Honda Resigns from AMA Board

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big shake up with the AMA racing rule commity, reorg, stuff going on peeps - what does it all mean - ?


Honda Resigns from AMA Board
2/18/2006
Courtesy of American Honda

For more than 30 years, American Honda has maintained a seat on the American Motorcycle Association (AMA) Board of Trustees. Unfortunately, recent actions taken by the AMA have caused American Honda to question its continued participation on both the AMA Board of Trustees and the Paradama (AMA Pro Racing) Board of Directors. Ultimately, American Honda has made the decision to vacate both seats on these boards effective immediately.

Ray Blank, American Honda Senior Vice President, has served on the AMA Board of Trustees since 1989, and on the AMA Pro Racing board since Paradama's reorganization in the late '90's. No Honda representative will take Mr. Blank's place.

During the time representatives from American Honda served in AMA board-member capacities, the company played a significant role in many positive changes that have taken place in motorcycle racing; the rise of Supercross as a mainstream sport; improvements in rider safety across a broad spectrum of professional motorcycle racing classes; the building of Paradama as a solid business entity within the AMA organization; and sponsorship growth to a level that now supports more full-time professional motorcycle racers than ever before.

American Honda has supported the Paradama concept since it was conceived as a means to create a profitable corporation to fund a vision of what AMA racing should become, and what an AMA non-profit organization could become-a million member organization that fights for motorcyclists' rights, advocates keeping land open for responsible off-roading and maintains a vital Washington presence.

Recently, however, conflicting interests within the AMA organization have caused a division of ideology and a blurring of the vision that American Honda has always supported. Recent issues, including the departure of dedicated individuals from AMA Pro Racing and its inability to stand by its own rulebook with regard to recent Formula Xtreme considerations, have been particularly alarming.

Honda believes the rulebook is a sanctioning body's most important asset. When a governing body violates the sanctity of its rulebook, it loses credibility with everyone associated with racing-the teams, the riders, the sponsors and, most importantly, the fans who rely on sanctioning bodies to create racing environments which ensure fair, balanced and exciting competition. Honda believes the AMA and other sanctioning bodies must be responsible for coordinating the efforts of all participants to ultimately benefit the sport. Honda also believes that all manufacturers, through technical committees, must participate in, and collaborate on, development and harmonization of technical rules for each class of competition.

American Honda will continue its corporate AMA membership and will continue to support the AMA's all important, industry efforts in the areas of land use, riders' rights and the many other positive programs the organization spearheads.

American Honda will continue to compete in AMA sanctioned racing, and will continue to utilize its resources to build the sport and support more riders and teams. Today, Honda offers unprecedented support throughout the AMA professional paddocks.

Most importantly, Honda remains committed to providing new opportunities for customers to enjoy and race Honda products, and for fans to share in the unique passion and excitement of motorcycle racing.

[xdonniedarkox]

I dont see why.... or i should say I want to know what the real reason is. Apparently the Buell RR has everyone flipped. I remember when the updated class rules came out, in FX the aircooled bikes had almost like no rules! Except must be air cooled, etc, etc... The Buell RR sounds very consistent with what I recall. Anyone care to chime in and set me straight why the hub bub.

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AMA Responds To American Honda's Resignation From AMA Board Of Directors
Feb 18, 2006

From a press release issued by AMA:

PICKERINGTON, Ohio -- Dal Smilie, newly elected chairman of the American Motorcyclist Association (AMA) Board of Directors, today expressed disappointment over the decision by American Honda Motor Co. Inc. to withdraw from participation in the AMA Board of Directors.

Ray Blank, Honda’s representative on the AMA Board, announced his resignation at the Board’s meeting February 18 in Indianapolis. Honda said that it will maintain its corporate membership in the AMA and continue to compete in AMA-sanctioned racing. The company has also pledged to support the Association’s work to protect the rights of American motorcyclists.

Blank had served on the AMA Board since 1989. He also served on the AMA Pro Racing Board. At its meeting in Indianapolis, the AMA Board made the decision to replace the single AMA Pro Racing Board by a group of rulesmaking committees specific to each discipline of AMA professional competition.

That decision was part of a series of changes in the AMA’s organizational structure designed to increase the responsiveness and transparency of the Association’s work in its three key areas: rights, riding and racing.

“It is unfortunate that American Honda has chosen to withdraw from the AMA Board at this important time, when the AMA is embarking on a new era,” Smilie said. “However, we respect Honda’s decision and welcome their continued participation in the Association.

“I have worked with Ray for the past 17 years on the Board, and all of us appreciate his contributions,” Smilie added. “Ray has informed us that Honda will be involved in the new pro racing committees that will lead to a more responsive approach to rulesmaking for all disciplines of AMA professional competition.”

The American Motorcyclist Association: rights. riding. racing. Founded in 1924, the AMA is a non-profit organization with more than 270,000 members. The Association's purpose is to pursue, protect and promote the interests of motorcyclists, while serving the needs of its members. For more information, visit the AMA website at www.AMADirectlink.com, or call 1-800-AMA-JOIN.

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Honda Quits AMA Board! AMA Pro Racing Reorganization, Buell Approval Sparks Drastic Move...


AMA Pro Racing Board Of Directors Disbanded
Feb 18, 2006

From a press release issued by AMA:

AMA THANKS PRO RACING BOARD FOR SERVICE

PICKERINGTON, Ohio -- American Motorcyclist Association (AMA) Board Chairman Rick Gray today thanked the members of the AMA Pro Racing Board of Directors for their service to the organization. The single Pro Racing Board is being replaced by a group of rulesmaking committees that will each focus on a single racing discipline.

The Pro Racing Board has been in existence since 1994. It currently consists of Chairman P.J. Harvey, along with members Cary J.C. Agajanian, Ray Blank, Mike Buckley, Paul Dean, Jeff Nash, Kevin Schwantz and John Ulrich.

