Which Speedway Clubs Are Making A Profit.

[Humphrey Appleby 13,961]

Perhaps with this knowledge, the supporters will clearly see which clubs are being run by passionate, speedway-loving promoters and which are being run by accountants and make their spending choices accordingly.

I simply don't understand the need for secrecy. It doesn't take a genius to work out that most speedway promotions/tracks live hand-to-mouth and in many cases have to be propped up with owner subsidies, and if this were clearer, there might be better understanding of the precarious existence of the sport when some call for the return of the 'top boys' etc..

 

In the days before the threshold for full accounts was raised, it was possible to get a better idea of speedway finances, and even then there weren't fortunes to be made. You could occasionally see some creative accounting (e.g. the owner's light aircraft listed as 'plant'), but it was all small beer really.

[Little Thumper 528]

I simply don't understand the need for secrecy. It doesn't take a genius to work out that most speedway promotions/tracks live hand-to-mouth and in many cases have to be propped up with owner subsidies, and if this were clearer, there might be better understanding of the precarious existence of the sport when some call for the return of the 'top boys' etc..

 

In the days before the threshold for full accounts was raised, it was possible to get a better idea of speedway finances, and even then there weren't fortunes to be made. You could occasionally see some creative accounting (e.g. the owner's light aircraft listed as 'plant'), but it was all small beer really.

 

Yes, that is very well put Humphrey!.

Secrecy breeds suspicion and in most cases there is nothing of great interest to be seen anyway.

 

Your mention of the owner's light aircraft has just reminded me of the days that I used to be a servant of Oulton Park.

 

It would be the early 80s when half way through the morning's practice sessions, the radio message would come in that John Webb, the owner of Brands and Oulton was about to arrive.

 

If necessary the session was curtailed early, cars cleared off the circuit and Mr Webb's pilot would land the little plane with the chequered tail fin on the bottom straight!

 

After a couple of hours counting the takings, the process would be reversed and Mr Webb would wing his way back to his grand residence in the south of England.

 

John Webb famously is once alleged to have stated that, "marshals are spectators who haven't paid to get in".

 

Not surprisingly, I don't remember John getting many cheery waves from the orange-clad souls on the ground as his metal bird took off and looped the circuit before retreating to his lair in the leafy suburbs.

 

Be careful out there,

[britmet 233]

.
Has anything really changed ?
Back in the 1960s promoter(-cum-rider-cum manager) Trevor Redmond reckoned that as long as he could break even during the season, his share of the pay-out from the Wembley Final ticket sales at the end of the season was what he relied upon to keep himself solvent for 12 months.
That was, of course, in the days before sponsorship, - but that Wembley bonus has long since gone.

[woofers 467]

£10000 is the cost of the promotional licence, as per Redcar's notes.

 

Do all club's have to pay this ?

[greyhoundp 990]

£10000 is the cost of the promotional licence, as per Redcar's notes.

 

Is that paid Annually or carried over yearly ?.

[Humphrey Appleby 13,961]

Is that paid Annually or carried over yearly ?.

There's the promoter's bond which I think is carried over, but aren't there regular membership fees to pay the running costs of the BSPA etc..?

[greyhoundp 990]

Yeah, but 10k paid annually is a big chunk, especially for NL Teams, i cant imagine that they have to pay 10k surely not, which could be why they dont have a say at the AGM.

[John Leslie 3,213]

Yeah, but 10k paid annually is a big chunk, especially for NL Teams, i cant imagine that they have to pay 10k surely not.

 

It's not £10k.

 

An EL or PL licence is £2,200 p.a. - That gives a track licence, 2 promoters licences, and up to 15 officials licences. An extra promoters licence is about £250 and any extra officials licences are about £50.

 

A NL licence is just over £1,000 p.a. again covering the track, NL promoters, and officials.

[Tsunami 10,219]

It's not £10k.

 

An EL or PL licence is £2,200 p.a. - That gives a track licence, 2 promoters licences, and up to 15 officials licences. An extra promoters licence is about £250 and any extra officials licences are about £50.

 

A NL licence is just over £1,000 p.a. again covering the track, NL promoters, and officials.

Those figures John are for licences to operate and run the meetings/club.

The £10k mention used to be the bond figure for the PL teams, but I think it has doubled since I left as a promotor. The EL bond is greater and the NL lesser. Whatever the bond is, you can used a bank bond or a reasonable value of assets to cover the amount. If you default and/or quit, the assets are transferred to the BSPA, who will act for the rider and sell the riders on to the interested parties. In 1997 we bought Jesper Olsen from the BSPA having taken over the assets of maybe Wimbledon/Eastbourne.

Edited October 31, 2016 by Tsunami

[woofers 467]

That makes things more clear.

Annual licences would not appear on the Balance Sheet, they are a charge to each years Profit and Loss account.

In the latest filed accounts, to 29.2.16, the £10,000 is described as "Goodwill" relating to the granting of a promotional licence.

Not all clubs have this item on their Balance Sheet, I guess it depends on circumstances and arrangements, as I would have thought a paid £10,000 cash deposit could appear either as an asset or long term debtor, whereas a bond or guarantee would be a future liability.

[woofers 467]

Would the answer to miadfa8's question be BSI?

 

Would be interesting to know figures for Go speed too.

 

Go-Speed filed for voluntary liquidation on 25th May 2010 with a deficiency of £171,608.67, and was finally dissolved / wound up on 13 May 2014.

 

The Liquidators progress reports and the final meeting return make interesting reading.

 

Go Speed International was incorporated on 17th December 2009, and would seem to trade at fairly low levels until 2014 when things picked up.

 

The P&L reserve on the Balance Sheet was :

 

2010 £195

2011 £847

2012 £1,776

2013 £771

2014 £36,894

2015 £23,420

[psycho3a 101]

Sheffield = https://beta.companieshouse.gov.uk/company/02721528/filing-history

[waiheke1 4,295]

Sheffield = https://beta.companieshouse.gov.uk/company/02721528/filing-history

That's a scary looking balance sheet! Not sure how you comfortable you would feel being one of their creditors.

[BFMDan 24]

I don't know anything about GB Speedway . . . but, I do work for a local stock car track and am associated with a few Flat Track promoters here in America. I can tell you that, aside from land/facilities/tractors/etc., a couple of the major expenses are actually:

• Insurance
• Ambulance/Medical

You have to pay quite a bit for both . . . and always hope and pray that you NEVER utilize that for which you've paid a pretty penny.

 

 

 

HB

[woofers 467]

That's a scary looking balance sheet! Not sure how you comfortable you would feel being one of their creditors.

 

Have a feeling that the increase in Creditors will be either a bank or directors loan, to cover the loss for the year - i.e. increase in creditors £41k, loss for the year £42k.