Check Point | April 7 2020

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Welcome to Check Point, a new weekly feature that will cover the ongoings in the off-road motorcycle racing world, presented by Moose Racing. Although motocross and Supercross is the center of the SML universe, our staff has massive respect for the varied disciplines of off-road, from SuperEnduro to Rally to GNCC to Big Six, and we always have an eye on what’s happening in the professional racing series. Every week we will bring updates from around the world, including race results, photos, video highlights, and new bike or product debuts.

Since this is an early installment of the feature, we want to hear your feedback. Drop a comment below and let us know what you think or what you want to see. 

GNCC SERIES DETAILS CURRENT PLAN FOR 2020 RACE SEASON

Although we’re still a few weeks away from the next round of the 2020 GNCC series, it’s almost certain that the current COVID-19 situation won’t clear up in time for riders to rip through the woods. As a result, series organizer Racer Productions has shared more details regarding the current calendar, including the complete cancellation of the 2020 Gladiator GNCC (a decision made by the owner of the venue) and increased communication with the other East Coast-based off-road championships.

In a statement released on Monday, Racer Productions explained that although the 2020 Mountain Ridge GNCC is still “on” the schedule, it’s likely to be postponed in the coming days. Once the final decision is made, they will be able to determine which open weekend in their schedule the race can move to.

Because some races have already been moved around in the schedule, including new dates in July and November, there is a possible conflict between the GNCC series and the Full Gas Sprint Enduro championship, as both series see the June 13-14 weekend as a chance to get races in. The Full Gas Sprint Enduro series had previously nabbed the date for a race in Virginia, but Racer Productions has expressed a desire to take the date and have the Full Gas Sprint Enduro move their race to July 4-5. It’s unclear if this will be agreed upon.

The full statement from the Race Leadership Team, including tentative dates, is posted below.

The next scheduled GNCC event is set for May 2/3 in Somerset, PA. Although it is highly unlikely that this event will proceed as scheduled, it has not been postponed at this time. In addition, the Gladiator scheduled for May 16/17 in Bowling Green, KY, has been canceled by the property owner due to COVID-19 concerns. It is possible that a GNCC will be held on that date but at a different location TBA. A decision on both dates (May 2/3 and 16/17) will be made at a later time.

As a result of previous postponements, GNCC events will be held on July 11/12 and November 7/8. In addition, GNCC is working with the Full Gas Sprint Enduro to determine if their event previously scheduled for June 13/14 at Harleywood in Bristol, VA, can be moved to July 4/5, allowing GNCC to hold an event on June 13/14 at a location TBA. These dates were not part of the original GNCC race schedule. Accordingly, the tentative dates for the remainder of the GNCC schedule are:

May 2/3 | Somerset, PA
May 16/17 | Tentative
May 30/31 | John Penton, OH
June 13/14 | Tentative
June 27/28 | Snowshoe, WV
July 11/12 | Tentative
July 31 | Loretta Lynn eMTB only
Sept. 12/13 | Mountaineer, WV
Sept. 26/27 | Tomahawk, NY
Oct. 10/11 | Mathews Farm, PA
Oct. 24/25 | Ironman, IN
Nov. 7/8 | Tentative

Although 11 dates are listed above, no more than 10 events will be held, and a final schedule will be issued as soon as it is feasible to do so. The purpose of reserving these dates now is to allow the GNCC race community to plan accordingly.

HOW THE MOTORCYCLE INDUSTRY CAN MAKE USE OF THE “CARES ACT”

The lack of racing puts riders, teams, and event promoters in a tight spot financially, but there is some government assistance available for the impacted groups. The Race Leadership Team explained how the motorcycle racing community can receive funds from the recent bailout package approved by the federal government, which is posted in full below…

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides financial assistance through a series of emergency loans and grants to large and small businesses to assist them during this difficult economic period. In addition to providing financial support to businesses, the program also provides assistance to independent contractors and self-employed individuals, which includes many of our professional athletes and their agents.

