Today I got a call that live on the radio the AA was being slammed by past employees. I also got this sent to me;
Derby faces uphill battle
Officials of the event that will run in Akron for the 71st time say they are determined to garner a national sponsor, increase income dramatically and build area support
By Carol Biliczky
Beacon Journal staff writer
Published on Monday, Jun 30, 2008
The All-American Soap Box Derby faces a trio of problems: no national sponsor, not enough money, not enough support.
But derby officials are optimistic that this is just another hurdle in what they bill as ''the greatest amateur racing event in the world. ''
''The derby has received last rites on a number of occasions,'' President Jim Huntsman said. ''We want to think a little differently and refresh our brand.''
The Akron organization for gravity-powered racing has unleashed a new business plan to turn its financial tide. This includes raising $2 million to erase its debts and build a foundation that would give it breathing room.
That is a huge goal, given that the derby brought in just $1.8 million last year.
''We need a nice infusion of money that would enable us not to live hand-to-mouth and would let us implement some of our business strategies,'' Huntsman said.
No national sponsor
The challenge comes at a difficult time. This year's 71st All- American Soap Box Derby week begins July 21 at Akron's Derby Downs without a national sponsor.
This is only the sixth time in the organization's history and the first time in a decade that the derby has gone without a sponsor.
In the past, companies such as Goodyear and Home Depot generally contributed about $250,000 a year plus free publicity, said derby Treasurer Jack Engelke of Chicago.
Derby officials have approached ''several, but fewer than a dozen'' potential sponsors without luck since the last title sponsor, Levi Strauss Signature, backed out last fall, derby Chairman Bill Evans said.
Just one year before that, the derby's four-year marketing relationship with NASCAR also hit the rocks.
While derby officials decline to provide specifics, that agreement did not produce the sponsors the derby hoped for and prevented the organization from establishing relationships with companies that competed with NASCAR's sponsors.
''They almost put us under,'' Huntsman said.
The derby's income dropped from $1.4 million in 2004 to $768,709 in 2006, according to the organization's IRS 990 form.
That prompted derby officials to ask the city of Akron for an advance. Akron provided $300,000 in 2007 and again this year in revenue from two gas wells at Akron Fulton International Airport that the city earmarks for derby support. The city will resume its $100,000 yearly payments to the derby in 2013.
Kit car sales down
Meanwhile, the derby's sale of kit cars is down about 10 percent, Engelke said. The kit cars — in essence, a race car in a box — represent about a third of the derby's income.
Officials say that sales might be down because parents who face escalating costs in gas, milk and other staples don't have money to invest a minimum of $415 in a car kit and to cart their child to events.
''We're looking down the barrel of a challenge,'' Engelke said. ''It's of grave concern. No doubt about it.''
Participation grows
At the same time, participation in the All-American appears to be growing, thanks to the derby's aggressive efforts to increase the kind of events it offers.
The 597 young people who came to last year's All-American Derby was more than double the 295 of just 10 years before. Officials expect about 600 or more racers this year.
While participation slid to a low of 99 in 1974 thanks to the exit of Chevrolet after decades of sponsorship and a cheating scandal by a competitor, the All-American began to grow in the early 1990s.
In 1992, the derby began to require racers in the stock car division to buy car kits from the Akron organization. Eventually, it followed suit with racers in the super stock and masters divisions, too.
Not only did this put racers on a more even playing field, but it also provided a steady stream of revenue for the organization and made the sport more appealing to families who did not have the time or talent to build a car from scratch.
New racing categories
Also, the racers who now come to the grand prix in Akron represent racing categories that didn't exist during the organization's first few decades, when Chevrolet ran the program from Detroit and came to Akron only a few weeks before the All-American.
Today, the derby counts the youths in its Super Kids Classic as participants in the All-American.
The Super Kids race separately, but during the same week. The race enables disabled children to be passengers in cars piloted by other children. Last year, about 60 Super Kids came to the All-American.
Five years ago, the derby started the Ultimate Speed competition, in which racers 16 to 18 build from scratch cars of innovative designs. About 22 took part in the All-American last year.
And in 1993, the derby began to offer rallies, now held in about 25 cities. This brings brings more racers to the All-American, as drivers accumulate points all year long at rallies, some of them indoors. Last year, about 160 of those at the All-American were rally winners.
