quote:

Originally posted by RPROGAS:
There is an escape clause written into nearly every contract written today, it uses a latin term, Force Majeure, meaning "An Act of God". The Covid-19 pandemic qualifies under that term. The contract between the NHRA and Coke more than likely has that provision, the Lawyers at Coke would have insisted. The chances of NHRA prevailing is somewhere between zero to less than zero. Suing Coke would be difficult to explain to the next Major Sponsor they court, more than likely it would scare them off.

The bigger, and more relivant question is where does this take everyone? Without Coke, or a Sponsor of that magnitude, where does The NHRA find the money to continue under their present "Show" format? The obvious answer is that they probably don't UNLESS someone with a lot of skin in the game steps up. Just a suggestion but wouldn't Jeg's, Summit and a Coalition of Performance Manufacturers be interested in taking the reins at The NHRA and continuing their Sportsman Programs?

Just a suggestion but something to consider.

Bob

ps: As of this morning 200,000 and counting

Great question. At some point, is it just a track thing? Tracks do get some benefits from their relationship with NHRA. So there are some gaps that will need filled. The big tracks that rely to some extent on the national events to keep revenue where it needs to be will obviously have an issue. I don't know that this is an automatic death for all tracks. Those that can adapt, may do well. Pro racing? I don't know about that.

quote:

Originally posted by Bucky:
Is there any truth to the facebook picture showing $4.5 million in exec salaries at NHRA?
https://www.facebook.com/photo...X3mjDRYbxYaZSD4zm4WQ

No, they get more than that. They have the Salaries down as 4.5 million but they also get other benefits making their salaries worth more.

As to the lawsuit I rather expected it and this will be a problem for NHRA.

Why should Coca-Cola (or any other Sponsors)pay full price for an 11 event "Season" when they are supposed to get 24 events? So I think Coca-Cola has a right to negotiate a lower price under circumstances. They are not getting what they paid for. I think many of the Pro racers are or will be in same situation. Sponsorship is at best not a great investment but cut the schedule down from 24 to 11 it is really bad.

Still I think the NHRA has a legitimate lawsuit because they have a long term contract and have spent millions of dollars promoting Coca-Cola.

What I do like about this whole deal it has pulled the covers back on the NHRA and now people know much more about salaries and sponsorship deals. At 95 million a year gross income and only paying out 3 million a year or so while paying salaries of 25 or so people way more seems top me to be an issue. Looks to me like the Coca-Cola deal more than covered all racers winnings and the rest is for NHRA.........

One thing, all the tracks buy their insurance through nhra at a group discount. If a track has to get their own it will increase and the tracks conditional use permit might require certain insurance so another possible cost increase which adds to gate increase

If Coke restructured (Independently owned) then its easy for them to walk away from a contract.
Any way you look at it this bites!!!

quote:

Originally posted by Big Steve:
Link to Lawsuit filed. Takes some time to read but pretty interesting

https://static1.squarespace.co...001/031133936302.pdf

Even though I am not a big NHRA fan, after reading all that I believe they have a leg to stand on and a legitimate lawsuit against Coke.

Dumba s s e s cut the PRO DRIVERS purse and want to sue when their purse gets cut....AMAZING

Is anyone else hopeful that we will emerge from this in some ways better than we have been? Maybe pro racing will go back to grass roots?

NO

Without funding from a Major Sponsor and perhaps no National events I believe the Professional Race Teams will have a big challenge, that horse needs a lot of oats. Who knows, maybe Mr. Kalitta will intervene and save the day!

Bob

No what, Ed. You stuck your foot in this, what do you mean?

With the Gator nats this weekend it will be interesting to see if all the Mello yellow signage and also all the Mello Yellow uniforms the NHRA staff wears will be gone

I would think the NHRA will continue to do everything they have been for Coke till the end of this season.

Contract law is very specific to the written word...having been involved with legal arguments in front of a judge with regard to contracts I can tell you that's how it is...that said, without being able to actually read the executed contract none of us know how the lawsuit will end...force majeure may come up but typically in the context of coke nullifying the agreement...

We do not know exactly what Coke promised to provide to the NHRA in the contract...nor do we know what the NHRA promised to provide to Coke for their consideration...again, it all depends on what the written word says...

I have read the filing and it may end up reverting to this clause: Section 13.1.2 of the Agreement provides for a refund of fees in two
instances:
(a) Less than 22 National Events take place during any
Agreement Year (in which case [Coca-Cola] shall be
entitled to a pro-rata refund of the Fees for that
Agreement Year, to be determined based on fifty
percent (50%) of the Fees for the applicable
Agreement Year, divided by 22 and multiplied by the
number of National Events which did not take place);

This message has been edited. Last edited by: fuzzy dice,

Fuzzy, again you are correct that none of know the words of the contract and this will probably settle out of court

Sad that the majority of Americans are clueless to how it came to this.

It's also sad the same people are clueless in knowing, we're just getting started.

https://youtu.be/v8QgvqaxpwE?t=115

Take a couple minutes^^^

This message has been edited. Last edited by: Mike Rietow,

quote:

Originally posted by Big Steve:
With the Gator nats this weekend it will be interesting to see if all the Mello yellow signage and also all the Mello Yellow uniforms the NHRA staff wears will be gone

I’ll be there Saturday and will take pics. Hopefully this race is still happening.

quote:

Originally posted by WHOMPWHOMP:
Dumba s s e s cut the PRO DRIVERS purse and want to sue when their purse gets cut....AMAZING

^^^^^^this...pathetically over paid people in a "non profit" organization. NHRA is single handedly killing drag racing for years. Meanwhile BRACKET RACING for big money continues to grow and thrive!

Said it many times in recent years...NHRA has nothing to offer except less payouts while the executives still get over paid, furthermore the wally simply isn't worth chasing anymore.

JMO not all will agree...

The wally is still the holy grail of racing. Most of us just realize that its better to spend the entry fee for a national/division race and have a chance to win 25k or better over multiple days.

I grew up in Youngstown Ohio. Those scuttled mills were a all too familiar site.