"These individuals have volunteered their time and effort for years to help improve the AMA's professional-racing program," said Gray. "Much of the progress we have made in gaining wider exposure and recognition of our sport is directly attributable to their contributions."

In coming weeks, the AMA will announce the members of the new committees that will develop equipment standards and rules for AMA pro competition in road racing, motocross/supercross, flat track, supermoto and hillclimb.

The American Motorcyclist Association: rights. riding. racing. Founded in 1924, the AMA is a non-profit organization with more than 270,000 members. The Association's purpose is to pursue, protect and promote the interests of motorcyclists, while serving the needs of its members. For more information, visit the AMA website at www.AMADirectlink.com, or call 1-800-AMA-JOIN



Roadracingworld.com Editorial Note: Blank and Ulrich remain members of the Board of Directors of the AMA, the parent organization of AMA Pro Racing.

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Major Reform To AMA Pro Racing Rulesmaking Process Announced
Feb 18, 2006

From a press release issued by AMA:

AMA ANNOUNCES NEW RULESMAKING COMMITTEES FOR PROFESSIONAL RACING

PICKERINGTON, Ohio -- As part of its overall reorganization unveiled today, the American Motorcyclist Association (AMA) has announced the creation of a new rulesmaking procedure for its professional-racing programs.

Direction for the AMA's professional road racing, motocross/supercross, flat track, supermoto and hillclimb programs has been in the hands of a single AMA Pro Racing Board. That Board will be replaced by independent working committees that will propose equipment standards and rules for on-track competition. Proposed rules would then be ratified by the AMA Board of Directors.

"The goal of this new structure is to allow the Association to be more responsive to all of the groups with an interest in our professional-racing programs," said AMA Chief Executive Officer Patti DiPietro. "That includes everyone from the manufacturers and team owners to the racers, promoters, aftermarket suppliers and fans."

The size of these committees will vary depending upon the racing discipline. Each will include one representative from every AMA corporate member manufacturer with a motorcycle homologated for competition in that discipline. In addition, the AMA president will appoint enough other members of the committee to assure that the manufacturers cannot constitute a majority.

In motocross racing, for instance, six manufacturers -- Honda, Husqvarna, Kawasaki, KTM, Suzuki and Yamaha -- currently have motorcycles homologated for AMA professional competition. The AMA president will appoint at least seven other Motocross/Supercross Committee members, who could include racers, promoters, aftermarket manufacturers and others with an interest in the sport.

These committees will hold at least one formal meeting every year, although it is anticipated that additional, informal meetings may take place more often. Working with representatives from the AMA Pro Racing staff for that discipline, committee members will develop racing rules and equipment standards that will be sent to the AMA Board of Directors.

The AMA Board will have the power to accept or reject the committee's recommendations, but it will not be allowed to alter those recommendations. A veto by the AMA Board will require support by a supermajority (nine members of the 12-member Board).

Rules that are approved by the AMA Board will not go into effect for at least a full racing season, so that riders and teams will have time to develop their programs. Modifications to rules that are required during the course of a racing season will be handled by an executive committee consisting of chairmen elected by members of each committee. Those rules will apply only for the current racing season. As is the case now, emergency rules changes, if necessary, will be implemented by the AMA Pro Racing staff.

"We are creating a system designed to increase the transparency of the rulesmaking process for AMA professional competition," said DiPietro. "By opening up these rulesmaking committees to all parties involved in our racing programs, we will make sure that everyone's voice is heard on these important issues. And we will make public all written reports from the rulesmaking committees to the AMA Board, so that anyone can monitor the process of creating new racing rules."

Rules for amateur competition run by AMA Sports will continue to be made by the AMA Congress, which brings together representatives from AMA recognized districts across the country each year. As with the new rulesmaking committees for professional racing, the AMA Congress sends its recommendations to the AMA Board for ratification.

The American Motorcyclist Association: rights. riding. racing. Founded in 1924, the AMA is a non-profit organization with more than 270,000 members. The Association's purpose is to pursue, protect and promote the interests of motorcyclists, while serving the needs of its members. For more information, visit the AMA website at www.AMADirectlink.com, or call 1-800-AMA-JOIN.



More, from another press release issued by AMA:

BACKGROUNDER: AMA ORGANIZATIONAL CHANGES Q & A

-Why is the AMA announcing these changes in structure?

We want to more effectively use the expertise of the members of the AMA Board of Directors while increasing responsiveness to all parts of the motorcycling community.

-What are the structural changes to the AMA Board?

The changes will create three new Board committees devoted to the three core parts of the AMA's mission: rights, riding and racing. These will be in addition to the Board's existing Executive and Finance committees. These committees will be composed of existing Board members and may also include outside experts in an advisory role.

-What are the responsibilities of these new committees?

They will be responsible for setting the long-term direction of the Association in those areas, while AMA staff and other groups work on implementation of those long-term decisions.

For instance, in the area of professional racing, the AMA is creating new, independent rulesmaking committees charged with developing equipment standards and on-track rules for road racing, motocross/supercross, flat track, supermoto and hillclimb competition. Working with AMA Pro Racing staff, those independent committees will focus on racing rules, while the AMA Board Racing Committee will focus on long-term strategic planning for the Association's racing series.

-Who do the new professional-racing rulesmaking committees report to?

The rulesmaking committees will be independent entities charged with developing rules in conjunction with the AMA Pro Racing staff. They will send their proposed rules to the AMA Board's Racing Committee for review and recommendation. The Racing Committee will forward the proposed rules to the full AMA Board for ratification. The AMA Board Racing Committee will not be directly involved in the rules-development process.

-Who will serve on the new rulesmaking committees?

Committee sizes will be variable. Each committee will include one representative from each AMA corporate member manufacturer with a motorcycle homologated for competition in that discipline. In addition, the AMA president will appoint enough other members of the committee to assure that the manufacturers cannot constitute a majority.

