Kentucky Speedway sale?

[QueenCityMotorsports.com]

From the Cincinnati Enquirer
news.enquirer.com/apps/pbcs.dll/article?AID=/20080521/SPT/305210069

Kentucky Speedway sale?
BY KEVIN KELLY AND PAT CROWLEY | [e-mail]; [e-mail]
SPARTA – The future of Kentucky Speedway is expected to be addressed during a “major announcement” scheduled for Thursday afternoon in Concord, N.C.

Sources close to the speedway confirmed to the Enquirer tonight that Kentucky Speedway officials have been in talks with Speedway Motorsports Inc. chairman and chief executive officer O. Bruton Smith about selling or partnering with the Sparta track owned by Jerry Carroll and his partners.

A spokesman with Lowe’s Motor Speedway, one of the seven tracks owned by SMI that hosts NASCAR Sprint Cup Series races, indicated only that Thursday's announcement would be of interest.

The exact nature of the announcement is not immediately known, but it could include selling all or part of the speedway or partnering with Smith to bring a Sprint Cup race to the 1.5-mile track.

Smith will make the announcement at 3 p.m. Thursday in the media center at Lowe’s Motor Speedway. Carroll was unavailable for comment Wednesday.

News of a potential deal with SMI comes at the same time lawyers representing Kentucky Speedway continue to fight in 6th U.S. Circuit Court of Appeals the early January decision by a U.S. District Court judge to dismiss the track’s antitrust lawsuit against NASCAR and International Speedway Corp.

Kentucky Speedway filed suit in 2005 alleging NASCAR and ISC violated antitrust laws by restricting which tracks host Nextel Cup races and trying to “monopolize the market for hosting premium stock car racing events.”

The track later amended its complaint and said it wanted NASCAR to develop “objective factors” for the awarding of Cup races; for the France family to give up control of either ISC (a public company that operates tracks and whose majority of voting stock is owned by the Frances) or NASCAR (a private company owned by the Frances); and for ISC to sell at least eight of the 12 tracks it owns that host Cup events. It also sought more than $200 million in damages.

Kentucky Speedway was built at a cost of $152 million and opened in 2000 without a promise from NASCAR it would one day host the sanctioning body’s premier racing series, now the Sprint Cup Series.

The track’s most popular race – the Meijer 300 for the second-tier NASCAR Nationwide Series – is less than four weeks away. The facility has enough grandstand seating for 66,089 fans, but boasts plenty of room to expand.

The Nationwide Series race has averaged a capacity crowd of 70,952 fans since its debut in 2001. The IndyCar Series, NASCAR Craftsman Truck Series and ARCA RE/MAX Series also hold races at Kentucky Speedway.

Smith, 81, added to his lineup of tracks in November by orchestrating the purchase of New Hampshire International Speedway. The 1.058-mile oval, which annually hosts two Sprint Cup Series races, sold for $340 million.

Buying a track with a Nextel Cup date and moving a race to Kentucky Speedway was one way Carroll thought he could get NASCAR’s top division to his facility. The New Hampshire track was one he pursued.

The amended complaint against NASCAR and ISC disclosed that Kentucky Speedway had in the past offered Bob Bahre, the longtime owner of New Hampshire International Speedway, $360 million to buy his track.

“It was never that we had to have New Hampshire. It was a thought,” Carroll said in November. “We pursued it about two years ago. Our timing was not good because I think Bahre, at that time, thought his son (then-track president Gary Bahre) would participate and he just wasn’t for sale. There wasn’t any kind of money that could buy it. Then this year he sort of changed his mind.”

Smith grew up in North Carolina and, according to a recent Boston Globe article, the son of a North Carolina cotton farmer became enamored with cars after attending his first race at 7 years old. He opened Charlotte Motor Speedway, now Lowe’s Motor Speedway, in 1960 and SMI’s seven tracks now host a dozen Sprint Cup dates each season.



Will this lead to the Kentucky Speedway getting a CUP race??

[charlesnungester]

Bruton Bought it. Intends to add 50,000 seats and have a cup race in 09

Talk is he will remove a race from either Pocono or Vegas.

