Kentucky Speedway founder Jerry Carroll says suit will continue
By Bob Pockrass - Associate Editor
Monday, June 15, 2009
Kentucky Speedway founder Jerry Carroll says his group will not drop its lawsuit against NASCAR.
David Griffin
NASCAR Scene
SPARTA, Ky. – Jerry Carroll, one of the five founders and former co-owners of Kentucky Speedway, expects the group’s antitrust lawsuit against NASCAR will continue at least through the appeal scheduled to be heard next month.
“Absolutely,” he said Saturday as he stood about 25 feet away from current track owner Bruton Smith, chairman of Speedway Motorsports Inc.
Smith and Carroll consider themselves friends, but Smith cannot convince Carroll and his partners to drop the lawsuit filed in 2005 against NASCAR and sister company International Speedway Corp.
Carroll and his partners built the track for $152 million and sold it to SMI for $78.3 million, which includes an assumption of debt of $63.3 million.
“Suing NASCAR and suing ISC, … how are they going to make money doing that?” Smith said. “I’ve said from day one, I thought it was a bad lawsuit.”
NASCAR has been steadfast in its stance that the lawsuit must be resolved before SMI, which is primarily owned by Smith, can realign a Sprint Cup race date from one of its other tracks to the 1.5-mile Kentucky oval.
When SMI bought the track, the founders retained their rights to pursue their lawsuit, which alleges that the France-owned sanctioning body of NASCAR illegally conspires with the publicly traded, France-controlled track operating company ISC to keep tracks such as Kentucky from obtaining Cup dates. SMI is considered a co-conspirator in the case.
A U.S. District Court judge ruled in January 2008 that there was not enough evidence for trial.
A three-judge U.S. Court of Appeals panel is scheduled to hear oral arguments in the case July 30 in Cincinnati. Decisions on appeals typically come anywhere from three weeks to six months after the oral arguments in the Sixth Circuit Court of Appeals.
Carroll said he believes the founders have a good chance to win on appeal and says they never considered dropping the case. He said NASCAR is just using the Cup date as leverage.
“Remember now, we’re not the guys that are holding up the race,” Carroll said. “We’re not the hold-up to this race. Never have been. We have a right to do what we’re doing. That’s the reason that we live in this country. Nobody can bully anybody around, and now they’re bullying Bruton.
“We’re not going to take the blame for not being able to move the race. We know what the fans want here and who is really missing out on it.”
Smith says the founders have a moral obligation to land the race because the state has put $96 million into infrastructure for the facility. He doesn’t blame Carroll but two of his partners, businessman Richard Duchossois (a board member of Churchill Downs Inc.) and Cintas Corp. Chairman Richard Farmer.
Carroll said all of the founding owners, including John Lindahl (a general partner at private equity firm Norwest Equity Partners) and executives at Outback Steakhouse, want to continue with the lawsuit.
“We’re all together on this thing,” Carroll said. “It’s not just Duchossois and Farmer. … [We] are not going to change. These are all entrepreneurial people that built up Cintas and other [companies].
“They’re not going to be intimidated by NASCAR. That’s the last thing they’re going to be. If they didn’t feel right about what they’re doing, they wouldn’t go through with anything. They feel like this is a country where they have the right to do this. If the appeal goes the way we think it’s going to go, I think we’re going to surprise some people.”
And what if they lose? Would they appeal to the Supreme Court?
“I think we’ll wait and see what happens there,” Carroll said about further appeals. “We’ve got some very good legal minds out of Washington, D.C., and New York City, and we sort of said whatever our lawyers think – if they thought this was a waste of time [we’d drop it], but they all say, ‘No, let’s do what we’re doing.’
“So it’s on.”
If the founders win their appeal, the case would go back to U.S. District Court for trial and, with appeals, could drag on for years.
“It won’t be a quick turnaround,” Carroll said about a potential timeline for trial. “We’re going to see what happens. It’ll be interesting to see what happens.
“As long as we’ve got that chance and worked hard to get it – we had 10 years in here, tens of millions dollars lost – we’ve got the right to do what we’re doing. I’m not backing out.”
