Cost to host MXDN = 1 mil??

midwestmoto
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midwestmoto
Sorry if this has been discussed but I just saw on ask ping that the mxdn cost 1 million dollars to host. Is he exaggerating or is he serious??

"The bottom line is that it takes a million dollars to run the MXoN and neither Giuseppe, nor Bud Feldkamp, are willing to put that on the line and bet that American fans will turn out in the numbers they need to get their investment back.".

Ask Ping Link: http://racerxonline.com/2016/09/30/ask-ping
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Crush
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Crush 10/26/2016 12:21am
10/26/2016 12:21am
I'd like to know how much of that is "cost"...
Jrewing
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Jrewing 10/26/2016 1:13am
10/26/2016 1:13am
Crush wrote:
I'd like to know how much of that is "cost"...
Yeah totally hey.

1 for me 1 for the show, 1 for me 1 for the show....
Bearuno
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Bearuno 10/26/2016 1:48am
10/26/2016 1:48am
No one knows - well other than those that are in Luongo / Youthstream and those negotiating with them - and I'm sure Luongo / Youthstream would have a 'commercial in confidence agreement' in place, throughout the process. And, after it - be it if it's actually held, or cancelled.

But, I'd say, hell yeah to an easy Million. Starting Point.

You've got whatever Luongo / Youthstream charge for the privilege to have it, and then the actual costs to stage the event. I very much doubt that Luongo's / Youthstreams fees, cover anything of the tracks / promoters real costs of running such an event. I think most people are ignorant to the costs of just setting up a circuit and the myriad other details involved, for a county fairground event, let alone events of the magnitude of a Countries Nationals, to a GP, and the Big Daddy of them all, an MXDN.
Midwest_Mafia 10/26/2016 2:12am
10/26/2016 2:12am
Actual cost if you own the land and the facility is in place? power, water, amenities, pay staff, fuel & etc for machinery... any licensing or taxes related... all in for a national calibre event? No where near a Mil.

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jamma10
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jamma10 10/26/2016 3:43am
10/26/2016 3:43am
No one knows.

No one ever seems to know.
RG1
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RG1 10/26/2016 7:11am
10/26/2016 7:11am
If it was a million, I highly doubt that Steve Dixon would be running the event at Matterley next season.
500guy
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500guy 10/26/2016 7:17am
10/26/2016 7:17am
I am not sure but I think the YS "Fee" for MXdN is 500 k maybe more and then it cost probably 250-350K to get everything ready and promote the event.

it a huge task and risk.
CarlinoJoeVideo
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CarlinoJoeVideo 10/26/2016 7:22am
10/26/2016 7:22am
500guy wrote:
I am not sure but I think the YS "Fee" for MXdN is 500 k maybe more and then it cost probably 250-350K to get everything...
I am not sure but I think the YS "Fee" for MXdN is 500 k maybe more and then it cost probably 250-350K to get everything ready and promote the event.

it a huge task and risk.
Yeah I've heard $500 to hold the event and the only money you make is off ticket sales and food. So if you add the cost of employees, fuel, clean up, ect, ect. It's not a cheap investment.
FreshTopEnd
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FreshTopEnd 10/26/2016 10:20am
10/26/2016 10:20am
Cost as in expense to hold the event or just the component that is the price of the license from YS?
kkawboy14
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kkawboy14 10/26/2016 10:22am
10/26/2016 10:22am
jamma10 wrote:
No one knows.

No one ever seems to know.
Somebody knows......and my guess (just like Pings guess, because he has never seen the numbers either) is it cost about $450,000
cr12500
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cr12500 10/26/2016 11:01am
10/26/2016 11:01am
I would assume it's more than just a flat license fee. They probably charge for certain aspects of the event that they handle and make a margin off of. Clearly they care about turn out too so they probably take a slice of ticket sales. These things aren't generally just a flat fee but I have no knowledge of the details of this.
Mr. Info
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Mr. Info 10/26/2016 12:02pm
10/26/2016 12:02pm
It's not a million dollars. It is very expensive. You have to figure like for Glen Helen on top of the cost to YouthStream is the cost of track building and maintenance during the weekend. Pulse cost for infrastructure, building, fence, porta potties, P A. If you know the last 2 MXON in the US lost money. IMO it was location of those races that hurt the draw. But even with all SoCal has to offer people making it a vacation trip it was still to much a risk for both parties. We all which it was not the case but we have to live with it.
aeffertz
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aeffertz 10/26/2016 12:11pm
10/26/2016 12:11pm Edited Date/Time 10/26/2016 12:12pm
I don't get how even if it was $1 Million that it's that big of a risk... 10,000 people at $100 a ticket and bam you're already at a million bucks. Not to mention the camping fees or VIP ticket prices.

