Quote:
Originally Posted by DX20VT
and what happens when no one tenders?
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If no one tendered then it would be a pretty sure sign the product is not attractive to the market.
This is the problem that we may be facing right now in that the Tier 1/NZV8 product as it is currently structured looks like it may not be a viable commercial proposition - should it be financially propped up by MSNZ club members (and through them all grass roots competitors) when more than 95% of them having nothing to do with Tier 1? I enter and race a number of cars but as far as I can see I get nothing from MSNZ's involvement in TMC except increased entry, licence and other fees.
Does it really matter at the end of the day if MSNZ gets no financial gain from the running of Tier 1 events and just provides the rights to a number of circuits - no financial gain is a lot better than the current situation which costs MSNZ $$ to run Tier 1. The shareholders agreement MSNZ has with TMC means that MSNZ can never receive a dividend or profit share for it's majority shareholding. This is done for tax reasons (to preserve MSNZ's tax exempt status) but it is not a great investment when you can't get any returns.