Do SX/MX team owners make any $$

§ĦŕĕĐĦĕẫđ
Edited Date/Time 1/13/2020 8:26am
Does a team owner make money for himself? Are they spending their own money at all?
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kapaa10
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kapaa10 1/10/2020 11:13am
1/10/2020 11:13am
if you want to make a million dollars w a race team, start w 2 million.
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TbonesPop 1/10/2020 11:15am
1/10/2020 11:15am
The say is "Wanna know how to bring in $1M racing dirt bikes? Spend $2M". I don't see how in the world they can operate in the black. There just isn't enough GDP in the industry to justify it. Maybe Pro Circuit does. But I jsut don't see how any of the smaller to mid size teams make money. The sport just has too little GDP in it to make what needs to be made to survive.
Moto Obsessed 1/10/2020 11:18am
1/10/2020 11:18am
Goin' racin' is basically Mike Genova's golf game...
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O&GDriller
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O&GDriller 1/10/2020 11:20am
1/10/2020 11:20am
I can't see ANY team making money off the racing. The teams like PC race for the marketing the exposure provides. They make their money selling "stuff" that's promoted and used on their race bikes like exhaust or factory teams selling bikes. Racing is a marketing expense for teams like PC, KTM, Honda, Kawi, etc.

Similar to the saying above: The way to make a small fortune in racing is to start with a large one...
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The Shop

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zehn
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zehn 1/10/2020 11:20am
1/10/2020 11:20am
Nope
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Xeno
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Xeno 1/10/2020 2:28pm
1/10/2020 2:28pm
Ask ML512Laughing
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dirtdog36
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dirtdog36 1/10/2020 3:08pm
1/10/2020 3:08pm
I remember Mike Holligan (sp???) who ran the Bookoo team with DV12 said the TV show was the only way that deal even broke even

When the TV show did not get picked up for a 3rd season (I think) the team had to cease operations
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honda907
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honda907 1/10/2020 3:14pm
1/10/2020 3:14pm Edited Date/Time 1/10/2020 3:45pm
I think the costs to win $12,000 for a SX win is way, way out of proportion.

Remember when McCarty was all Hannah had?

Those days are gone. Tomac had like 8 guys last year.
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MelonFan123
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MelonFan123 1/10/2020 3:26pm
1/10/2020 3:26pm
kapaa10 wrote:
if you want to make a million dollars w a race team, start w 2 million.
can people PLEASE stop using this analogy it is getting so old
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mikie44
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mikie44 1/10/2020 4:28pm
1/10/2020 4:28pm
kapaa10 wrote:
if you want to make a million dollars w a race team, start w 2 million.
MelonFan123 wrote:
can people PLEASE stop using this analogy it is getting so old
Agreed... it should be make 1 million by spending 4 million.

Listen to Cary Hart's Whiskey Throttle Show episode. Sheds light on how teams get boned hard by Feld. Teams like Troy Lee, Pro Circuit etc benefit from direct sales of industry products. BUT if they were allowed to sell Merch in the pits, it could vastly help the teams week in and week out. As he stated, your budget going into A1 is all you're going to have to hold you down through the season. It's not like the teams are going to make money attending the races.
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Mr. Info
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Mr. Info 1/10/2020 5:00pm
1/10/2020 5:00pm
With good sponsors and a business to make aftermarket products some will make money. The factories through sales from all divisions have a revenue to back racing but also land the big buck sponsors to lower their out of pocket cost.
The top aftermarket companies help offset cost as well for them if it’s a major product.
For the smaller teams it’s a long road and cost never goes down only up. Equipment repair, truck repair and employee cost. Your doing it to break even.
Brad460
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Brad460 1/10/2020 5:09pm
1/10/2020 5:09pm Edited Date/Time 1/10/2020 5:10pm
A team with good management and decent sponsorship are not losing money...There is no way the Star Racing Yamaha or Geico Honda team are losing money otherwise they would not exist. JGR isn’t losing money either, otherwise they sure as fuck wouldn’t still be running a team.

Of course, like with any business, there are teams losing money and they are not around long.



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ML512
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ML512 1/10/2020 5:14pm
1/10/2020 5:14pm
Xeno wrote:
Ask ML512Laughing
Here's where I'm at.