Those innovations helped to attract about 7,500 racers into the sport worldwide last year, Huntsman said. That is up from the 6,000 who took part in 1994.
Still, participation in area racing is down.
Earlier this month, just 71 racers took part in Akron's Metro and Suburban derbies, which are qualifiers for the All-American. The previous low was 75 in 1975, a race official has said.
Income stream sought
It's not easy to drum up solutions, especially in tough economic times.
While the All-American relied on Chevrolet from 1934 to 1972 as its corporate sponsor, it's never found a similar patron with that much staying power. The derby of old used to count on a company's generosity, Huntsman said, but it can't do that today.
He said the derby is looking to develop income streams to accompany the race city fees, kit car and car component sales, grants from foundations and local government, and ticket sales it already generates.
One idea to bring in new money is a corporate ''team-building'' event. Companies would would pay to build cars against a clock and then race them in an indoor venue such as the John S. Knight Center. That could bring in $200,000, Evans suggested.
Other ideas include licensing Soap Box Derby apparel and toys, expanding racing into inner cities with donated cars and expanding the derby to new countries.
Huntsman recently visited Mexico City to encourage participation south of the border. Two regional directors have been appointed to oversee expansion into Canada.
Other countries, including China, India and Dubai, have inquired about derby racing, he said.
Economic impact
Another goal is to elevate awareness of the derby's impact on the economy.
While most people think of the derby during race week, the organization employs 10 people year-round and buys parts from local suppliers to outfit its kits. And though the All-American race is only one day — this year, it's July 27 — the racers and their families and friends spend a week in Akron, staying in hotels and eating at restaurants.
Gregg Mervis, chief operating officer of the Akron-Summit Convention and Visitors Bureau, said it is one of the county's biggest weeks in tourism.
The area economy counts on the soap box derby for providing more than $2.5 million during race week, Mervis said.
That's the kind of message that Huntsman and other officials are driving home as they approach business and civic leaders for support.
''We're not really begging, but educating people about what the organization means to the area,'' Huntsman said.
Officials say there's no chance that the Soap Box Derby will fold, given the fervent enthusiasm that so many families feel for the sport.
But Bob Troyer, public relations spokesman for the All-American, said it needs more support from the public.
''It would be great if citizens took part in the program and see what goes on,'' he said. ''We always have a great opening crowd [when the racers come to town], but I'd like to see more people in the stands.''
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Carol Biliczky can be reached at 330-996-3729 or cbiliczky@thebeaconjournal.com.
The All-American Soap Box Derby faces a trio of problems: no national sponsor, not enough money, not enough support.
But derby officials are optimistic that this is just another hurdle in what they bill as ''the greatest amateur racing event in the world. ''
''The derby has received last rites on a number of occasions,'' President Jim Huntsman said. ''We want to think a little differently and refresh our brand.''
The Akron organization for gravity-powered racing has unleashed a new business plan to turn its financial tide. This includes raising $2 million to erase its debts and build a foundation that would give it breathing room.
That is a huge goal, given that the derby brought in just $1.8 million last year.
''We need a nice infusion of money that would enable us not to live hand-to-mouth and would let us implement some of our business strategies,'' Huntsman said.
No national sponsor
The challenge comes at a difficult time. This year's 71st All- American Soap Box Derby week begins July 21 at Akron's Derby Downs without a national sponsor.
This is only the sixth time in the organization's history and the first time in a decade that the derby has gone without a sponsor.
In the past, companies such as Goodyear and Home Depot generally contributed about $250,000 a year plus free publicity, said derby Treasurer Jack Engelke of Chicago.
Derby officials have approached ''several, but fewer than a dozen'' potential sponsors without luck since the last title sponsor, Levi Strauss Signature, backed out last fall, derby Chairman Bill Evans said.
Just one year before that, the derby's four-year marketing relationship with NASCAR also hit the rocks.
While derby officials decline to provide specifics, that agreement did not produce the sponsors the derby hoped for and prevented the organization from establishing relationships with companies that competed with NASCAR's sponsors.
''They almost put us under,'' Huntsman said.
The derby's income dropped from $1.4 million in 2004 to $768,709 in 2006, according to the organization's IRS 990 form.
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