In motocross/supercross racing, for instance, six manufacturers-Honda, Husqvarna, Kawasaki, KTM, Suzuki and Yamaha-currently have motorcycles homologated for AMA professional competition. The AMA president will appoint at least seven other Motocross/Supercross Committee members, who could include racers, promoters, aftermarket manufacturers and others with an interest in the sport.

-How long will those rulesmaking committee members serve?

Terms for rulesmaking committees will be three years. However, if a manufacturer no longer has a motorcycle homologated for that type of competition, it will lose its committee position even if the term has not expired.

-Can AMA Board members serve on rulesmaking committees?

Members of the AMA Board cannot also hold positions on the rulesmaking committees. An AMA corporate member could have a representative elected to the AMA Board and could have representatives on the rulesmaking committees, but the individual who serves on the AMA Board cannot serve on any of the rulesmaking committees.

-How will new racing rules be adopted?

Working with the AMA Pro Racing staff, the rulesmaking committees will develop proposed racing rules and equipment standards that will be sent to the Racing Committee of the AMA Board of Directors for review. The Racing Committee will forward the proposed rules, with its recommendations, to the full AMA Board.

The full AMA Board will have the power to accept or reject the committee's proposed rules, but it will not be allowed to alter those proposed rules. A veto by the AMA Board will require support by a supermajority (nine members of the 12-member Board).

Rules that are approved by the AMA Board will not go into effect for at least a full racing season, so that riders and teams will have time to develop their programs. Modifications to rules that are required during the course of a racing season will be handled by an executive committee consisting of chairmen elected by members of each committee. Those rules will apply only for the current racing season. As is the case now, emergency rules changes, if necessary, will be implemented by the AMA Pro Racing staff.

-At what point will racers and fans be able to learn about new rules proposals?

All written recommendations from the rulesmaking committees to the AMA Board will be made public.

-Will these new rulesmaking committees determine rules for AMA amateur competition?

No. Amateur competition rules will continue to be developed by the AMA Congress, which includes representatives from AMA recognized districts. As with the new rulesmaking committees for professional racing, the AMA Congress sends its recommendations to the AMA Board for ratification.

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Back To The Future--AMA Style
by dean adams
Monday, February 20, 2006

Over the weekend, the American Motorcycle Association announced serious changes its structure, specifically in regards to the Pro Racing corner of the AMA, changes that, in the end, saw the world's largest motorcycle manufacturer, Honda, resign its long-held position on the AMA board of directors.

Some background: previous to 1994, AMA Pro Racing and its previous inclinations always worked under the AMA awning, in many different forms, but always under the direct control of the AMA hierarchy. Then, after over twenty years of insiders trying to force it to happen (the late racer Cal Rayborn basically outlined the Paradama structure in a 1968 interview) in 1994 Paradama was formed by the AMA. This, supposedly, made AMA Pro Racing a semi-separate "for profit" entity (the AMA still owned it) but one not tangled inside the inner-workings of the AMA, which has always had its hands full with trying to stay on top of government and environment issues for the everyday motorcyclist. For those who watched AMA Racing try to operate several different disciples always under the watchful eye of the AMA and always having as its guiding force "what the members want", this was a fairly welcome development. What passed for "AMA Racing", previous to this, was at times a disaster with factory level Superbike races being held on Pro-Am weekends, the '80s Harley-Davidson/Honda dirt track debacle and the 1979 roadrace season (4 races in total) are seen as evidence of this.

Over the next twelve or so years, Paradama was ruled by a series of CEOs and an AMA Pro Racing board of directors, the latter of which made of OEM representatives and others. With the previous system used in comparison, which is the only fair way to do it, AMA Pro Racing/Paradama worked fairly well. The people who were ignorant of racing stayed out of it and marketing people with a decent track record were brought in to help build the sport. No disciple outside of Supercross grew exponentially, but every one grew in size and scope except dirt track.

A frequently heard criticism of the AMA Pro Racing board was that it was tilted too much in favor of American Honda's needs. Critics labeled the board the "Ray AMA", named after now former AMA Pro and AMA trustee board member (and Honda VP) Ray Blank. In support of this opinion, many people still cling to the belief that Honda was behind the Daytona 200 becoming a 600 FX race and that Honda entered their bikes in the class because it'd be an easy win for their factory team.

In reality, it was the Daytona International Speedway that pushed for the 200 to become a 600 race because of safety concerns, and Honda showed their immediate support for the 200 by entering their factory team, and hoped other OEMs would as well. In fact, there is little evidence that the AMA Pro Racing board was tilted in Honda's favor in roadracing, and moreover, with the current Buell XBRR situation in mind, it's pretty clear that Honda doesn't even have the internal pull Buell enjoys at the AMA. "Ray AMA" indeed.

The last month has been an interesting period to observe the AMA. AMA Pro Racing CEO Scott Hollingsworth left his job with no official reason given as to why that happened (rumors suggest Hollingsworth made a play to replace AMA President Rob Rasor and was dismissed because of it) on Jan 24, after about six and half years as the head of AMA Pro Racing. Then, Pro Racing CEO PJ Harvey got the shag on Feb 8 (the release stated he would not "seek re-election" however as a close-confidant of Hollingsworth's, you can guess what really happened). Next, AMA Pro Racing put out a press release on February 10 confirming that the Buell XB12RR is legal for the FX class, even though prevailing opinion, and Buell's own release for the bike, seem to indicate it is not, in fact, legal. Eight days later, the "weekend of bloodshed" happened when the AMA dissolved the AMA Pro Racing board, announced new rules committees, etc. and, reading between the lines, indicated AMA Pro Racing is no more. On the same day, American Honda resigned from the AMA's Board of Directors, mentioning they found it alarming that several key individuals had recently left AMA Pro Racing and AMA Pro Racing's "inability to stand by its own rulebook with regard to recent Formula Xtreme considerations" as reasons they decided to get out of Dodge.

The AMA will replace the AMA Pro Racing board with several different committees for rules, equipment standards and the like. Entities that will make up these committees will be chosen from the industry and according to the AMA "the AMA president will appoint enough other members of the committee to assure that the manufacturers cannot constitute a majority"; transparency will be a goal. This should prove interesting to watch.

