Roll Call
Trustees
Meeting called to order by Greg Tomlinson (GT) at 3:37 pm Pacific time / 5:37 pm Central Time
Attendees: Al Anderberg (AA), Mike Dixon (MD), Jeff Hargis (JH), Kerri Kress (KK), Wes Poole (WP), Colton Roberts (CR), Bob Robbins (BR), David Rutherford (DR), Luke Sayer (LS), Kelly Shane (KS), Tim Terrell (TT) and Greg Tomlinson (GT)
Staff: Daniel May (DM) Executive Director, Ed Roman (ER) Special Committee Chairman
Minutes
Adopt Agenda
Motion by TT to adopt agenda as published, DR second. Unanimously approved
Agenda
- 2024 Yearend financial review
- Preliminary 2025 Budgets
- E-Bike Safety Committee Report
- Off-Road Organization Restructuring to improve the membership experience and make Off-Road more manageable
- Dirt Track 2025 path forward
- All Disciplines 2025 National schedules review
- Publications 2025 schedule review
- Fee increases and pass-through charges, communications and timing discussion
2024 Year End financial review
- 2022 was a bad year, as previously reported AHRMA lost ~($335,000) and debt increased to $350,000 plus accrued interest.
- 2023 was better, with the year ending with a modest profit of ~$56,000, but midyear cash flow challenges impeded operations, and outstanding debt burdened the balance sheet.
- 2024 (Dec ’23 – Nov ‘24) produced a *preliminary* net profit of ~$136,000
- $200,000 of the outstanding debt has been retired, leaving a manageable $150,000 (plus nominal accrued interest).
- 2024 budget presented at Roebling Road forecasted a net profit of ~$184,000, We were ~($52,000) behind the forecasted budget, with actual net profit a positive ~$136,000.
- The major budget item that was underestimated was membership income. We had $25,000 less income than anticipated.
- Overall, some budget items came in under, some were over budget, but we still had $136,000 of net profit and retired $200,000 of debt!
Notes:
- The “Class Net” is what each of the 3 disciplines earned after including the overhead of the discipline director’s compensation but does not include G&A (General and Administrative) expenses or income.
- “G&A INCOME” includes revenue from membership, top-line sponsorships, and any other income that cannot be directly allocated to an individual discipline. This income is distributed to each discipline based on the G&A income allocation model, proportionally based. Usually 75%/25%/5% to OR/RR/DT based on memberships demographics.
- “G&A Expenses” includes expenses for top-line administration costs (accounting, magazine, communications, D&O insurance) and any other expenses that cannot be directly allocated to an individual discipline. These expenses are distributed to each discipline based on the G&A expense allocation model, proportionally based. Usually 75%/25%/5% to RR/OR/DT based on memberships demographics.
- The G&A allocation models allow us to better assign indirect income and expenses to the appropriate race discipline.
Notes:
- We start the estimated budget assuming each discipline will do the same as 2024.
- Then we add in the “known” increases for 2025, Executive compensation, capital expenditures for equipment, Misc insurance, etc.
- The MSR Fee passthrough covers the budget increase for OR and DT, but RR will also need a 11% entry fee increase to cover increased expenses.
- Finally, we reach our target of $85K net profit after we service the outstanding debt. This net profit rebuilds the “rainy day” fund that was depleted in 2022.
- A not-for-profit should target a 5% profit margin and have 6 months expenses in its operating reserve.
E-Bike Safety Committee Report
Proposal to the AHRMA Board of Trustees: Safety Measures for E-Bike Racing
In response to the recent incident at Barber Motorsports Park involving a Lightfighter electric bike fire, the Safety Committee convened a sub-committee to evaluate necessary equipment and procedures for managing similar incidents in the future. After reviewing FIM regulations, the sub-committee recommends the following safety enhancements to allow the continued participation of both production and prototype electric bikes (E-bikes).
Proposed Changes:
The sub-committee proposes amending the 2025 AHRMA Handbook outside of the standard rule change period to prioritize safety. The incident at Barber highlighted the lack of specialized equipment and trained personnel to manage E-bike fires, posing risks of personal injury, race interruptions, and potential facility damage.
Key Requirements:
Rider and Team Compliance:
- Riders and teams with E-bikes must have mandated safety equipment, estimated to cost between $1,200 and $1,300.
- Bikes must meet updated technical safety standards.
Track and Event Safety Enhancements:
- EV response teams and strategic track stations will require specialized equipment to handle E-bike emergencies, including fires.
The estimated cost to outfit these teams and stations ranges from $15,000 to $25,000, excluding consumable items.
Funding and Support:
- It is recommended that the E-bike community, through sponsorships or donations, cover the costs of equipping response teams and track stations.
Rationale:
Given AHRMA’s history of innovation and its commitment to safely supporting emerging technologies, it is crucial to adopt these measures. This proactive approach minimizes risks and ensures the safe continuation of E-bike participation in AHRMA events, mitigating the possibility of future incidents and their associated consequences.