They really don't think they could bring in a crowd of at least 10,000? Regular nationals bring a in a crowd much larger than that.

I get that it's easier for me to say because it's not me fronting the check but come on. Seems like a pretty safe bet.
Prairieboy43
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Prairieboy43 10/26/2016 12:19pm
10/26/2016 12:19pm Edited Date/Time 10/26/2016 12:21pm
That's peanuts. Here is 10 Trillion. I Want MXDN every day for next 100 years.



Keep the change
zehn
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zehn 10/26/2016 12:51pm
10/26/2016 12:51pm Edited Date/Time 10/26/2016 12:52pm
As bad as a rep that YS gets (and they deserve every bit of it IMO), wasn't there a recent interview where GL himself says that YS will sometimes waive certain fees/charges? It sounds like YS may in fact help to finance some of these events with their own capital. I may have misunderstood what was said but that was the gist of what I read.

And no, I'm not defending anything they do, but I thought it was worth mentioning.
Robgvx
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Robgvx 10/26/2016 1:14pm
10/26/2016 1:14pm
zehn wrote:
As bad as a rep that YS gets (and they deserve every bit of it IMO), wasn't there a recent interview where GL himself says that...
As bad as a rep that YS gets (and they deserve every bit of it IMO), wasn't there a recent interview where GL himself says that YS will sometimes waive certain fees/charges? It sounds like YS may in fact help to finance some of these events with their own capital. I may have misunderstood what was said but that was the gist of what I read.

And no, I'm not defending anything they do, but I thought it was worth mentioning.
And then they take half the gate...
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smezmx 10/26/2016 1:19pm
10/26/2016 1:19pm
Prairieboy43 wrote:
That's peanuts. Here is 10 Trillion. I Want MXDN every day for next 100 years. [img]https://p.vitalmx.com/photos/forums/2016/10/26/157518/s1200_IMG_0748.jpg[/img] Keep the change
That's peanuts. Here is 10 Trillion. I Want MXDN every day for next 100 years.



Keep the change
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TransMotoSport 10/26/2016 2:13pm
10/26/2016 2:13pm
Would not doubt 1mill being the cost to set up for the event. Promoting, track prep, catering for 20,000 plus people.
tents, wash down bays, medical staff, ambulances etc, etc.
But if you got 10,000 people a day over 2 days paying $50 plus a ticket there is 1 mill back. If you got 20,000 a day theres 1 mill in your pocket.
They crush those crowd numbers in most Euro destinations.
Tracktor
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Tracktor 10/26/2016 2:30pm
10/26/2016 2:30pm
I was told about 10 years ago from someone directly involved that the license/rights to hold a national MX was around $500k. Whether or not he told me the truth I have no real idea but it was someone would would've known and had no reason at all to lie to me. Base on that i could see 1 million being legit...............
DanDunes818
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DanDunes818 10/26/2016 3:02pm
10/26/2016 3:02pm
I know nothing of the numbers, but if what I'm told is true and Jonathan Beasley and Budds Creek lost money ob the 2007 MXoN, it's expensive.





DonM
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DonM 10/26/2016 3:49pm
10/26/2016 3:49pm
Mr. Info wrote:
It's not a million dollars. It is very expensive. You have to figure like for Glen Helen on top of the cost to YouthStream is the...
It's not a million dollars. It is very expensive. You have to figure like for Glen Helen on top of the cost to YouthStream is the cost of track building and maintenance during the weekend. Pulse cost for infrastructure, building, fence, porta potties, P A. If you know the last 2 MXON in the US lost money. IMO it was location of those races that hurt the draw. But even with all SoCal has to offer people making it a vacation trip it was still to much a risk for both parties. We all which it was not the case but we have to live with it.
So you're saying that Budd's didn't draw a sufficient amount of fans to turn a profit?? I hate to break it to you but the money is going somewhere and as you know it's not going to the track promoter...the pic's above will easily show you that...I can guarantee you that Loufatso didn't lose money.
Mr. Info
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Mr. Info 10/26/2016 7:04pm
10/26/2016 7:04pm
He lost money at Budds Creek and Thunder Valley.
aeffertz
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aeffertz 10/26/2016 7:15pm
10/26/2016 7:15pm Edited Date/Time 10/26/2016 8:55pm
Mr. Info wrote:
He lost money at Budds Creek and Thunder Valley.
Says who? And how is that even possible?

