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Stewart-Haas Racing files suit against sponsor of Danica Patrick’s team

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Stewart-Haas Racing filed a breach of contract lawsuit against Nature’s Bakery, the sponsor of Danica Patrick‘s team, Friday in North Carolina Superior Court.

The Associated Press first reported the suit.

Stewart-Haas Racing seeks $31.7 million in actual damages, plus interest. Nature’s Bakery was to pay $30.4 million of base fees for the remaining two years of the contract, along with another $1 million in other fees.

Stewart-Haas Racing stated in the lawsuit that the actions of Nature’s Bakery “set SHR up for a devastating loss of revenue just before the beginning of the 2017 race season; and rendered it nearly impossible for SHR to have any reasonable hope of mitigating its damages.”

Stewart-Haas Racing issued a statement Friday night:

“Nature’s Bakery is in material breach of its contract with Stewart-Haas Racing. It is an unfortunate situation, as the team has delivered on all aspects of its contract and was prepared to do so again in 2017. Ultimately, this is a situation that will be resolved in a court of law.

“Stewart-Haas Racing remains focused on its preparation for the 2017 NASCAR season where it will again field four entries in the Monster Energy NASCAR Cup Series while also introducing a full-time NASCAR Xfinity Series team. The litigation with Nature’s Bakery will not impact the organization’s on-track efforts.”

Stewart-Haas Racing stated in the complaint that “this is an action to recover substantial damages from the Defendants’ unfair trade practices and associated intentional and bad faith breaches of a multi-year primary sponsorship agreement associated with the #10 SHR race team.”

Stewart-Haas Racing stated in the complaint that after Nature’s Bakery expressed interest in 2015 in sponsoring Patrick’s team, the organization “expressed significant concern that Nature’s Bakery would be unable to afford a primary sponsorship of the magnitude it requested. Mr. (David) Marson, for himself, and the Marsons, for the Marson Trust, and Nature’s Bakery, provided repeated assurances that Nature’s Bakery had the cash flow and funds to meet all financial requirements of the proposed sponsorship agreement.”

The suit states that for the 2016 season, Nature’s Bakery was to pay $15,212,000 to sponsor the team. It was to pay the team $5 million on or before Oct. 1, 2015; $3,404,000 on or before Feb. 1, 2016; $3,404,000 on or before May 1, 2016; and $3,404,000 on or before July 1, 2016.

For 2017, Nature’s Bakery was to pay $15,212,000 to sponsor the team with the same type of payment schedule.

For 2018, Nature’s Bakery was to pay $15,212,000 to sponsor the team with the same type of payment schedule.

The complaint states with the contract set, Stewart-Haas Racing moved forward on other matters, including signing Patrick to a multi-year agreement that goes through the 2018 season.

The complaint states that “soon after executing the Sponsorship Agreement, Mr. Marson and Joe Marshall (Nature’s Bakery Chief Financial Officer) reached out to SHR executives, and stated that Nature’s Bakery was having cash flow issues, and asked if the payment amounts and deadlines in the Sponsorship Agreement could be modified to assist Nature’s Bakery with its cash crunch.”

Stewart-Haas Racing changed the payment schedule for 2016 for Nature’s Bakery to pay $2.5 million on or before Oct. 1, 2015;  $1 million on or before the 15th of each month from January to May 2016; and $1.928 million on or before the 15th of each month from June to September.

For 2017, the payment schedule was adjusted to $2.5 million on or before Oct. 1, 2016; $2.5 million on or before Dec. 1, 2016; and $3.4 million on or before the first day of February, May and July 2017.

Among the many extra benefits Stewart-Haas Racing provided Nature’s Bakery, according to the lawsuit, were two additional races free in 2016 when both Patrick’s car and the No. 14 car of Tony Stewart had Nature’s Bakery as a primary sponsor at the Dover race in October. The team also stated in the lawsuit that Stewart-Haas Racing helped Nature’s Bakery avoid track fees for activation access and “upon learning of the mold outbreak in Defendants’ product, SHR worked to open and dispose of many samples of Nature’s Bakery products that contained heavy mold, to avoid fans from receiving tainted product (and the resulting reputational issues that would surely follow).”

Stewart-Haas Racing states that Nature’s Bakery reached out to the team in late summer 2016 to modify the base fee payment terms, “representing that modification was again necessary due to Nature’s Bakery’s internal cash flow issues.”

