Nashville Superspeedway sale update - normal? or bigger problems ahead?

Current NASCAR

Whoo-hoo! The soap opera of Dover's efforts to sell Nashville Superspeedway and Nexovation's eye rolling attempt to procure it continue!

Nashville Superspeedway sale reopened

http://www.tennessean.com/story/news/local/wilson/2015/07/31/nashvi...

The owner of Nashville Superspeedway has reopened the sale of the racetrack to other potential buyers with its previous agreement to sell the facility now in default.

However, NeXovation Inc., which entered into an agreement to buy the track from Dover Motorsports and its subsidiary, Nashville Speedway U.S.A., is still moving forward in its attempt to buy the track.

The default occurred when NeXovation failed to make a required $1.5 million deposit by June 1 to replenish the escrow account after the closing deadline was extended to July 27. NeXovation agreed to buy the track for nearly $46 million $27 million in cash and the assumption of about $18.8 million in bond obligations owed to Wilson County.

Dover issued a news release Thursday about the companys second quarter earnings. About the Superspeedway, it said: "We have expanded our sales efforts and are in discussions with additional prospective buyers."

NeXovation has endured lengthy delays from its lender for the Superspeedway purchase, which led to the default, according to a news release by the company.

The company now has the freedom to work with an alternate lender to fund a new agreement with Dover, and NeXovation is no longer obligated to the previous lender, according to the release.

NeXovation has invested about $2.9 million into the track, much of it reported to be nonrefundable as closing deadlines were extended multiple times. Specifics about how NeXovation planned to use the track hadnt been revealed.

"We have invested millions of dollars in the Speedway sales process and we are not going to allow the negative actions of others to deter us from our goal," NeXovation CEO Robb Sexton said in the release.

Dover is "continuing discussions with all parties at this time," said spokesman Gary Camp.

Nashville Superspeedway, located in Gladeville, opened in 2001, but it couldn't attract a NASCAR Sprint Cup Series race and largely shut down in 2011.

Reach Andy Humbles at 615-726-5939 and on Twitter @AndyHumbles.

Nashville Superspeedway sale update - normal? or bigger problems ahead?

Current NASCAR

I don't think these clowns have tried to do this deal to lose money. But they certainly don't have a legit vision for racing - or don't know how to articulate it. What I think they likely want to do has nothing to do with racing. I think they're spending all this time on environmental surveys and such so they can bulldoze the place. In its place could be a new warehouse, manufacturing facility, residential subdivision, etc. They'd likely buy and hold for a while until real estate prices rise enough to give them a sizable gain on a sale to someone else.

Having said all that, I still think they are bat s**t crazy. They come across as dirty handed cons.

Nashville Superspeedway sale update - normal? or bigger problems ahead?

Current NASCAR

And presumably The End for this odd, doomed from the start, drawn out fiasco.

http://www.tennessean.com/story/news/local/wilson/2015/07/22/nashville-superspeedway-sale-goes-into-default/30515853/

Nashville Superspeedway sale goes into default

July 22, 2015

The potential buyer of the Nashville Superspeedway in Wilson County has defaulted under the sales agreement, but its uncertain how that impacts a future transaction.

NeXovation Inc. announced in May 2014 an agreement to purchase the racetrack from Dover Motorsports and its subsidiary Nashville Speedway U.S.A. Inc. for nearly $46 million $27 million in cash and the assumption of about $18.8 million in bond obligations owed to Wilson County.

The deal has been extended seven times, the most recent in May moving the deadline to July 27.

NeXovation made a nonrefundable $400,000 payment for the most recent extension, but was also required to make a $1.5 million deposit by June 1 to replenish the escrow account.

However, a filing by Dover Motorsports to the Securities and Exchange Commission states NeXovation failed to make the escrow deposit and has therefore defaulted, according to the sales agreement.

The filing then states: We remain in discussions with the purchaser relative to a cure of this default but can offer no assurances that the default will be cured.

Efforts to reach representatives from NeXovation and Dover Motorsports were unsuccessful.