In the sport of professional motorcycle/ATV competition, including Pro Motocross, GNCC and ATVMX, most of our pro athletes and promoters operate as either small business entities (LLC or S-corporations), independent contractors or are self-employed. To help navigate the complicated application process for these funding programs, the Motorcycle Industry Council (MIC) has prepared a summary of resources and contact information. The MIC COVID-19 Economic Assistance Resources summary outlines the various financial assistance programs available to our pro athletes. https://mic.org/Downloads/COVID/EconomicAssistanceResources.pdf

Individuals and companies that have been adversely impacted by the crisis are encouraged to explore how these programs may assist them until our sport returns to competition. To summarize:

1. Emergency Economic Injury Disaster Loans (EIDL): Pro athletes and businesses may be eligible for up to $2 million in loans, as well as a $10,000 1-time cash grant. The application process is easy and available online. You will need your SSN or EIN and bank account and routing numbers. You will know if you are approved for the $10,000 grant within 3 days and the money will be directly wired to your account. https://covid19relief.sba.gov/#/

2. Paycheck Protection Program (PPP): If you have employees and continue to pay them during the crisis, you may be eligible for payroll protection. This program pays 2.5 times your monthly payroll costs and is 100% forgivable, so long as you don’t reduce your payroll by more than 25%. Starting April 10^th, independent contractors and self-employed individuals (pro athletes) may also apply for loans of up to $100,000 to cover the loss of income and net earnings from self-employment during this time. These loans are forgivable as well.

This program is administered through the Small Business Association (SBA) but you must apply through your local bank. Applications close June 30^th and there is a funding cap, so apply now. The 6-digit NAICS Code for independent professional racers is 711219.

3. Tax Credits: Several tax credit programs are available and should be exercised if applicable. You will need to consult with your tax advisor to take advantage of these tax credits:

a. Payroll tax credit
b. Social Security tax deferment
c. Net operating loss 5-year carry back with full offset
d. Increase in business interest expense deductions
e. Immediate recovery of corporate alternative minimum tax credits
f. Immediate write-off for facility improvement costs (i.e., racetrack upgrades?)

We hope this information has been helpful to our professional athletes and promoters. The RLT will continue to provide weekly updates regarding event schedules, postponements and cancellations, along with other updates intended to provide our motorsports community with the most current and accurate information available regarding our competition programs, and encourages everyone to follow local, state and federal rules and recommendations designed to address the impacts of COVID-19.

2020 ERZBERGRODEO CANCELLED DUE TO AUSTRIAN GOVERNMENT RESTRICTIONS, FURTHER CHANGES TO 2020 WORLD ENDURO SUPER SERIES SCHEDULE

Recently reinforced precautionary measures by the Austrian government have extended the limit on public gatherings and events for the entire month of June, which has forced the complete cancellation of the 2020 Erzbergrodeo event. The race, which routes 1500 riders through an active ore mine, is considered one of the toughest off-road events in the world because of the number of competitors that take on the challenging terrain. The race will not be rescheduled, marking the first cancellation in its 25-year history.

The cancellation impacts the 2020 World Enduro Super Series, as the notorious Erzberg race is a crown jewel of the series. The championship calendar has already undergone some modifications, which include the postponement of the opening round with the Extreme XL Lagares in Portugal and the complete cancellation of round two with the Trèfle Lozérien AMV in France.

The current plan is to start the 2020 World Enduro Super Series with the Red Bull 111 Megawatt event in Poland, which will take place at the end of June. The complete schedule is posted below…

Round 1: Red Bull 111 Megawatt (Poland) June 27-28
Round 2: Red Bull Romaniacs (Romania) July 21-25
Round 3: Tennessee Knockout (USA) August 15-16
Round 4: Hawkstone Park Cross-Country (UK) September 26-27
Round 5: Extreme XL Lagares (Portugal) October 2-4
Round 6: Hixpania Hard Enduro (Spain) October 9-11

The statements regarding the postponement and cancellation of WESS races are posted below…

Extreme XL Lagares Postponement

Due to the global Coronavirus COVID-19 outbreak, the opening round of the 2020 WESS Enduro World Championship, Extreme XL Lagares in Portugal, has been postponed.

WESS Promotion GmbH in consultation with Extreme XL Lagares event organisers have taken the difficult decision of not proceeding with the race at this time.

The safety of competitors, spectators, staff and those living in and around Porto is of the upmost importance.

Extreme XL Lagares and the WESS Enduro World Championship support the fight against COVID-19 by not staging the event on May 8-10, as originally planned.

A provisional date in October is now being prepared for Extreme XL Lagares.

