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Edmondson speaks

<div class='quotetop'>QUOTE (Jumkie @ Apr 8 2009, 09:05 AM) <{POST_SNAPBACK}><div class='quotemain'>
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Do I really need to answer this question? Hahahahaha. Wow!

Hello, lex, where is the greatest value in their business? (Hint: TV) You should know better lex, the TV rights is where the money is at, don't you know? Why do you think they can't afford live TV coverage? (Yet)




Who was circumventing the rules. (I'm sure Povol might have something to add about this.
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They don't need to turn the bike into a rolling billboard in order to attract television adds. Plenty of sports have proven that. The rolling billboards are designed specifically to keep sponsors happy and maximize the amount of money flowing into the paddock.
 
<div class='quotetop'>QUOTE (mylexicon @ Apr 8 2009, 10:24 AM) <{POST_SNAPBACK}><div class='quotemain'>Hayden Fan, let me give you a free economics lesson. Take it for what it is worth
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Not much I'm afraid. Something I've learned in the last few threads.
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<div class='quotetop'>QUOTE <div class='quotemain'>developments have extraordinary costs of production that can't be overcome by economies of scale.

I agree its very expensive to 'develop' but NOT very expensive to 'produce' a dumbed down version of the discovery. That is why they spend the millions then find a way for us to spend the extra few hundred buck as an option when buy the new shiny machine at the dealer.
 
<div class='quotetop'>QUOTE (mylexicon @ Apr 8 2009, 10:33 AM) <{POST_SNAPBACK}><div class='quotemain'>
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They don't need to turn the bike into a rolling billboard in order to attract television adds. Plenty of sports have proven that. The rolling billboards are designed specifically to keep sponsors happy and maximize the amount of money flowing into the paddock.
When you walk into the office of a marketing department and ask them to invest ad dollars with you, the selling point is; 'we can get a bunch of people to see your ad.' The more people see your add, the more you can charge them. Simple economics lex. Why do you think companies are willing to spend so much during the superbowl? DMG is trying to contrive the competition so that it looks like close exciting racing (like nascar) then the plan on draping the bikes and rider in a house hold brand (say Kellogg's Corn Flakes) then selling the TV rights to Speed (maybe someday Fox Sports for one or two races ). Who gets the money lex? Oh yeah, DMG.

Again, this is all good by me, expanding the sport, but NOT at the expense of authentic competition. That's the part I have the problem with. Its not personal, I don't hate Roger Edmondson, however, I am starting to dislike what he is doing (so far) or as as one executive was quoted (can't remember where) when asked why he didn't want to do business with Edmondson, his response: "well maybe I just don't like the mothafuker." Well I'm not there yet, but I can tell you, with his alienations and hard handed tactics on venues like Miller, I'm getting to the point where I may not like the guy either. It sucks, he has me by the balls, he is the greatest influence of where American motorcycle race goes, and I'm freaking addicted to it.
 
<div class='quotetop'>QUOTE (Jumkie @ Apr 8 2009, 09:43 AM) <{POST_SNAPBACK}><div class='quotemain'>Do I need to remind you?: No coverage, no real superbikes, a quagmire of a class appropriately named "Daytona", alienated manufactures, alienated venues, alienated riders, and most dastardly, alienated fans.

No you don't need to remind me, but you need to realize most of those would have changed whether DMG came in or not. Edmondson already said they ran the numbers and they couldn't continue running live coverage b/c the advertising dollars weren't there. He seemed to be speaking about the manufacturers advertising budgets during the recession. It was gone anyway, that's part of the reason the AMA was sold.

Real superbikes were probably going to be gone as well for cost cutting measures. Also, I somewhat reject the notion that real superbikes are gone. The third party manufacturers can still develop new prototype parts, but they have to sell them to everyone. Obviously, the equal access rule make prototyping less profitable for the third party parts suppliers (since most own their own team). The manufacturers can still work with the third party manufacturers to make prototype parts, they parts just have to be approved by DMG. If DMG starts holding up parts, I serious problem will arise.