NeXovation has invested about $2.9 million into the track, much of it reported to be nonrefundable.

The company hadnt revealed specifics on how it will use the Superspeedway other than saying it plans for it to be a year-round venue with events beyond auto racing.

The Nashville Superspeedway opened in 2001 but didn't attract a Sprint Cup Series NASCAR race and largely shut down in 2011.

Dover has to continued pay taxes on the property, and the tracks closing and pending sale have had no impact on the county, Wilson County Mayor Randall Hutto said.

Reach Andy Humbles at 615-726-5939 and on Twitter @ AndyHumbles.

Nashville Superspeedway sale update - normal? or bigger problems ahead?

Current NASCAR

Closing delayed. Again. For 7th time. New date: July 27. This is almost comical.

http://www.tennessean.com/story/news/local/wilson/2015/05/26/nashville-superspeedway-closing-extended-th-time/27981221/

The closing deadline on the sale of Nashville Superspeedway in Wilson County by Dover Motorsports Inc. to NeXovation Inc. has been extended for a seventh time to July 27.

NeXovation Inc. announced in May 2014 an agreement to purchase the race track from Dover Motorsports and its subsidiary Nashville Speedway U.S.A. Inc. for nearly $46 million $27 million in cash and the assumption of about $18.8 million in bond obligations owed to Wilson County.

NeXovation made a nonrefundable $400,000 payment for the most recent extension, according to a recent filing by Dover Motorsports to the Securities and Exchange Commission.

A prorated amount can be applied against the purchase price depending on when closing takes place, according to the filing. NeXovation also agreed to replenish the escrow by depositing $1.5 million as earnest money by June 1.

The previous deadline extension was set for May 27, which NeXovation had referred to as a final closing period when it was made in March. Efforts to reach representatives of NeXovation for this story were unsuccessful.

NeXovation has now invested about $2.9 million in the racetrack.

The Nashville Superspeedway opened in 2001, but it couldn't attract a Sprint Cup Series NASCAR race and largely shut down in 2011.

NeXovation hadn't revealed specifics on how it will use the Superspeedway other than saying it plans for it to be a year-round venue with events beyond auto racing.

Nashville Superspeedway sale update - normal? or bigger problems ahead?

Current NASCAR

Closing delayed. Again. For 6th time. New date: May 27 - about one year after original announcement.

http://www.tennessean.com/story/news/local/wilson/2015/03/30/nashville-superspeedway-sale-deadline-extended-th-time/70684476/

The closing deadline on the sale of Nashville Superspeedway has been extended for a sixth time to May 27, but the buyer says it has secured funding for the Wilson County racetrack.

NeXovation calls the latest deadline extension a "final closing period" after announcing in May an agreement to purchase the track from Dover Motorsports and its subsidiary Nashville Speedway U.S.A. Inc. The fifth closing deadline extension had been set for March 27.

The purchase price is nearly $46 million $27 million in cash and the assumption of about $18.8 million in bond obligations owed to Wilson County.

NeXovation has now invested $2.5 million in the racetrack, according to Ackermann Public Relations.

The company paid $1.7 million in nonrefundable payments to be applied to the purchase price. The company paid a $400,000 combined for two extensions that are nonrefundable and won't go toward the purchase price, according to 8-K filings by Dover Motorsports.

NeXovation paid another $400,000 for the latest extension, which is nonrefundable, A prorated amount can be applied toward the purchase price depending on when closing occurs, according to the most recent filing.

The Nashville Superspeedway opened in 2001 but was never able to attract a Sprint Cup NASCAR race and was largely shut down in 2011.

NeXovation has stated plans are for the racetrack to be a year-round venue with events beyond auto racing, though specifics haven't been laid out.

Nashville Superspeedway sale update - normal? or bigger problems ahead?

Current NASCAR

Yep. Delayed yet again. For 5th time.

http://www.tennessean.com/story/news/local/wilson/2015/02/23/superspeedway-sale-deadline-extended-fifth-time/23907651/

The closing deadline on the sale of Nashville Superspeedway in Wilson County by Dover Motorsports to NeXovation Inc. has been extended to March 27, according to recent filing.

