Jump to content
SAU Community

Recommended Posts

How to make a little bit of money out of motorsport? Start off with a LOT of money.

This is good quote and true some of the time but people like Peter Sauber to name but one didn't do half bad...

  • Replies 42
  • Created
  • Last Reply

Top Posters In This Topic

i believe it's: "how do you make a small fortune in motorsport??? start with a large one."

plenty of examples of that. but yes plenty of people have made some nice money. bernie eccelstone is not exactly hard up for a quid...

  • 9 months later...

A little off the track but i have an opportunity through my work to get my car a little sponsorship to help me along.

Can anybody who is doing it tell me what you need to setup to take the money as far as business goes?

Just an ABN? Do you need to do tax returns etc? Any advice would help.

my brother won a competition through RallySportMag to drive for Mazda Australia in a rally down in canberra, while it wasn't technically paid, he was given a carbon fiber stilo helmet, RPM race suit, Mazda watch, bag and a few other goodies....also got a few drive days with Rick Bates....brother to multiple Australian Rally Champion Neal Bates.

http://www.carsguide.com.au/site/news-and-reviews/car-news/a_step_up_to_triumph?from=ms

for memory the worth of prize was around $2000.

A little off the track but i have an opportunity through my work to get my car a little sponsorship to help me along.

Can anybody who is doing it tell me what you need to setup to take the money as far as business goes?

Just an ABN? Do you need to do tax returns etc? Any advice would help.

I don't think its necessary until its an amount that attracts the ATO's attention (IE more than $10,000).

Our rally team this year landed a few cash paying sponsors and we looked into this to see if we could write off some of our expenses.

Ive spoken at large with my accountant about options, but nothing was really worth while and as I wasn't really carrying out a business (trading in anything other than good will of advertising), setting up a company/getting an abn would just be a costly exercise for no benefit.

I don't think its necessary until its an amount that attracts the ATO's attention (IE more than $10,000).

Our rally team this year landed a few cash paying sponsors and we looked into this to see if we could write off some of our expenses.

Ive spoken at large with my accountant about options, but nothing was really worth while and as I wasn't really carrying out a business (trading in anything other than good will of advertising), setting up a company/getting an abn would just be a costly exercise for no benefit.

Thanks for that. So do you just get transfers, cheques etc to you personally? Just wondering how the sponsers justify the cash outlay from their side.

I think that the ATO will look at the value for money the company is getting for their sponsorship dollars, ie the exposure they'll get, and the relevance to their business. For example, I only do club events, and my business deals with mining companies. Plastering my company name all over my rally car is unlikely to attract the attention of any of my clients (who all live 1000km away from where I'm likely to be competing anyway). It would be a very long stretch to try and claim thousands of advertising dollars against my rally car.

I'm sure I'd get away with it for a while, but I wouldn't want to have to explain it to auditors.

On the other hand, if my business was a tyre shop, panel beater, engine builder etc, then a rally car would be a great way to lift the business profile.

Another thing to remember is that the company will have to think long and hard about how you behave whilst driving your car with their logos all over it. Imagine the PR if a car they sponsor is perceived to be behaving badly in public.

The value of the advertising is a matter of opinion, pretty sure the ATO don't check the 'value' of the advertising.

Agreed.

The value of the advertising can always be argued. You may take clients for hot laps, use the car as a static display at events etc so I don't see the issue with it.

All above comments are valid, however and I can kinda see warps perspective.

If you were self employed and pouring considerable amount of money into sponsoring your own habits, the ATO might have the view that your purely siphoning money from your business to avoid paying personal income tax and keep your taxable income down. Then they might come after you, but it would have to be an ill proportionate value in relation to your business turnover.

But to be quite frank and if you have a good enough accountant I highly doubt this would ever happen as the ATO is understaffed and flat out chasing tax avoiders.

If you were self employed and pouring considerable amount of money into sponsoring your own habits, the ATO might have the view that your purely siphoning money from your business to avoid paying personal income tax and keep your taxable income down. Then they might come after you, but it would have to be an ill proportionate value in relation to your business turnover.

lol, if they did this probably 80% of cars in state and national competition would be sticker free overnight and no longer competing. just about anyone I know who pours decent coin into their race cars does it through their own business as advertising expense for their business. everyone from old mate with a workshop running his alfa to another bloke who owns a cafe running his porsche GT3 cup car and everything in between. I'm sure plenty of small businesses put so much into their race car it ate all their profit and then some! not just would we have empty grids but the whole motorsport industry in aus would just about go under if ATO started cracking down on folks with small businesses putting cash into their race cars as a business expense. scary!

The value of the advertising is a matter of opinion, pretty sure the ATO don't check the 'value' of the advertising.

Ah for f***s sake why is everything taken so f***ing literally?

I used the term "Value" as a catch all term which I then went on to explain further. Correct, ATO don't give a stuff if you're getting value for money. What they do care about is that you're claiming $30k a year on "advertising" whereas you might realistically increase your turnover by $100 a year based on that advertising (if at all). Again, that alone won't necessarily raise any eyebrows, however if that $30k allows you to enjoy your hobby, then they will definitely frown upon you trying to claim it.

There's nothing wrong with businesses sponsoring motorsport, but claiming that the $100k a year your business pumps into your club racer is legitimate advertising and hence taxable, well, good luck with that one. I'm not talking about a car that will get national exposure in its category here. What I'm talking about is the typical club racer who wants to write off his racing expenses, even though the only people who are likely to see the car have nothing at all to do with his business.

