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Registration fees, or how to supplement your income

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Registration fees, or how to supplement your income

Old 05-20-07, 05:55 PM
  #1  
blanqui
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Registration fees, or how to supplement your income

Did a lovely race today. Weather was nice, rode with a good friend, met some nice folks, and accomplished my training goal. The race in question cost $20 and there were about 50 riders so the organizer grossed $1000 from my field alone. Where did all the money go?

$0--no t-shirts, pint glasses, or anything.
$20--two five gallon jugs of gatorade and three cartons of cookies after the race
$??--the presence of one police officer
$??--the presence of an ambulance and two EMTs
$??--the value of the time it took the organizer to put the race together.
$0 prizes available "thanks to our sponsors"

So my question is...my house needs a new roof. If I organize a race do I apply my standard W2 withholdings or can I just pocket the cash?
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Old 05-20-07, 06:01 PM
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I think the permit to use the roads might cost something too. If you want money for a new roof, you should probably get a job at McDonald's since you'll probably make more money there.
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Old 05-20-07, 06:11 PM
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Originally Posted by blanqui
So my question is...my house needs a new roof. If I organize a race do I apply my standard W2 withholdings or can I just pocket the cash?
I can assure you that organizing races is NOT a super profitable thing.
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Old 05-20-07, 06:13 PM
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When I first started racing our club Secretary told me it costs the club about $1000+ a week for that one day. Considering they give prize money, close down streets and have an ambulance on stand by I don't think there are to many profits. Given all this, I don't mind paying $15.
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Old 05-20-07, 06:13 PM
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Originally Posted by DrPete
I can assure you that organizing races is NOT a super profitable thing.
I'm happy to settle with modestly profitable.
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Old 05-20-07, 06:16 PM
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Insurance is a big part of the expense; permit fees, and the pay for off duty cops is not inconsequential.
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Old 05-20-07, 06:28 PM
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We should expect to hear in a couple of months how the "Banqui GP" was easy from both a time and logistics standpoint, and profitable. And was met with the gratitude of the racers....
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Old 05-20-07, 06:37 PM
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Things that the promoter (in our case the local not for profit bike club) has to pay for in a stage race:

Permits to use public facilities
Advertising
Officials: including mileage/lodging/fees
EMT's
Law Enforcement
Purse ($8,000 in our case)
Incentives for Volunteers including meals and t-shirts
T-shirts for racers
On-course food and water/bottles for racers
Permit from sanctioning body
Bib/frame numbers
Timing crew
T-shirts
Fliers
Paint to Mark Road Hazards
Announcer and sound system for crit


I could go on but I think you get the picture.

In fact if it wasn't for the 150+ unpaid volunteers who help put on our stage race, there would be no race.
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Old 05-20-07, 06:37 PM
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At the Niagara Classic RR the reg. fee was $40 for Juniors and $50 for other Cat's, and there were 400+ people there. On a 12km course. With maybe 10 officers. Heh.

$20 000 in a day, eh? Not bad...
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Old 05-20-07, 06:55 PM
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Originally Posted by blanqui
The race in question cost $20 and there were about 50 riders so the organizer grossed $1000 from my field alone. Where did all the money go?
I know this: with $0 road permit fees, $0 prize list, $0 volunteer budget, and $0 officials fees, our club breaks even on a road race with about 60 riders.
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Old 05-20-07, 06:57 PM
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Paying for cops and EMTS is expensive! I think when my collegiate club put up a RR 1K+ was mentioned....
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Old 05-20-07, 09:38 PM
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Originally Posted by blanqui
I'm happy to settle with modestly profitable.
But you forgot to divide those modest profits by the hours spent. Enjoy your less than minimum wage job.
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Old 05-20-07, 09:43 PM
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Originally Posted by DrPete
I can assure you that organizing races is NOT a super profitable thing.
+1

Last year I helped some friends of mine with a crit their team puts on every year. Since I was sitting at the table taking entries, I had a pretty good idea how much money they took in for entry fees. Later that evening at a post-race party, there was a discussion about how much the club would net from the race. I was shocked at what a low percentage they got to keep. The cops were teh most expensive part and took a huge chunk of the entry fees. Makes me wonder how some of these races can afford to do these races where a lot of roads are blocked off. Either that or maybe now we know why some of the races in northern cal are in the middle of nowhere.
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Old 05-20-07, 11:16 PM
  #14  
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Originally Posted by merlinextraligh
Insurance is a big part of the expense; permit fees, and the pay for off duty cops is not inconsequential.
+1 Some of the permits require rather large insurance coverage. Did we forget numbers, meals for workers, and if it's USCF there is a required compensation for the officials which includes travelling distance to the event. I was once involved in starting a club, and one of the requirements of the USCF was that we host a race each year. After scouting out costs, we decided that the local velodrome's $200 fee to have them host our event for us was a deal!
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Old 05-21-07, 06:34 AM
  #15  
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No, it's not a way to supplement income. The race my club promotes is our district's road race championship, so the fields are always full. We have it on rural roads that have minimal intersections so it kind of runs itself. The race costs us approx. $7,000 to cover:

Permits
Officials: including mileage/lodging/fees
EMT's
Restrooms
Law Enforcement - this is a BIG expense, the fuzz goes for about $400/day/officer
Purse
Numbers
Bikereg fee
Prep costs (signs, street sweeper, miscellaneous)

The race is how we get our operating revenue for the next year and we take in about $12,000, which leaves us with about $5,000 cash in by the time it's done. However, the huge volume of hours put in by club members (all folks with jobs, families, etc.) is on a voluntary basis, and it's exhaustive. Putting on a race always compromises our ability to compete more effectively in the race. We're a small club and it takes full participation to put on our race. Anyone who questions paying <$35 (typical in this part of the country) to race by basing it on how much the promoter is making has obviously never been involved in promoting a race, and should do so sometime.
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Old 05-21-07, 06:59 AM
  #16  
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Originally Posted by UmneyDurak
Paying for cops and EMTS is expensive!

Which is very unfortunate. Back in the day, you sometimes got this support from the municipality involved for free.

The Town that a race is held in gets a definite economic advantage from a bike race, and they should contribute these services to attract the racers. Unfortunately most towns no longer see it that way.


Note, I'm not arguing the Police and EMT's don't deserve to be paid, just that the City should pay them in exchange for the dollars being brought in by the race.
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Old 05-21-07, 08:40 AM
  #17  
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Registration fees, or how to supplement your income

We run a crit once per year and I can tell you that your race had a reasonable entrance fee and that the organizer probably made very little on it. Our costs run around $4500 (not counting volunteer time and organizer time) for all categories. That also doesn'tcalculate the risks. Sometimes other races can make race organizers lose money. This year our race was snowed out - we would have been in trouble if the people who were coming hadn't (by and large) let us keep their registration fees. We broke even.

I view running a race as more of a charity event. You love the sport. You want to support it. You put in a ton of hours for a small monetary gain but give people (who are oblivious to all you've done) a chance to enjoy a race.

If you don't believe me, donate a little time to a race in your area.

Originally Posted by blanqui
Did a lovely race today. Weather was nice, rode with a good friend, met some nice folks,
and accomplished my training goal. The race in question cost $20 and there were about 50 riders so the organizer grossed $1000 from my field alone. Where did all the money go?

$0--no t-shirts, pint glasses, or anything.
$20--two five gallon jugs of gatorade and three cartons of cookies after the race
$??--the presence of one police officer
$??--the presence of an ambulance and two EMTs
$??--the value of the time it took the organizer to put the race together.
$0 prizes available "thanks to our sponsors"

So my question is...my house needs a new roof. If I organize a race do I apply my standard W2 withholdings or can I just pocket the cash?
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Old 05-21-07, 09:24 AM
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Originally Posted by ri_us
I view running a race as more of a charity event. You love the sport. You want to support it. You put in a ton of hours for a small monetary gain but give people (who are oblivious to all you've done) a chance to enjoy a race.
That's why I figured that the USCF requires sponsored clubs to put on at least one race a year-- it makes sure there are some races for people to go to. There's certainly not a lot of economic incentive to put on races.
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Old 05-21-07, 09:36 AM
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don't discourage the OP. put on a race it's a piece of cake, you'll make lots of money, everyone will love you.

our small team use to put on a pretty big race. my friend who runs the team used would do all the work, it was basically a full time job for a couple of months beforehand. we would let other larger teams co-sponsor the race to fufill their uscf requirement in exchange for volunteers for race day about half the people who volunteer wouldn't show up, leaving us to scramble around. all this just to hope and try to break even.
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Old 05-21-07, 12:04 PM
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If there were a profit in it, you'd see more people doing it.
The fact is, there are hidden expenses everywhere.

You get nickle-and-dimed to death.
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Old 05-22-07, 09:06 AM
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Races are hard to break even on. Never mind making money. Now, if you can set up a charitable ride, you can make some money there, but that's a different thing.
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Old 05-23-07, 08:10 AM
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FWIW. We all know how racers love to get the results of the race ASAP. We just got the contract for electronic timing/results services at our 2 day, three stage race. $3,500.
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Old 05-23-07, 08:26 AM
  #23  
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I'm an executive on a club that organizes a couple of big (for where I live) mountain bike races every year. We're lucky to brake even on registration fees. Without corporate sponsorship there would be no races. It's amazing how all of the little expenses add up.
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Old 05-23-07, 08:31 AM
  #24  
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So, wonder what blanqui thinks now. I see he only came back to post once after the OP.
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