NeXovation Inc. announced in May an agreement to purchase the race track from Dover and its subsidiary Nashville Speedway U.S.A. Inc. for nearly $46 million $27 million in cash and the assumption of about $18.8 million in bond obligations owed to Wilson County.

It's the fifth time the closing has been extended. The most recent deadline had been set for Feb. 25.

NeXovation has already paid $1.7 million in non-refundable payments that will be applied to the purchase price.

The filing Dover filed Friday with the Securities and Exchange Commission states NeXovation paid $200,000 for the latest extension, which is non-refundable, but will not be applied toward the purchase price.

NeXovation has now paid $400,000 total for the last two deadline extensions, that is nonrefundable and wont be refunded nor applied to the purchase price.

NeXovation continues to work closely with Dover Motorsports on the purchase of the Nashville Superspeedway, NeXovation Chief Executive Officer Robert Sexton said in a statement. We look forward to bringing a world-class motor sport experience to Nashville and the Middle Tennessee communities.

The Nashville Superspeedway opened in 2001, but was never able to attract a Sprint Cup NASCAR race and largely shut down in 2011.

NeXovation hasn't revealed specifics on how it will use the Superspeedway other than say it plans for it to be a year-round venue with events beyond auto racing.

Reach Andy Humbles at 615-726-5939 and on Twitter @AndyHumbles.

Nashville Superspeedway sale update - normal? or bigger problems ahead?

Current NASCAR

Now THAT's funny.

Nashville Superspeedway sale update - normal? or bigger problems ahead?

Current NASCAR

Annnnd another update to what sounds like a disastrous transaction by Dover in selling Nashville Superspeedway.

By Larry Woody (name from the past) now of the Lebanon Democrat

http://www.lebanondemocrat.com/article/business/472411

The Nashville Superspeedway in Lebanon was delayed at the request of the buyer, NeXovation, and Dover Motorsports has issued an Oct. 25 deadline to close the deal.

The Nashville Business Journal reported the development last week, and it was confirmed Monday by NeXovation public relations director Chris Goodrich.

It is unclear what happens if the deadline is not met, but it is assumed the sale will be voided and Dover will retain ownership of the troubled Gladeville facility that has sat idle for three years.

The Business Journal reported, The would-be buyer of the Nashville Superspeedway has been given more time to complete the deal.

Citing a Securities and Exchange Commission filing, the report said the $45.8 million deal between track owner Dover Motorsports Inc. and Nashville-based NeXovation was announced in May. Under the deal, NeXovation is to pay Dover Motorsports $27 million in cash and assume $18.8 million in outstanding bond obligations owned to Wilson County.

According to the Business Journal, NeXovation could choose to back out of the deal before the Dover deadline. NeXovation has until Oct. 7 to terminate the agreement and still retain its deposit should certain closing conditions go unsatisfied.

Hendersonville resident Robb Sexton, founder and CEO of NeXovation, declined comment on the situation.

Dover Motorsports CEO Denis McGlynn on Monday indicated he is not concerned by the delay.

They asked for 30 more days to complete due diligence re-surveys, county rights of way and a small family cemetery that remains on the site, McGlynn said. No issues with the title or environmental, so everything seems on track.

There was no mention of any such potential snags when Sexton announced May 28 he was buying the track.

At that time Sexton said he had big plans for its future. He said the facility would operate year-round and hold a variety of events in addition to motorsports. He promised to reveal more details at a July press conference.

July came and went, with no press conference and no explanation, fueling speculation that something was amiss.

I suspect that the checkered flag has been waved on the last race at Nashville Superspeedway, said Terrell Davis, editor of Middle Tennessee Racing News who broke the story about the track coming to Gladeville 15 years ago.

Mr. Sextons reluctance to disclose any basic details of a business plans sends signals that this deal, if there ever was a deal, was more wistful thinking than anything else on his part, as well as Dovers. I hope Im wrong and the deal does close, but Im highly skeptical.

