Former Kentucky Speedway owners say price tag to SMI was 'fire sale'

By Bob Pockrass - Associate Editor
Thursday, January 15, 2009
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Marcos Ambrose leads the field to the green flag during a NASCAR Truck Series race at Kentucky Speedway in 2006.

Joe Robbins
Getty Images for NASCAR

Court papers filed by the former owners of Kentucky Speedway say they had to accept less than market value when they sold the track to Speedway Motorsport’s Inc. because the facility doesn’t have a NASCAR Sprint Cup race date.
   
When Kentucky Speedway co-founder Jerry Carroll announced last May that he had agreed to sell the track to SMI, he said the ownership group did not recoup its $152 million investment. According to a legal filing earlier this week, Carroll hopes to recoup it by winning a federal antitrust lawsuit against NASCAR and sister company International Speedway Corp.
   
Carroll’s group sold the 1.5-mile track in Sparta, Ky., for $78.3 million – the assumption of $63.3 million in debt, $7.5 million in cash and another $7.5 million upon the satisfaction of certain conditions. According to an ISC filing last year, ISC rejected an offer to purchase the track for $186 million.
   
The brief says Carroll’s group “sold the track to SMI for below market value. This sale to a co-conspirator at firesale prices – a consequence consistent with Defendants’ past behavior, … in no way moots this lawsuit.
   
“KYS specifically retained rights to this lawsuit in the sale, and it still has a claim for past damages and/or the difference in sale price due to the illegal conduct. Moreover, part of the sale price is contingent on whether KYS obtains a [Cup] race in the future.”
       
As part of the sale, Carroll’s group retained the right to continue its lawsuit alleging that Kentucky Speedway did not get a Sprint Cup race because of a conspiracy by the France-owned sanctioning body NASCAR and the publicly traded ISC, whose majority of voting stock is owned by the France family. ISC tracks have 19 of the 36 point-paying Sprint Cup races. SMI, which has 12 Cup races, is also listed as a co-conspirator in the case.
   
A U.S. District Court judge ruled last year that there was not enough evidence for the case to go to trial, and Kentucky Speedway’s former owners are appealing that decision.
   
Much of the Kentucky Speedway brief filed Tuesday argues that the track is not a jilted distributor, that its expert testimony in the case is valid and that “with a truly competitive market, KYS would receive a race on its own merit without any court intervention.”
   
Final briefs in the case are due at the end of the month. There likely will be a hearing scheduled, and then it typically takes at least a couple of months for the appeals court to make a decision.
   
If Kentucky Speedway wins the appeal, the case would be scheduled for trial. If the appeals court affirms the NASCAR decision, the only appeal left for the track founders would be to try to get the case heard by the U.S. Supreme Court.
   
SMI Chairman Bruton Smith has said he wants to realign a Cup date from one of his existing tracks to Kentucky.
   
But NASCAR spokesman Ramsey Poston reiterated Thursday that as long as the case is unresolved, NASCAR would not consider any realignment request from SMI to move a Cup race to Kentucky.
   
NASCAR has run its Truck series at the track since it opened in 2000 and what is now called the Nationwide Series there since 2001.

Comments

20 responses to "Former Kentucky Speedway owners say price tag to SMI was 'fire sale'". Post a Comment.
  1. 1
    Sarah Oxfurth said:
    Jan 16, 2009 at 11:32 AM

    On what planet does a court have a right to tell a sport where to hold its events?

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  2. 2
    Graceann Jackson said:
    Jan 16, 2009 at 12:14 PM

    This place sells outs both truck and Nationwide races every year. Not a bad seat in the place. I know its another cookie cutter track but in the area its in these people really don't have a track close to them other than Indy & even though it's history stands behind it you can't see the race from your seat. Indy is one race I'd rather watch from home.

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  3. 3
    said:
    Jan 16, 2009 at 2:48 PM

    Carroll keeps whining and complaining. If he wins this lawsuit (which he won't), it will open the flood gates for any track owner to sue NASCAR and ISC. It will set a nasty precedent.

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  4. 4
    DAVID PHILLIPS said:
    Jan 16, 2009 at 3:14 PM

    I hate to side with them, but NASCAR is a privately owned company, and can pretty much do what they want. Now, when you throw ISC into the mix, that is completely different

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  5. 5
    Jim Bayliss said:
    Jan 16, 2009 at 3:44 PM

    I am wondering WHAT makes you say it is a cookie cutter track? Since there is no such thing as a "cookie cutter" track. THAT is a misnomer for 1.5 mile tracks. They are ALL different and have their own nuances. Some may be closer to some tracks than others, but NONE are exactly the same. Ask any NASCAR driver. Ask Jeff Gordon who can win at some, but not others.

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  6. 6
    Don Rakow, Jr said:
    Jan 16, 2009 at 5:08 PM

    NASCAR & ISC are controlled by France family. Yes ISC is publically traded, but... The origins of the suit were Anti-Trust, now conspiracy.... Enough.... Anti-Trust has traction with this fan, but co-conspiracy between NASCAR, ISC, and SMI - not likely at all. Look at the characters involved.

    NASCAR does need to look at a re-alignment though. I am tired of the 1.5 & 2.0 mile tracks and their boring racing. Atlanta did have good racing at one time but last Spring was not one of them... 2000, 2001 what a great couple of races.... Bring back The Rock, and North Wilkesboro - now that is racing. How about one of the unique configurations from Texas World Speedway...

