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Topic: WHERE DOES THE MONEY GO? Email this topic to a friend | Subscribe to this TopicReport this Topic to Moderator
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blazer00
January 22, 2016 at 11:09:56 AM
Joined: 06/10/2015
Posts: 2420
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This is not intended to pick on any one racing series. I've seen it happen on more than on one occasion. My question is this...when a series posts a purse payback for an A Main 1st-24th (and possibly a LCS).....and only 18, 19 or 20 cars show up to race, where does the "unpaid" purse money end up? The ticket prices were established well in advance and with the purse amount considered in that pricing. Now, I do know that with a short field, there is less money collected at the pit gate, but there is less tow money paid out, also, which I think would offset that pit gate shortage. Any ideas or comments? Maybe I just don't see it properly. 

 

 

 




Jimmech25t
January 22, 2016 at 11:21:21 AM
Joined: 05/03/2012
Posts: 26
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Reply to:
Posted By: blazer00 on January 22 2016 at 11:09:56 AM

This is not intended to pick on any one racing series. I've seen it happen on more than on one occasion. My question is this...when a series posts a purse payback for an A Main 1st-24th (and possibly a LCS).....and only 18, 19 or 20 cars show up to race, where does the "unpaid" purse money end up? The ticket prices were established well in advance and with the purse amount considered in that pricing. Now, I do know that with a short field, there is less money collected at the pit gate, but there is less tow money paid out, also, which I think would offset that pit gate shortage. Any ideas or comments? Maybe I just don't see it properly. 

 

 

 



Blazer....having been on the promotion side in the past. Most series have a minumin car count in the contract. For example the may gaurentee 20 cars for x amount. If thay have say 18 cars the hosting track pays x amount less per car under 20 and pays x amount more per car over 20. That's the most common agreement I've seen. Of course I can't speak for all series just the few contract agreements I've been able to see. Hope this helps.



JCWRacing10
January 22, 2016 at 11:42:22 AM
Joined: 12/03/2009
Posts: 69
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Tow money is not added on top of the drivers finishing position in most cases.  I cannot verify in situations like WoO champions where they are guaranteed more, but if the track normally pays out 24 cars and there is only 23, they only pay 23 positions.  It is only when you do not qualify for the race that you only receive tow money.

Since they are not required to pay the remainder of the purse it then goes into the tracks account for the next race.

 

 




Neisteadt
January 22, 2016 at 12:29:18 PM
Joined: 12/02/2004
Posts: 79
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Also figure in that the area of the field you're talking about is the very bottom of the purse.  So remember that the promoter paid out the heaviest part of the purse to the top finishers.  That's why so many tracks have a problem when car counts take a dip.  If you go from 20 cars to 8 cars in a class at a weekly track, you're still likely paying more than half of your purse with less than half of the gate revenue.  



jholz2002
January 22, 2016 at 03:50:46 PM
Joined: 12/02/2004
Posts: 704
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This message was edited on January 22, 2016 at 04:37:24 PM by jholz2002
Reply to:
Posted By: Neisteadt on January 22 2016 at 12:29:18 PM

Also figure in that the area of the field you're talking about is the very bottom of the purse.  So remember that the promoter paid out the heaviest part of the purse to the top finishers.  That's why so many tracks have a problem when car counts take a dip.  If you go from 20 cars to 8 cars in a class at a weekly track, you're still likely paying more than half of your purse with less than half of the gate revenue.  



Exactly what Neisteadt said. For example, at Nobles County Speedway a 20 car Stock Car payout would be $2,330. 1st-10th place take $1,580 of that purse. So, 68% of the purse is paid out to 50% of the field. Every car from 11th on back pretty much covers itself at the back gate with a pit passes for the driver and a couple crew guys. "Tow" money would be what is paid to drivers that did not qualify or start the A Main.

What Neisteadt and I are getting at is whether 15 cars or 25 cars show up to the track, when it is all said and done it cost the track the same in payout because any car from 11th on back has pretty much paid their own payout at the end of the night. Now, what a track benefits from with having 25 cars in a particular class show up is butts in the seats. 25 cars will bring more fans than 15 cars will.

Because of the hard hit a track can take if there are only 8 cars in a class I do know of some tracks with two different pay scales based off of car count. To take this a little bit further I will I will break it down a bit. What I use for a basic formula is 2.5 pit passes per car with the body classes. Sprint cars I figure 3.5 pit passes sold per car.

8 Stock Cars would get the track $500 at the back gate in pit passes. My payout for an 8 car Stock Car feature would be $1,415. That means I would have to pull $915 (65% of the purse) from the front gate. Figure $12 an adult ticket would be 76 adults needed in the front gate to cover the payout.

