Excerpt from Supercross.com--RJ interviews Clear Channel. Is this NOT the whole story, or is the AMA really a bunch of sissies without a leg to stand on?
RJ: It appears as though Clear Channel and the AMA have not had a 'good' relationship over the past few years. What has sparked the poor relationship?
Ken: I can speculate on what it is, but I really don't know. What I do know is that we offered to substantially increase the sanction fee that we pay them on a per event basis. As I've said previously, the AMA is walking away from a guaranteed seven million dollars over seven years.
In addition to that sanction fee, they retain the license fees, the mechanics fees, entry fees, and our fee for their officials and rider medical services they provide. We also offered to have all of our dirt track, road racing, and arenacross to be AMA sanctioned.
We're offering to pay them a bunch more money for nothing different in return. And we offered to sanction all of our other events by them, which seem to be such an issue, and we still don't have a deal. I don't have the foggiest idea what their intent is.
RJ: Is there still a possibility of Clear Channel and the AMA working this thing out?
Ken: From the beginning, we've made it clear that it is in everyone's best interest to have things go on as they were. Everything that we have done up to this point has been done with the idea of keeping the door open enough to make a deal if the AMA wants to, and is not in some way committed to Jam Sports. I don't know what the relationship is between the AMA and Jam Sports is. The announcement the AMA put out makes it seem like a 'Letter of Intent'. It is in everyone's best interest to work it out. But the door is opening and closing quickly - everyone needs to get on with their business.
RJ: I'm going to fire off a couple of quick questions. Who is in charge of the purse monies?
Ken: Clear Channel pays the purse monies.
RJ: Who is in charge of safety and insurances?
Ken: We pay the AMA a fee, and they provide the rider medical insurance. All the other insurances that go into putting on a live event, such as protecting the spectators, and insurance to protect against damage to the facility, we pay for that.
There are quite a few issues regarding safety. Safety and security for the fans, we pay for that. That includes security guards, ushers, and more.
RJ: Who collects entry fees?
Ken: The AMA.
RJ: How about mechanics passes?
Ken: The AMA.
RJ: How about gate receipts from ticket sales?
Ken: Clear Channel. And that's because we take 100% of the risk. If no one shows up, we still pay for the facility, advertising, the dirt, and everything else. We pay for everything.
RJ: Who gets the parking monies?
Ken: It's different at each facility. Generally, they pay their employees, and we don't participate in those revenues. Same for food and beverage concessions.
RJ: How about merchandise such as shirts, hats, etc.?
Ken: There are three answers to that. Us, the facility, and royalties that are paid to riders and others.