Forum: HoseHeads Sprint Car General Forum (go)
Moderators: dirtonly  /  dmantx  /  hosehead

I think we're going to have to agree to disagree.

In spite of what many people think, this guy is not stupid.  If profit were the only determination on if this survived or not, why would he put $20 million (his number) into the facility before he even ran a race?  I'm sure he saw the books from the Rubins, I wonder if they made $20 million in the entire time they owned the track?  Also why would he give so many free tickets away?  Why did he add money to the purse all the time, and things like midseason championships and other things?  To me this would seem like a long term investment.  So why would you give up on it after only a year because it wasn't making money?  Also the timing and his original press release both relate to the election.  Also his actions since then, why has he kept staff to maintain the place, why has he continued to pay taxes on the place (close to $50,000 a year)?  Wouldn't a smart businessman worried about the money just cut his losses and move on to the next investment?

A quick Google search says Dollar Loan Center is a $46 billion company.  I really don't think losing $20 million on a racetrack means much to him.  For example if you had $46,000 sitting in the bank, would you be real concerned about losing $20 at a casino?  It wasn't like this was a huge loss for him.

I think the current state of the speedway is due more to ego than anything else.  He references social media posts all the time in press releases, and he takes every chance to insult anyone anytime he can, why?  Almost sounds like high school or junior high.  Using my above example, if I had $46,000 sitting in the bank and for $20 and a few dollars a year I could make my worst enemy miserable, I might think about it but I sure hope in that situation I wouldn't go to the lengths he has.  I guess I can agree that the speedway was shut down due to profit but not profit of the speedway.

I guess the only person that really knows is him.  And even if he told me or anyone else why he's doing what he's doing, I wouldn't believe him.

I think we're going to have to agree to disagree.

In spite of what many people think, this guy is not stupid.  If profit were the only determination on if this survived or not, why would he put $20 million (his number) into the facility before he even ran a race?  I'm sure he saw the books from the Rubins, I wonder if they made $20 million in the entire time they owned the track?  Also why would he give so many free tickets away?  Why did he add money to the purse all the time, and things like midseason championships and other things?  To me this would seem like a long term investment.  So why would you give up on it after only a year because it wasn't making money?  Also the timing and his original press release both relate to the election.  Also his actions since then, why has he kept staff to maintain the place, why has he continued to pay taxes on the place (close to $50,000 a year)?  Wouldn't a smart businessman worried about the money just cut his losses and move on to the next investment?

A quick Google search says Dollar Loan Center is a $46 billion company.  I really don't think losing $20 million on a racetrack means much to him.  For example if you had $46,000 sitting in the bank, would you be real concerned about losing $20 at a casino?  It wasn't like this was a huge loss for him.

I think the current state of the speedway is due more to ego than anything else.  He references social media posts all the time in press releases, and he takes every chance to insult anyone anytime he can, why?  Almost sounds like high school or junior high.  Using my above example, if I had $46,000 sitting in the bank and for $20 and a few dollars a year I could make my worst enemy miserable, I might think about it but I sure hope in that situation I wouldn't go to the lengths he has.  I guess I can agree that the speedway was shut down due to profit but not profit of the speedway.

I guess the only person that really knows is him.  And even if he told me or anyone else why he's doing what he's doing, I wouldn't believe him.

Do you have a link to a credible source that says DLC is a $46 BILLION (with a B) company?

By "credible source", I mean someone outside of Chuck Brennan or anyone that works under him.    Someone like an independent accounting firm that audits the books.

Honestly, I can't even find anything on Google that suggests its even a billion dollar company.

     I see where you're coming from. But really, other than a big, spoiled baby, who would hold onto this just to piss off his perceived enemies?

    My opinion is that the whole badlands speedway/ pawnshop/ radio staion charade wasn't about gaining positive PR in the state for the loan business. It was about the guy's ego. He truly wanted to make something that people thought was cool so, by extention, they'd think he was cool. Remember all the talk about the concerts that were going to happen at badlands? And about talk of the pawn shop being part of a reality TV show?

     A guy that can make a lot of money in one business like payday loans can do horribly in a business he's unfamiliar with. See exhibits A,B, & C in Brandon and on Russell street.

I think we're going to have to agree to disagree.

