2017 Financials are now available

[Bill Strong]

ChumpCar International Inc. made available today the 2017 Financial Report to the membership

https://champcar.org/mainweb/wp-content/uploads/2018/04/ChampCar_2017_Annual_Financial_Report.pdf

[mostmint]

Thanks for the transparency sharing this info. 

 

With all those sponsors I would have thought sponsorship income would be higher.  Maybe that # only counts actual $ received? 

[wvumtnbkr]

Looks like things are heading the right direction.

 

Lets keep the races full!

 

 

[Bill Strong]

9 minutes ago, mostmint said:

Thanks for the transparency sharing this info. 

 

With all those sponsors I would have thought sponsorship income would be higher.  Maybe that # only counts actual $ received? 

 

We did not charge an arm and a leg. Only a finger.

[tommytipover]

You bums did $6400 in track damage...Now I want you to go sit in the garage and think about what you've done.

 

[Bill Strong]

That is only what ChampCar paid for. The teams that caused the damage usually pay for it. Which is not show=n.

[JDChristianson]

1 hour ago, mostmint said:

Thanks for the transparency sharing this info. 

 

With all those sponsors I would have thought sponsorship income would be higher.  Maybe that # only counts actual $ received? 

I thought that was a really interesting number as well.   I had no idea what it might be. I have to believe those dollars are hard to come by.    

 

It it does seem that as a whole it's going in a positive direction,  which I fully expected given the leadership.    Well done.  

[thomasp]

1 hour ago, mostmint said:

Thanks for the transparency sharing this info. 

 

With all those sponsors I would have thought sponsorship income would be higher.  Maybe that # only counts actual $ received? 

 

In addition, this amount probably does not include the gift certificates and swag handed out at the awards after each race.

[enginerd]

2 minutes ago, thomasp said:

In addition, this amount probably does not include the gift certificates and swag handed out at the awards after each race.

And may not include sponsor stickers and number panels and such that RVA is now printing for the series?

[Bill Strong]

Gift certificates are not included.  Only cash.

[mostmint]

6 hours ago, thomasp said:

 

In addition, this amount probably does not include the gift certificates and swag handed out at the awards after each race.

That is an example of what I was saying - those things would be not $ and just passed along to participants

[Ron_e]

Another example would in (2013-14?) say ~500 teams * $200 Optima batteries.

[Pee Wee]

So was the Condren buyout around $200,000?

[Jer]

something like that.  I don't have the exact amount.  

[enginerd]

I don't remember it being a buyout (described in an old board meeting)... I remember it being payments on a lot of equipment that JC owned, not ChumpCar. @JerIs this correct?

[Jer]

The old Board did this, and some of it might have been equipment, but not all of it.  We do not have 200K+ worth of equipment.  I'm not sure it was defined, but probably at least partially covered equipment.  Some it was for the built brand (goodwill).     

[Chris Huggins]

What is the $75,000 "other" intangible asset?

Also, what Vehicles does Champcar own?

 

I assume the expensive equipment is the timing loop related stuff?  Other costly items are radios?

 

Edit = We had 3739 people pay membership dues.. WOW that is awesome.  Interesting to note that the membership dues made the difference in keeping things afloat.

Edited May 1, 2018 by Huggy

[Jer]

23 hours ago, Huggy said:

What is the $75,000 "other" intangible asset?

Also, what Vehicles does Champcar own?

 

I assume the expensive equipment is the timing loop related stuff?  Other costly items are radios?

 

Edit = We had 3739 people pay membership dues.. WOW that is awesome.  Interesting to note that the membership dues made the difference in keeping things afloat.

Intangible assets only happen in a transfer of ownership, and typically represent value beyond physical assets.  In this case, when we took transfer from John, he was given a payout, scheduled over time.  The amount he was given was more than the actual physical assets transferred, so it was assigned to Intangible Assets.  These are assets that have no physical presence, but represent value.  In this case it was the value of Chumpcar (at that time) to generate future revenues.  All those 3,739 people who renewed membership or became members based on the market generated in the past represent value to the organization. Our ability to put on a race compared to a startup operation also is indicative of that value.

 

On a big scale, I can give you another example.  The Carolina Panthers recently sold for something like $2.5B.  But if you added up the value of their office furniture, buildings owned, television revenue contractually owed, etc, you would come up with a far smaller number.  The difference is the value of the trade name, mark, membership in the NFL, anything that will generate future value and be a sellable commodity down the road.  On a small scale, my Company bought another small company last year.  We received no physical assets at all, just the right to sell using that company's name and access to their website.  Our entire purchase price is under intangible assets. 

 

Intangible assets typically do not change in value unless there is an impairment.  In our case, that would occur if we had a systematic drop in attendance that appeared to be non-recoverable.  Another would be a law outlawing racing.  Or, potentially, the inability to get insurance.  

 

We own a van (used in the west coast to keep our assets in out there, and used to get them to the track). Timing and scoring equipment makes up the lion's share of the equipment assets, but it also includes things as small as tables, chairs and pylons.  This also includes transponders, radios, video equipment to bring you Champcasts, etc.  

 

I hope that helps.  

 

EDIT: I expanded on the assets in the last paragraph so you all know why/what on the vehicle.

Edited May 2, 2018 by Jer

[JDChristianson]

@Jer nice explanation.  I don't like to type that much, I'd have just gone with "goodwill".       Or maybe Blue Sky.  

 

Thanks for your efforts.  

 

 

Edited May 1, 2018 by JDChristianson

[Jer]

23 minutes ago, JDChristianson said:

@Jer nice explanation.  I don't like to type that much, I'd have just gone with "goodwill".       Or maybe Blue Sky.  

 

Thanks for your efforts.  

 

 

Well I'm a bean counter by trade and I don't know who understands what.  So more is better maybe...

 

[Andrew D Johnson]

1 minute ago, Jer said:

Well I'm a bean counter by trade and I don't know who understands what.  So more is better maybe...

  

 

I understand it after your explanation. 

[mostmint]

9 hours ago, Jer said:

Well I'm a bean counter by trade and I don't know who understands what.  So more is better maybe...

 

When questions come up about an income statement or balance sheet I expect this kind of detail in the answer.  It's good thanks

[JBgotM]

17 hours ago, Jer said:

Well I'm a bean counter by trade and I don't know who understands what.  So more is better maybe...

 

That was a nice description of brand value.

[Bill Strong]

11 hours ago, mostmint said:

When questions come up about an income statement or balance sheet I expect this kind of detail in the answer.  It's good thanks

 

Being that I am a bean eater, I am better "because" is not a good answer?

lol

[FlorahDorah]

On 5/1/2018 at 12:18 PM, Jer said:

We own a van (used in the west coast to keep our assets in out there, and used to get them to the track).

 

And here's that asset - a 2005 Ford E-350 Cargo Van. Very Luxurious.

Edited May 3, 2018 by FlorahDorah