Start Supercross Team + ??? = Profit
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22Ryann
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22Ryann 1/10/2020 5:16pm
1/10/2020 5:16pm
+ Magic = profit
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dirtwalker 1/10/2020 5:31pm
1/10/2020 5:31pm
kapaa10 wrote:
if you want to make a million dollars w a race team, start w 2 million.
MelonFan123 wrote:
can people PLEASE stop using this analogy it is getting so old
Yeah, it needs up dating due to inflation. Now you need to start with $3M.
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Snoqualmie
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Snoqualmie 1/10/2020 5:31pm
1/10/2020 5:31pm
FYI, the VIP weekend tours teams do - like CR22 does - are done to raise $ that helps cover some of the weekend expenses.

Costs add up, right? Years ago I saw the bill for the KTM team’s hotel stay for a National...$xx,xxx. Was wishing I got those Marriott p lints. 😉
TbonesPop 1/10/2020 5:49pm
1/10/2020 5:49pm
Simply, there's not enough Gross Domestic Product in the MX/SX/EX industry to support the amount of money needed to run a successful team outside of a few companies, and even those struggle. Advertising and marketing? I just don't see how any company is going to make enough money back from their marketing and advertising investment. The only way to change this is to get more eyeballs watching the races (live and on TV), buying more bikes, buying more gear, buying more apparel, and spending more time riding their dirt bikes. Until there is more GDP in it, the team support isn't going to grow. Putting more scantily clad women on the broadcast isn't going to increase the GDP either, that's just stupid.
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FLmxer
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FLmxer 1/10/2020 6:02pm
1/10/2020 6:02pm Edited Date/Time 1/10/2020 6:05pm
All your analogies might be incorrect lol. You are saying they make a mil off 2 mil etc, that's actually an amazing return anyone would be happy for but I think the actual saying goes, How do you end up with a million racing dirtbikes? start with two.
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jmo443
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jmo443 1/10/2020 6:25pm
1/10/2020 6:25pm
So If there isn’t a single team making any money why would any team continue after the first year? I can understand a smaller team losing money or going under but the bigger ones...Come on let’s be realistic after 2-3 years they’d be gone.
krocbike
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krocbike 1/10/2020 6:33pm
1/10/2020 6:33pm
§ĦŕĕĐĦĕẫđ wrote:
Does a team owner make money for himself? Are they spending their own money at all?
What about the butler bros ktm team or hep? They have to be making a little bit of money to keep coming back each year.
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Spooner
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Spooner 1/10/2020 9:33pm
1/10/2020 9:33pm
Private teams like Geico, PC, etc all make money. Factory teams don’t but that’s not the point of them.
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8tensolutions
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8tensolutions 1/10/2020 9:49pm
1/10/2020 9:49pm
Spooner wrote:
Private teams like Geico, PC, etc all make money. Factory teams don’t but that’s not the point of them.
Exactly.
Mx29
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Mx29 1/10/2020 10:46pm
1/10/2020 10:46pm
Yes. Sponsor money.
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Brent
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Brent 1/10/2020 10:46pm
1/10/2020 10:46pm
..Dirt Bike Race Team Owner =








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Dirty Points 1/11/2020 12:14am
1/11/2020 12:14am
No. None of them make any money, anymore, now that ML512 has taken it all.
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Talisker
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Talisker 1/11/2020 1:05am
1/11/2020 1:05am Edited Date/Time 1/11/2020 1:08am
I enjoy riding dirt bikes to much to even think of owning or running a team.
The industry would ruin my enjoyment!!!,
Speaking from experience. When I was 19 I opened up a parts and accessories shop.
My suppliers were Parts Unlimited and Tucker Rocky.
Didn’t take me long while in business to not enjoy dirt bikes anymore.
People are real fun!!!!! Ha ha ha
Never realized $5 was too much for big time shit talkers till then!!!!
And this was wayyyyy before un-social media!!!!,
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EngIceDave
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EngIceDave 1/11/2020 8:04am
1/11/2020 8:04am
If a team breaks even, it was a good year
But keep in mind, everyone has a job, so everyone gets a salary...riders, mechanics, managers, owners
No one is working for free, even owners. Team ownership is a full time job.

But no team is left with a cash surplus at the end of the year from the money the sponsors contribute.
TeamGreen
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TeamGreen 1/11/2020 8:22am
1/11/2020 8:22am
Someone interview Ryan Dungey next December.
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bradnelson
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bradnelson 1/11/2020 8:27am
1/11/2020 8:27am
§ĦŕĕĐĦĕẫđ wrote:
Does a team owner make money for himself? Are they spending their own money at all?
krocbike wrote:
What about the butler bros ktm team or hep? They have to be making a little bit of money to keep coming back each year.
There was an article with the Butler guy. He said they make a profit every year. It is his only income, supposedly.
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stiksandstones 1/11/2020 8:29am
1/11/2020 8:29am
This thread could have been good.
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