Just because people get away with it doesn't make it right. I know I could easily syphon tens of thousands into a race car, but as I said earlier it is a stretch to claim that it is legitimate advertising. It all depends on how "creative" you want to be.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



  • Similar Content

  • Latest Posts

    • Or just wire a multimeter in, sit it up like it's a gauge, go for a drive, read temp gauge, read multimeter, speak to phone and tell it to take notes.
    • This is the other log file, if only we had exhaust manifold pressure - would understand what's going on a bit better   Can you take a screenshot of your wastegate setup in the Kebabtech?   Engine Functions --> Boost Control (looks like this):  
    • You just need a datalogger of some sort. A handheld oscilloscope could do it, because it will make the trace visible on screen, so you can look at the peak, or whatever you need to look at. And there are cheap USB voltage loggers available too. You could get a 2 channel one and press a button to feed voltage to the second channel at points that you want to check the sensor voltage, when you knew what the guage was saying, for example.
    • it's not the issue with making power, it's the issue with controlling boost, and this isn't the first time I've seen a 6Boost having issue with controlling boost down low.   The boost control here looks interesting.   Looking at your logs, looks like it's set to open loop boost control strategy (which is fine). We can see VCT being kept on till about 6600RPM (no issue with that). Ignition timing (I'm assuming this is E85, seems within reason too, nothing too low, causing hot EGTS and boost spiking). There's about 15 degrees of advance when your boost shoots up, however can't be this as the timing isn't single digits. I'm assuming there's no EMAP data, as I wasn't able to find it in the logs. We can see your tuner sets the WG DC to 0% after 4300RPM, trying to control boost.   My thoughts, what frequency is your wastegate set to?  AND why aren't you using both ports for better control?
    • While that sounds reasonable, this is definitely a boost control problem, but the real question is why are you having the boost control problem? Which is why I pondered the idea that there's a problem at ~4000rpm related to head flow. In that instance, you are not yet under boost control - it's still ramping up and the wastegate is yet to gain authority. So, I'm thinking that if the wastegate is not yet open enough to execute control, but the compressor has somehow managed ot make a lot of flow, and the intake side of the head doesn't flow as well as the exhaust side (more on that later), then presto, high MAP (read that as boost overshoot). I have a number of further thoughts. I use butterfly valves in industrial applications ALL THE TIME. They have a very non-linear flow curve. That is to say that there is a linear-ish region in the middle of their opening range, where a 1% change in opening will cause a reasonably similar change in flow rate, from one place to another. So, maybe between 30% open and 60% open, that 1% change in opening gives you a similar 2% change in flow. (That 2% is pulled out of my bum, and is 2% of the maximum flow capacity of the valve, not 2% of the flow that happens to be going through the valve at that moment). That means that at 30% open, a 1% change in opening will give you a larger relative flow increase (relative to the flow going through the valve right then) compared to the same increment in opening giving you the same increment in flow in outright flow units. But at 60% opening, that extra 2% of max flow is relatively less than 1/2 the increase at 30% opening. Does that make sense? It doesn't matter if it doesn't because it's not the main point anyway. Below and above the linear-ish range in the middle, the opening-flow curve becomes quite...curved. Here's a typical butterfy valve flow curve. Note that there is a very low slope at the bottom end, quite steep linear-ish slope in the middle, then it rolls off to a low slope at the top. This curve shows the "gain" that you get from a butterfly valve as a function of opening%. Note the massive spike in the curve at 30%. That's the point I was making above that could be hard to understand. So here's the point I'm trying to make. I don't know if a butterfly valve is actually a good candiate for a wastegate. A poppet valve of some sort has a very linear flow curve as a function of opening %. It can't be anyelse but linear. It moves linearly and the flow area increases linearly with opening %. I can't find a useful enough CV curve for a poppet valve that you could compare against the one I showed for the butterfly, but you can pretty much imagine that it will not have that lazy, slow increase in flow as it comes off the seat. It will start flowing straight away and increase flow very noticeably with every increase in opening%. So, in your application, you're coming up onto boost, the wastegate is closed. Boost ramps up quite quickly, because that's really what we want, and all of a sudden it is approaching target boost and the thing needs to open. So it starts opening, and ... bugger all flow. And it opens some more, and bugger all more flow. And all the while time is passing, boost is overshooting further, and then finally the WG opens to the point where the curve starts to slope upwards and it gains authority amd the overshoot is brought under control and goes away, but now the bloody thing is too open and it has to go back the other way and that's hy you get that bathtub curve in your boost plot. My position here is that the straight gate is perhaps not teh good idea it looks like. It might work fine in some cases, and it might struggle in others. Now, back to the head flow. I worry that the pissy little NA Neo inlet ports, coupled with the not-very-aggressive Neo turbo cam, mean that the inlet side is simply not matched to the slightly ported exhaust side coupled with somewhat longer duration cam. And that is not even beginning to address the possibility that the overlap/relative timing of those two mismatched cams might make that all the worse at around 4000rpm, and not be quite so bad at high rpm. I would be dropping in at least a 260 cam in the inlet, if not larger, see what happens. I'd also be thinking very hard about pulling the straight gate off, banging a normal gate on there and letting it vent to the wild, just as an experiment.
×
×
  • Create New...