What is involved in motor sport event ogranising Essay

Motor sports deal with a varied cross-section of disciplines and have many participants and spectators that usually attend such events on their weekends.  Just to show how big it is, it is enough to mention there are events that can attract up to two million spectators.  It is possible to say that every weekend and sometimes on regular days that usually attract a few spectators, there are a big number of club events attended by both participants and spectators.  In all these events there are also other events that could be taking place on behalf of corporations that are willing to sponsor race drivers, race cars, race teams or may want to have a special event that will promote what they are doing, and these events mostly could take place on established tracks. [1] Hence, when we talk about motor sport event organising the activity could also involve businesses that are willing to participate at various levels to get exposure and they are the other source of income in addition to the various fees club members are paying and of course, the tickets they sell to the thousands of spectators.  The overall industry hires a big number of full-time and part-time staff in most nations such as the U.S. and Britain, which reveals it is a huge economic force.

 

When touching the fundamentals of organising a racing event it seems that the particular sport is not getting the attention it deserves even if it is still secularly popular and that might have to do with its mobile nature that usually makes the planning process a bit difficult since it is not possible to retain any site for a long duration.  That has to do with the nature of the motor sport where if it is undertaken at a given site that does not have permanence as a race track, for example, it will require renegotiating whenever there is a need to plan a new event.  Since the number of clubs could be high in any given jurisdiction whatever is available for running the motor sport event is open for everyone, which means if all the clubs want to have an event on a weekly basis it is not difficult to see the chaos as well as the economic bottleneck that will be created unless there is enough facility that can handle all the events.

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What usually happens is the number of the competitors is always high compared to those that have license from a licensing body of a given jurisdiction they want to compete or drive in.  Some clubs could have a big number of members and various classes that include juniors of very young age, between 12 and 16.  There are various racing events that involve mostly cars and motorcycles and this kind of racing event could be a road racing where it could take place on tracks built for such events and are sealed off.  Off the road racing could also take different forms where the distance to be covered could be limited and the racing could be done on grass or agricultural lands or in the forest and could be cross-country too.  Rallies could take place on all sorts of facilities including, public highways, off the road locations, race circuits and airfields. [2]

 

The sites for the most part are graded by an executive body that is overlooking the motor sport in each jurisdiction according to the number of years they were in use.  A good example to cite is the Motor Sports Director in the UK that grades sites by the number of years they were in use, and grade one sites are those that had been in use for more than 50 years and it goes down to ten years that being the minimum requirement to qualify for the grading.  One thing to take a note of here is the price this highly graded sites charge will go up and down according to the demand and are good indicators to the event organisers when organising an event on a given site if it is within their budget and whether what they anticipate in a form of spectators will cover the cost they will incur in order to organise the event.

 

Another key point here is for all motor sport events that take place off the road, there is a limit and season when those events are allowed to take place on particular lands that could mostly be agricultural or grazing lands.  Another good example to use is the case in the UK where the total number of days allowed to use such off the road lands is 28 days a year among which only 14 days are allowed to hold racing events of any kind and the other 14 day are used for training and other related matters, and it should not take place in farming season.  [3]

 

The other key hurdle for event organisers is there are requirements that have to be met simply because there are certain things the nature of the motor sport alters to make the racing more effective, interesting and fun.  One such concern, for example, is noise as the racing event usually does not take place in far away places where there are no residents.  Since racing cars could use powerful engines that could make noise, the issue will have to be addressed in such a way that whoever is overseeing and giving permit for the event to take place will have to be satisfied.  This means there are inspectors that will require the cars participating in the race to meet the requirement in the handbook of the governing body of the race, otherwise they will exclude them.

 

Traffic is also another problem to be concerned about even if most out of the road events attract fewer participants and spectators.  At times, even that few number could be overwhelming for narrow country roads and mostly what is required is to co-operate with the authorities to take routes that are designated to handle the traffic better, since one of the criteria that qualifies the sites is the availability of good access to the area, but staying on the roads that can handle the traffic is required.  There are also two other components that go together and they are sustainability and designated areas where there is a need to follow certain environmental guidelines.  There are inspectors that will make sure the requirements are met and such measures are believed to arrest the worries that arise from the locals who could be concerned about the impact of the sport on vegetation, wild lives and designated areas.

