NJMP Bankrupt?
03-08-2011, 04:58 AM
#4
Team Owner
“We wish to emphasize that none of these changes will affect our scheduled 2011 racing and so-cial events, Drivers Club Memberships, season passes, pre-event ticket sales, gift certificates, deposits or any other NJMP operation,” reported Scott.
It may affect the rescue squad showing up. again.
03-08-2011, 05:47 AM
#5
Team Owner
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Location: NJ
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St. Jude Donor '05-'08
Read about it this morning. They had a good plan but the market surely didnt help. The townhouses and other things seem to be on hold. There is also a local group called trackracket who says it is too loud and probably wants them closed which makes little sense to me. NJMP must bring a lot of money to an area that has little to nothing. You would think people would be happy to have a business supporting their community.
http://www.pressofatlanticcity.com/n...cc4c03286.html
http://www.pressofatlanticcity.com/n...cc4c03286.html
Last edited by Wicked Weasel; 03-08-2011 at 06:16 AM.
03-08-2011, 06:49 AM
#6
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Location: Raleigh / Rolesville NC
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New Jersey Motorsports Park (NJMP) announced a reorganization plan that includes the re-structuring of debt, addition of new equity, and the filing of Chapter 11 today, in a move that management feels confident will secure the Park’s future operations.
Segal also is the Principle Owner in VIR
03-08-2011, 08:03 AM
#8
Race Director
business in the new millennium.... borrow millions of dollars, start a business, spend all of the money, screw your debtors, Chapter 11.........repeat
So not only will the Emergency company never collect what is owed to them, they will probably end up being sued for the money they already received!
So not only will the Emergency company never collect what is owed to them, they will probably end up being sued for the money they already received!
03-08-2011, 08:45 AM
#9
Instructor
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business in the new millennium.... borrow millions of dollars, start a business, spend all of the money, screw your debtors, Chapter 11.........repeat
So not only will the Emergency company never collect what is owed to them, they will probably end up being sued for the money they already received!
So not only will the Emergency company never collect what is owed to them, they will probably end up being sued for the money they already received!
03-08-2011, 08:51 AM
#10
Le Mans Master
Tough times, but what is amazing was since they opened 3 years ago, they were booked solid almost every day from March through mid Nov. So, it's not like they are not selling track time and most of the events are full of cars.
I have been to some of the pro races, and the spectator events just aren't brining in the people. Even Grand Am was sparse at best. Unless they build a NASCAR oval, they just aren't going to get the 200k+ people that go to CRAPCAR events.
I have been to some of the pro races, and the spectator events just aren't brining in the people. Even Grand Am was sparse at best. Unless they build a NASCAR oval, they just aren't going to get the 200k+ people that go to CRAPCAR events.
03-08-2011, 09:10 AM
#11
Race Director
Everytime someone wants to build something, they come up with all these figures, about all the money, it will bring to the region. Usually these numbers are quite optimistic.
Most business people I've talked to in the Millville/Vineland area, are happy that it's there, but haven't seen any kind of big increase in business, as a result of it.
How much business can something like NJMP, realistically bring into an area. Most of the track's customers are day trippers. The gas stations, quicky markets and maybe some resturants will benefit, but who else?
How many full time employees does the track have or need too? They need the most workers for the half dozen pro races they run, and many of those workers, are volunteers.
None of the pro events (Grand-AM, ARCA, SVRA, etc.) have pulled the crowds that NJMP (or I) would expect to see. I'm sure that some of this is the economy, as racing attendance is generally down everywhere, but I think the NJMP has made mistakes too.
I've never seen a billboard, heard a radio ad, or seen a TV ad for the track, and I live less than an hour away. The viewing areas of the track, especially at Thunderbolt (which is supposedly the public track) leave a lot to be desired. Part of this is a result of the location of the various retention basins, the enviro people required. I would have thought that the engineers could have done a better job of locating them. There are 3 large basins, taking up much of the track side infield area. The only infield area to park along or near the fence, is at turn 2 & 3, and last year they were not allowing parking there for pro events??? There is also no infield viewing between turn 5 and the cross over bridge, because of the lay out of the track. If they ever build all of the proposed town houses, this will eliminate much of the viewing area outside the track, between 5 and the bridge also. The overall layout of the track, is not very spectator friendly, especially when compared to tracks like Lime Rock, The Glen, Mid Ohio, or even Summit Point.
Don't get me wrong, I'm thrilled to have the track here. I've had a season past for the track, every year since it opened. I will continue to support it, and I'd be sick, if it closed, but there are a lot of things they could do better.
03-08-2011, 10:06 AM
#12
Le Mans Master
It brings in some money, but not all that much.
Everytime someone wants to build something, they come up with all these figures, about all the money, it will bring to the region. Usually these numbers are quite optimistic.
