Paul, this is not my field, but back when I was studying finance, I had the
opportunity to go through case studies of Not for profits and thus the norms
that they operated under. I also had a number of very close friend who's
careers were in managing these types of organizations, although not
automotive in nature. So my info is both out-of-date, not first hand and
about US organizations in another field.
Anyway they must operate on similar bases, though. In the US there are a
small hand full of museums that brake even in any normal business sense.
That is the internally generated money equal the cost of operation i.e.
admissions, sales and income on cash reserves. Those are institutions that
were set up with or have very large endowments, that produce enough income
to support the operating costs. As I said, this scenario is the minority.
Most of this type of institution, museums mainly since most of them also
have a research division, are in constant need of additional cash and
receive most of their money as either cooperate sponsorship or government
grants.
If memory serves, only the most popular institutions received a third costs
in sales, admissions and facilities rental. The rest rest was made up from
constant fund drives and cooperate sponsorship. Few of these presented the
opportunity for a direct tie-in of the Corporation's product with the museum
as Gaydon does for Rover. In addition from my short visit, only one day, it
appeared as if gaydon is a very substantial facility and a good portion of
the land is used for Land Rover's offroad Driver's Ed and testing. That use
is very obviously part of LR's engineering and marketing campaigns. Lastly
in all the literature it states that BMIHT manages the collection,
conference center etc. thus, the Gaydon museum facility. I read this as it
does not own those properties and just over sees them. I have heard as much
from other sources, I might have miss interpreted or been wrong.
Below I am forwarding a message posted on the Healey list buy the editor of
British Car. That seem to shed some light and restate the known details.
Date: Sat, 18 Mar 2000 14:49:59 EST
From: Editorgary@aol.com
Subject: Re: : RE: MG Car Company Reborn?
I had some correspondence with a senior staff member at Gaydon, and with
Graham Robson, our history columnist. For those who missed it, the bare
facts
as known now are that BMW gave (as in at no cost, gave) the Abingdon
facilities and rights to the old Rovers, the MG-F, and the old Mini being
produced there to the Alchemy Group, a venture capital group that admits it
doesn't know anything about producing cars, but nevertheless claims that it
is going to re-establish the MG Car Company to produce state-of-the-art
sports cars. BMW is retaining the Cowley facilities which are producing the
newest Rover and are geared up to start producing the new Mini this fall,
and
will produce the new Mini for itself, while producing the new Rover on
behalf
of Alchemy. It is also likely that BMW will use Cowley to produce the new
Rolls Royce when it acquires full rights to the logo in 2002.
In a surprising move, at the same time, BMW sold Land Rover to Ford, which
has been trying to get a means to produce a sport-ute within the EC. Ford
will acquire the Gaydon test track and experimental facilities as part of
the
deal.
What is not clear yet -- we suspect no one has gotten around to thinking
about it yet -- is who will own the Gaydon BMIHT museum and collection,
BMIHT
offices, and archives, and the rights to the currently defunct British
Leyland marque names.
What is also not clear, and the British cabinent is totally apoplectic about
it, is how BMW worked out all of these deals without notifying the
government
as its subsidy agreements required that it was supposed to.
There are all sorts of speculations about the outcome, but our two British
columnists believe that Alchemy will strip the Abingdon assets, try to
maintain a radically reduced car operation for a short period of time, and
eventually be forced to allow the MG marque to return to the grave again.
And that's all the news from here.
Cheers
Gary Anderson
Editor, British Car Magazine
--
Marshall Dixon
1960 Healey 3000 BT-7 (not yet on the road again)
1973 MGB-(daily driver)
Boiling Springs PA
> From: "Paul Hunt" <paul.hunt1@virgin.net>
> Date: Sat, 18 Mar 2000 15:47:48 -0000
> To: "Marshall Dixon" <mldixon@planetcable.net>, "MGS Digest"
> <mgs@autox.team.net>
> Subject: Re: Old Speckled Hen-Carlisle-MG's rebirth
>
> BMIHT, as I understand it from the chap who was instrumental in getting it
> all started, is a charitable trust and as such is outside the ownership of
> any car company.
>
> Not sure why it should be assumed it doesn't break even, not even charitable
> trusts are allowed to trade if insolvent. They get a beneficial tax status
> and as well as museum entrance fees and sale of items also host conferences.
> This last is quite common, and the National Motor Cycle Museum which is
> located in my town has had several run-ins with the local council over
> whether they are a business (conference venue) or a museum. Thankfully the
> Museum has prevailed, without a decent income from such non-museum
> activities it is doubtfull whether the museums would exist at all.
>
> What is more to the point is what will happen to BMH (British Motor
> Heritage) who produce the body shells etc which *was* owned by BMW. I have
> heard nothing about which way it has been transferred, I would rather it
> went to Alchemy than Frord.
>
> PaulH.
> ..
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