Interesting and unexpected announcement today. Dover has sold its largely dormant property, Nashville Superspeedway, to a Tennessee based, venture capital form in exchange for cash and and the assumption of Dover's municipal bond obligation to Wilson County, TN. Will be interesting to see if the new owners return racing to the track - or if they have a completely different idea for the real estate and facility they've now purchased.
http://www.tennessean.com/story/money/2014/05/29/nashville-superspeedway-sale-dover-motorsports-nexovation/9710891/
Dover Motorsports Inc. has announced the sale of the Nashville Superspeedway to a Nashville-based startup called NeXovation Inc.
Under the terms of the deal, Dover and its wholly-owned subsidiary, Nashville Speedway U.S.A., Inc., will sell the track and some related equipment and assets for $27 million in cash and the assumption of Dover's bond obligations to Wilson County, which totals about $18.8 million.
"This is a great deal for all concerned ... as we can transfer an underutilized, high-quality asset to NeXovation, who will create and implement a new business model and re-activate Nashville Superspeedway for the benefit of everyone in the area," said Dover Motorsports CEO Denis McGlynn.
Specifics of how the SuperSpeedway will be used are still being finalized and a press conference will likely be scheduled in July, said Chris Goodrich, a spokesman for the new owners.
The track has been closed since 2011.
"With our unique business model, passion for automotive technology and motor sports, and a tremendous market right in our own backyard, the Nashville Superspeedway is the perfect complement to our innovative and technological focus," said Robert Sexton, CEO of NeXovation. "After creating and pursuing this opportunity for nearly two years, we are excited about implementing a completely new business model that we believe will transform this complex into a fully immersive experience in the world of high performance motor sport, automotive technology and experiential venues."
The deal is expected to close sometime this fall, officials said.
"It's an opportunity to utilize a great asset and we welcome that," said G.C. Hixson, executive director of the Joint Economic & Community Development Board of Wilson County. "I don't have a lot of details, but it's not an exposure to the county for the debt on the project. Financially, it was a good deal then for the county and it's a good deal now."
Hixson also believed NeXovation's presence can lead to further development along Interstate 840.
State Rep. Mark Pody, who lives near Nashville SuperSpeedway, agreed: "If it brings some sales tax, revenue and some jobs and helps bring in tourists, that is going to help Wilson County. The infrastructure is there and it's not being used, so being used will be a benefit."
Pody was not aware of any state money being involved.
Nashville Superspeedway first opened in 2001 and is situated on almost 1,400 acres of land near Lebanon. The 1.33-mile concrete track has a permanent seating capacity of 25,000 as well as lighting for nighttime events.
Interestingly, the company has also submitted a bid to purchase the historic Nrburgring racetrack in Germany for nearly $150 million. However, another company was ultimately awarded the bid to purchase the track. NeXovation contends that it was the highest bidder and is challenging the sale.
NeXovation Inc. was founded in 2012 to provide a platform for several projects, including Sexton's inventions, such as the patented FlatWire technology, a high-performance, surface-mounted wiring technology designed for the automotive, building, aerospace and military industries.
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Schaefer: It's not just for racing anymore.
updated by @tmc-chase: 12/05/16 04:04:08PM