Most business people I've talked to in the Millville/Vineland area, are happy that it's there, but haven't seen any kind of big increase in business, as a result of it.
How much business can something like NJMP, realistically bring into an area. Most of the track's customers are day trippers. The gas stations, quicky markets and maybe some resturants will benefit, but who else?
How many full time employees does the track have or need too? They need the most workers for the half dozen pro races they run, and many of those workers, are volunteers.
None of the pro events (Grand-AM, ARCA, SVRA, etc.) have pulled the crowds that NJMP (or I) would expect to see. I'm sure that some of this is the economy, as racing attendance is generally down everywhere, but I think the NJMP has made mistakes too.
I've never seen a billboard, heard a radio ad, or seen a TV ad for the track, and I live less than an hour away. The viewing areas of the track, especially at Thunderbolt (which is supposedly the public track) leave a lot to be desired. Part of this is a result of the location of the various retention basins, the enviro people required. I would have thought that the engineers could have done a better job of locating them. There are 3 large basins, taking up much of the track side infield area. The only infield area to park along or near the fence, is at turn 2 & 3, and last year they were not allowing parking there for pro events??? There is also no infield viewing between turn 5 and the cross over bridge, because of the lay out of the track. If they ever build all of the proposed town houses, this will eliminate much of the viewing area outside the track, between 5 and the bridge also. The overall layout of the track, is not very spectator friendly, especially when compared to tracks like Lime Rock, The Glen, Mid Ohio, or even Summit Point.
Don't get me wrong, I'm thrilled to have the track here. I've had a season past for the track, every year since it opened. I will continue to support it, and I'd be sick, if it closed, but there are a lot of things they could do better.
Everytime someone wants to build something, they come up with all these figures, about all the money, it will bring to the region. Usually these numbers are quite optimistic.
Most business people I've talked to in the Millville/Vineland area, are happy that it's there, but haven't seen any kind of big increase in business, as a result of it.
How much business can something like NJMP, realistically bring into an area. Most of the track's customers are day trippers. The gas stations, quicky markets and maybe some resturants will benefit, but who else?
How many full time employees does the track have or need too? They need the most workers for the half dozen pro races they run, and many of those workers, are volunteers.
None of the pro events (Grand-AM, ARCA, SVRA, etc.) have pulled the crowds that NJMP (or I) would expect to see. I'm sure that some of this is the economy, as racing attendance is generally down everywhere, but I think the NJMP has made mistakes too.
I've never seen a billboard, heard a radio ad, or seen a TV ad for the track, and I live less than an hour away. The viewing areas of the track, especially at Thunderbolt (which is supposedly the public track) leave a lot to be desired. Part of this is a result of the location of the various retention basins, the enviro people required. I would have thought that the engineers could have done a better job of locating them. There are 3 large basins, taking up much of the track side infield area. The only infield area to park along or near the fence, is at turn 2 & 3, and last year they were not allowing parking there for pro events??? There is also no infield viewing between turn 5 and the cross over bridge, because of the lay out of the track. If they ever build all of the proposed town houses, this will eliminate much of the viewing area outside the track, between 5 and the bridge also. The overall layout of the track, is not very spectator friendly, especially when compared to tracks like Lime Rock, The Glen, Mid Ohio, or even Summit Point.
Don't get me wrong, I'm thrilled to have the track here. I've had a season past for the track, every year since it opened. I will continue to support it, and I'd be sick, if it closed, but there are a lot of things they could do better.
I also live less than 1 hour away and hear NOTHING about the track. Also, you would think with AC so close, they could leverage that. I always hear about folks in Vegas going to local race tracks to rent cars to drive, why not here? There is no marketing at all, but at the same time the track is booked solid. Do they raise the price of bookings?
Road racing and club days are not going to "make" a local town. Maybe people thought NASCAR type crowds would come. Go to tracks like Pocono, Lime Rock, Watkins Glen, or even worse Summit Point, and outside corner workers, maybe there is one track employee (if that). The only track employee I see at 99% of club days is the guy at the front gate and that is about it. Maybe some have a cafateria with 2 people.
Look at the town's that have race tracks....they are al rural areas and there is little to no benefit. Pocono is a barren waste land of an area with nothing but a gas station and a conveinience store. Maybe in it's hay day, Watkins Glen was a site to see, they say 200k people would show up for races at it's peak in the 50's. But now every other town is trying to GET RID of their race tracks (eg. Lime Rock, the Bridge and many of the drag race tracks like Atco and Englishtown).
It is sad, but I bet if they built an oval instead of 2 road courses and had just ONE NASCAR event, they would make more money.
03-08-2011, 11:11 AM
#13
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St. Jude Donor '05-'08
They say their payroll is $3.8 million for 295 full and part time employees. Not sure how much of the payroll money makes it back to the towns.
