Board Meeting Minutes; Barber Vintage Motorsports Museum Leeds, AL 10/9/2023

A quorum was designated with over 7 Trustees in attendance:

Al Anderberg (AA), Carl Anderson (CA – Chairman of the Board), Mike Dixon (MD), Fred Guidi (FG), Arthur Kowitz (AK), Brian Larrabure (BL), Albert Newmann (AN – Treasurer), David Rutherford (DR), Luke Sayer (LS – Secretary), Kelly Shane (KS), Tim Terrell (TT), and Greg Tomlinson (GT)

Daniel May – (Executive Director – ED), Ed Roman (Special Committee Chairman), Al Charles (Road Race Director), Terry McPhillips (Off-Road Director), Richard Brodock (Dirt Track Director)

Cristy Klamfoth, Kim Sharp, Brian Sharp, Jeff Hargis, Steve Swank, Dan Thornton, Jennifer Thornton, Tim Joyce, Renee Schuelke, Mitch Skaggs, Leona Dixon, David Rhodes, Bob Robbins, Kevin Kautzky, Tim Banks

Published Agenda to Adopt – GT motion to adopt, TT seconded, 11 vote Yes

Laguna BOT Meeting Minutes – AK motion to approve, GT seconded, 12 vote yes

Chairman of the Board – Carl Anderson

Opening Remarks

Carl welcomed the staff and members present.  He announced that this meeting would be his last as Chairman of the Board of Trustees and he would serve another 2 years as a trustee.

Executive Director Daniel May

Dan’s presentation shown below:

The First Sixty Days

• Daniel May appointed Interim Executive Director on August 3, 2023
• Ed Roman appointed chair to special committee to the chairman
• Daniel has been focusing on Road Race, Dirt Track and financials
• Ed has been concentrating on Off-road, Membership, and insurance
• Splitting of responsibilities has been very efficient and productive
• Smooth transition from previous ED, still migration ownership of some accounts
• Membership moral is strong.

Financial Health

• AHRMA faced a liquidity issue in the beginning of August.
• Short term obligations exceeded available cash.
• Board members were asked to contribute personal funds to cover short fall.
• New team was able to resolve situation with no additional borrowing or BOT contributions.
• Current cash position is strong through end of FY2023 (November 30^th)
• Reduction in monthly overhead combined with in-kind donations strengthened position.

FY2022 vs FY2023

• FY 2022 was very bad, lost between $300k-$350k.
• FY 2023 turn around has been *very* successful.
• Expect to be “in the black” for FY 2023
• Q4 2023 is coming in very strong, Barber exceeded expectations on all levels.
• Remaining off-road and dirt track events should be cash flow positive.
• Overall, 2023 revenue is less than 2022, but profitable. Less is more!

Challenge and Opportunities

• Membership decline has stabilized but needs to find new opportunities.
• Magazine is being restructured to embrace changes in print and online media.
• Sponsorship across all disciplines is key to success.
• Spectator growth is of equal importance to membership growth.
• Social media engagement is necessary in the new world.
• Merchandising and Branding needs to be refined.

Current Initiatives

• Membership drive
• Magazine restructuring
• Sponsorship
• Financial account consolidation
• Merchandising
• 2024 race schedules
• MSR contract

Dan stated that the FY2022 Tax filing was completed and sent to IRS. There is a link on the AHRMA website for the form in the Archives section.

Dan also brought up the unfortunate and tragic incidents that happened at the Barber racetrack Saturday and Sunday with Silke Crombie and Robert Aegerter.

Member Comment Period (one hour)

Carl opened the member comment period at about 9:00 am for those members that had signed up to speak.

