Is Gateway Next>

[Dave Schultz]

www.stltoday.com/sports/motor-sports/article_98334578-9a91-11df-9422-00127992bc8b.html

www.nostalgiadragracers.com/

Dover Motorsports, Inc. (NYSE: DVD) announced today that its wholly owned subsidiary, Gateway International Raceway has notified NASCAR that it will not seek 2011 sanctions for its two Nationwide Series and one Camping World Truck Series races.

Vice President and General Manager of Gateway, Terry Harmeson stated, “This was a difficult decision in light of the many years of earnest and continued efforts on everyone’s part to develop a viable market for these events in one of our nation’s greatest cities. We remain committed to fulfill the balance of our 2010 schedule including our October 23rd NASCAR Nationwide race which will provide our fans the opportunity to see Danica Patrick compete here for the first time. We also plan to explore various ways to change the economics at Gateway both from the revenue and expense side.”

Denis McGlynn, President & CEO of Dover Motorsports, stated, “We have a group of extremely dedicated and talented employees who make Gateway a great destination and we deeply appreciate all the support we have had from the racing community over the years – from racing fans and drivers to sponsors, team owners and sanctioning bodies. However, economics dictate that we evaluate all of our options for this facility, including its possible sale.”
This doesn’t sound good

[fastdiesel]

Doug, better start looking for another place to have the NSS Nationals! Looks like Gateway will join Memphis in the "Ghost Town" tracks.

Wonder when Dover will figure out the can't support the overhead when the have,,,, a President/CEO, 2 VP's, 3 GM's, 6 Managers, and 26 full time staff (or how ever many they have....it's too many)!!!!! It's a racetrack, not a hospital! They need to stick with casinos, or try their "luck" at something else....

[Dave Schultz]

There's a synergy between the Monster Mopar Weekend and NSS Racing with the Dave Duell Classic. One without the other hurts the other -- so the first question is what would Scott Sveivking of S&S Promotions do if Gateway were to close? He lives and works in St. Louis and and has put on the MMW for like 27-28 years. Because of the shear size of Gateway (they use the NASCAR track for the shows and swap meet) -- there are few places in the Central US that could have an event that large. The Central Location brings in people from all over. Moving any further north (Chicago or Indy) will put it out of the reach of Southerners.

More specifically for NSS -- Doug Duell is three hours away -- as is Indy Cylinder Head (the main sponsor with TTi).

I don't think there can be a contingency plan as good as the original, so I for one hope someone who can keep Gateway alive buys it soon.

There is a not a good trend happening in drag racing and the bigger tracks. Memphis closes, Gateway might, Zmax seldom has any local racing -- and Houston Raceway Park eliminated Wednesday Trophy/T&T night, and outside of a once a month deal on Saturday (today's canceled because it is too hot! Too hot July 31 in Houston -- who would have thought) they cater to Ganstas coming in Mom's 20-second Imports. Very little real drag racing going on there.

My guess is that they lose less money not having racers come -- than to have them come.

[fastdiesel]

It's sad, Corporate america can't do something and only make a modest profit anymore. Over staff, over build, over everything ....except "TAKE CARE OF THE CUSTOMER"!

If they were as concerned about the customer as they were about their share holders and bonus', they wouldn't be in the shape they are today.

These tracks are just too big for a mom-n-pop to buy, although they would be able to run them, AND make a little money.

Dave Duell NSS Classic - Bowling Green, KY...has a nice ring to it!

[Dave Schultz]

I assume we'll hear more at the Driver's Dinner in September

[beemergary]

Will be going to the PontiacNationals at Norwalk this weekend not zmax. This is the biggest event of the year for me BUT the MonsterMopar is my second and almost tied for first.

[torquer]

Would have to vote for Bowling Green. Hate it is being messed with but don't look good for St. Louis.
Jim N.

[beemergary]

Norwalk now called Summit is got to be one of the nicest tracks in the country. Its family owned and the owner is always there. There's even a number to call if there's a problem. I think the placeis awesome.

[Dave Schultz]

Aren't there enough Mopar events in Ohio? The main reason I went to the Monster was that is was centrally located.

