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Jan 6, 2002

AMA Pro Racing Has Cost Members An Estimated $6.2 Million

Copyright 2002, Roadracing World Publishing, Inc.<BR><BR>A analysis estimates that AMA Pro Racing has cost the American Motorcyclist Association (AMA) $6.2 million over the last nine years, money that would not have been spent if the for-profit subsidiary of the non-profit AMA had not be formed to take over duties formerly handled by an in-house department of the Association.<BR><BR>Ironically, a sitting AMA Trustee recently stated in an interview that profits from AMA Pro Racing support programs enacted by the Association. In fact, there have been no overall profits, and AMA Pro Racing has been a serious financial drain on the Association.<BR><BR>The estimate is based on minutes of AMA Board of Trustees meetings in which capitalization of AMA Pro Racing (aka Paradama, Inc.) and race promotion losses were discussed, and also includes estimated additional staff salaries and a $3 million lawsuit settlement.<BR><BR>Although fault in the Edmondson vs. AMA lawsuit was evenly split between AMA and AMA Pro Racing in a Federal Court ruling, AMA itself paid the entire $3 million it took to settle the case before it reached the appeal stage.<BR><BR>Legal fees related to the lawsuit and paid by the Association are not included in the estimate, and could total an additional $2 million.<BR><BR>Meanwhile, AMA Pro Racing continues to staff up, is opening a new office in California and has dramatically increased participant fees while failing to provide such basic participant services as rational number assignments and a schedule for Pro Thunder races displaced from 2002 double-header Superbike rounds.<BR><BR>AMA Pro Racing has also actively sought elimination of Thursday practice--which is widely supported by non-factory riders and teams as cost-effective set-up time--prior to AMA Nationals, because AMA Pro Racing CEO Scott Hollingsworth doesn't want to send staffers to racetracks on Wednesday and wants to use Thursday to set up the racetrack.