racerxxx;116768 wrote: Well while there is talk about stores and such, what is the actual affiliation between NESBA and the trackday store? I mean NESBA is a nonprofit club, and the trackday store looks to be a for profit business. I only ask because before I blindly give my money over I want to make sure it actually is going to the club and not into someone's pocket. So do all profits go to NESBA? Or are we padding someone's wallet in the name of the club? Just asking not trying start something.
This was covered elsewhere and a I think this response ansswers you question the best.
Dutch;112146 wrote: Jason hit the nail on the head (obviously with his experience in this arena.) You can pull up NESBA filings and see that the org doesn't retain a boatload of cash from year to year. Quite the opposite. The business model has always been to walk the line between retaining enough cash to be solvent headed into the next season and returning that profit, so to speak, in the form of member benefits. Having been a director with this org I have seen the P and L statements. For example, when the club has a rain out the accounting for that event shows up as a loss in the amount of track rental and expenses associated with having run (or not run in this case) the rain out. This goes to the bottom line as a loss. Even though the club is out of pocket for those expenses up front, we still retain the event fees but they are now in the system as a credit (which is actually a liability) for 365 days. Because of that we end up ammortizing the loss of the event over the next 365 days. These credits then reduce the profitability of the events on which they are applied over the course of the year and are felt in the bottom line. Same thing with crash and mechanicals. If the club experiences a high amount of rain outs in one year it all eventually flows down to the bottom line and affects retained earnings and cash on hand. There have been years in the past, and there will be years in the future, when things get mighty thin when we hit December through February when all the deposits come due. If NESBA can launch a store such as this one, provide a benefit to the members, and help shore up it's fiscal foundation then I am 110% behind this. Ensuring the future of this club has to be the number one priority. I don't know what the plans are when it comes to the non NESBA track side vendors operating in some regions but it's not like there aren't online vendors out there right now competing for the same chunk of the pie that they are. Hopefully something can be done to make this a collaborative effort in which everyone succeeds.
