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old bob at herne bay

Will British Speedway Survive ?

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On 3/16/2020 at 11:38 PM, old bob at herne bay said:

With sporting events across the UK now cancelled until further notice, and Speedway surely set to follow once the BSPA has met tomorrow, can British Speedway put 2020 league speedway “on ice” , and possibly just run some ad hoc open meetings later in the year ?

Surely with no meetings, the costs for a club are nil . No rent, no riders wages? These are extraordinary times and covid 19 and the consequential are surely a “force majeure” event ? 

 

 

 

Personally if it's over in a month or so we may be ok. Up to 6 months or a year of disruption I think speedway like many other businesses will go to the wall. The government cant just print an endless pot of money otherwise hyper inflation will kick and it'll probably cost you about 50 quid or more to get into a meeting. The cost alone of a basic bailout will have severe consequences in years to come. We could be looking at 25 percent income tax and vat.

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Posted (edited)
9 hours ago, TB1 said:

Personally if it's over in a month or so we may be ok. Up to 6 months or a year of disruption I think speedway like many other businesses will go to the wall. The government cant just print an endless pot of money otherwise hyper inflation will kick and it'll probably cost you about 50 quid or more to get into a meeting. The cost alone of a basic bailout will have severe consequences in years to come. We could be looking at 25 percent income tax and vat.

Everyone comments on the Government propping up this and supporting that. Yes, of course it's not an endless pot of money - our money - the G. has none of it's own ( other than the around £500 billion they are borrowing on our behalf , for us to pay back ). I agree that the next ten years will be spent ( as the last 10 or so were ) in rebuilding the economy and Yes, income tax and VAT will have to rise. How else do you pay off the biggest ever debt?

And Boris's bold statement of " We will send it packing in 12 weeks" will be yet another foolish utterance and words he will later choke on. The way he has led the handling of the Covid19 crisis, marks the end of his Premiership.

Edited by waytogo28
additional point made

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The announcement that social distancing could persist for another 12 months, will probably rule out most sporting events for the majority of the population.

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10 hours ago, TB1 said:

Personally if it's over in a month or so we may be ok. Up to 6 months or a year of disruption I think speedway like many other businesses will go to the wall. The government cant just print an endless pot of money otherwise hyper inflation will kick and it'll probably cost you about 50 quid or more to get into a meeting. The cost alone of a basic bailout will have severe consequences in years to come. We could be looking at 25 percent income tax and vat.

A couple of things. Firstly, the Government can't print money, the Bank of England does that. The government issues Gilts (government bonds), which the Bank of England can buy. During the last round of quantitative easing the BoE bought around a quarter of all gilts in existence. The benefit of this is we the taxpayer now no longer have to pay interest on those gilts.

 

Secondly, inflation isn't a bad thing. IN fact most people agree that a bit of controlled inflation is good, as it erodes debts relative to income. In the last decade the government has borrowed roughly £50bn every year, plus we've had £400bn of QE and yet inflation has stayed around historical norms.

I am less concerned about how the government will fund its extravagant plans and more whether help will actually get to those who need it. At the moment I am not so sure.

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29 minutes ago, MattK said:

A couple of things. Firstly, the Government can't print money, the Bank of England does that. The government issues Gilts (government bonds), which the Bank of England can buy. During the last round of quantitative easing the BoE bought around a quarter of all gilts in existence. The benefit of this is we the taxpayer now no longer have to pay interest on those gilts.

 

Secondly, inflation isn't a bad thing. IN fact most people agree that a bit of controlled inflation is good, as it erodes debts relative to income. In the last decade the government has borrowed roughly £50bn every year, plus we've had £400bn of QE and yet inflation has stayed around historical norms.

I am less concerned about how the government will fund its extravagant plans and more whether help will actually get to those who need it. At the moment I am not so sure.

I think your last sentence is spot on Matt, will all the worthy get help and when??? people cannot live on fresh air.

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This whole Covid 19 situation is affecting us all in one way or another, many firms will be in a dire situation during and at the end of it all, this will undoubtably impact on sponsorship and deals already agreed and signed may not be able to be fullfilled, Jobs will still be lost despite government help, losses will therefore be even greater, I dont know where things will be at the end of this season, we can only hope that it does survive in some way..

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Let's say speedway went to the wall.

What tracks realitiscially would be available on a hire basis for some form of future racing and which tracks would be lost completely?

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7 minutes ago, Falcon1983 said:

Let's say speedway went to the wall.

What tracks realitiscially would be available on a hire basis for some form of future racing and which tracks would be lost completely?

The tracks that teams rent would be available, if they survive

the tracks that are owned would still be there but the owners may have gone bust

so I suppose most of the tracks would be available, depending on people with money

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Housing developers would probably pick up the tracks people own and I guess the ones they rent too as stocks and dog racing will be in the same boat. 

 

Just hope enough survive to have some form of speedway available 

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26 minutes ago, Falcon1983 said:

Housing developers would probably pick up the tracks people own and I guess the ones they rent too as stocks and dog racing will be in the same boat. 