For someone to lose money for a turn out like that, you must be doing something terribly wrong. The riders don't get that much of a payout and I can't imagine it costing THAT more money to host the MXON over an regular GP or AMA National. How the hell do you lose money when you have a crowd of over 20,000 people and entry ticket prices are around $75?

Did he bet big on the wrong team or something? I just don't get it.
DonM
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DonM 10/26/2016 8:01pm
10/26/2016 8:01pm
Mr. Info wrote:
He lost money at Budds Creek and Thunder Valley.
Louongo lost money?? I seriously doubt that
500guy
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500guy 10/26/2016 8:21pm
10/26/2016 8:21pm
Mr. Info wrote:
He lost money at Budds Creek and Thunder Valley.
DonM wrote:
Louongo lost money?? I seriously doubt that
Add me to the list because I spent about 2k on both of those trips
DanDunes818
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DanDunes818 10/26/2016 9:29pm
10/26/2016 9:29pm
Mr. Info wrote:
He lost money at Budds Creek and Thunder Valley.
DonM wrote:
Louongo lost money?? I seriously doubt that
500guy wrote:
Add me to the list because I spent about 2k on both of those trips
I missed Budds, but I lost $1000+ on the Lakewood one..

And somebody above said there was 20,000 people at Budds Creek. I wasn't there, but I've seen 20,000 person crowds and Budds looked like twice that to me.
Bearuno
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Bearuno 10/26/2016 10:26pm
10/26/2016 10:26pm Edited Date/Time 10/26/2016 10:27pm
The 'He' who (may have) lost money at the US events is / are the US Track owners / promoters.

Luongo, makes damned sure he has little, to No risk of loss.

Now, putting my 'business hat' on, hell, you've got to be impressed by Luongo's way of doing business. If I were to be devoid of feelings for the sport and the majority of those within it, and only thinking about my bank account, I might be happy to be one of his partners / stakeholders. Business, is after all, about making money.

But No, I'm (well, I think I am) a decent, honest Human Being.

He's great at insulating himself from risk, and has a complete lock on the sport until after 2026, from all that I've read.

We need, now, more than ever, that group that went by the name of (I think) MXGPActiongroup.org. It delved into the various nefarious dealings Luongo / Youthstream and a few FIM officials were involved in.

It, eventually 'disappeared'. Whether through exhaustion, or legal action from GL / YL, and FIM interests, or something more nasty, we probably will never know.

That some here don't seem to grasp the expense of holding something like the MXDN, especially with that Leach Luongo demanding his slice (well, whole damned pie, if not the entire bakery) of the pie, worries me about their grasp of just how much things cost in this World today.

ns503
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ns503 10/27/2016 4:09am
10/27/2016 4:09am
Mr. Info wrote:
He lost money at Budds Creek and Thunder Valley.
But you said those races didn't draw good because of their location. Which is crap, because I know Budds Creek drew very well, crowds were huge - I know because I got lost in them, multiple times. But I sure had some kinda fun though.

Don't just take my word for it - there are pictures too....
RG1
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RG1 10/27/2016 7:11am
10/27/2016 7:11am
Mr. Info wrote:
It's not a million dollars. It is very expensive. You have to figure like for Glen Helen on top of the cost to YouthStream is the...
It's not a million dollars. It is very expensive. You have to figure like for Glen Helen on top of the cost to YouthStream is the cost of track building and maintenance during the weekend. Pulse cost for infrastructure, building, fence, porta potties, P A. If you know the last 2 MXON in the US lost money. IMO it was location of those races that hurt the draw. But even with all SoCal has to offer people making it a vacation trip it was still to much a risk for both parties. We all which it was not the case but we have to live with it.
DonM wrote:
So you're saying that Budd's didn't draw a sufficient amount of fans to turn a profit?? I hate to break it to you but the money...
So you're saying that Budd's didn't draw a sufficient amount of fans to turn a profit?? I hate to break it to you but the money is going somewhere and as you know it's not going to the track promoter...the pic's above will easily show you that...I can guarantee you that Loufatso didn't lose money.
To be fair, Luongo shouldn't lose money. But niether should the people promoting the event.

I don't think the fee for hosting the MXoN is as big as everyone says it is. It's the TV and all the other shit that goes with it that all adds up to make it expensive. I think they charge 100K for TV. You have to have it and you have to use their people to do it

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