IRL Goes Socialist: "Revenue Sharing" for '08

[Chief]

Revenue Sharing? Huh? WTF are they doing? Now more two-bit POS operations can get in via TONY GEORGE-fare. He just doesn't get it......
INDYCAR: Revenue Sharing Plan Set for 2008 (http://www.speedtv.com/articles/auto/indycar/40171/)

In an effort to help its smaller to mid-level teams and possibly attract new ones, SPEEDtv.com has learned the Indy Racing League will implement a revenue-sharing plan in 2008 that pays guaranteed money to IRL regulars but race purses would be eliminated except for the Indianapolis 500.

And it’s believed there will be an increase to next May’s Indy purse with the winner receiving $2 million and 33rd place paying no less than $300,000.

It remains a work in progress, but it’s believed the current plan calls for a team to receive $1.3 million for every car committed to the 17-race schedule. In other words, if you’re a two-car team, you receive $2.6 million spread out over 12 months.

This year, for example, the Honda engine lease was $1.1 million and the Firestone tire bill roughly in the $250,000 neighborhood for one car, according to IRL team managers. Obviously, it costs more than $1.3 million to operate an Indy car for six months and a one-car effort runs the spectrum from $4 million to $10 million – depending on your budget.

But this money is guaranteed regardless of the number of full-time competitors.

Currently, all IRL purses except Indianapolis are $1 million with 20 percent taken off the top of each car’s share (per race) for the IRL point fund but, starting next season, there will no longer be a 20 percent deduction because there will no longer be a point fund.

However, the 2008 IRL champion will still collect $1 million

[Accipiter]

To share revenue, don't you first have to have revenue?

[spinner26]

the CCWS team are lining up. Come and get it boys and girls. Nothing like dangling the carrot only to come back and say, oh we're sorry ,we thought we could pull it off.

Still prolly more than they'll ever get outa the tree amigos.

[Andrew Longman]

Well if TG (and the Hulman's in general) had shared more I500 money in the form of a purse, then CART and perhaps the split might never have happened.

Just think if TG can afford to fund the entire season in this manner (albeit in partially covers the total cost) how much he's been holding back.

Actually, I don't think this is such a bad idea. It is what made the NFL a success and other sports only wish the commish had enough power to share revenue and level the playing field in such a way.

Because teams must still seek sponsorships, there is still an incentive to finish up front, but it creates a transparent cost/revenue certainty.

CC would have likely done the same thing if the series itself had greater revenue certainty.

[Wheel-Nut]

The CC teams that own earl rollers should take Tony up on his offer. Roll out on race day, collect a check and be in the hauler before the first yellow.

[Chief]

It all means it's still gonna cost more to win....you're just gonna get less back because you have to prop up the rest of the stiffs who'll never get a chance to win Indy because of evil CART, engine leases, brazilian spyder monkeys etc. etc.

They'd have been better off with a "SPENDING CAP" for the richest teams (becuase you know they'll always have the cash to put a can of whoop *** on them hapless IRL/FTG huffers).

[NismoZ]

Whaddaya mean CC WOULD have done the same thing? Is't that what they'd BEEN doing? Sounds like just one more League copy of something they've been criticizing for years. SOP for them. Maybe they'll try push to pass, standing starts, European races and soft tires next.

[Andrew Longman]

Whaddaya mean CC WOULD have done the same thing?

As far as I know KK has paid direct subsidies in the form of driver salaries and direct payments to some teams to fill the field. TG has done something like that too in all likelihood. Or Honda has. That's different from a transparent and even system of sharing a set pool of money as the NFL does with TV money (or TG is now doing with I500/ABC money).
He should have done it long ago.

If CC had a big payday, title sponsor or TV contract it could be doing the same thing.

[jonovision_man]

How is this different from CART's "team assistance"? It looks identical - every team gets a chunk of cash. Even the amount looks similar.

Just sounds less desperate when you call it "revenue sharing". :p

jono

[opinionated ow]

the problem with tony (and kevin and co) is that none of them are promoters...they need to think about promotion. NASCAR promotes-they put up a prize pool, and make a fortune. the only way to rebuild this sport is to follow that model, and for that reason, one series only (a new one preferrably) needs to exist. (and not a spec series...open up the engine rules, allow the old 2.65L v8 turbos, allow air restricted sprintcar motors, allow turbocharged midget motors-the last two because they are available abundantly, powerful and cheap).

[G.]

at the risk of getting my ass handed to me, I think CC ended the assistance way too soon. (yeah, yeah, Kat. I know.)

Revolving drivers pisses me off.

Swervia sitting is Wrong.

[Andrew Longman]

at the risk of getting my ass handed to me, I think CC ended the assistance way too soon. (yeah, yeah, Kat. I know.)

Revolving drivers pisses me off.

Swervia sitting is Wrong.

Supposedly they used the subsidy money to buy a better TV contract which was to help team attract sponsors,

But if they knew they would have so many cancelled races and huge gaps in the schedule then they would have known that selling sponsorships and even attracting pay drivers would be tough.

So sure, unless they were absolutely sure the sponsorships were coming then they could have stayed on Speed and spent the year building a more solid schedule and line up while paying teams what they needed to stay at it.

[jonovision_man]

at the risk of getting my ass handed to me, I think CC ended the assistance way too soon.

Don't you mean CC claimed to have ended the assistance way too soon?

jono

[G.]

Don't you mean CC claimed to have ended the assistance way too soon?

jonosure, sure, jono.

We don't have to pick at nits on oc tho.
I'll even spot you a search function and say, "Yeah. I was wrong about that. My bad."
You can fill in the topic yourself.:p

[jonovision_man]

Just sayin'. I really don't think we're looking at a self-sufficient CC grid.

And now we know that we're definitely not looking at a self-sufficient IRL grid! $1.3M per car of team assistance, that's a pretty solid chunk of change. And that's despite the sponsorship value from the Indy 500.

jono

[Turbodog]

http://i10.tinypic.com/4pe4dnd.jpg :tony:

[Turbodog]

http://i8.tinypic.com/4tipjr7.jpg

[pchall]

All crapwagons are equal. Some crapwagons are more equal than others.

[Indy]

I think this is a smart move. Revenue sharing is obviously a strength of other professional sports.

[coolhand]

I think this is a smart move. Revenue sharing is obviously a strength of other professional sports.

Says a socialist :gomer:

[Indy]

Says a socialist :gomer:

Wrong.

[Chief]

I think this is a smart move. Revenue sharing is obviously a strength of other professional sports.
The IRL is not a strong professional sport. Frankly, the thing that should have been revenue shared is the little nest egg Danica is making off the league and at the expense of every current and past driver who died/risked life for the sport. She's the only smart move they've stumbled upon in the past 12 years.

IF gobs and gobs of $$$ were being thrown into this league (from lucrative TV contracts etc.) and then shared that would be one thing. BUT, this is nothing but a reshuffling of the purse payout that gives the POS teams MORE and the fastest winningest teams LESS. Time will tell.....I find it interesting they continue separate the 500 out from all of this. I'm still curious how the ex-CART dominators of the league since 2001 feel about taking a pay cut, yet doing all the work. This opens up a whole new can of worms. Seems to devalue the league to me, but raises the 500 higher up on it's broken pedestal.