 

Just hope enough survive to have some form of speedway available 

For me that's the biggest threat..

if you own a stadium and your overall business is potentially going to the wall, or the stock market crashing has impacted you severely, then selling off the place for housing would be the 'quick cash fix' you may need...

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15 hours ago, mikebv said:

For me that's the biggest threat..

if you own a stadium and your overall business is potentially going to the wall, or the stock market crashing has impacted you severely, then selling off the place for housing would be the 'quick cash fix' you may need...

This would be the biggest worry, it all depends how deep are the pockets of Stadium owners, and how others may need to raise cash, because as you say developers are always sniffing around for prime sites and a number of Speedway Stadia could be classed as prime sites, others would be more suitable for Warehousing..

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Posted (edited)
On 3/22/2020 at 8:53 AM, Sidney the robin said:

I think your last sentence is spot on Matt, will all the worthy get help and when??? people cannot live on fresh air.

Absolutely spot on the social and mental fallout of people possibly older folk starving or freezing to death in their own homes could have implications for many many years to come.

Edited by TB1
Spelling error

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Posted (edited)
On 3/21/2020 at 9:35 AM, Speedtiger said:

Matt. I’m a realist not a pessimist.

Ive never said speedway clubs are not eligible to apply BUT there’s a big difference in being eligible to apply and actually getting financial help. Not all clubs are limited companies. Speedway doesn’t directly employ that many people as all riders are self employed and Clubs have lots of unpaid volunteers to make the sport work so will not be judge a priority to save jobs which is the main criteria of getting help. Any loans that clubs, who are probably already in debt, may obtain will be only adding to that debt and will no doubt be personally secured by the borrowers. Clubs may have to accept strict loan terms due to desperation because at this stage clubs will have paid out large sums of money in preparation and anticipation of the season starting and much needed cash coming in which leaves them very exposed. As always the devil in all of this will be in the detail. 

 

 

It’s not just about jobs. There are many aspects to the loan and whilst I accept that speedway may well have a difficult sell, it’s also got a chance. 

I would imagine that clubs will make individual applications and some will be better placed than others. I’d also argue the state of clubs finances may not have as big an impact as you seem to think. I’m sure the loan will be to cover loss of revenue and there is no question that the sport has lost some as a result of this virus. 
 

There will be many large and well established business that will apply and be successful, and I can guarantee many will be carrying debt.
 

At the very least this is a situation that should be explored and it offers some light in what is a pretty dark place for the sport here.

Edited by acef

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What could save the sport is the fact that it isn’t the only sport to be halted by Covid-19. As it stands no sport is happening here at all if we remain in “lockdown.” 

If landlords still go looking for their rent that is incredibly short sighted, because it could put the tenant out of business and then ultimately they have lost a revenue stream in future. This may only happen at circuits where perhaps the landlords want Speedway out (conspiracy alert).

Speedway teams are businesses. To my knowledge not many have full time employees however, so until they host meetings they actually haven’t got a huge outlay (rent aside - which most sensible landlords would put on ice). 

The people who are likely to suffer financially are the riders who won’t be getting paid. Perhaps this is indicative however of how Speedway continues to be mutton dressed as lamb in Britain. It cannot sustain employing riders as their sole form of employment at the best of times. The stream of riders will not dry up after this however so the sport will not die.

This is an ideal time for the BSPA/SCB (or whatever acronym they want to use) to sit down, go back to basics and reshape the sport properly with the future in mind as opposed to chucking a different load of turd at the wall each winter and hoping something sticks.

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22 minutes ago, Ben91 said:

What could save the sport is the fact that it isn’t the only sport to be halted by Covid-19. As it stands no sport is happening here at all if we remain in “lockdown.” 

If landlords still go looking for their rent that is incredibly short sighted, because it could put the tenant out of business and then ultimately they have lost a revenue stream in future. This may only happen at circuits where perhaps the landlords want Speedway out (conspiracy alert).

Speedway teams are businesses. To my knowledge not many have full time employees however, so until they host meetings they actually haven’t got a huge outlay (rent aside - which most sensible landlords would put on ice). 

The people who are likely to suffer financially are the riders who won’t be getting paid. Perhaps this is indicative however of how Speedway continues to be mutton dressed as lamb in Britain. It cannot sustain employing riders as their sole form of employment at the best of times. The stream of riders will not dry up after this however so the sport will not die.

This is an ideal time for the BSPA/SCB (or whatever acronym they want to use) to sit down, go back to basics and reshape the sport properly with the future in mind as opposed to chucking a different load of turd at the wall each winter and hoping something sticks.

I've read a few articles on the websites of a few of those Clubs we all know are a bit more progressive like Ipswich; Glasgow; Redcar; Eastbourne; IOW; where the Owners / Promoters (Facenna Brothers particularly transparent on this) have explained how the situation has affected them and what they have done/ will do. It seems a common thread from those that this could not have come at a worse time as they have forked out a lot of money already in preparation for the season.

I wish Brummies would explain a bit more and now may be the best time for every Club to actually reach out to fans and explain a bit more and to offer help if they can although the lockdown announced last night may at least for the time being stop stadiums being used as an example for community usage.

Stay in and stay safe everyone.

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