News Update: New article this morning (Jan 31)

[Shadowracer]

This was initially posted by DB1 down at the end of a 6 page thread. That one was getting a little long, so lets start fresh with some new discussion.

Here's this morning's London Free Press blurb.....    

Troubled Delaware to open April 28
Wed, January 31, 2007
By JIM CRESSMAN, FREE PRESS SPORTS REPORTER
         

Delaware Speedway will drop the green flag on its 2007 racing season as scheduled, track co-owner Arlen Scherba said yesterday.

Ownership is doing its best to put on a brave face during tumultuous times after general manager Kevin Bulmer and operations director Amy Dugas suddenly resigned 13 days ago.

Bulmer said last week he left "due to untenable working conditions and lack of support from current ownership."

Sources tell The Free Press a split developed among the four-man ownership group that involves Scherba of Sombra, Dave Meldrum of Stratford, John Sheppard of Scarborough and Dave McDonald of Freelton.

The four bought the operation from Tony Novotny in November 2002. Scherba and Meldrum had already been around the sport and bought in as a hobby.

But for the other two, it was a new venture and when the costs of running a race track began to mount up, they looked for immediate returns on their investments.

This industry doesn't work that way, especially short tracks in Canada. And it wasn't through the Friday paid admissions that Novotny made his money.

He was smart enough to establish Performance Fibreglass, a company that builds fibreglass race car bodies.

The "math" was simple. You own a race track and the sanctioning body, plus you own a fibreglass shop, equals: you make them run your cars.

Scherba admitted there has been a "negative cash flow" and now Delaware is facing more upgrades, especially the racing surface. Estimates peg those costs between $500,000 and $1 million.

"We realize there needs to be work done there," Scherba said of the asphalt track. "The better days of Delaware Speedway as far as track conditions are basically behind it.

"But we need to paint the picture that Delaware Speedway is not going to close."

"There is money behind the track and we will put more money into it to make it happen," Scherba said. "We've got a lot of people coming to the plate right now that have interest in buying in, under conditions, and the format and foundation underneath it may change in the next year and a half. Hopefully less than that."

Read into that what you will, but it sounds like there may be some more changes.

But in the meantime, the season opens with the APC Enduro 250 on April 28 and the first night of regular stock car action is May 5.

"(Race director) Jeff Wilcox is still there and as far as the program goes, he's very good at running that. And to be honest, the on-track program is probably the most important to the fans and the drivers and teams and sponsors," Scherba said. "So that remains the same.

"As far as how we're going to replace Amy and Kevin, I'm not sure, but we are going to find somebody. I'm thinking somebody is going to approach us somewhere along the line."

Bulmer, promoted to general manager in September 2004, and Wilcox, who came on last season, did a lot to repair a damaged relationship between the track and the drivers. Scherba knows the pressure is on to find a replacement "who shares Kevin's values.

"It's a big concern. We feel Kevin and Jeff made some terrific strides in breaking down that barrier between the teams and race track management.

"But we've got no choice. We've got to move on. We're not quitters. We've got too many people depending on us -- the engine builders, the car builders, the race car drivers and their teams. No offence to Kevin, he decided to leave and just because he leaves we're not going to shut down. The whole race track doesn't depend on one person.

"Life does go on and it's our intent to make sure it happens."

Ownership just needs to remember to turn left when it nears the end of the straightaway.

Is it just me or is Cressman editorializing a little too much?

   This industry doesn't work that way, especially short tracks in Canada. And it wasn't through the Friday paid admissions that Novotny made his money.
     He was smart enough to establish Performance Fibreglass, a company that builds fibreglass race car bodies.
     The "math" was simple. You own a race track and the sanctioning body, plus you own a fibreglass shop, equals: you make them run your cars.

Since this statement is not attributed to anyone, I'm assuming its Cressman himself offering his expert analysis? (Not saying he's wrong, by the way, simply that he may be out of line)

So it seems that Novotny wasn't stupid. Whaddaya know.

So here's my initial question: Is it reasonable to require that certain elements of a race car be bought from the Speedway itself? A lot of guys hated Novotny for it, but is there a way to do it and still keep the car owners mollified?

