Nz Gp Huge Financial Cost & Losses For Promoter

[salty 2,208]

Maybe they should talk to Trevor the lotto winner mentioned in the article, who has 26 million dollars to play with. Apparently, motorsport is his passion so you never know....

[kiwi 49]

They are going to the otherside of the world and back anyway, it's a round the world trip with a couple of stopovers, not 3 trips there and back each time.dearer than than the one NZGP and back but cheaper per GP if you divide the costs by 3

Edited April 14, 2012 by kiwi

[PHILIPRISING 7,298]

Well yes and no. If you buy (say) a McDonalds franchise, whilst it's ultimately you that carries the risks, you expect the support and backup of the global corporation, In particular, the promotional and marketing machine that gets customers into your branch.

 

WHAT makes you think he didn't get that?As for freight, overall cost might increase -though returning to Europe via LA or going via LA is quite simple - but if the bill, albeit larger, is divided by three then the unit cost will decrease.

 

This is all beginning to look like the aftermath of the Australian-staged GP a couple of years ago.

 

NOTHING like Australia for more reasons than I could even start to list.ANd whether organisers make or a profit or not is relevant to BSI/IMG. Why would they want organisers to lose money? That doesn't make any sense at all whether or not there are others waiting to step in. The more successful the series is for EVERYONE involved the better not least for BSI/IMG themselves.

[Vince 9,459]

On one hand we have a couple of newspaper reports, on the other a forum member who has discussed the exact situation with the event Promoter.

 

Why are people forming their opinion on newspaper reports coupled with a bit of guesswork?

[Starman2006 2,356]

CANNOT really compare staging a GP in NZ as opposed to Europe. The cost of taking riders, mechanics, officials, personal, etc halfway round the world for starters. Then all the freight.

 

However, Bill Buckley, a very successful and brilliant businessman, went into this with his eyes open and certainly not to make a fortune... something he has done already.

 

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Good businessman he maybe, but end of the day is it finacially viable, and even a businessman like himself would have to have grave doubts. even top businessmen will not chuck money around on something that is just not viable.

Edited April 14, 2012 by Starman2006

[Humphrey Appleby 13,983]

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WHAT makes you think he didn't get that?

I was making a wider point was that if you buy into a franchised 'product', you generally expect to get some sort of support from the franchiser. I wasn't commenting at all on the individual case of the NZ GP.

As for freight, overall cost might increase -though returning to Europe via LA or going via LA is quite simple - but if the bill, albeit larger, is divided by three then the unit cost will decrease.

A quick check on air freight costs suggests it's at least if not more expensive to ship from Auckland to LA than from London to Auckland. Then you'd have to get the stuff from LA back to Europe which would probably be nearly as much again. You're increasing costs by (say) 50% but dividing by 2, which is a saving of only 25-30% per GP.In principle adding an Australia GP would reduce the unit costs a lot more, but it seems to be relatively expensive to ship from Oz to NZ.

[PHILIPRISING 7,298]

THEY get massive support from the franchiser. Do you seriously think that BSI/IMG just sign a deal with an individual promoter and then just leave him to it? Far from it. They are heavily involved every inch of the way with every GP not just the ones that they promote themselves.

 

Don't know where you got your freight costs from but given that you know very little about the volume, what was involved, the company that handled it, the deal with the airline (Emirates) and so on it's hard to see how your figures can be relied upon.

 

Good businessman he maybe, but end of the day is it finacially viable, and even a businessman like himself would have to have grave doubts. even top businessmen will not chuck money around on something that is just not viable.

 

BILL said from the outset that he never looked at this as a money making exercise or even that he wanted to break even. It was his dream to bring the SGP to Western Springs. Dreams don't always come cheap but the realisation of them can be worth their weight in gold.

[Trees 2,814]

BILL said from the outset that he never looked at this as a money making exercise or even that he wanted to break even. It was his dream to bring the SGP to Western Springs. Dreams don't always come cheap but the realisation of them can be worth their weight in gold.

How wonderful for BSI/IMG that there are guys like Bill Buckley out there.

[iris123 21,101]

Not only for BSI,but our sport in general :-)

[Humphrey Appleby 13,983]

Don't know where you got your freight costs from but given that you know very little about the volume, what was involved, the company that handled it, the deal with the airline (Emirates) and so on it's hard to see how your figures can be relied upon.

 

You're once again dismissive of those who try to put facts and figures to things, but the answer to how much freight was involved is indicated in BSI's (quite interesting) video on the SGP website (see http://www.speedwaygp.com/news/article/1178/pack-up-new-zealand). Each rider gets a crate that comes to around 550 kilos, so if we assume 16 riders, that's about 9 tonnes. There's probably other BSI paraphenalia to ship as well, but I'd think about 12 tonnes maximum.

 

AFAIK, IATA airlines (of which Emirates are one) have standard tariffs per kilo that can be found in various places online. Whilst I'm sure deals can be done, I don't see Emirates listed as a SGP sponsor so presumably fairly standard commercial rates were paid.

 

I also wasn't aware that Emirates flew from Auckland or Sydney to Los Angeles, so even if some special deal is being given to the SGP organisers, it wouldn't help for a US GP.

[PHILIPRISING 7,298]

BUT the freight wasn't handled by the airline(s) direct but through a specialised company who no doubt have arranged their own tariffs which are unlikely to be found through a cursory investigation on the web. It just so happens that Emirates proved suitable on this occasion but perhaps in the future Air New Zealand (London-LA-Auckland) might be more beneficial.

 

I am only dismissive of figures that quite often appear unsubstantiated by fact.

[Humphrey Appleby 13,983]

I am only dismissive of figures that quite often appear unsubstantiated by fact.

 

Always happy to stand corrected, but you rarely provide any actual facts or even approximations.

[PHILIPRISING 7,298]

Always happy to stand corrected, but you rarely provide any actual facts or even approximations.

 

IF you are talking about costs or fees paid to BSI/IMG it's because I don't know them and don't pretend to or guess. That's their business and the only one that should be and is in the public domain is what is paid to the FIM.

 

There are many areas in which our frequently diverse opinions actually synchronise and I actually enjoy reading your posts although I do feel that now and again you pluck numbers out of the air with regard to the SGP.

 

I do also disagree with you that BSI/IMG are not interested in speedway outside their own bubble. They are, even if for altruistic reasons, because the healthier speedway is in general, the cake if you like, the better the icing will be. You might actually be surprised at some of the initiatives they have tried to implement only to be thwarted or frustrated by various administrations.

 

While they certainly wouldn't comment publicly, they must also get agitated by the machinations of the FIM at times. Only recently the FIM insisted that the proposed Clerk of the Course in Auckland travel to Prague from NZ, at his own (or Buckley's) expense, for a seminar. At it happened, Tony Briggs (who held a lapsed FIM licence) was able to travel from Poland and attend and officially take the role.

 

A relatively minor issue, I admit, but one that illustrates while the FIM are happy to pressure IMG into taking the SGP worldwide they aren't ready to grasp some of the issues that are involved. The Under 21 championship is a case in point and it remains to be seen how many of the contestants actually turn up in Argentina when their interest in the championship is over.

 

In an ideal world perhaps an international governing body that only embraced speedway could work wonders in harness with BSI/IMG but unfortunately there doesn't seem much chance of that.

[manchesterpaul 447]

Hey you two let's agree on something we all have Speedway's best interests at heart

[PHILIPRISING 7,298]

Hey you two let's agree on something we all have Speedway's best interests at heart

 

WE do but there is nothing wrong with HEALTHY debate. Right Humphrey?