 

Designated areas for the most part are national parks, areas of outstanding beauty and it could also include sites where there are specific scientific interests on them.  What this means is each case will be judged individually without totally banning motor sport activities and what is required is a planning permission, which could make things complicated because of the requirements involved.  Normally, no planning permission is required and motor sport events are taking place by simply striking a deal with the landowners. The whole idea is not to bar any activity, but to accommodate the need properly if, for example, there is going to be a lot of noise to be generated by the racing and such events have to take place on areas that are designated for such events that are very remote in most cases and could be held on mineral mining lands or degraded farmland that are abandoned and are remote.

 

Other than that, there are particular precautions to consider where all events will have to take place 400 meters away from residential areas or any other similar environmentally sensitive areas.  The traffic congestion and parking will also have to be considered in advance and have to meet the requirements that they should not be endangering anything, including people, property, the environment, etc., and most of all they should not intervene with the areas’ agriculture in anyway.  This would mean those who are organising an outdoor motor sport events have a lot to look at as situations could change according to the season, where they might not be in a position to lock in a deal with particular locals for a long duration because of the competition. [4]

 

What takes place in the other areas, whether they are Kart racing or drag racing that takes place on a sealed surface, which could be airfields or circuits, there is not much problem as long as the tracks meet the noise and environmental requirements, are kept in good condition and avail all amenities since they attract a big number of spectators and participants on a weekly basis.  The same applies to rallies, whether they take place on public highways, off the road areas or inside race tracks as long as they meet the requirements that will have to do with noise, the traffic jam they could create while racing or parking for spectators and the environment, because the rally could go through rural lands, forests, and at times it could take place on abandoned airfield, or private estates.

 

In all this, the clubs that are responsible for organising the motor sport events mostly comprise of members that pay certain amount of membership fees on a monthly basis.  Since most of the workers of such small clubs are volunteers, it is possible that they can be viable even if they do not have much revenue, which would not be the case as long as they are organising events.  But it is those that are operating in big racing tracks, whether they own it or rent it that can generate substantial income because there are many sources of income for them when compared to those that organise rural events that could be attended with a few hundred spectators that would pay, but what will be generated will not be substantial.  There are times such events could get the land the racing takes place on free revealing it is not a money-generating event for everyone.  [5]

 

Those that are organising events in the popular and established racing circuitry generate substantial revenue, because they have several source of income.  One of the known sources is corporate sponsorship that could involve sponsoring a driver to represent the sponsoring company.  If the price is right which could be high sometimes, a particular driver could drive a race car carrying the logo of a particular sponsor and what that means is a huge exposure for the sponsor since there will be thousands of spectators attending the events.  In addition, the media such as TV would make an agreement to broadcast the race.  Also it is possible to sponsor a particular vehicle that will carry the logo of the sponsor.  When a station does that it will attract advertisers because there will be many people watching the broadcast and that is a substantial source of income for the various stations that are signing contract to cover the various track events or those that take place off the road.  At the same time, they would share some of their revenue with those that are organising the events creating another source of income for the organisers.

 

Another source of income for the motor sport organisers is when they accept a car to compete in their track where the manufacturer of the car pays them money, because tracks do not allow every model and that by itself is a big promotion for the car maker.  It all depends on how sophisticated the motor sport club is when it comes to generating income where if the clubs are bigger and are operating in major cities, what they do attracts many spectators and the number of corporations that would want to sponsor such events would be high in such situations.  At the same time there are secondary event planning companies that cater to corporations that want some kind exposure or a big corporation might want to bring guests that could be clients or staff to a given event.  When such needs arise there are second party companies that are connected with the various clubs and they will arrange such events on behalf of customers and, of course, they share some portion of the income they generate with the clubs for using their facility. [6 secnddcomp] At the same time some circuits rent out special luxury suits, which will require them to own tracks and such clubs might not be many in number as renting out tracks for racing competition is a business by itself since there are much more clubs than the available tracks and it is only a few of them that own their own tracks.  Most tracks could sell food or clubs that organise events could arrange contract with such companies that will sell food and beverage on tracks and the track owners get commission on what is sold on the event.  Some sell souvenirs and memorabilia on the events that could generate a lot of income, and since each club has some legend behind it this is one venue they could exploit for a long time.