I have just one question: What on earth was so broken with AMA Pro Racing—the recent Buell development aside—that this is chosen as a way to improve the system that runs and governs US racing? Certainly Scott Hollingsworth appeared to have hit a plateau in terms of his effectiveness (there's a few more people there in the upper-echelon of the Pro Racing that need to be shown the door), but on the whole, everything seemed to work fairly well in terms of vision and operations of Pro Racing. Does anyone really feel that the creation of more bureaucratic committees to make decisions will be a huge improvement over having a simple board of directors?

Time will tell.


ENDS

[Warchild]

Reprinting all this stuff off of Superbikeplanet.com is great, but....

What the hell does it all mean?

Is this a good thing? A bad thing?

Or is it just a bunch of political horsecock?

What does it mean for race fans?

What does it mean for the factory riders? And the privateers?

Honest questions..... I can't make head nor tails out of all this....

Anyone...?

[Energy]

Just a bunch of political horsecock basically. That's the only thing I hate about racing, just let the guys get out there and battle it out so that the best team and rider wins. There's always gotta be drama though.

It won't mean anything to the teams and riders (factory and privateers alike) unless they go about changing whatever rules and regulations they wish, but that's nothing new since it happens all the time. So the same old same for now. We'll see until they start making adjustments.

[rabidsquirrel]

It means that Honda actually felt threatened by the Buell bike in FX... A class that seems to have been created soley for them in the first place... No other manufacturer fielded a factory team for the class last year...

I'm starting to wonder about Honda...

[Energy]

Some teams might run it this year but I'm not sure. I'm ashamed not to know what classes factory Yamaha is racing in AMA this year. Even in Supersport trim the R6 is still faster than many superbikes. No need to prove the bikes superiority by wasting money in multiple classes.

And yeah from one perspective it would seem that Honda is being a cry baby.

[rabidsquirrel]

Uh, Yamaha didn't race the premier class last few years, if I recall correctly... Nothing to be proud of there, either (Superbike).

[rabidsquirrel]

This sums it up succinctly:

A frequently heard criticism of the AMA Pro Racing board was that it was tilted too much in favor of American Honda's needs. Critics labeled the board the "Ray AMA", named after now former AMA Pro and AMA trustee board member (and Honda VP) Ray Blank. In support of this opinion, many people still cling to the belief that Honda was behind the Daytona 200 becoming a 600 FX race and that Honda entered their bikes in the class because it'd be an easy win for their factory team.

I just read through some of the Roadracing world stuff; alot of this is old news to me. I'm glad they shook up the board. It needed it, as Honda seems to run it completely.

[Energy]

Well the debate for a while now is that Superstock will eventually become the true test of a machines capabilities since it focuses on the machines production platform. Superstock trim machines are not that much slower than superbikes and now the Supersport machines (like the 06 R6) are turning faster lap times at Daytona than many Superbikes. Besides no need to focus on AMA when Yamaha is focusing on MotoGP. Yamaha has factory presence at WSBK anyways, they just play the market.

[xdonniedarkox]

Originally posted by rabidsquirrel
This sums it up succinctly:

A frequently heard criticism of the AMA Pro Racing board was that it was tilted too much in favor of American Honda's needs. Critics labeled the board the "Ray AMA", named after now former AMA Pro and AMA trustee board member (and Honda VP) Ray Blank. In support of this opinion, many people still cling to the belief that Honda was behind the Daytona 200 becoming a 600 FX race and that Honda entered their bikes in the class because it'd be an easy win for their factory team.

I just read through some of the Roadracing world stuff; alot of this is old news to me. I'm glad they shook up the board. It needed it, as Honda seems to run it completely.

I get the sense the AMA is being run by Harley... they have the largest AMA membership. That was Hondas issue.

[rabidsquirrel]

They have to give peeps a reason to watch the FX class as it would bore you to tears. Throwing in an American bike definitely does that. Honda will still win - everyone will want to watch for answers to the real question, "How well does the Buell stack up?"...

I would watch for that reason alone.

I would hope that Buell puts up a competitive package, but my gut tells me its still just a spit-shined turd.

I want to see the Buell's win and be competative. This may be the catalyst that they need to get serious about sportbikes...

[Energy]

Originally posted by rabidsquirrel
They have to give peeps a reason to watch the FX class as it would bore you to tears. Throwing in an American bike definitely does that. Honda will still win - everyone will want to watch for answers to the real question, "How well does the Buell stack up?"...

I would watch for that reason alone.

I would hope that Buell puts up a competitive package, but my gut tells me its still just a spit-shined turd.

I want to see the Buell's win and be competative. This may be the catalyst that they need to get serious about sportbikes...

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One Man's Opinion -- AMA Press Releases Leave Questions Unanswered
by tracy hagen

Thursday, February 23, 2006


Editor's note: Veteran reporter Tracy Hagen has been reporting on motorcycle races since the mid-1980s; his byline has run under GP and MotoGP, World Superbike and AMA Superbike stories for almost two decades. What follows is his opinion on the recent changes at the AMA regarding AMA racing, management and communication. We have been trying to get an interview with the AMA's Patti DiPietro and when she grants us one we will publish it here.

Figuring out how AMA and AMA Pro Racing is managed has never been easy. Despite statements from the AMA that recent changes will improve transparency, there is every prospect that that changes will have the opposite effect.

The checkered history of AMA Pro Racing is rich with examples where failure was viewed as success and success viewed as failure. The former includes the supercross litigation mess that, according LawyersWeekly.com, was the sixth largest jury verdict in 2005, yet no heads rolled at the AMA. The latter is evidenced by the AMA issuing press releases claiming that Pro Racing is one of the preeminent motorsports organizations in the world and then firing Pro Racing supremo Scott Hollingsworth in appreciation.


