Reviewing Cal Club and Buttonwillow Raceway for 2007

When I decided to offer my services on the Cal Club Board I pledged to provide financial reporting to our membership that hopefully illustrates a more descriptive financial view of Cal Club and its relationship to our premier asset, Buttonwillow Raceway Park. Cal Club finished the year in strong financial condition with gross revenues at $567,687 while suffering a loss of $49,086.Total cash at year end was $195,941 and the balance on the note receivable from Buttonwillow Raceway Park was $286,346. The note to BRP was reduced by $213,114 during 2007 through principal payments and new asset acquisitions. The major asset acquisitions over the past three years have been two new tow trucks, signage and the Cal Club office/registration building. There were no long term liabilities and only a small amount of accounts payable at $3,050.

Our Regional Executive Steve Staveley and the current Board of Governors is committed to enhancing the Cal Club racing program and experience and expects to harness our assets to the best advantage in reaching those goals. Racers today have many choices. Cal Club’s SCCA affiliation brings many benefits but also comes with higher costs than competitors pay for the same services. SCCA insurance, sanction, compliance and miscellaneous fees are some of the highest in the sport. Cal Club is doing a good job of controlling entry fees in view of those higher core affiliation costs.

Members often discuss entry fees but it can be difficult to make meaningful comparisons. Three of the highest cost tracks in racing are Infineon, Laguna and Cal Speedway. Two lower cost tracks are Thunderhill and Buttonwillow Raceway. Example SCCA entries for each follow:

Entry Cost        Infineon        Laguna        CA Speedway        Thunderhill        Buttonwillow

Regional           $270             $320             $270                       $230                   $210

National           N/A              N/A              $350                       $325                   $250

Double Reg.     $460              $480             $360                       $370                   $300

Double Natl.     N/A              N/A              $410                       $430                   $350

As you see, when direct comparisons are made, Cal Club is offering more racing choices for all levels and car types and the entry fees are considerably lower at our similar cost tracks than our SCCA neighbors to the North.

The good news at Buttonwillow Raceway is we will make the final payment on the Bank of America real estate loan in May of 2008. That means rather than a balloon payment for the original debt amount payable in 2015, the entire obligation will be paid seven years early.