15 Stock Cars would get the track $940 at the back gate in pit passes with a payout of $1,955. This means I would only need to cover 54% of the purse from the front gate. 

20 Stock Cars would get the track $1250 at the back gate with a payout of $2,330. Now I only need 46% of the payout from the front gate. The lower percentage of the payout I need the get from the front gate the better.



z-man
January 22, 2016 at 04:07:21 PM
Joined: 11/21/2004
Posts: 569
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blazer00,

Not in all cases but, usually when a promoter guarantees a purse, what he means is that if he's advertising $3,000 to win, the winner will receive $3,000 regardless of how many cars show up. If he guarantees $1,200 for 4th, who ever finishes 4th will receive $1,200 regardless of how many cars show up.

Now when you see a race and they're advertising a $20,000 purse, it's generally $20,000 if the total number of cars start the A main. If their A main advertises (24) cars starting, then the A Main event will pay out a total of $20,000 providing all (24) cars start the A Main. But if only (18) cars show up to the event, or if only (18) cars start the A main, he will not be paying out the full $20,000, but he would still be paying each position the guaranteed amount per position and the total purse would be whatever those (18) positions add up to. The purse for positions (19) on back simply does not get paid out. It doesn't matter how many fans purchased a ticket or how many people go thru the pit gate, it simply lowers the promoters purse that gets paid out for that night. Like Shawn N. mentioned when your car count is lower than expected, so is the number of people coming thru your pit gate. So when this happens, the promoter does save the purse for those positions, but he also takes a hit on the lower count of pit passes sold. Also note, the track's insurance is the same fixed cost regardless of how many cars show up or how many pit passes are sold.

Shawn also mentioned the purse difference when a full field does not show up. You can look at each division's purse but it will usually average out pretty close to this. The first (10) to (12) positions of the A main will cost a promoter around (75) percent of his total purse for the night.

Tow money actually has (2) different meanings. When a track posts a purse and at the bottom says "tow money $50" what they mean is that every car in that division that makes an attempt to compete, will go home with at least $50 total. This is not added to their purse money for the night.

Usually with a traveling series, tow money, is money that is paid to a certain number of the series regular racers in addition to the purse money earned for the night.

If the tow money is an additional amount above and beyond the purse money earned, it is paid from the track promoter to the series usually as part of their sanction fees.




Paintboss
MyWebsite
January 22, 2016 at 04:36:12 PM
Joined: 12/02/2004
Posts: 2114
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Not being a smart ass but I don't really concern myself with it! But then I don't have to worry about things like rainouts, vendors, food and drinks, parking, advertising, security and staff, flagmen, announcers, the PA system, having enough staff, rescue equipment and personel, time restraints, injured fans or injured drivers. All I have to worry about is  getting there on time, buying my ticket and watching the races. As long as the drivers get paid what they have coming I couldn't give 2 shits about it.



oswald
January 22, 2016 at 07:08:38 PM
Joined: 11/30/2004
Posts: 1995
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I have been at drivers meetings at some tracks that say any unpaid purse money will be rolled into the point fund.



egras
January 23, 2016 at 05:42:06 PM
Joined: 08/16/2009
Posts: 3962
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Reply to:
Posted By: Paintboss on January 22 2016 at 04:36:12 PM

Not being a smart ass but I don't really concern myself with it! But then I don't have to worry about things like rainouts, vendors, food and drinks, parking, advertising, security and staff, flagmen, announcers, the PA system, having enough staff, rescue equipment and personel, time restraints, injured fans or injured drivers. All I have to worry about is  getting there on time, buying my ticket and watching the races. As long as the drivers get paid what they have coming I couldn't give 2 shits about it.



Bingo!  (I have my own job-race night is for relaxing and letting someone else handle the stress)




bobcat5857
January 24, 2016 at 11:39:33 PM
Joined: 09/13/2005
Posts: 10
Reply

So they mite make an extra dollar that nite.what about the nite that the crowd is slim should they charge more at the gate to make up the difference



sc lm race fan
January 25, 2016 at 04:58:32 AM
Joined: 01/27/2005
Posts: 411
Reply

Some tracks or series do a min - max car count if 12 cars show up winner gets 600 if more than 13 cars show up winner get 700. Races like outlaws pay 10,000 or 6,000 to win, most promotors save money the rest of the year and extra sponcers to pay the advertised purse. And that is based off of a 24 car field.

Not all the money comes from the back gate, most of it comes from front gate, snack bar and beer sales.





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