• Dan Thornton – Dan and Jennifer dressed as Santa Claus and Mrs. Claus collected $300 for the Benevolent Fund.  He also talked about Trustees and Staff being held to the same Code of Conduct level as members.
• Tim Joyce – Tim talked about the Code of Conduct needing to be simplified and shortened.  He also talked about Trustees and Staff being held to the same Code of Conduct level as members.
• Rene Shuelke – Renee agreed with Tim’s comments.
• Mitch Skaggs – Mitch thanked Carl for being the Chairman of the Board.  Wants AHRMA to keep moving forward.  He has confidence in this leadership group.  Mitch thinks that Trustees should mingle more with members at events.
• Leona Dixon – Leona thanked Dan May and Ed Roman for what they have done since joining AHRMA management.
• Brian Sharp – Brian will be continuing his sponsorship in 2024 and he is happy with the current management team.
• Bob Robbins – Bob has positive comments for current AHRMA overall. He suggests that a safety committee be established for quick resolution of safety issues. Bob volunteered to lead RR Safety Committee and feels each discipline should have their own committee.  AHRMA needs ambulances at all road races.  Bob does not like current professional racers racing in AHRMA.
• The BOT discussed the Safety committee idea with various BOT members contributing ideas including AK supporting establishing such committees.
• Jeff Hargis – Jeff stated he joined AHRMA for fun without having kids on 600cc motorcycles.  Also, weekend-only parking fees reduce inviting friends and family if they only can make one day.  Other people present confirmed that improvement is needed here.

Treasurer Financial Report (Albert Newmann)

Albert stated financially we are stable and currently we should feel confident about maintaining good funding during our winter months. We need to remain cognizant of cash flow as the directors finalize the 2024 schedule. The entire AHRMA team has done a tremendous job to cut expenses, renegotiate contracts, and provide forecasting in advance of events and everyone should be congratulated on these efforts for 2023.

Secretary Report (Luke Sayer)

Luke stated that he was new to the position early this year and had a lot to learn but is getting better. Our by-laws have been updated for new mailing address, meeting notification clarification, and check limits without BOT approval. Meeting minutes format will be simplified. Overall, he is looking forward to 2024 being a great year for AHRMA.

Road Race Director Report (Al Charles)

Al stated that we have very good rapport with all the tracks we went to this year. Arthur Kowitz in AHRMA Academy of Roadracing had 90 students during 2023 and laid the groundwork for regional AAR instructors for 2024.

2023 Highlights and Improvements

• First year as Race Director, met hundreds of fantastic people.
• It was a good year as far as weather goes, a little frost, sometimes a wet track, lightning, and tornado warnings but overall, no major delays due to weather.
• A very successful AAR program this year approximately 85 students passed the class.
• Positive rider feedback, “Well organized events”
• Procedures and Staff Changes:
• Race Control and Referee were combined into one position.
• Timing and Scoring staff have made changes between them that will save costs.
• New race starter
• We used multiple Announcers this year, cost savings.
• More members are volunteering in all positions.
• Event Schedules once published minimal changes.
• Eliminate errors in what we publish.
• Chalking the Grid Positions, orderly and safe grids.
• Subcontracted gate staffing from the tracks. Cost saving
• Partnered with AFM to manage Laguna Seca Race. Good for the future and a cost saving
• 2023 Race Entries Down 4% for the year 7,841 vs 7,537 (see comparison chart)

2024 Goals

• Focus on 2023 improvements and continue with them.
• Develop backup staff for each position – Regional to save staff travel costs.
• Send out more Volunteer requests.
• Utilize west coast staff for west coast events (found out in 2023 we can do it)
• Develop a “Rider Meeting” video and put it on our website.

Race Entries 2022 vs 2023

• Race entries were down 4% for the year. 2022 total 7,841 vs 2023 total 7,537
  • MSR Data
  • Race entries include:
    • 1/2-day Friday Practice,
    • Full day Friday Practice,
    • Race entries Saturday, and
    • Race entries Sunday.
  • MPH entries were not included in first half totals.
  • Laguna Seca 2023 included Thursday practice day – 65 entries.
  • One attendee equals minimum of 3 race entries.

2024 Road Race Schedule

Al discussed and showed a work in process snapshot in time of the schedule. It will be released as soon as it is finalized.

Off-Road Race Director Report (Terry McPhillips)

2023 Status

• All events have been positive financially.
  • Laguna Seca
  • Honda Hills
  • Diamond Don’s

• Upcoming Events
  • Hayes Farm (This weekend)
  • Mill Creek (Next Weekend)
  • Henryetta Final (Nov 3-5)

2024 Off-road Planning Objectives

2024 Tentative National Off-Road Schedule

Terry showed a work in process snapshot in time of the schedule.   It will be released as soon as it is finalized.

