011, 08:54 PM
I don't claim to be a financial guru but this is where I'm confused?

HPR is normally $11K. Now that round 8 is cancelled they are getting $0 but still have a loan to pay. Why not reduce it to $5K, we can run round 8 and HPR still makes something?
Something is better then nothing right?

I see this in retail as well right now. You would think with money being tight like it is retailers would be discounting product to move it but most are not and they are not selling anything? People seem to be holding out for top dollar?
To me I would think it is better to sell 10 items at a discount then to sell 1 at full price?

.

.
It is much like professional fees, once you lower your price the client expects that price from then on so you aren't just discounting that project, you are discounting all future projects. A track isn't a "volume" business where you can make up lower prices with sheer volume like Wal-Mart. For the most part you can't raise your fees without them taking exception to it an start looking for someone to match the lower fee or even less. It always seems like everyone else around you can raise their fees, but you can't without the fear of losing work. Once someone gets the track rental at a lower price, then that lower price is expected in the future.

hcr25
Thu Sep 15th, 2011, 09:05 PM
Something you guys are missing is that HPR is booked every weekend from April to October. Also the member clubs of CAMA, which the MRA is one, get a discounted rate from the normal track rental. The MRA canceling will open two weekend dates most likely for open lapping. We all know how many of those there were this year, 0!
The track had had several friday car days with 70 cars and two with over 120. Even if all 70 the cars did a half day it would still bring in $6300 per day. It would not make good business sense to lower the rate even more.
It's not all about profit either. A big part of the money for the track came from a loan program from club members, that has to be paid back with intrest. Also X amont of money from every event is set aside for repairs and improvements.
A septic pond that is needed for black and gray water, so we can have showers will cost somewhere around 35K. Track repairs, resurfacing turns.6,8 & 13 will cost a pretty penny I'm sure.
PPIR in my opinion is giving a decent discount to get the business. Pueblo charges almost as much as HPR now and look at the condition the surface is in. Do you think after it is repaved the price will be the same? I bet it goes up and it will be worth it.
Mike

jbnwc
Fri Sep 16th, 2011, 01:53 PM
Well I'm just thankful to the MRA for putting on a great event this season. One less race for me just means I get one more new tire for next year! Thanks to everyone who helps put these on. I'll see you out there tomorrow!