The organisation, which is run by volunteers on a track on the outskirts of Cromwell, is facing being hit with an increase in lease for its land from the Cromwell Community Board.
The proposed lease increased it to $50,000 a year, up from $20,000 set in the original lease in 2005.
The speedway had in reality only paid $2000 annually, as the group was given an annual rebate of $18,000 from the Cromwell Community Board.
The increase of the lease was based on market value obtained in an independent review by the Central Otago District Council.
The new lease would give the club access to the land until July 1, 2032.
At its meeting earlier this week, the community board was presented with three options: a new lease agreement without rebates, a new lease agreement with rebates or no new lease agreement.
Council statutory property team leader Zelda Zeelie said the board should reconsider rebates as in the time since the previous lease was signed, the speedway had increased its income to the point they were not necessarily considered a small community group any more.
Property and facilities manager Garreth Robinson said the club had generated $400,000 in revenue the previous year.
Ms Zeelie said the difference between endowment and reserve land was endowment land was expected to make a reasonable return.
Market rent ensured the purpose of the endowment was met, she said.
However, the community board decided to leave the issue on the table to debate at their next meeting with updated financial reports and operating costs. Further discussion about the speedway lease was held in meetings where the public was excluded, including at a full council meeting on July 30.
During the public forum at its meeting in May, Central Motor Speedway club lifetime member Andy Erskine said since 2020, the club’s net profit had dropped dramatically, with the club recording a loss of $88,000 for 2025 ending May.
"We’re definitely going backwards, and we just don’t know if we can sustain that."
Central Motor Speedway club president Claire Arkell said the club had a 291% increase in their loss and a 300% increase in cash expenditure.
"It would be a real shame if we had to close up shop because we can’t afford to be there."
Community board member Wally Sanford took to social media to express his opinion on the matter, saying the hysteria started by the club, reported by the media and propagated on social media was off-topic and unhelpful.
He believed the report to the council should have been made public, as the club’s annual financial statements were filed and public.
"The economic benefit of the speedway is not lost on council or the community board."
The increase of the lease to $50,000 based on the independent valuation, put into real terms, would be covered by the first 140 adults through the gates at the first 10 events, he said.
The goal posts for the speedway club had shifted in the past 15 years, and it would need to adapt like others.
There was big money coming into the club and it was time to make changes.
"While it’s perfectly fine to run the club by volunteers, it’s no longer going to be good enough to run the club like volunteers any more," he said.
Central Motor Speedway Club declined to comment further on the lease, citing ongoing negotiations with the council and community board.
The club hosted the NZ Super Saloon championships last year and the NZ Super Saloon Grand Prix in 2023.