Cross Country and Trials

• Redefining Cross Country Coordinator Role
• Develop Strategy for Cross Country Growth
• Scheduling of Events
• Develop CC Marketing Plan
• Regions tasked with providing Cross Country Race Directors
• More fiscally responsible (lower costs)
• Increasing volunteer base
• Looking to expand Cross Country and Trials in the Regions

Additional 2024 Objectives

Grow Off-road by working with the Regional Coordinators, and Cross Country and Trials Coordinators.

Objectives:

• Increase Overall Membership
• Increase Participation in National Events
• Increase Participation in Regional Events
• Increase Active Off-road Membership
• Increase Off-road Volunteer Participation

Dirt Track Director Report – Richard Brodock

2023 First Half:

• We had some pretty good success in the first half of 2023 with the exception of a few events.
• This year we have focused on promoting and marketing. We are working on finding tools that will help us utilize social media easier and reach more people. This has increased attendance of our events both in riders and spectators.

2023 Second Half:

• Working with what we learned in the first half of 2023 we were able to build on the successful parts of the program and work on the other parts to adapt them to be more successful.
• All events since July have been in the black and contributed to the dirt track program being in the black at the end of the year for the first time in over 10 years.

Racer Input:

• The members continue to be excited about the new tracks and schedule.
• We will continue to take their feedback and suggestions as we put together the 2024 schedule.
• The 2023 Dirt Track Vintage cup was a big success in bringing out new bikes and riders.
• In 2024 the Dirt Track Vintage cup class will be the Seventies Singles class. This class consists of four stroke single cylinder bikes like the Yamaha TT500 and Honda XL350. This class should be exciting to watch in 2024 as well as bring in more members for AHRMA and riders for dirt track.

A few words about 2024…

• Plain and simple, we need continue to aggressively promote our events and to build a well-rounded program while keeping that family atmosphere. Adding youth classes would be a big part of that as well as creating longevity for AHRMA not just in dirt track.
• In 2024 we will be concentrating heavily on the Southeast and Midwest where a majority of our dirt track members are. These events cost less to put on and have a higher attendance. This will allow us to increase revenue.
• We will still maintain our west coast presence as we develop a plan to increase west coast events.

Tentative schedule thoughts (directional)

• For 2024 we are shooting for around 8-10 events consisting of 10-15 rounds. Focusing on fewer events and making them the best we can, should increase grid sizes, competition, and in turn participation.
• 2024 we plan to bring regional championships back in the same style as our road race program where each National event will be tied to a Region and attendees will earn points towards both National and Regional Championships.
• Stand-alone championship for areas that make it difficult to have more events will continue. The West coast championship event and the Sturgis championship event were received very well.
• We need to increase our sponsorships involvement for 2024 and work with these sponsors to create long term relationships.

State of the union: Dirt Track

• In 2022 the program saw significant increases (600%) in individual participation as well as entries. In 2023 we continued to see increases in both categories by 10%.
• Rule changes have allowed for more machines to be eligible to compete in AHMRA dirt track. Allowing modern parts that are more readily available and affordable while keeping the vintage and historic look and feel of classes.
• 2023 is the first year of modern bike championship classes and all 4 classes did have a champion that met the 4-race minimum for points. We look forward to growing these classes and providing a place for modern class riders to compete for national championships alongside the vintage class national championships.
• AHRMA dirt track still faces obstacles that have held the program back for many years. The age restriction of 18 years old and older continues to block the family aspect that the sport of dirt track has come to know. Youth classes as well as lowering the age for competition is key to longevity and sustainability of not only the dirt track program but also to AHRMA as a whole.

Chairman Special Committee – Ed Roman

Ed discussed an analysis of 3 independent operating units for each discipline and what the break-even membership level would have to be to support such a plan. A 4,500 total membership level is needed to support independent units. We are not there yet.

Ed Roman also presented membership chart data as shown below.

