Motorsports – So, You Want To Go Racing


LESSON LEARNED

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We love making people successful and have always believed that everyone we deal with is well intended. Our experience with motorsports has been frankly a bit disappointing in that regard. Specifically there are plenty of folks who have wanted to capitalize on our experience and our trusted network but don’t want to pay for it. Unfortunately that means we can no longer engage in supporting businesses, teams, drivers, or other individuals seeking sponsors, financing, or other roles in motorsports without first executing a consulting agreement, to include a retainer. We are willing to be cost effective. We know (specifically aspiring drivers) people in racing often don’t have vast resources. But, we’ve learned, you’ve got to have skin in the game too, and that means we must be paid and we must have an agreement in place.   

WHAT DO YOU NEED AND HOW DOES IT WORK

The cold hard fact is that the racing industry has had many hard lessons learned. Teams and Drivers have been left empty handed by wishful people on race day. It is unsettling how many times sponsors and backers have exited at the last minute. The industry has built in protections against this to the most reasonable extent possible.

You need a connection to the industry or someone that can speak the language, understand the timing, knows the value of things, and ideally has existing relationships in the series or program that has captured your interest. There are many resources to accomplish this including Infield Media. You may retain us for this work.

You need to be willing to retain AND PAY US for facilitating your introduction and managing your entry into the sport. This will be a general consulting arrangement and may or may not include a success fee. Depending upon the level of effort required Infield requests between a $500.00 (basic marketing of a driver for example) and $5,000 (to seek or manage a multi-million dollar program) retainer, and a monthly fee of similar magnitude until our work is done or determined to be unable to proceed. This agreement will always include a Non-Disclosure Agreement.

IF YOU ARE SEEKING TO ENGAGE AN ESTABLISHED TEAM OR TRACK AS A POTENTIAL OWNER, SPONSOR OR DRIVER

  1. The consultant will either advise you from experience or approach industry to establish an estimate of cost based upon what you are seeking. Costs are highly variable depending on series, event, progress through the season, and a multitude of other factors.
  2. Once the cost of what you want to do is established as a Random Order of Magnitude (ROM), You will need to prove you can finance your deal. Teams, drivers, and tracks WILL NOT open serious discussions without proof of your ability to fund the transaction. Top-level racing entities get inquiries on a constant basis regarding affiliations of all sorts. The ability to fund a transaction is a screening method to determine the veracity of an individuals interest and ability to deliver.
  3.  You will need to place a MINIMUM of 10% of the overall cost of the program you are seeking in an escrow account. This deposit will release to the consultant when an entity agrees to do business. So for example if you are seeking to sponsor a single race for $300K you will need to place at least $30K in escrow. It is important to understand that the value the consultant brings is in their relationships and the credibility they build by bringing the sport well-qualified and reliable business partners. If a transaction moves forward to negotiation it puts the most valuable asset the consultant has (relationships, connections, integrity) at risk.
  4. You will need to prove that you have the ability to finance the ENTIRE program you will be seeking to develop. This can be in the form of a bank letter that states your balances are sufficient to meet the transaction amount, a stand-by letter of credit, certified funds, escrow deposits for the full amount, or other generally accepted financial instruments. These documents MUST be able to be independently validated. This is where much of the difficulty occurs in these types of transactions. Specifically the question arises as to why proof of funds are required before the racing entity commits? This transaction is similar to entering a transaction to rent a car. The agency requires you to present a credit card to secure the transaction, you must have secured the credit and/or financial ability to rent a car BEFORE you approach the agency.
  5. We will then approach the team and identify you as a “qualified lead, that has proven funds” and express what it is that you desire to accomplish with the team. we will have already established that the team is interested in what you have to offer as a result of our relationship. It is at this point that you will engage with the team.
    *** It is important to note that at this point you have zero assets at risk, only 10% sitting in escrow that release only if you get to negotiate your deal directly with who you want to negotiate. ***
  6. It is at this point that all parties are known to each other, and the negotiation for the outcome really begins. Your consultant will facilitate the discussion to assure you get the maximum value for your program. Once an agreement between parties is reached, the escrow releases to us, and your general consulting agreement terminates.

If you are still interested and can complete a transaction please fill out the below contact info and we will be in touch.