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AMS Sues Pep Boys Over Race Sponsorship

Posted By Michael J Smith On May 8, 2009 @ 12:17 pm In Cup | No Comments

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 [1] has some other information about the sponsorship deal.

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[1] SceneDaily: http://www.scenedaily.com/news/articles/sprintcupseries/Atlanta_Motor_Speedway_sues_Pep_Boys_for_Cup_race_sponsorship_worth_16M.html

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