The class structure is an obvious reason to hate DMG. Lack of a true 600cc SS class is killing the AMA right now. However, I pointed out in another post that the manufacturers were posturing like they wouldn't run DSB and that's why Edmondson ruined SS. I am angry about it, but until he can get the manufacturers to pledge support for DSB, SS will probably remain a rookie class.

Yes, DMG have also alienated riders. I've already said Edmondson treats people like business inputs. His compassion is present as long as it is helping the sport run smoothly and generating revenues.

Fans? They control themselves. Loss of SS and FX are almost unbearable, but when you look at how bad the financial situation was in the AMA (so bad the manufacturers agreed to sell it), you have to grit your teeth and bare it.

Things will improve when the money comes back. Hopefully, they will find low cost ways to improve performance in the middleweight classes. Real SS needs to come back as well.

<div class='quotetop'>QUOTE <div class='quotemain'>However, you still fail to see the difference in business approach between Dorna and DMG. Dorna have failed (or maybe haven't tried) to nascarize their series. DMG is clearly trying to use the nascar business model! (Do you deny this point?)

Yes, I have been whining loudly about GP b/c Ezy took something at the height of its appeal and flushed it down the toilet because he let the MSMA decide that lower displacement would help create more safety.

Probably the worst mistake ever made in the history of motorsports.

Yes, MotoGP, DMG, WSBK, etc etc all use the NASCAR model. Mainly because there is only one model for professional racing in this day and age---make the sponsors foot the bills. Doesn't matter who's running the series, they all need the same advertising dollars.

<div class='quotetop'>QUOTE <div class='quotemain'>Ok, let me clarify to you, the fear is NOT that they will expand the sport and bring in new sponsorship money, that is a good thing! The problem is so far it looks like to get to this "vision" they have compromised the premier class and dumbed it down (which has its pros and cons but ironically they have not achieved what they wanted) and have made a contrived class in Daytona which everybody except those proposing it and benefiting from it can see its mockery.

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They have achieved the holy grail of motorcyling. Remember that Edmondson almost made a huge error at the beginning by attempting to eliminate 1000cc bikes altogether. The manufacturers fought him and thankfully they were able to keep SBK (though I would have liked to have seen FX take over the premier spot).

The manufacturers run SBK but they must comply with restrictions in equipment and the eligible equipment list format.

SBK is exactly what we would have expected this year if everything had remained exactly the same. The bikes are half as expensive and slightly slower to alleviate safety concerns, yet not one thing has changed in the competitive environment.

Best of all; however, is the new cost reduction incentives that should allow things to change slowly but surely in the future. The other manufacturers now have a reason to take on Suzuki.

It is amazing that so much bloodlust has lead to this result in SBK. It is the most equitable change in motorsports history, imo.
 
Ok, its been a good exchange. I see you've clarified and softened your support of DMG. Really, I need to get something done now. DMG are not the devil, I get it, but they have incited alot of anger and hate, and much of it is well deserved. The AMA need changes, some of it will be beneficial to the sport, some detrimental, some of it will be beneficial to DMG only. Etc. etc.
 
<div class='quotetop'>QUOTE (mylexicon @ Apr 8 2009, 01:24 PM) <{POST_SNAPBACK}><div class='quotemain'>Hayden Fan, let me give you a free economics lesson. Take it for what it is worth
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These motorcycling goods do not generate revenues for 99% of all motorcyclists so it is unlikely that commodities prices will move in favor of the average consumer anytime soon. If they do, we can discuss the merits of carbon fiber and titanium.

Just spend over 2 hours in Econ, and that cost me a lot more money than it should have.

Since when is carbon fiber a commodity? When I think of commodities I think oil, wood, corn, gold, titanium. Yes, titanium will most likely remain expensive, but in this process of development, teams, manufacturers will attempt to develop metals that are similar in properties as titanium. But without spending millions to develop, you'd never get that chance. Carbon fiber costs are going down crazily. Used to be found only in F1 cars and hyper expensive supercars, but now can be found in my mother's Mazda 3. Can be found as a material to make helmets. Yes, the price is still high, but that does not mean over time, it won't become more viable for every day production bikes.
 

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