We all knew that if your not INSIDE, You don't get a cup race so they sold to a insider.

Chuck, who'll probably still be at a sprint car race that day.

[zman]

I think this is a good deal for fans, now maybe ticket prices, concession prices and rules(coolers) will change.

[QueenCityMotorsports.com]

SPEEDWAY MOTORSPORTS AGREES TO PURCHASE KENTUCKY SPEEDWAY
CHARLOTTE, N.C. - Speedway Motorsports, Inc. (NYSE:TRK) has agreed to purchase Kentucky Speedway from Kentucky Speedway, LLC. The agreement was announced today by O. Bruton Smith, founder, chairman and chief executive officer of Speedway Motorsports, Inc. The acquisition is expected to close in the fourth quarter of 2008.

Kentucky Speedway, which opened in 2000, hosts one NASCAR Nationwide Series event, one NASCAR Craftsman Truck Series event, one IndyCar Series event and other racing events each year. The speedway is located in Sparta, Ky., approximately one-half hour south of Cincinnati, Ohio. The speedway is easily accessible via modern highways.

Located on approximately 820 acres, Kentucky Speedway features a 1.5-mile tri-oval speedway, with chair-back grandstand seating for 66,089 spectators, 50 luxury suites with seats for approximately 2,000, 100 private RV spaces, 200 reserved camping spaces and 1,000 unreserved camping spaces. Kentucky Speedway regularly hosts near capacity crowds for its Nationwide Series events.

“This is a wonderful opportunity for our company to grow into a new market in a modern speedway facility. We continue to be committed to investing in the motorsports industry,” said Smith.
Smith added that he has offered Jerry Carroll, who was instrumental in the development of Kentucky Speedway, the opportunity to remain involved in its future operations.

Kentucky Speedway will join an outstanding lineup of SMI facilities. The company also owns and operates Atlanta Motor Speedway; Bristol Motor Speedway in Bristol, Tenn.; Infineon Raceway in Sonoma, Calif.; Las Vegas Motor Speedway; Lowe’s Motor Speedway in Concord, N.C.; New Hampshire Motor Speedway, in Loudon, N.H.; and Texas Motor Speedway in Ft. Worth, Texas.

With this acquisition, the company will own race tracks in the West, Northeast, Midwest, Southeast and Southwest, including four of the nation’s top-10 metropolitan markets.

The breakdown includes: the sixth-largest market (Infineon/San Francisco); the fifth-largest market (Texas/Dallas-Ft. Worth); the seventh-largest market (New Hampshire/Boston); the ninth-largest market (Atlanta); the 24th-largest market (Cincinnati); the 25th-largest market (Lowe’s/Charlotte); the 41st-largest market (Las Vegas); and the 92nd-largest market (Bristol/Tri-Cities).

About Speedway Motorsports, Inc.
Speedway Motorsports is a leading marketer and promoter of motorsports entertainment in the United States. The Company owns and operates the following premier facilities: Atlanta Motor Speedway, Bristol Motor Speedway, Infineon Raceway, Las Vegas Motor Speedway, Lowe's Motor Speedway, New Hampshire Motor Speedway and Texas Motor Speedway. The Company provides souvenir merchandising services through its SMI Properties subsidiaries; manufactures and distributes smaller-scale, modified racing cars and parts through its 600 Racing subsidiary; and produces and broadcasts syndicated motorsports programming to radio stations nationwide through its Performance Racing Network subsidiary. The Company also equally-owns Motorsports Authentics, a joint venture formed with International Speedway Corporation to produce, market and sell licensed motorsports merchandise. For more information, visit the Company's website at www.speedwaymotorsports.com.

