Published on May 8th, 2009 | by Michael J Smith0
AMS Sues Pep Boys Over Race Sponsorship
Atlanta Motor Speedway has filed suit against Pep Boys over a two-year sponsorship deal.
According to court documents, AMS claims that Pep Boys stopped making payments on a $3 million race sponsorship contract. The suit states that contract called for $1.4 million for AMS’s 2008 fall race, and $1.6 million for the 2009 fall race.
The suit alleges that the auto parts retailer failed to pay $800,000 by March 1, 2009, as the agreement required. And, Pep Boys still owes $1.6 million for this season’s fall race.
Speedway Motorsports Inc., which owns AMS, claims that Pep boys did not have a problem with the fall Sprint Cup race at Atlanta being moved to Labor Day weekend, making it a summer race instead of a fall race, as the contract states.
Pep Boys, however, sent a letter to SMI saying it could void the contract because of the move. SMI disputes that, saying the contract cannot be voided on those grounds.
SceneDaily has some other information about the sponsorship deal.