In spite of what many people think, this guy is not stupid.  If profit were the only determination on if this survived or not, why would he put $20 million (his number) into the facility before he even ran a race?  I'm sure he saw the books from the Rubins, I wonder if they made $20 million in the entire time they owned the track?  Also why would he give so many free tickets away?  Why did he add money to the purse all the time, and things like midseason championships and other things?  To me this would seem like a long term investment.  So why would you give up on it after only a year because it wasn't making money?  Also the timing and his original press release both relate to the election.  Also his actions since then, why has he kept staff to maintain the place, why has he continued to pay taxes on the place (close to $50,000 a year)?  Wouldn't a smart businessman worried about the money just cut his losses and move on to the next investment?

A quick Google search says Dollar Loan Center is a $46 billion company.  I really don't think losing $20 million on a racetrack means much to him.  For example if you had $46,000 sitting in the bank, would you be real concerned about losing $20 at a casino?  It wasn't like this was a huge loss for him.

I think the current state of the speedway is due more to ego than anything else.  He references social media posts all the time in press releases, and he takes every chance to insult anyone anytime he can, why?  Almost sounds like high school or junior high.  Using my above example, if I had $46,000 sitting in the bank and for $20 and a few dollars a year I could make my worst enemy miserable, I might think about it but I sure hope in that situation I wouldn't go to the lengths he has.  I guess I can agree that the speedway was shut down due to profit but not profit of the speedway.

I guess the only person that really knows is him.  And even if he told me or anyone else why he's doing what he's doing, I wouldn't believe him.

I saw on Glassdoor that it said DLC has an annual revenue of 25-50 MMMMMMM..... Million a year. You put that in terms of the overall 46 billion dollar  payday industry Chucky has a market share of .1% pretty small fish in a big pond. I looked up an article on the margins of payday loan places and for the most part they are pretty bad with the average margin only being 7.44%. It used what it said were the 4 biggest payday loan companies in the US. to come up with that number.

Using the 50 million number and article average profit margin Chuck gets a Net Margin of 3.72 Million a year from DLC  and I think the best margin they showed was 13%.  I realize these arent DLC's Numbers but I don't think Chuck is as Rich as he wants us to believe. 

I am not sure what article you are reading, but the margins are much better than 7%  You're not even in the ball park.  

http://financialuproar.com/2013/08/27/financials-payday-loans-might-bad-think/

I'm not doubting that you read an article.  I guess I'm saying don't believe everything that you read is the truth for all payday lending.  Go look at the interest rates for some of these loans.  You don't charge 600-700% interest and only clear 7 % for a net.

The thing is though that might be closer than you might think. Short term loans are meant to be that way. Think about it, you go in and loan $100 for a week , or two weeks, we can go that route as well. Even at a 700% APR, (Which is interest over the entire year) I think someone figured it where a person only paid back $110 to $120 If it was paid on time. Where people get in trouble is when they either don't, or borrow too much to where they can't, repay the loan on time. If it is paid on time, I can see having 7% margins, if they borrower doesn't pay on time, then you will have higher margins.

Still doesn't make it right in my eyes, but people seem to have this huge notion that if someone goes in and borrows $100 they have to pay back $500 by the end of the month. 

Do you have a link to a credible source that says DLC is a $46 BILLION (with a B) company?

By "credible source", I mean someone outside of Chuck Brennan or anyone that works under him.    Someone like an independent accounting firm that audits the books.

Honestly, I can't even find anything on Google that suggests its even a billion dollar company.

     I see where you're coming from. But really, other than a big, spoiled baby, who would hold onto this just to piss off his perceived enemies?

    My opinion is that the whole badlands speedway/ pawnshop/ radio staion charade wasn't about gaining positive PR in the state for the loan business. It was about the guy's ego. He truly wanted to make something that people thought was cool so, by extention, they'd think he was cool. Remember all the talk about the concerts that were going to happen at badlands? And about talk of the pawn shop being part of a reality TV show?

     A guy that can make a lot of money in one business like payday loans can do horribly in a business he's unfamiliar with. See exhibits A,B, & C in Brandon and on Russell street.

Lol the latest update says they have 90 days before they tear hussets down to turn it into a wildlife preserve... 

Lol the latest update says they have 90 days before they tear hussets down to turn it into a wildlife preserve... 

     I'm not a lawyer or a CPA and I didn't sleep at a Holiday Inn Express last night. But even I can see enough holes in the update to know that he's he's making up a lot of BS and filling in the rest with bluff.

     Will the pawn shop become a nature area too?

     On the bright side, a nature area by the creek would make skunks feel right at home.

I'm around five hours from Husets and only got down there a few times but this discussion is in regard to such an unusual situation I can't resist giving some opinions and observations.  The bright side is that it will likely be a lively topic that keeps us all entertained through another long cold winter.