This news release contains forward-looking statements, particularly statements with regard to the Company's future operations and financial results. There are many factors that affect future events and trends of the Company's business including, but not limited to, consumer and corporate spending sentiment; air travel; governmental regulations; military actions; national or local catastrophic events; the success of and weather surrounding NASCAR, IRL, NHRA and other racing events; our relationship with NASCAR and other sanctioning bodies; the success of expense reduction efforts; capital projects; expansion; economic conditions; stock repurchases; financing needs; insurance; litigation; taxes; oil and gas activities and associated profitability; geopolitical situations in foreign countries; and other factors outside of management control. These factors and other factors, including those contained in the Company’s Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q, involve certain risks and uncertainties that could cause actual results or events to differ materially from management's views and expectations. Inclusion of any information or statement in this news release does not necessarily imply that such information or statement is material. The Company does not undertake any obligation to release publicly revised or updated forward-looking information, and such information included in this news release is based on information currently available and may not be reliable after this date.

[QueenCityMotorsports.com]

From the Cincinnati Enquirer
news.enquirer.com/apps/pbcs.dll/article?AID=/20080529/SPT0106/305290153

Smith, Carroll differ on appealSpeedway chairman Carroll confident Sprint Cup is coming
BY PATRICK CROWLEY | [e-mail]
FORT MITCHELL - Kentucky Speedway Chairman Jerry Carroll reiterated Thursday that he is confident Bruton Smith will bring NASCAR’s marquee series to the Gallatin County track. However, the two differ on the fate of Carroll's antitrust lawsuit appeal against NASCAR.

Smith, the chairman and CEO of Speedway Motorsports Inc., said at last week’s news conference announcing his company’s purchase of Kentucky Speedway that he wanted to hold a Sprint Cup Series race next year at the facility.

NASCAR officials quickly pointed out that it is late in the sanctioning process and the sanctioning body had no intentions of being able to bring a Sprint Cup race to Kentucky Speedway in 2009.

"It's Bruton's job to get the race and I think he is moving in the best direction he can," Carroll said. "We were really moving quickly to try to get it in 2009. But he also told me he could do that. He told me on the phone the other day don't count out 2009 because he is looking forward to coming here."

Carroll is confident a Sprint Cup race will be held at Kentucky Speedway by 2010 at the latest.

“(Smith) said he is obligated to that,” he said.

Smith told ESPN.com that he would like the speedway to resolve the ongoing appeal of a U.S. District Court Judge’s decision to dismiss the track’s antitrust lawsuit against NASCAR and International Speedway. But Carroll said that is, “not being worked on.”

"We're appealing this lawsuit," he said. "We are very, very adamant to the fact that we think we have a good lawsuit. It doesn't matter about the money, and it doesn't matter about the (Sprint Cup) race, because we know the race is coming now.

"What matters is the even playing field. We think we should be on (the Sprint Cup schedule). For all these years, we've been told we don't have a market. Bruton Smith has said this is a fabulous market."

Lawyers representing Kentucky Speedway filed their “proof brief” in the appeal on April 21. NASCAR and ISC have until June 25 to file their response.

The purchase of Kentucky Speedway, for $78.3-million, is separate from the appeal and includes a 90-day due diligence period during which SMI can walk away from the deal.

Enquirer reporter Kevin Kelly contributed.
Print | Close Window | Copyright 2008, Enquirer.com

[zman]

This 90 day due diligence clause, was this put in so the track actually wouldn't be sold but only appear to be sold for the lawsuit and Sprint cup negotiations?

[QueenCityMotorsports.com]

From the Kentucky Speedway (8/28/08)

SPEEDWAY MOTORSPORTS, INC. TO PROCEED WITH KENTUCKY SPEEDWAY ACQUISITION

CONCORD, N.C. - Speedway Motorsports, Inc. (NYSE:TRK) is proceeding with the purchase of Kentucky Speedway, company officials announced today.

In May 2008, Speedway Motorsports entered into an agreement to acquire Kentucky Speedway from Kentucky Speedway LLC, pending a 90-day period to conduct due diligence. The period expired Aug. 18, and the company has decided to move forward with the acquisition, subject to satisfaction of remaining closing conditions. The acquisition is expected to close in the fourth quarter of this year, most likely in December.

"Moving forward on Kentucky Speedway allows our company to expand its geographic reach into the motorsports hotbed of the Midwest," said O. Bruton Smith, founder, chairman and chief executive officer of Speedway Motorsports, Inc.