PRO RACING AND THE PARADOX PRINCIPAL

AMA Pro Racing is full of paradoxes like these. Maybe it was all due to the inauspicious name of the parent corporation of Pro Racing. In 1994 the AMA decided to make professional racing a separate for-profit business unit wholly-owned by the non-profit AMA, and called the conflicted corporation "Paradama Productions."

Arguably the most competent person to run professional roadracing for the AMA was Roger Edmondson. Hands-on yet a delegator, Edmondson was best known for his smooth-talking. Edmondson could sell a dead horse to a cowboy.

The AMA brought Edmondson on-board largely due to the growing success of Edmondson's amateur roadracing Championship Cup Series during the 1980's. Professional racers found they could earn more money racing the amateur CCS races with manufacturer's contingency monies than they could at AMA pro roadraces. Just ask Doug Polen.

When the AMA brought Edmondson on-board in 1990 the professional roadracing series was at a low point. There was as much factory support for roadracing then (Suzuki only, really) as there is for Supermoto today. Edmondson turned it around. Correctly, the first thing Edmondson did when he took over roadracing was to throw-out all the AMA lifers who had hung on since the beach racing days at Daytona. Edmondson's own team from CCS ran more races with more racers with fewer people and fewer errors.

Eventually Edmondson learned himself about the "paradox principal" at the AMA. According to court papers, the AMA had their way with the database in Edmondson's computer. With that half of the take-over plot complete, the AMA next hired Ron Barrick, former mechanic to Dale Quarterley and Randy Renfrow, to train under Edmondson. After Edmondson had introduced Barrick to all of Edmondson's contacts, the AMA told Edmondson to beat it.

Edmondson sued and won. Well, sort of.

In the post-Edmondson years it was never quite clear who ran Pro Racing. For a while it might have been Tom Mueller, or a Meuller deputy named Roy Janson. In any case, it was a period of remote-control management. That all ended when Scott Hollingsworth arrived.

Scott Hollingsworth was hired from the investment banking industry in 1999 to be CEO of Pro Racing. Though Hollingsworth's CV had no prior experience in professional motorsports management, with the paradox principal less is more.

Coming from corporate America, the high-school educated types in Pro Racing said that Hollingsworth talked in "Scott Speak" —a self-absorbed style full of weasel words like "stake-holders," "solution," "value," or "deliverable."


HOW TO READ PRO RACING PRESS RELEASES

But talking in riddles is common in Pro Racing. Recent press releases on management changes that one would expect to clarify the current management situation are, in fact, making the matter more oblique. But if you apply the paradox principal then the press releases start making sense. Don't read what they say, read what they don't say, and you will have a prism which to view the paradoxical world of AMA Pro Racing.

Let's start with the Hollingsworth release....

AMA NAMES AMA PRO RACING INTERIM MANAGEMENT TEAM

PICKERINGTON, Ohio -- The American Motorcyclist Association (AMA) has announced that a three-person team has been named to manage the day-to-day operations of AMA Pro Racing on an interim basis.

The management team, which will report to AMA Chief Executive Officer Patricia DiPietro, is AMA Pro Racing Vice President and Director of Communications Kerry Graeber, AMA Pro Racing Director of Finance and Administration Michele Rossi, and AMA Pro Racing Motocross and Supercross Series Manager Steve Whitelock.

"Kerry, Michele, and Steve have the perfect combination of skills and experience in management, administration, and race operations to keep AMA Pro Racing at the forefront of American motorcycle sport," said DiPietro. "Fans, competitors, and our industry partners all can be confident, as I am, in their leadership of AMA Pro Racing."

The appointment of Graeber, Rossi, and Whitelock follows the departure of AMA Pro Racing CEO Scott Hollingsworth on January 24, 2006.

All other AMA Pro Racing management and staff will continue in their current roles, with AMA Pro Racing senior staff reporting to AMA CEO DiPietro.

Issued: January 31, 2006

So what's wrong with this press release? Plenty.

To start with is the title. AMA owns Pro Racing, but Pro Racing is a separate corporation with a separate board of directors. The board of directors of Pro Racing are responsible for hiring the CEO of Pro Racing, as well as firing the CEO and ensuring that there is a succession plan for the CEO position. In this case the management team at the AMA usurped the authority of the Pro Racing board of directors and fired Hollingsworth.

Then take the first paragraph. In a well-run organization the CEO works on vision and strategy to achieve growth and prosperity. Day-to-day operations should be delegated down to staff that have the right knowledge, skills, and abilities to ensure that routine tasks are getting done flawlessly. If the AMA's vision of the CEO is one that runs day-to-day operations, then they do not understand what CEOs do.

Second paragraph: the triumvirate interim management teams reports directly to the CEO of the AMA. What happened to the board of directors of Pro Racing? Who is wearing the pants in this house? The nine men on the Pro Racing board of directors or the AMA's Patricia DiPietro?

Any comment on the third paragraph would be superfluous. Confidence in the leadership of Pro Racing? Give me a break.

The real problem is not mentioned until the penultimate paragraph. Oh yeah, by the way, CEO Scott has left the building. Just thought you would like to know.

Then the final paragraph: not only does the three-person interim team report to DiPietro, so does the entire senior staff of Pro Racing. Evidently confident of her management abilities from years of overseeing the AMA-?which has seen minimal membership growth despite booming motorcycle sales, DiPietro has decided to run roughshod over Pro Racing.

But wait, there's more: the release is dated January 31, a full week after Hollingsworth dismissed. In publicly traded companies news of a CEO stepping down is made public the day it happens. AMA Pro Racing gets around to it a week later.

In publicly traded companies the first paragraph of the press release usually reads, "Today Acme Incorporated announces that Joe Sixpack has stepped down as CEO. The board of directors appointed Joe Twelvepack as interim CEO." The second paragraph goes on to thank the outgoing CEO and the third and final paragraph provides background on the interim CEO and what effect it has on his previous position.

One of the differences between Pro Racing and better run organizations is that better run organizations have succession planning. The reality was from the beginning that Hollingsworth was not hired to be CEO forever. Nobody stays in a job forever. We resign, or retire, or are made redundant, or depart this world unexpectedly. Everyone leaves their job at some point.