Winfried Kerschhaggl – WESS Enduro World Championship Series Manager: “No matter how disappointing this decision is for all involved in the WESS Enduro World Championship and Extreme XL Lagares, clearly the impact Coronavirus is having around the world is incredibly distressing and far more important. As such, it goes without saying that doing the right thing is all that matters. Playing our part to curb this virus is the most important thing we can do. The safety of everyone in the wider northern Portugal area, our competitors, spectators and staff must be put first. Like everyone, we are constantly monitoring the situation and are seeking as much professional advice as possible.”

Paulo Moreira Melicia – Extreme XL Lagares: “Postponing Extreme XL Lagares is a difficult decision to make, but the right one at this time. Public health and safety must always come before the enjoyment of racing. Despite the situation we are all facing, our passion has not faltered and therefore we will put all of our energy into hosting a spectacular event in October.”

Trèfle Lozérien AMV Cancellation

Round two of the 2020 WESS Enduro World Championship, Trèfle Lozérien AMV in France, is cancelled due to coronavirus COVID-19.

With France one of the many countries dealing with the fallout of COVID-19, event organisers Motor Club Lozère were left with no alternative but to cancel the Trèfle Lozérien AMV for 2020.

Long regarded as France’s most-prestigious Classic Enduro, Mende and its surrounding countryside were busily preparing to host what would have been the 34th edition of the race.

Exhausting all possibilities of securing an alternative date in September, it was with regret that a suitable option could be found.

In 2019, Spain’s Josep Garcia (KTM) became the first international rider to win the Trèfle Lozérien AMV since it first began in 1986.

WESS Promotion GmbH wish all those affected by COVID-19 in the Mende region well and to remain safe and healthy during this difficult time.

WESS Promotion GmbH are in daily contact with all WESS Enduro World Championship event organisers and are monitoring the situation regards any further possible disruption to the current schedule.

Erzbergrodeo Cancellation

Round three of the 2020 WESS Enduro World Championship, Red Bull Erzbergrodeo in Austria, is now cancelled due to the coronavirus COVID-19 pandemic.

Following extensive discussions, WESS Promotion GmbH were informed by event organisers Erzbergrodeo GmbH that the 26th edition of Red Bull Erzbergrodeo, scheduled for June 11-14, will sadly not take place during 2020.

Regarded as one of the world’s premier off-road motorcycle competitions, Red Bull Erzbergrodeo annually attracts 1,800 riders from 40 nations.

In total, up to 6,000 people including competitors and their families, staff and media populate the Iron Giant during the four days of racing.

Concluding with the iconic Red Bull Erzbergrodeo hard enduro, the event also hosts more than 35,000 spectators throughout the near-weeklong festival of Enduro in Eisenerz, Austria.

The cancellation follows a recent decision made by the Austrian government. While they intend to ease certain restrictions regarding their COVID-19 lockdown measures, no mass-gathering events will be permitted until July at the earliest.

Event organisers had hoped that Red Bull Erzbergrodeo, one of Austria’s most prestigious events, would run in 2020, but it is not possible to do so on a rescheduled date.

Winfried Kerschhaggl – WESS Enduro World Championship Series Manager: “Red Bull Erzbergrodeo is a highlight of the WESS Enduro World Championship, so this news will come as a disappointment to many. An event known the world over, it built and defined many of world’s top Enduro riders, while also providing an incredible challenge for thousands of amateur competitors. But these are unprecedented times we are currently in. Maintaining the health and safety of not only all those planning to attend, but of those who live in Eisenerz and its surrounding area is paramount. We thank Erzbergrodeo GmbH for their tireless efforts in trying to make this year’s race happen and look forward with great anticipation to what Red Bull Erzbergrodeo will bring in 2021.”

Karl Katoch – Erzbergrodeo GmbH – “Sadly, not even the great Iron Giant herself could yield the coronavirus pandemic. Confirming the cancellation of this year’s Red Bull Erzbergrodeo has been an incredibly difficult and emotional decision to make, but also the right one to take at this time. We’re living through a global pandemic and it’s not only international Enduro racing that is affected. While the current restrictions to mass gathering events ultimately prevented us from running, the health and safety of everyone is the most important thing and so racing must take second place. Since 1995 we have witnessed incredible heroics from the best riders in the world to many, many hobby riders testing themselves on the world’s toughest Enduro. We are already motivated for the second half of this year that will allow us to plan for 2021 and will create something very special indeed and for sure more historic moments in Enduro. Until then stay safe.”