"We are optimistic about being able to promote a Sprint Cup Series event at Kentucky Speedway. Once we secure a Sprint Cup Series event, we plan to expand seating capacity and host some of the largest crowds in the Midwest," Smith added. "Kentucky Speedway entertained sellout crowds for NASCAR Nationwide Series and IndyCar racing events this year. With a Sprint Cup date, season ticket sales, seat licenses and corporate sponsorship opportunities will increase tremendously."

NASCAR has stated it cannot allow realignment of an existing Sprint Cup Series race date until the anti-trust litigation among NASCAR, International Speedway Corporation and the current ownership of Kentucky Speedway is resolved. Although the time frame for resolution is uncertain, Speedway Motorsports will continue to work with NASCAR to schedule a Sprint Cup Series date at the facility.

Speedway Motorsports also plans to use its proven business model to maximize revenues and streamline expenses at existing Kentucky Speedway events to offset an initial reduction in the company's earnings, which could approximate $0.12 to $0.18 per share per year pending the scheduling of a Sprint Cup Series event at Kentucky Speedway. The reduction in earnings relates primarily to estimated interest, depreciation, and general and administrative expenses.

Smith continued, "We are in this motorsports business for the long term. The opportunity to buy a modern race track below replacement cost in a market with incredible growth potential was simply too good to pass up. While we expect some short-term loss, this is a significant investment in the future that better positions us to compete in this industry, and will pay off with long-term gains when the NASCAR Sprint Cup Series is added to Kentucky Speedway's event calendar."

Located on 820 acres in Sparta, Kentucky, just south of Cincinnati, Kentucky Speedway features a 1.5-mile tri-oval speedway, with chair-back grandstand seating for 66,089 spectators, 50 luxury suites with seats for approximately 2,000, private RV spaces, and reserved and unreserved camping spaces.

Kentucky Speedway will join an outstanding lineup of SMI facilities. The company also owns and operates Atlanta Motor Speedway; Bristol Motor Speedway in Bristol, TN.; Infineon Raceway in Sonoma, CA.; Las Vegas Motor Speedway; Lowe's Motor Speedway in Concord, N.C.; New Hampshire Motor Speedway, in Loudon, N.H.; and Texas Motor Speedway in Ft. Worth, TX.

About Speedway Motorsports, Inc.

Speedway Motorsports is a leading marketer and promoter of motorsports entertainment in the United States. The Company owns and operates the following premier facilities: Atlanta Motor Speedway, Bristol Motor Speedway, Infineon Raceway, Las Vegas Motor Speedway, Lowe's Motor Speedway, New Hampshire Motor Speedway and Texas Motor Speedway. The Company provides souvenir merchandising services through its SMI Properties subsidiaries; manufactures and distributes smaller-scale, modified racing cars and parts through its 600 Racing subsidiary; and produces and broadcasts syndicated motorsports programming to radio stations nationwide through its Performance Racing Network subsidiary. The Company also equally-owns Motorsports Authentics, a joint venture formed with International Speedway Corporation to produce, market and sell licensed motorsports merchandise. For more information, visit the Company's website at www.speedwaymotorsports.com.

This news release contains forward-looking statements, particularly statements with regard to the Company's future operations and financial results. There are many factors that affect future events and trends of the Company's business including, but not limited to, consumer and corporate spending sentiment; air travel; governmental regulations; military actions; national or local catastrophic events; the success of and weather surrounding NASCAR, IRL, NHRA and other racing events; our relationship with NASCAR and other sanctioning bodies; the success of expense reduction efforts; capital projects; expansion; economic conditions; stock repurchases; financing needs; insurance; litigation; taxes; oil and gas activities and associated profitability; geopolitical situations in foreign countries; and other factors outside of management control. These factors and other factors, including those contained in the Company's Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q, involve certain risks and uncertainties that could cause actual results or events to differ materially from management's views and expectations. Inclusion of any information or statement in this news release does not necessarily imply that such information or statement is material. The Company does not undertake any obligation to release publicly revised or updated forward-looking information, and such information included in this news release is based on information currently available and may not be reliable after this date.