COTA Fires CEO

[Map8]

Lets keep this focused on motorcycles and avoid getting this thread sent to the Sink.

 

[Marcoose]

Lets keep this focused on motorcycles and avoid getting this thread sent to the Sink.

 

[turboLT]

The economic impact on the State of Texas of that race is massive. The incremental tax revenue on the revenue alone exceeds the subsidy. That subsidy makes good business sense for the State.

I know this is the argument but I kind of doubt it's actually true because it doesn't hold for other sports. The Americas cup in SF was very likely a money loser and many studies of the Olympics show they are a net economic drain. Why would motorcycle or auto racing be different?

 

[EastBayDave]

So Laguna is a middleman; receives govt money in one hand, then passes it to other charitable orgs with the other. 10-4. Why is it a charity?

Because it's owned by the County.

 

[TTTom]

So Laguna is a middleman; receives govt money in one hand, then passes it to other charitable orgs with the other. 10-4. Why is it a charity?

It's really not all that complicated.

Laguna Seca isn't a middle man or a charity, it's a Monterey County park.

SCRAMP isn't a charity either, it's a 501(c)4 corporation that contracts with the county to manage and operate the race track at Laguna Seca County Park. SCRAMP doesn't get money from the county, it PAYS the county for the privilege of managing the track.

Legally, a 501(c)4 is defined as being a non-profit corporation operated exclusively to promote social welfare.

Non-profit means that at the end of the year, SCRAMP is not allowed to keep any income in excess of expenses. I'm on the board of a 501(c) and it's not even possible for us to maintain a small "rainy day fund" from one fiscal year to the next to save up money to repave a parking lot or some other little project.

Just guessing but I'd say SCRAMP promotes social welfare two ways... provides recreational opportunities for race fans and track day junkies, and donating all income in excess of expenses to the 50 or so local charities it supports.

 

[Marcoose]

It's really not all that complicated.

Laguna Seca isn't a middle man or a charity, it's a Monterey County park.

SCRAMP isn't a charity either, it's a 501(c)4 corporation that contracts with the county to manage and operate the race track at Laguna Seca County Park. SCRAMP doesn't get money from the county, it PAYS the county for the privilege of managing the track.

Legally, a 501(c)4 is defined as being a non-profit corporation operated exclusively to promote social welfare.

Non-profit means that at the end of the year, SCRAMP is not allowed to keep any income in excess of expenses. I'm on the board of a 501(c) and it's not even possible for us to maintain a small "rainy day fund" from one fiscal year to the next to save up money to repave a parking lot or some other little project.

Just guessing but I'd say SCRAMP promotes social welfare two ways... provides recreational opportunities for race fans and track day junkies, and donating all income in excess of expenses to the 50 or so local charities it supports.

That's a fair explanation, but for the record, it was somebody else above that called it a "charity". I just went with the information provided.

 

[clutchslip]

COTA is only being given $19.6 million in taxpayer subsidy to hold the F1 race in 2016, apparently there is no way they can survive on that pittance.

Perhaps we should hold a charity bake sale for billionaires Epstein & McCombs?

This is down from the $25 million that the State Event Fund promised COTA for ten years. Their justification is correct, I believe, since F1 brought in $200 million + something to Austin. At sales tax and room tax rates, that $19.6m is about $237.58 in gross revenue. The original agreement was based on what Bernie CLAIMS F1 brings to each town holding an event, $300+ million.

Thanks for clearly stating the SCRAMP situation. People are very confused about racing money, particularly when it comes to Laguna.