The Board of Trustees is urged to consider this proposal as a necessary step to uphold safety standards and protect riders, staff, and facilities.
Motion for the AHRMA Board of Trustees
Motion:
Shall the AHRMA Board of Trustees amend the 2025 AHRMA Handbook to include the following safety measures for E-bike participation, as recommended by the Safety Committee sub-committee, effective immediately in the interest of safety:
Rider and Team Requirements:
- Mandate that all E-bike riders and teams possess safety equipment estimated to cost between $1,200 and $1,300.
- Require E-bikes to meet updated technical safety standards.
Track and Event Safety Measures:
- Equip EV response teams and establish safety stations with specialized equipment for E-bike emergencies, including fire suppression.
- Secure funding for this equipment through E-bike community sponsorships or donations, with estimated costs between $15,000 and $25,000 (excluding consumables).
Reasoning:
This motion is prompted by the recent incident at Barber Motorsports Park, which revealed significant gaps in preparedness for E-bike-related emergencies. Adopting these measures will mitigate risks, protect participants and facilities, and ensure the safe continuation of E-bike participation in AHRMA events.
Vote:
- Yes— Approve the proposed safety measures and amend the 2025 AHRMA Handbook.
- No— Do not approve the proposed safety measures.
*E-bike discussion pros and cons by Trustees and staff. It was brought up that the E-bike entries over the 2024 year were 6 entries, the risk to AHRMA was significant in that 1 E-bike fire could possibly shut down the racetrack for the entire weekend and have AHRMA liable for repairs to the facility. The initial proposal to approve safety measures recommended by the safety committee was rejected by the Board. An alternative motion was proposed to eliminate E-bikes in all AHRMA disciplines by DR, second by LS, 2 no (BR & GT) and all others, 10 yes – motion was approved.
PROPOSED OFF-ROAD MANAGEMENT STRUCTURE
- The BOT discussed issues and shortcomings of our current Off-Road program. Ed Roman in conjunction with discussion with multiple Off-Road volunteers, promoters and the O/R Director came up with the proposed restructuring. This approach distributes the tasks between more folks to make it more manageable.
- Motion made by TT to approve proposed Off-Road Management Structure Plan as presented. Second by DR and unanimously approved.
AHRMA Dirt Track path forward for 2025
- 2024 was once again a challenge for AHRMA DT.
- DT has lost > $78,000 over the last 3 years ($27,499 2022, $27,077 2023, $23,693 2024).
- Proposed 2025 schedule will be even worse as 2 of the 3 profitable events have been removed from the schedule (Both Beaver Creek Events were removed from the 2025 schedule, which were slightly profitable).
- 2024 saw 217 unique participants, but only 64 were full AHRMA members, 50 were weekend members, and 102 were not AHRMA members at all.
- Even doubling the entry fees would not bring the program into the black, yet DT Director states AHRMA fees are already too high.
- Possibly restructure into limited, regional series paired with off-road or road race events. Pick a few events that can be profitable combined with other discipline racing.
- The BOT discussed the continued financial losses with the current Dirt Track program and that a viable 2025 schedule and budget was not provided by the DT Director.
- Motion made by LS: Effective Immediately, the ED is granted authority to restructure the AHRMA Dirt Track program. This may include reducing the National Series to a Regional Series until a financially viable model can be developed. DR seconded, unanimously approved.
All Disciplines 2025 National schedules review
- All 2025 AHRMA discipline schedules have been released and are available on the AHMRA website: https://www.ahrma.org/schedules-results/
MSR (MotorsportReg) Fee Passthrough
- In 2024, AHRMA had $72,011.78 in processing and payment fees
- $62,568.07 was specific to MSR (MotorsportReg)
- MSR fees have 3 categories (average of about 5.5% per transaction)
- MSR “rack” fee. The cost to AHRMA to use the software. Starts at 3%, but discounts based on $$$ volume. Lowest tier is 2% if we exceed $1,800,000 in processed transactions.
- Credit Card processing fee. This can range from about 2.85% for Visa/MC, up to 3.85% for AMEX. Direct Bank payments (ACH) are 1.5% less than credit cards.
- A flat $2.00 transaction charge.
- These MSR charges are estimates, as actual charges might be capped based on overall transaction amount and may reduce over the year based on AHRMA processing $$$ thresholds met.
- MSR Fee Passthrough discussion by staff and Trustees. It was agreed that Off-Road entry fees would not be raised other than the minimal MSR fee passthrough. Road Racing entry fees may increase a little but will still be less than other Road Racing organizations.
- Motion by LS to approved MSR Fee Passthrough as presented, BR second, unanimously approved.
Overall, this special meeting of the BOT reviewed our 2024 financials and steps to resolve issues to make AHRMA better and sustainable into 2025 and beyond.
*Motion made by WP to adjourn at 5:50 pm PT (7:50 PM CT), KS second, unanimously approved.
Respectfully submitted,
Luke Sayer
AHRMA Secretary