[bobmosher]

More rumors , hope it works out.
www.dragracingonline.com/agent1320/2010/1320-xii_9-16.html

[bobmosher]

Monster Mopar/Gateway rumors
www.dragracingonline.com/agent1320/2010/1320-xii_9-18.html

[Dave Schultz]

May be not. some posts elsewhere on this subject:

If I were him I think I would try to purchase the NHRA before I purchased a track that has 8 million owed in taxes or what ever the rumored amount is. Obviously Johnny is a smart person and will invest his $$ wisely.
__________________
Jeff Conley
NMCA Technical Director

Big Kahuna
Troublemaker

Join Date: Jan 2004
Location: SE Texas
Posts: 992



$8million in taxes -- Holy Smoke!

Part of the problem might also be the environment of the track. They blamed the NASCAR failure on a power outage -- and this last weekend, some governmental agency (not sure if it was city or county) threatened to shut down the Monster because there were 10 tents that hadn't paid the "Tent Tax". SS Promotions had to run down Friday morning with $750 to wet the beak of someone to keep the show from being closed down.

Funny how when a business is teetering on the fence of success or failure -- that some government agency comes to give it a push.

A message from Bret Kepner taken from our local board lethal1320.com Here is the thread the post originated. www.lethal1320.com/forums/index.php?topic=4753.0

Bret writes:

I’m only responding to this thread because the article in Drag Racing Online is so incredibly wrong. I’m only going to type this once and I’m not going to respond with any more information. The reason for the lack of interest in a sale of Gateway International Raceway is no secret. There are several people on this board who know the details, (‘Goose being one with whom I’ve shared the basics), and, for the life of me, I have no idea why you people think this is such a conspiracy.

The reason nobody is interested in GIR has nothing to do with the economy, the management, the oval track or the dragstrip. In fact, the dragstrip is, (currently), one of the most successful in the country. Tuesday nights are doing great, Fridays (MM) are through the roof, and, despite the fact bracket racing has been in a horrible slump for a decade, even the Saturday bracket series holds its own quite well. Even the Outlaw All Stars program has shown notable growth. The majority of GIR’s major events are rentals so those races are fine, too. The NHRA National Event does very well for both GIR and the NHRA. However, it wouldn’t matter if the track was ten times more successful. It simply can’t possibly make money.

Chris Pook built the new Gateway in 1996 with $21.5 million in Illinois state bonds. Those bonds were deferred for ten years. Those bonds came due in 2006. For the past four years, GIR has been operating with an annual tax debt of $1.8 million. End of story.

Nothing…not even a NASCAR Cup date…could ever pull the track out from under that load. When it became obvious the track was never going to get a Cup race, Pook (wisely) got out. He knew an NHRA race, a NASCAR truck race, a Nationwide race or even his own CART events wouldn’t do it, either. As it stands, (with no major events at the oval), a new owner would need the equivalent of five good NHRA National Events in one season just to start at ZERO.

NOW start figuring out who’d say “Yes!” to such a deal. Can’t think of ANYBODY? Gee. I guess that explains why nobody’s in line to buy it.

If the tax nightmare could ever be figured out, THEN a prospective buyer could start looking into a way to deal with the three land owners and all the rest of the headaches involved in acquiring Gateway International Raceway.

I don’t care what anybody has heard, said, thought or read. These are the facts. If you don’t believe it, call Dover and ask.

There will always be hilarious rumors out there and, personally, I hope they keep coming just for the entertainment value. However, all the idiots who insist the track is closing because they wait in line for a run at Midnight Madness or the NHRA event was pulled because of racer complaints, (my favorite so far), need to get a clue about the business world.

None of this was ever a secret. All you had to do was ask. Get a grip, people.

I’m not posting this anywhere else. If you find somebody who’s spewing inaccuracies, feel free to cut-n-paste this whole response. The funny part is they’ll still believe the whole place went under because it wasn’t an “outlaw track”.

[bobmosher]

Great info that puts it into perspective. Now to sort out the truth from rumors and speculation.