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10 responses to "Kentucky Speedway founder Jerry Carroll says suit will continue". Post a Comment.
dale said:
Jun 15, 2009 at 3:49 PMSorry guys, while you have a right to sue for anything you want, you do not have the right to demand a race. Getting a race date is a privilege, not a right. NASCAR is a privately held business as such it is their right to determine where they want races to take place. Unless you had a written agreement prior to building the track (which I do not believe you did), it is not a matter of build it and they will come.
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» Confirm Abuse Reportchad_on_a_cordless said:
Jun 15, 2009 at 4:06 PMJerry Carroll is a crook. Always has been. Ask the racers at Louisville Speedway before he flipped it out from under them for cash.
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» Confirm Abuse Reportkahnefan said:
Jun 15, 2009 at 5:02 PMIf he wants a race so bad he should just drop the lawsuit because no race is coming to Kentucky unless the suit is dropped, so if you want to be stuck up keep the case going, but if you want to help the state drop the **** lawsuit!!!!
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» Confirm Abuse Reportnascarnutsheeler said:
Jun 15, 2009 at 5:47 PMBOY, talk about a gready fool. He sells out to Smith and then keeps right on trying to show the Frans family they aren't god. I hope he loses everything he made when he sold out to Smith. I feel sorry for Mr. Smith, he is the one losing when he he didn't insist that all lawsuits be dropped when he bought the track from this gready idiot.
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» Confirm Abuse ReportWerner said:
Jun 15, 2009 at 6:20 PMjust beacuse you build it doesn't mean they will come...then again NASCAR policy says if you want a race, 1st you must have a trak...my bet's still on Rusty getting a date before Kentucky...or perhaps if they built a casino by the trak?....
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» Confirm Abuse ReportKadach said:
Jun 16, 2009 at 7:49 AMThere is already a Casino near the track in Indiana (Belterra), but there could be some in KY if a revised version of the gaming bill is passed that is currently in the senate. The race WILL come, but it will take tiem and will be dragged out til the lawsuit is settled. #4, you don't have a clue about Jerry Carroll or Bruton Smith, neither one of these men became millionaires due to a lack of business sense.
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» Confirm Abuse Reportsstarbraintree said:
Jun 16, 2009 at 8:25 AMdoes anybody really think that Bruton would stand beside this guy and say he was friends if it was keeping him from getting a race. dont know the relationship there but you can bet there is something in this lawsuit for both of them. just ask Humpy
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» Confirm Abuse Reportbenflorance said:
Jun 16, 2009 at 10:24 AMthere is no reason for this suit to continue...they dont even own the track anymore so what would they get out of it
Report as Abusethey should just drop the suit
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» Confirm Abuse Reportsnohio said:
Jun 16, 2009 at 12:26 PMWow.. A lot of interesting comments there folks. Those who think it should be dropped because the previous ownership has nothing to gain are foolish. There are more than 100 million reasons to sue. Carroll's group lost a ton of money. Yes, they were not guaranteed a race, but from what I understand it was included in the handshake. Ky Speedway has put on some fantastic stand alone truck and Nationwide races during the previous ownerships regime and they felt that they did all that was needed to get a cup race. They are just trying to recoup some of those millions they lost. The sale of the speedway for a major loss plays into the lawsuit as well and if SMI gets a race before it is done it also helps to validate the claims in the suit. Bruton bought the track knowing that the suit would not be dropped so he should not be terribly upset with where they are at. I think he got a bargain price for the track (like half of its worth). It all plays into each others hand. Yes, the real loser in this chess match are the taxpayers of Kentucky for the money they've spend on infrastructure and of course nearby fans who want a race in their backyard.
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» Confirm Abuse Reportsibhowell said:
Jun 16, 2009 at 7:38 PMFrom my point of view antitrust means no monopoly (not the board game). I hope they are successful at breaking up the strangle hold that these 2 entities have managed for too many years. Kentucky should have 1 cup race to complement the CWTS and NWS races there. I think they could definately draw fans from surrounding states without diluting the market. But everybody can keep your pants on for at least another 3 or 4 years. This fight won't be over for quite a while.
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