Dovers original plan called for a dirt track, short track and drag strip in addition to the 1.3-mile superspeedway and an infield road course. But only the latter two were completed.

The track struggled with poor attendance from its opening in 2001. Although there is a large area fan following for NASCARs premier Sprint Cup Series, the second- and third-tier Nationwide and truck races failed to draw.

Despite stirring fans hopes, the track never had a realistic chance of landing a Cup race.

The Indy Racing League raced at the Superspeedway for eight seasons, but drew only slightly better than the minor league NASCAR races.

At the end of the 2011 season, Dover suspended racing operations. Since then, the track has sat idle, except for occasional use by some NASCAR teams for test sessions.

Nashville Superspeedway sale update - normal? or bigger problems ahead?

Current NASCAR

Likelihood of that happening?

Nashville Superspeedway sale update - normal? or bigger problems ahead?

Current NASCAR

Back in the spring, Dover announced it had sold Nashville Superspeedway to a company in Nashville.

http://stockcar.racersreunion.com/forum/topics/resurrection-of-nashville-superspeedway

No one around here had heard of the company. And the head of NeXovation was pretty tight tipped about how the company planned to pay for it or what plans existed for its use. I haven't heard boo about the transaction since.

Then today, I spotted this article on The Tennessean's website.

http://www.tennessean.com/story/money/2014/09/03/nashville-superspeedway-sale-deadline-pushed-october/15028463/

Nashville Superspeedway sale deadline pushed to October

Dover Motorsports has given the potential buyer of the Nashville Superspeedway an additional month to finalize the deal, extending the closing date to Oct. 25, according to documents filed with the U.S. Securities and Exchange Commission.

The deal for $27 million in cash and an additional $20 million letter of credit to cover Wilson Countys bond debt for the speedway was originally supposed to be completed by Sept. 25.

But Dover, which shut down the speedway in 2011, said it gave the buyer, Nashville-based NeXovation Inc., additional time to complete its inspection of the property and resolve various environmental, title and survey matters, including the status of some roads through the facility.

According to the SEC filing, NeXovation has until Oct. 7 to satisfy itself relative to various title and survey items that arose during diligence before its deposit becomes non-refundable.

Among the issues, according to the filing, are whether Wilson County will consent and agree to allowing the dedication of certain roads located or to be located on the real property to be withdrawn or reversed, and that the purchasers plans for the property will not be adversely impacted by the existence of the easement for Marty Robbins Drive, the Nature area or the Barrett Cemetery identified on the survey.

It concludes, Purchaser shall be entitled to terminate the agreement on or before October 7, 2104, if it is not able to so satisfy itself, in which event the deposit will be refunded.

NeXovation originally put down a deposit of $1.5 million for the property.

Delaware-based Dover Motorsports Inc. now owns the 1- 1 / 3 -mile track and associated grandstands and buildings, but hasnt held a race at the speedway since 2011.

NeXovation CEO Robert Robb Sexton could not immediately be reached for comment about the delay.

Sexton said after the deal was announced in May that his goal was to turn the facility near Lebanon into a 52-weeks-a-year operation providing hundreds of people with living-wage jobs.

He also said he wants to bring IndyCar and NASCAR racing back to the track, but that making the facility a success does not require us to have large racing events.

The 60-year-old Sexton, inventor of an innovative process to make flat wire, has no experience in the motorsports business. He has said most of the money to buy the speedway will be borrowed, but that there will be cash from the equity partners, as well.

Wilson County still has nearly $20 million in bond debt it incurred to pay for roads, utilities and other improvements along State Route 840 and around the speedway when it was built in 2001. Sexton says the money to pay that back will come from sales and property taxes generated by the facility.

So I'm left to wonder if this should be interpreted as a natural part of a complicated real estate transaction? Or is NeXovation stumbling, fumbling and bumbling around as it tries to figure a way to fund the track or walk away from it thereby forfeiting its earnest money. Stay tuned.

updated by @tmc-chase: 12/05/16 04:04:08PM