 

Some clubs give driving instructions and training which will generate them income, while most clubs sell or rent racing gears not only to generate money but to make the racing safe and meet the standards.  Some also could get commission off the gas and lubricants the racing cars are using on the event they are organising.  For example it is possible that a club could decide to buy all or some of the tires used on the race from a particular manufacturer and when that is the case they will be in for making commission for bulk buying.  And, of course, nothing will hold back the clubs from operating as an enterprise where they could invest some of their earnings in various investment instruments, or open franchises as some of them are known to be doing, everything being dependent on the motive of the club, and some had gone public and are trading in the stock exchanges enabling them to have a substantial capital to grow and expand as there are motor sport clubs that own many motor sport clubs in various regions including globally.

 

What this means is a sport motor club could remain a club and operate with the money it gets from membership fees and from some of the events it is organising from time to time, or it could change its form and become a profitable organisation hiring full-time and part-time staff, and it is only the smaller clubs that use volunteer help due to not having a sizeable income to grow or expand. [7]

 

When it comes to media communication any of the clubs could invite a local TV station and ask them to broadcast an event and for doing so they can have the broadcasting right and will share from the income that will be generated or the existence of such an arrangement will make them attractive to sponsors.  That is one of the lucrative sources that might compete head on with the ticket sales,  especially for the smaller clubs that are organising smaller outdoor motor sport events where the number of the spectators could be limited.  However, having a local TV station at the event could give a sizeable exposure for those who are participating, including sponsoring corporations.  If there is any kind of media coverage that includes the print media too, it is always a plus since that is what the sponsors are paying for, to get exposure.  This means the media communication is a key part of the motor event organising, just to get a good coverage at the local station or newspaper or radio station where the sponsors will get exposure.  They can also use the exposure to raise the awareness of the existence of the club that could result in attracting more members, while broadcasting an oncoming event will help with the turnout of the spectators.

 

The officials of a typical motor sport club could be comprised of the following.  The club might have an independent board of directors or its top officials could play the role depending on its size.  The top officials could be the president whose duty will be to preside over all club meetings and could be responsible to sign all official documents on behalf of the club, and in most cases countersigns payments.  Moreover, since the president is the CEO of the club, is in charge of the club’s activities and the directions the club will be taking.  The vice president’s role is to assume responsibility when the president is not available for any reason.  Other than that, the VP’s duty for the most part is the up-keeping of the membership, to come up with schemes to raise the number or to work on the benefits the members are getting from the club.  The secretary’s main duty is keeping minutes of every meeting and will make the minutes available to anyone who might have interest in it.

 

The treasures is in charge of the overall finance of the club and collect fees and is in charge of any other income that will be generated.  As the club’s size gets bigger, the treasurer could become the CFO where it will oversee the accounting department too.  The treasurer is responsible for authorising payments and it is the department that is under the treasurer that is responsible to disburse funds and works in close relation with the board of directors.  The marketing director or the chief of the marketing department is in charge of promoting what the club is doing either to attract more members or sponsors or whenever there are events to attract more participants as well as spectators.  It is also possible to have a competition director and anyone who is in charge of this position is responsible for the hands-on part of the job where all events are organised under this department that will have direct contact mostly with the participants in the events and the director makes sure that the compliance with the rules and regulations is in place.  There could be one more position and that is of the a social director that will deal with the social relationship of the club in the communities it is operating in and it could involve coming up with activities from time to time that involves everyone and mostly is at the expense of the club or members and staff might make contributions.  The social director could be responsible for events such as picnics, BBQs, cruises, or allowing certain groups to attend events without paying etc, the effort being to give a good image to the club and enhance its acceptance in the communities it is operating in.  The social director could work as a public relations officer too so that the club will have a good place in the community.