Membership

AHRMA 2023

Data Source and Workgroups

• Data Source – MotorsportReg (MSR)
• Data Mining – Cindy McLean and Lorraine Crussell
• Analytics Team – Cindy McLean, Lorraine Crussell, Mindi Walker, Ed Roman
• Membership – Lorraine Crussell, Cindy McLean, Ed Roman, Daniel May, Terry McPhillips

Membership Analysis Outcomes

• Workgroup Expertise and Defined Terms
• Informatics is the study of the behavior and structure of any systemvthat generates, stores, processes, and then presents information; it is basically the science of information.
• Business Analytics is the process of transforming data into insights to improve business decisions.

Membership Age Distribution

Member Age Analysis by Discipline

• Road Race and Dirt Track Members are slightly younger
  Slightly – to a small degree; not considerably

Members Aging over Time Off-Road Members Aging over Time

AHRMA’s Sustainability Analysis

• AHRMA’S 3 Disciplines are in a state of symbiosis
• Symbiosis is a beneficial relationship between two or more living organisms of different species.
• What this means to AHRMA?
  • All 3 Disciplines (Road Race, Dirt Track and Off-road) need each other to survive and flourish.

Challenges

• Life Expectancy, source: SSA Actuarial Life Table
  • Males – 74.12 years
  • Females – 79.78 years

Membership Recovery Project Results

• Membership recovered to date – 45
• Takeaway – stopped and controlled the bleeding

Membership Report Monthly View

Membership Report Weekly View

Notes:

• New ED Week 31
• Membership Drive Week 36

Membership AHRMA MAG Format Choice

New Business

Kelly proposed a video meeting to be held in early January 2024 to review the allocations and Profit/Loss statement by discipline for new and existing BOT members.  This was discussed and Dan took an action to make it happen.

2024 Annual BOT in-person meeting dates and locations were discussed with the tentative following dates:

• 1st Meeting at Roebling Road Race – Monday, February 19,2024
• 2nd Meeting at Laguna Seca (AHRMA Classic MotoFest™) – Monday, July 22, 2024
• 3rd Meeting at Barber Motorsports Park – Monday, October 7, 2024

Kelly suggested that all Trustees be invited to the weekly Executive Committee meeting once a month.  General discussion and Dan agreed to invite the whole BOT once a month, so they are informed of the current AHRMA status.

GT requested that the BOT received EC meeting minutes on a regular basis.  GT also requested that the BOT receive a list of all the committees to include Chairpersons and committee members.  Dan action item.

Kelly made a motion to implement his suggestion
TT seconded the motion.
Vote
Unanimous Yes
Motion Passed

David Rutherford presented a proposal for a Bylaws revision.  The revision was discussed and revised multiple times.  After speaking with several Trustees, it has become clear that the verbiage in the change of bylaws was not clear at the time of voting. It Is the recommendation of the Executive Committee that the motion be voted on again once clear verbiage has been established and distributed ahead of a video EC meeting with the whole board present in accordance with the proper meeting notice requirements.

AHRMA MAG discussion of printed and digital versions were discussed with pros and cons of more or fewer printed magazines for the remainder of 2023 and for 2024.  Dan has discussed this issue with sponsors and some of the advertisers and provided his feedback.  Albert presented data from the Laguna meeting and additional discussion ensued.

David Rutherford made a motion to support the Executive Director proposal of 10 improved digital format magazines and with 4 of the 10 magazines being printed for 2024 and 1 printed magazine for year ending 2023.
AK Seconded
Vote
Yes AA, CA, MD, FG, AK, BL, DR, LS, KS, TT, GT
No AN

Open Session ended at 3:00

Closed Session opened at 3:02

A topic that came up late in the day was a discussion of regional (not National) flat track events organized by the Off-Road regions.  After the discussion of pros and cons was complete, the BOT gave the go-ahead to the regions to move forward.  GT strongly urged that the regional flat track series proposed be coordinated with the Dirt Track Director for planning and series compliance.

BOT Meeting adjourned at 4:26

Respectfully submitted October 20, 2023,
Luke Sayer
AHRMA Secretary