I used to be quite heavily involved in the sport of paintball. (running around in the woods shooting each other with paint pellets-for those that don't know it)  While I was never an owner, I did help run a field for a while. There was a bit of a divide between fields that required you to buy their paint pellets, and those that allowed you to bring your own. Many truly avid players preferred the "bring your own" fields because it was cheaper for them to play and hose lots of paint.

But it was also a truism that "bring your own" fields were fewer and farther between, and most of them were purely amateur night. The fields that said you had to use theirs were the nicest fields...the ones that were professionally run, nice facilities, trails groomed, actually had paid staff, etc. And you never had to worry about whether or not the field was actually going to still be operating next time you went there. I fact, as far as I know, the two most expensive fields to play at back then (early 90s) are the only two fields from that era that are still left today.

Now I realize theres a huge difference between paintball and stock-cars, but I can't help think that some of the similar principles are in play here.

Please discuss.

Linkback: https://www.canadianracingonline.com/smf/index.php?topic=5824.msg22962#msg22962

[crewchief47]

This was initially posted by DB1 down at the end of a 6 page thread. That one was getting a little long, so lets start fresh with some new discussion.

Scherba admitted there has been a "negative cash flow" and now Delaware is facing more upgrades, especially the racing surface. Estimates peg those costs between $500,000 and $1 million.

Is it just me or is Cressman editorializing a little too much?

I would have to say that the 'negative cash flow' statement gives him free reign to editorialize to his little hearts content.  After all, performance fiberglass is the biggest difference between the old owner and the new ones, aside from there being four hands in the cookie jar.  The cash flow statement from Scherba is HUGE.  It would seem that the tracks long term viability is dependant on whether or not additional investment comes along(Novotny?  :wink: ).  It leaves some questions for the 2008 season and beyond.

Your comparison to the paint ball industry seems like a good one.  Perhaps the track needs to look at (gulp!) increasing the gates?!?!  Obviously something has to be done but without looking at the books, I couldn't even suggest where to start.  Hopefully they can get it sorted out.

Linkback: https://www.canadianracingonline.com/smf/index.php?topic=5824.msg22966#msg22966

[Shadowracer]

Do Delaware competitors have to buy their tires from the track?

Linkback: https://www.canadianracingonline.com/smf/index.php?topic=5824.msg22969#msg22969

[crewchief47]

I'm really not sure who is the 'real' sales person.  Whether the tire truck is on contract and the track gets a cut or if he's providing the tires and making the coin himself.  Someone else will have to answer that question.  We rarely have enough for tires and it's been a season since we've been there with the LM.  Might as well add the fuel to the tire question.

Linkback: https://www.canadianracingonline.com/smf/index.php?topic=5824.msg22971#msg22971

[FromTheStands]

Tires are bought from Mcolls, at the track or at the shop.

What Mikes' deal with the tracks is?? His business.

Competitors are free to buy the tires anywhere they can.

Now that's for the street stocks and trucks. I beleive the mods and late models work the same way.

Linkback: https://www.canadianracingonline.com/smf/index.php?topic=5824.msg22972#msg22972

[Cooter86]

I know the LM have to buy there tires from Mccolls b/c the tires r serial numbered

Linkback: https://www.canadianracingonline.com/smf/index.php?topic=5824.msg22974#msg22974

[FromTheStands]

I know the LM have to buy there tires from Mccolls b/c the tires r serial numbered

The 2007 rules don't mention the serial numbers anymore.

Linkback: https://www.canadianracingonline.com/smf/index.php?topic=5824.msg22978#msg22978

[Mobil1fan]

Really, the article seems to be about the same as Cressman was talking about on Banned Word/Site radio...Interesting to hear from one of the 4 owners, though...

Linkback: https://www.canadianracingonline.com/smf/index.php?topic=5824.msg22980#msg22980

[Shadowracer]

Really, the article seems to be about the same as Cressman was talking about on Banned Word/Site radio...Interesting to hear from one of the 4 owners, though...

It's about time, actually. Shoulda happened the day after the first article. Unfortunately, now people have had a week to make stuff up in thier heads about what's really going on. Giving them that week was a mistake.

Linkback: https://www.canadianracingonline.com/smf/index.php?topic=5824.msg22986#msg22986