 

When it comes to officials there are factors that are influencing what kind activity they get involved in and what they accomplish in the clubs.  Mostly, it is the size of the club or the location, whether it is in the urban communities or the outlying regions that dictates what kind of roles each official should play. Each one them has their own requirements, the requirements being less if the club is operating from the outskirts of the cities.  It also depends on the volume of business where some clubs cannot help to function as a corporation simply because they have become big and they generate a substantial amount of income.  They might own several clubs that have their own circuits and the like that will necessitate having a sophisticated administrating group in place.

 

Overall, what this shows is planning a motor sport event is not easy in the first place and secondly the profitability of the event depends on where it is taking place.  If it is an off the road event it might mean that it is arranged to entertain and to avail an opportunity for the members to compete in a race since such club comes into existence to serve such purposes.  And the lands where such events are held on could cost a nominal amount or they could be free simply because some of those who are close to the land might be members.  In all this it is possible to create some economic activity where there could be all the things that were mentioned that include spectators, sponsors because it is possible to give a media exposure to such events as all it takes to have is a local station crew record the event and air it.  Some motor events that take place on air fields limit the number of guests each member could bring to such events to avoid huge traffic that might require parking and other amenities where food and drink might have to be available, including a portable toilet whose cost might add up.

 

But those who organise a motor sport event that takes place in big secluded race tracks that are build for this purpose do a good amount of business because they are built keeping the business as well as the entertainment aspect of motor sport club in mind.   They also have to meet all the requirements before they obtain the license to operate such a facility and once they are up and running, their chance of generating a revenue is a given, because they can attract a big number of spectators.  The sponsorship in such events is also high because the corporations that are willing to spend a lot of money know they will get the exact kind and amount of exposure that they will need, which in most cases will give an edge to what they are doing.  Corporations that advertise a lot always finish ahead of their competitors since they can easily become household names.

 

Such tracks also are the best venue for those who plan motor sport events for their customers, because in addition to sponsoring, corporations most of the time want an event to take place on their behalf where their logo will be displayed on tents, table umberallas and the like and could cordon one segment of the entertainment area where their guests can sit to have drinks or foods.  That by itself will create business for the food vendors that could be run by the tracks themselves and if they are not they will pay a commission and rent for being there.  The event planners also have to pay a portion of their income for the track owner creating many sources of income.

 

The conclusion is a motor sport event could be a small outing of club members on a field that could be a farm, grazing land, old airfields, etc where members would have fun competing or driving their favourite sport cars, which could take many forms and it could also involve motor bikes.  It is possible to make money on such events or it could be the clubs that will cover the nominal expense from the monthly membership fee.  It is not an expensive affair most of the time and it takes place a few times a year.   The other one that takes place in the big tracks by itself is a big business, is run as such, has many sources of income like it was discussed above and could be run as an enterprise or even a publicly held corporation.

 

REFERENCE

 

1.      Sponsoring Motor Sport Event or a Team. Retrieved from the Internet on March 19, 2007,  www.helium.com/tm/95644/individuals-

involve-themselves-motorsports

2.      Host a Motor Sport Event. . Retrieved from the Internet on March 19, 2007, www.fwi.co.uk/articles/2006/02/20/92789/so-you-want-

to-host-a-motorsport-event.html

3.      Motor Sport and the Planning Development Regulations. Retrieved from the Internet on March 19, 2007,

http://www.laragb.org/reports/14-28guide.pdf.

4.      Land Based Motor Sport.  Retrieved from the Internet on March 19, 2007,

http://www.sportengland.org/planning_6.pdf.

5.  Motor Sport Planning.  Retrieved from the Internet on March 19, 2007,

http://www.laragb.org/reports/invisible-motorsport.pdf.

6.      Motor Sport Hospitality Service.  Retrieved from the Internet on March 19, 2007,

www.balloonsover.com/mhs.htm

7.      Summary of Speedway Motorsport Inc.  Retrieved from the Internet on March 19,

2007, http://biz.yahoo.com/e/070315/trk10-k.html

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