The planned sale of Nashville Superspeedway to locally based NeXovation has fallen through, but NeXovation CEO Robb Sexton says he's not giving up. He says a big reason his team hasn't closed on its $46 million deal is that its lender hasn't followed through and, as such, caused lengthy delays. Now that the Dover deal has expired, NeXovation can look for other funders to back its plans.
"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," Sexton said in a statement issued late Friday.
SEE ALSO: Dover's new 10-Q, in which execs say they are in talks with other potential buyers
NeXovation principals and executives of Dover Motorsports last week amended — for the seventh time — their agreement to have locally based NeXovation buy the Nashville Superspeedway. The parties now expect to close on the deal by July 27, and NeXovation has paid Dover $400,000 (to go with the $2.5 million it has already handed over) and agreed to replenish its escrow account to the tune of $1.5 million by Monday.
NeXovation has paid $200,000 to Dover Motorsports to extend its contract by another several weeks to buy the Nashville Superspeedway. Unlike past payments totaling $1.7 million, this check will not be applied to NeXovation's tab. The extension — check out the document here — pushes the target closing date to Feb. 25, which will be five months after the date of companies' initial goal.
Nashville-based NeXovation, Inc. announced Thursday morning a definitive agreement to purchase the Nashville Superspeedway from Dover Motorsports, Inc. for $27 million.
Closing is expected in the third quarter of this year. The sale includes all 1,400 acres of land, the 1.33-mile concrete oval, the grandstand that seats 25,000, “some related equipment and assets.”
A release from NeXovation, founded in 2012, said the agreement completed a two-year process. That means the company has pursued this transaction basically since its creation.
Nashville Superspeedway, which opened in 2001, has been closed to public access and competitive racing for nearly three years. NeXovation, also is an active pursuant Nürburgring motor sports facility in Germany, offered no specific plans for the facility but said they “will be announced to the public in the near future.”
“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,” Robert Sexton, CEO of NeXovation said in a statement. “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.”
Also from the release:
NeXovation, Inc. was founded … to provide a platform for several innovations, including Sexton’s inventions, such as the patented FlatWire™ technology (now the company’s NeXwire Division), which is a high-performance, surface-mounted wiring technology designed for the automotive, building, aerospace and military industries; and multiple patent-pending compressed natural gas (CNG)-based technologies (part of the company’s NeXomotive Division). The company is comprised of a team of entrepreneurs and executives who represent hundreds of global patents and years of combined product development, marketing, and business management experience throughout the world. Most recently, NeXovation submitted a binding offer of EUR 150 million plus future incentives to acquire all assets of the Nürburgring motor sports facility in Germany, which would be complementary to the Nashville Superspeedway project.
Dover Motorsports, which in early August said it is preparing to shut down the Nashville Superspeedway, last week reported third-quarter results that included the cost of that decision. Between taking a non-cash charge on a writedown of the speedway's value and picking up the expected tab for bond payments to Wilson County, the tab comes to almost $18 million.
Bobby Hamilton tells Larry Woody he doesn't have to beg NASCAR to bring some of its racing series back to the Fairgrounds Speedway. Doing so will come down to making some smart investments in the track's infrastructure. Just how big will those be? Hamilton says $4 million will do the trick, but former track owner Gary Baker says it'll be a lot more than that.
Baker said the track needs to expand seating to 40,000 and “essentially rebuild everything but the racetrack itself – the walls, pit road, the grandstands.
POSTDATA: WARRANTY DEEDS