Millville and vineland have built 3 new hotels so there must be some extra business but how much is also not apparent.
Some local people say during track season sales are up while others say it is flat. There are some new local businesses which started because of the track.
The town of Millville lost out on taxes because NJMP has a flat tax for 15 years, lost out on the value of the land (they sold it for $5000 per acre) although who knows if they would have sold it anyway and they paid for sewers, water and roads.
I guess the potential is there just NJMP needs to promote it.
Millville and vineland have built 3 new hotels so there must be some extra business but how much is also not apparent.
Some local people say during track season sales are up while others say it is flat. There are some new local businesses which started because of the track.
The town of Millville lost out on taxes because NJMP has a flat tax for 15 years, lost out on the value of the land (they sold it for $5000 per acre) although who knows if they would have sold it anyway and they paid for sewers, water and roads.
I guess the potential is there just NJMP needs to promote it.
03-08-2011, 11:33 AM
#14
Le Mans Master
Remember the first track map when the 2 tracks were connected for a large 4.5 mile course...I wish I saved that map. That would have been very cool. But I guess more profitable to book 2 tracks at a time than 1 track per day.
03-08-2011, 01:05 PM
#15
Drifting
Every pro race weekend you probably have between 250 and 400 out-of-towners paying to stay in hotels, eat, drink, support local businesses, etc...
Every club race weekend you probably have at least 100-250 people doing the same, and every HPDE event maybe 50-100 people. All real money spent in the area. Plus, on pro race-weekends, all of the fans (whether its 1,000 or 35,000) are spending money on gas, food, hotels, souvenirs, sun-tan lotion- whatever. None of the above people would have ever been in Millville if it wasn't for the track.
The track isn't going anywhere. This is simple debt re-structuring. During the past two years, many businesses have had to do this. Spending money attending races was not high onmost people's priority lists during the past two years.
Every club race weekend you probably have at least 100-250 people doing the same, and every HPDE event maybe 50-100 people. All real money spent in the area. Plus, on pro race-weekends, all of the fans (whether its 1,000 or 35,000) are spending money on gas, food, hotels, souvenirs, sun-tan lotion- whatever. None of the above people would have ever been in Millville if it wasn't for the track.
The track isn't going anywhere. This is simple debt re-structuring. During the past two years, many businesses have had to do this. Spending money attending races was not high onmost people's priority lists during the past two years.
03-08-2011, 01:16 PM
#16
Race Director
Read about it this morning. They had a good plan but the market surely didnt help. The townhouses and other things seem to be on hold. There is also a local group called trackracket who says it is too loud and probably wants them closed which makes little sense to me. NJMP must bring a lot of money to an area that has little to nothing. You would think people would be happy to have a business supporting their community.
http://www.pressofatlanticcity.com/n...cc4c03286.html
http://www.pressofatlanticcity.com/n...cc4c03286.html
I remember NASCAR was orginally put on the table but my recollection was that the lack of infrastructure shot it down. Wasn't ALMS suppose to start racing there? Is the Rolex Grand Am the biggest name they get?
Millville is such a depressed area, I'd think anything that brings even teh slightest increase in revenue and business would be welcome to that area.
03-08-2011, 02:10 PM
#17
Team Owner
Member Since: Sep 2003
Location: Raleigh / Rolesville NC
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Was not NJMSP a hazardous waist dump? Where Segal got EFA Super Fund Money to purchase, Cleanup and develop the property ?
Last edited by AU N EGL; 03-08-2011 at 05:37 PM.
03-08-2011, 04:39 PM
#18
Le Mans Master
I'm surprised that the secured creditors and creditor's committee are allowing NJMP (CHP 11) to honor the season passes, pre-event ticket sales, gift certificates, deposits because all of those people are general creditors.
Usually the secured creditors and creditors' committees come in and scarf up all the assets and leave people like the season pass, pre-event ticket, gift certificate holders with nothing but a bad memory. General creditors don't stand a chance.
Each on of those people would have file a claim with the courts, and those claims are a waste of paper.
I'd bet that Mr. Scott is peeing on those people's leg and telling them it's raining just for PR purposes.
Usually the secured creditors and creditors' committees come in and scarf up all the assets and leave people like the season pass, pre-event ticket, gift certificate holders with nothing but a bad memory. General creditors don't stand a chance.
Each on of those people would have file a claim with the courts, and those claims are a waste of paper.
I'd bet that Mr. Scott is peeing on those people's leg and telling them it's raining just for PR purposes.
03-08-2011, 05:19 PM
#19
Melting Slicks
They could make a third track out of the access roads! LOL! And not having connecting tracks doesn't make any sense for a club type track. They need the two tracks but they could have utilized the the space better and connected them to make a longer track for major events. I hope they make it, had a lot of fun when we ran NCM there. JD