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closeSmith's company gives green light to purchase of Kentucky track
DAVID POOLE
The Charlotte Observer
Thursday, Aug. 28, 2008
Speedway Motorsports will proceed with its purchase of Kentucky Speedway, the company announced Thursday.
The agreement to purchase of the track near Sparta, Ky., was announced in May with a 90-day period to conduct due diligence on the deal. That deadline passed Aug. 18, but after Thursday's announcement the deal is expected to close in the fourth quarter of this year, subject to the satisfaction of remaining closing conditions.
"Moving forward on Kentucky Speedway allows our company to expand its geographic reach," said Bruton Smith, founder, chairman and chief executive officer of Speedway Motorsports, the company that owns Lowe's Motor Speedway and several other tracks.
When Smith announced the deal in May he said he believed Kentucky Speedway would get a Sprint Cup date in 2009. But the track is not on next year's schedule.
"We are optimistic about being able to promote a Sprint Cup Series event at Kentucky Speedway," Smith said. "Once we secure a Sprint Cup Series event, we plan to expand seating capacity. ...Kentucky Speedway entertained sellout crowds for NASCAR Nationwide Series and IndyCar Series events this year. With a Sprint Cup date, season ticket sales, seat licenses and corporate sponsorship opportunities will increase tremendously."
One obstacle between the Kentucky track and a Cup date is an anti-trust lawsuit filed by the current owners of the track against NASCAR and International Speedway Corp. Speedway Motorsports has said it has no role in that lawsuit, and the track's current ownership has said it will not drop the suit.
"We are in this motorsports business for the long term," Smith said. "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."