The universal truth that we are all temporary is understood by most successfully businesses. Therefore in the business world executives develop succession plans to ensure, in the best case, smooth continuity of business, and in the worst case, resiliency so the business can recover. These plans are implemented long before succession occurs: CEOs and those that work for them select and groom successors so they are ready to step up on a moment's notice.

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Now let's turn our attention to the following curious press release from ProRacing....

P.J. Harvey Thanked for Service as AMA Pro Racing Chairman

February 08, 2006

The American Motorcyclist Association (AMA) and AMA Pro Racing, its professional-competition subsidiary, thank P.J. Harvey for his years of dedicated service as Chairman of the AMA Pro Racing Board of Directors. Harvey announced this week that he would not seek re-election when his term expires later this month.

"Under P.J.'s leadership, AMA Pro Racing reinforced its place as one of the world's preeminent sanctioning bodies for professional motorsports," said Patricia DiPietro, the AMA's Chief Executive Officer. "The AMA joins the American motorcycling community in thanking P.J. for his immeasurable contributions to our sport, his pride in AMA competition, and his passion for racing."

Harvey, the well-known founder and chairman of PJH Brands, became Chairman in February of 2002.

Translation: P.J. Harvey gave his two weeks notice to anyone that cared at the AMA.


Is it more than just a little odd that there is no mention of an acting chairman of the board? Is there an acting chairman? And how does Harvey's departure affect the committees that are run by the board, such as the executive committee, the compensation committee, or the auditing committee?

Is it more than just a little odd that the press release uses a quote from AMA CEO DiPietro and not by the Pro Racing board of directors? Are the two directors that have day jobs in publishing too busy to write a press release regarding their chairman stepping down?

Is it more than just a little odd that a press release that trumpets praise on P.J. Harvey does not include a single comment from Harvey himself? Or any mention of his future plans?

The only logical explanation is that DiPietro is trying to make peace with Harvey after DiPietro's coup d'etat on Pro Racing's board of directors. DiPietro puts on the "so sad to see you go" face while barely containing her delight at grabbing power.

A request from Cycle News for comment on the record was politely declined by Harvey. Let's hope that after a cooling off period Harvey comes forward and offers his views on the problems inside of Pro Racing. After gushing praise on Harvey in the preceding press release, DiPietro would only further erode whatever public trust she still has if she denounces Harvey in the future.



But the richest nugget in the release is this: "Under P.J.'s leadership, AMA Pro Racing reinforced its place as one of the world's preeminent sanctioning bodies for professional motorsports," said Patricia DiPietro. Publicly, DiPietro was congratulating the Pro Racing board for being one of the preeminent motorsports organizations in the world. Privately, DiPietro was plotting to fire the entire Pro Racing board of directors.

The en masse firing came on February 17. This time the AMA had prepared press releases ahead of the holocaust. But like previous press releases the information that was left out is as interesting as the information released. Here's the one from Pro Racing....

American Motorcyclist Association (AMA) Board Chairman Rick Gray today thanked the members of the AMA Pro Racing Board of Directors for their service to the organization. The single Pro Racing Board is being replaced by a group of rulesmaking committees that will each focus on a single racing discipline.

The Pro Racing Board has been in existence since 1994. It currently consists of Chairman P.J. Harvey, along with members Cary J.C. Agajanian, Ray Blank, Mike Buckley, Paul Dean, Jeff Nash, Kevin Schwantz and John Ulrich.

"These individuals have volunteered their time and effort for years to help improve the AMA's professional-racing program," said Gray. "Much of the progress we have made in gaining wider exposure and recognition of our sport is directly attributable to their contributions."

In coming weeks, the AMA will announce the members of the new committees that will develop equipment standards and rules for AMA pro competition in road racing, motocross/supercross, flat track, supermoto and hillclimb.

Though it is said to be from Pro Racing, you don't need to be an Einstein to see that it was prepared by the AMA and Pro Racing was told to release it.

It doesn't say much except that the AMA decided that the Pro Racing board of directors needed to be replaced. Sure would have been nice to have come right out and say that in the first sentence, but management-related press releases from the AMA often don't get to the point.

To reassure us, the AMA announced that a group of individuals will be replaced by - drum roll please - a group of committees! Just like Scott Hollingsworth was replaced by Patricia DiPietro, Kerry Graeber, Michele Rossi, and Steve Whitelock. Who will be on the new committees? Dunno, haven't thought that far yet.

Then came the following press releases from the AMA later in the day....

The American Motorcyclist Association (AMA) today announced changes to the organization's structure designed to increase the Association's effectiveness in its core mission of promoting motorcycle "Rights. Riding. Racing."

The changes, which were announced following the February 17 meeting of the AMA Board of Directors, will create three new standing committees of the Board -- Rights, Riding and Racing -- each designed to focus on one element of the AMA's mission. These committees will consist of Board members and other experts who will meet at least twice a year for the purpose of strategic planning within each core area.

"The AMA is the leading voice of American motorcyclists in a wide variety of areas," said AMA Board Chairman Rick Gray. "We are at the forefront of efforts to defend the rights of motorcyclists. We create riding opportunities through our calendar of more than 1,000 sanctioned road-riding events each year. And we are the largest motorcycle racing organization in the world, with a yearly schedule of more than 3,000 races at the amateur and professional levels.

"This new structure allows us to use the expertise of our Board of Directors most effectively," he added. "By allowing these committees to work on the Association's long-term direction in each of these critical areas, we can be more responsive to the interests of all AMA members."

The AMA Board consists of 12 members, half elected by individual AMA members from six regions of the country, and half elected by the AMA's corporate members. The new committees will be in addition to the Board's existing Executive Committee and Finance Committee. Assignments to the new committees will be made in the coming weeks by the Board chairman.

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And this one....