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  7. 7
    Bernadette Motherway said:
    Jan 16, 2009 at 6:52 PM

    I'm sick of the phrase too...."cookie cutter track". It may look like that from the fans' point of view, but not the drivers!

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  8. 8
    cb michael said:
    Jan 16, 2009 at 7:57 PM

    If the France Family owned this track you can believe they would have a race. Better seats and better racing than INDY and no Plate to choke the racing. Hope they prove their post and get something for building a Great Center for Racing, we the fans love it here. It makes too much money on race day not to have a Cup Race there. besides now that all the teams cannot test there any longer ISC put another nail in the previous owners coffin...Way to go Brian, you've screwed everyone by doing it YOUR WAY.

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  9. 9
    Janice Marler said:
    Jan 16, 2009 at 10:02 PM

    Jerry Carroll said the ownership group did not recoup its $152 million investment. Excuse me, but my math says that you got $78.3M for it, an additional $68.3M of debt taken over, cash of $7.5M, and a conditional amount of $7.5M to come. That adds up to $161.6M which is certainly more than $152M. And, since when did Bruton Smith become a co-conspirator with NASCAR. That'll be the day. Even without the condition amount, the total amounts to $154.1 which is also more than $152M. Another reporter would have called Carroll on these statements, but not Pockass, oops, Pockrass. I had a hard time figuring out what he was trying to say in his story anyway. Terrible writer.

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  10. 10
    Graceann Jackson said:
    Jan 16, 2009 at 10:57 PM

    Excuse me for calling it a "Cookie Cutter" track, if I had said another 1 1/2 track some one would have posted the other. You can't please everyone.

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  11. 11
    dan venema said:
    Jan 16, 2009 at 11:33 PM

    a vast majority of the Non-Hendrick,Gibbs,Roush wins occured at non-cookie cutter tracks...daytona, bristol, richmond, pocono. the only cookie cutter track that non-hend,gibbs,roush drivers were able to win at was charlotte. the bottom line is that there are too many tracks that are too similar. it may not be exatly the same for drivers but its pretty gosh darn close...
    oh and by the way they are really similar to many fans...the ones who watch the sport.
    seeing the same thing over and over= cookie cutter duh

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  12. 12
    Graceann Jackson said:
    Jan 17, 2009 at 9:37 AM

    #11,Watch out, you'll get corrected for calling Kentucky Speedway a "Cookie Cutter" track!

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  13. 13
    Sarah Oxfurth said:
    Jan 17, 2009 at 10:34 AM

    The bottom line, IMO, is so what? Who cares if ISC owns EVERY track they're on? It's irrelevant-you don't HAVE to be a part of NASCAR. There is no anti-trust going on here. If you want to start up a new sanctioning body for a new kind of race go for it! Nothing's stopping you. If NASCAR is "anti-trust" what the heck is NFL and MLB?? Come on!! The court has no jurisdiction here.

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  14. 14
    Bernadette Motherway said:
    Jan 17, 2009 at 12:41 PM

    Aren't they supposed to be considering a Cup date in 2010?

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  15. 15
    Jim Bayliss said:
    Jan 17, 2009 at 3:13 PM

    IF you ever raced, you KNOW there are no two tracks alike. What do you want, 1.1, 1.2, 1.3, 1.4, etc., etc.??? WOuld you KNOW the difference? I doubt it. Not unless you are actually ON the track racing. When a race is on, ALL the drivers have the same conditions to work with. Some just do it better than others on certain TYPES of tracks. - - - The only tracks I don't like are Daytona and Talladega. Boring racing at Daytona and a crash fest at Talladega. Shorten up those two tracks and we will have some REAL un-restrictor racing. - - - SHORTEN the races themselves by a hundred miles or so, and then we won't get so bored. They will race harder from start to finish.

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  16. 16
    Bernadette Motherway said:
    Jan 17, 2009 at 5:06 PM

    Jim, I can see that you are hot under the collar, have experience as a driver and don't like restrictor plate racing. But, you can't be serious about races being shortened? The NASCAR season is short enough:-) Bernie

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  17. 17
    Jim Bayliss said:
    Jan 17, 2009 at 6:05 PM

    Bernadette:
    I don't mean for the SEASON to be shortened, just the length of each race. They just play follow the leader on those 500 and 600 mile races. Make them 300 to 400 miles on those bigger ones and I think they will be much more exciting, and it will give me more time to work on my street rod truck projects. - LOL.

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  18. 18
    Bernadette Motherway said:
    Jan 17, 2009 at 7:03 PM

    I'm nitpicking, Jim. I meant if you shorten the race, you shorten the season. Just messin' with your mind:-)!!!!

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  19. 19
    Jim Bayliss said:
    Jan 18, 2009 at 12:17 AM

    Oh, well, just so long you don't mess with something else. LOL.

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  20. 20
    Andrew Briscoe said:
    Jan 18, 2009 at 1:33 AM

    Janice (comment #9), you need to do some math. You're including the total that Kentucky made twice. It was a TOTAL of $78.3M that the old owners got: $7.5M cash, $7.5M to come later, and $63.3M in debt. That's nowhere near $152M. I'll assume you just misunderstood the article on that one. I don't think Pockrass writes the best articles either, but you can't attribute your miscalculation to him.

    As for the people who are griping about calling them "cookie cutter" tracks: they are D-shape tracks. What shape is a cookie cutter? A D-shape! They're considered cookie cutters even by some NASCAR officials.

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