As part of its overall reorganization unveiled today, the American Motorcyclist Association (AMA) has announced the creation of a new rulesmaking procedure for its professional-racing programs. Direction for the AMA's professional road racing, motocross/supercross, flat track, supermoto and hillclimb programs has been in the hands of a single AMA Pro Racing Board. That Board will be replaced by independent working committees that will propose equipment standards and rules for on-track competition. Proposed rules would then be ratified by the AMA Board of Directors.

"The goal of this new structure is to allow the Association to be more responsive to all of the groups with an interest in our professional-racing programs," said AMA Chief Executive Officer Patti DiPietro. "That includes everyone from the manufacturers and team owners to the racers, promoters, aftermarket suppliers and fans."

The size of these committees will vary depending upon the racing discipline. Each will include one representative from every AMA corporate member manufacturer with a motorcycle homologated for competition in that discipline. In addition, the AMA president will appoint enough other members of the committee to assure that the manufacturers cannot constitute a majority. In motocross racing, for instance, six manufacturers -- Honda, Husqvarna, Kawasaki, KTM, Suzuki and Yamaha -- currently have motorcycles homologated for AMA professional competition. The AMA president will appoint at least seven other Motocross/Supercross Committee members, who could include racers, promoters, aftermarket manufacturers and others with an interest in the sport.

These committees will hold at least one formal meeting every year, although it is anticipated that additional, informal meetings may take place more often. Working with representatives from the AMA Pro Racing staff for that discipline, committee members will develop racing rules and equipment standards that will be sent to the AMA Board of Directors.

The AMA Board will have the power to accept or reject the committee's recommendations, but it will not be allowed to alter those recommendations. A veto by the AMA Board will require support by a supermajority (nine members of the 12-member Board).

Rules that are approved by the AMA Board will not go into effect for at least a full racing season, so that riders and teams will have time to develop their programs. Modifications to rules that are required during the course of a racing season will be handled by an executive committee consisting of chairmen elected by members of each committee. Those rules will apply only for the current racing season. As is the case now, emergency rules changes, if necessary, will be implemented by the AMA Pro Racing staff.

"We are creating a system designed to increase the transparency of the rulesmaking process for AMA professional competition," said DiPietro. "By opening up these rulesmaking committees to all parties involved in our racing programs, we will make sure that everyone's voice is heard on these important issues. And we will make public all written reports from the rulesmaking committees to the AMA Board, so that anyone can monitor the process of creating new racing rules."

Rules for amateur competition run by AMA Sports will continue to be made by the AMA Congress, which brings together representatives from AMA recognized districts across the country each year. As with the new rulesmaking committees for professional racing, the AMA Congress sends its recommendations to the AMA Board for ratification.

Can't understand this transparent explanation? Here's the plain English version: The chairman of the board of the AMA will appoint a committee for strategic planning of AMA-sanctioned professional racing that will meet twice a year. The president of the AMA—Rob Rasor, who is never quoted in press releases and evidently prefers to have DiPietro do his talking for him—will appoint rules committees that are specific to each racing discipline.

Who approves or rejects new rules from the rules committees? Is it:
A. The racing committee?
B. The president of the AMA?
C. The board of directors of the AMA?

If you answered (C) give yourself a star.

According to the press release, rules accepted by the board of directors will not go into effect for a full racing season. If taken literally, this means that rules developed in calendar year 2006 will not take affect until the 2008 racing season as at least one full racing season must pass before the rule can take effect.

In cases where rules need to be changed during the course of a season, the AMA has created yet another committee to handle these situations. This in-season rules making committee will be comprised of the heads of each independent rules making committee. Yes, you read that right. If a rule in road racing needs to be changed in-season, that will not be considered by the road racing rules committee. It will be considered by a committee made up of the head of the road racing, motocross, dirt track, supermoto, and hill climb rules committees. It is not clear if the in-season rules committee has the authority to approve rules or only to recommend them to the board of the AMA.

It is also not clear which rules committee will handle rules for the forth coming season. In other words, one committee will handle rules for 2008 and another for 2006. Who is responsible for rules for 2007 is unclear.


SET-UP FOR FAILURE

According to DiPietro, "The goal of this new structure is to allow the Association to be more responsive to all of the groups with an interest in our professional-racing programs." This is arguably the biggest non sequitur of all.

Assuming that all these changes were made with a long-range view to grow and prosper in professional motorcycle racing, then let's map the flow from strategy to racing operations in the new organization of the AMA.

As stated in the AMA press releases, the racing committee is responsible for strategy, and the racing committee reports to the board of directors. Thus our starting point is the racing committee, followed by the board of directors.

To implement strategy will require rules. Hence the strategy will need to flow from the board of directors to the appropriate rules committee. The rules committees are selected by the president of the AMA, which suggests that they report to the president. Of course they could report to someone other than the president, but that is the surest guarantee of failure. One's boss is the person that has true hiring and firing authority. Assuming that the rules committees report to the president, then the next steps in implementing strategy will be for the board to relay the strategy on to the president and then the president to the rules committee(s).

After the rules committee(s) have drafted new rules, these are sent up to the board of the AMA. After they are approved by the board then the rules need to be implemented into the operations of Pro Racing (or whatever the AMA plans to call it in the future). According to previous press releases, Pro Racing reports to AMA CEO Di Pietro. According to the AMA's web site, DiPietro reports to president Rob Rasor.

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Here's a side-by-side comparison of what strategy implementation used to be and what it will be:

From
Pro Racing Board of Directors
Pro Racing CEO
Pro Racing Staff

To
Racing Committee
AMA Board of Directors
President
Rules committee(s)
AMA Board of Directors
AMA President
AMA CEO
Racing Staff

Does anyone outside of the AMA really believe that this re-organization will make professional racing more responsive?

At least one major player does not approve: American Honda. Here is what Honda had to say after learning of the upheaval of Pro Racing....

For more than 30 years, American Honda has maintained a seat on the American Motorcycle Association (AMA) Board of Trustees. Unfortunately, recent actions taken by the AMA have caused American Honda to question its continued participation on both the AMA Board of Trustees and the Paradama (AMA Pro Racing) Board of Directors. Ultimately, American Honda has made the decision to vacate both seats on these boards effective immediately.

Ray Blank, American Honda Senior Vice President, has served on the AMA Board of Trustees since 1989, and on the AMA Pro Racing board since Paradama's reorganization in the late '90's. No Honda representative will take Mr. Blank's place.

During the time representatives from American Honda served in AMA board-member capacities, the company played a significant role in many positive changes that have taken place in motorcycle racing; the rise of Supercross as a mainstream sport; improvements in rider safety across a broad spectrum of professional motorcycle racing classes; the building of Paradama as a solid business entity within the AMA organization; and sponsorship growth to a level that now supports more full-time professional motorcycle racers than ever before.

American Honda has supported the Paradama concept since it was conceived as a means to create a profitable corporation to fund a vision of what AMA racing should become, and what an AMA non-profit organization could become-a million member organization that fights for motorcyclists' rights, advocates keeping land open for responsible off-roading and maintains a vital Washington presence.

Recently, however, conflicting interests within the AMA organization have caused a division of ideology and a blurring of the vision that American Honda has always supported. Recent issues, including the departure of dedicated individuals from AMA Pro Racing and its inability to stand by its own rulebook with regard to recent Formula Xtreme considerations, have been particularly alarming.

Honda believes the rulebook is a sanctioning body's most important asset. When a governing body violates the sanctity of its rulebook, it loses credibility with everyone associated with racing-the teams, the riders, the sponsors and, most importantly, the fans who rely on sanctioning bodies to create racing environments which ensure fair, balanced and exciting competition. Honda believes the AMA and other sanctioning bodies must be responsible for coordinating the efforts of all participants to ultimately benefit the sport. Honda also believes that all manufacturers, through technical committees, must participate in, and collaborate on, development and harmonization of technical rules for each class of competition.

American Honda will continue its corporate AMA membership and will continue to support the AMA's all important, industry efforts in the areas of land use, riders' rights and the many other positive programs the organization spearheads.

American Honda will continue to compete in AMA sanctioned racing, and will continue to utilize its resources to build the sport and support more riders and teams. Today, Honda offers unprecedented support throughout the AMA professional paddocks.

Most importantly, Honda remains committed to providing new opportunities for customers to enjoy and race Honda products, and for fans to share in the unique passion and excitement of motorcycle racing.

With Honda's press release we now have two versions of the end of Pro Racing. According to the AMA, the AMA's board of directors decided to disband the board of directors of Pro Racing. Honda's Ray Blank served on both boards, and, in theory at least, he was a party to the decision to disband the Pro Racing board of directors.

But the first paragraph of Honda's press release indicates that the re-organization was a unilateral change made by the AMA without consultation of the AMA's board of directors. When Ray Blank was finally informed of the changes, he told the AMA that it was completely unacceptable and backed up the rhetoric with real action: he resigned from the AMA's board of directors.

I, for one, applaud American Honda's bold move. The AMA's decision to use a democratic style of leadership sounds good on the surface, and it may work. To be effective it will require people with empathy and inquiry thinking skills, people with the ability to ask the right questions and listen to others.

Racers, by their nature, are generally selfish people. They see the world in terms of winners and losers. They want to have things their way. Of course they know more about racing than anyone else, but their drive to excel on the racing track often comes at the expense of developing the right people skills to get along with others. Part of the fun of following racing is the paddock trash talking between racers.

Take these kinds of people, place them in a democratic system and what do you get? Meetings where navel gazing goes on endlessly and consensus is never reached. The only outcome of the meeting will be when to have the next meeting. The thought reminds me of my favorite haiku:

Meeting to decide
When we will have another
Meeting to decide

In theory, it is possible for people to put aside their egos, pool their ideas, and use the democratic approach to make good decisions quickly. But whenever consensus is reached quickly it becomes suspect. A quick consensus can result from committee members that just rubber stamp their approval, assuming that if everyone else agreed to the idea then the idea must be a good one. A group think mentality can develop where members feel that dissent is a sign that they are out of touch and assumptions are not questioned. In the end people end up confused and feeling leaderless.

One of the underlying problems at the AMA is a lack of decision analysis skills. People that are not trained in the different kinds of decision making methods and how to use them often embrace the noble American ideal of democratic decision making.

Professional racing is a business. Successful businesses are, to be perfectly honest, dictatorships. Why to dictatorships succeed in leading a business but not a nation? It comes down to competence. A competent dictator - a dictator with the right knowledge, skills, and abilities—is a benevolent dictator. A benevolent dictator can provide a high level of security to his stakeholders that offsets the stakeholders' desire to be part of the decision making process.

This is how NASCAR and Formula 1 operate. NASCAR has Mike Helton at the top with Gary Nelson a heartbeat away in case Helton cannot carry out his duties. Both are very competent. Not everyone in NASCAR agrees with every decision they make, but there is no question that NASCAR continues to grow and prosper which validates the decisions taken by Helton and Nelson.

Formula 1 runs the same way, with Bernie Ecclestone and Max Mosley in charge. From time to time there is talk about Formula 1 teams breaking away to form a rival series, most recently during the 2003 to 2004 seasons when Ferrari won most of the races. In response to the Ferrari dominance Bernie Ecclestone and Mosley made significant rules changes that resulted in Ferrari struggling for podium finishes and other teams winning the races. A break-away might still happen, but it looks less likely today than it did 18 months ago.

For professional motorcycle racing to grow and prosper within the AMA organization will require leaders than can make decisions from a business point of view. A leader than understands what drives business growth and prosperity will make better decisions than democratic committees that are not responsible for business results. The AMA needs to drop the noble idea of management by popular vote and embrace the idea of managing for results. Hire competent leaders and require them to set goals, measure their performance, and report their accomplishments. It works in the business world, and it can work for the AMA.


ENDS