The payment schedule was again changed. Nature’s Bakery was to pay Stewart-Haas Racing $1 million on before the 15th of each month from January to March 2017 and $2,042,400 on or before the 15th of each month from April to August 2017 and $1 million on or before the 15th of September and October 2017. The 2018 payment schedule also was adjusted.

Stewart-Haas Racing accused Nature’s Bakery of concocting “a scheme to avoid further payments” by claiming that Patrick had endorsed competing products and did not use her social media presence enough to promote Nature’s Bakery. Stewart-Haas Racing states in the complaint that “these claims are false.”

Stewart-Haas Racing states that “the thrust of Nature’s Bakery’s complaints about Danica Patrick supposedly endorsing competing products is her personal endorsement of Six Star Pro Nutrition’s protein powder. Protein powder is not competitive with fig bars or brownies. Furthermore, Danica Patrick had been endorsing Six Star Pro Nutrition’s protein powder, publicly, for many months prior to the execution of (the) Sponsorship Agreement, and continued to do so afterwards.

“Never once did Defendants claim that her doing so amounted to a breach of the Sponsorship Agreement (nor could it, because, again, the protein powder is not a competing product).  … Danica Patrick never endorsed Six Star Pro Nutrition’s protein bars. Worse, Nature’s Bakery “liked” numerous of Danica Patrick’s Instagram posts regarding Six Star Pro Nutrition and other protein powders. Clearly, even Nature’s Bakery did not consider Danica Patrick to be endorsing a competing product, until it decided to drum up reasons to terminate the Agreement.”

The suit says Nature’s Bakery sent a letter to Stewart-Haas Racing on Jan. 19 seeking its desire to terminate the sponsorship agreement.

Stewart-Haas Racing stated in the lawsuit: “In every respect, SHR complied with its obligations under the Sponsorship Agreement.

“In every respect, Defendants materially breached their obligations under the Sponsorship Agreement, and did so using unfair, deceptive, manipulative and bad faith tactics.

“Left with no options to protect its rights and interests, SHR files this action seeking to recover all amounts due pursuant to the Sponsorship Agreement, plus interest, and all other damages.”

Nature’s Bakery served as the primary sponsor on Patrick’s car for 27 points races last year along with what was called the Sprint Unlimited and the Sprint All-Star Race. Nature’s Bakery was to have served as the primary sponsor of Patrick’s team for a minimum 25 races this season, according to the lawsuit.

Patrick appeared at last week’s NASCAR Media Tour in her TaxAct uniform instead of a Nature’s Bakery uniform, raising questions about the company’s primary sponsorship of her team.

The Nature’s Bakery website does not contain references to Patrick, Stewart-Haas Racing or NASCAR.

Messages to representatives of Nature’s Bakery about this matter have yet to be returned.

Click here to view the lawsuit

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Ryan Preece is fastest in final Xfinity practice Friday at Kentucky

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Ryan Preece soared to the top of the speed chart in the final Xfinity practice Friday night at Kentucky Speedway.

Preece covered the 1.5-mile oval with a top speed of 181.629 mph. He hit that speed on his first of 38 laps run during the session.

Justin Allgaier was second (180.777 mph), followed by Spencer Gallagher Jr. (180.114), Tyler Reddick (179.832) and Daniel Hemric (179.712).

Sixth through 10th: Matt Tifft (179.665), who was fastest in the first practice session earlier in the afternoon, William Byron (179.605), Brennan Poole (179.581), Sam Hornish Jr. (179.521) and Brandon Jones (179.521).

Five of the 12 Xfinity playoff contenders ended up in the top 10: Allgaier, Hemric, Tifft, Byron and Poole.

Others playoff contenders on the speed chart were Elliott Sadler (12th, 179.194), Ryan Reed (16th, 178.944), Cole Custer (17th, 178.838), Brendan Gaughan (19th, 178.453), Blake Koch (20th, 178.159), Michael Annett (21st, 178.124) and Jeremy Clements (25th, 176. 286).

Qualifying for Saturday night’s VisitMyrtleBeach.com 300 takes place at 5:30 p.m. ET, with the race set to take the green flag at 8 p.m. ET.

Click here for the full speed chart from the final Xfinity practice.

Starting lineup for Sunday’s ISM Connect 300 NASCAR Cup race at Loudon

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Up until this season, Kyle Busch wasn’t necessarily looked upon as a prolific qualifier.

He earned a career-best three poles in 2013 and 2014.

But that’s nothing compared to 2017, as Busch earned a career-best eighth pole Friday for Sunday’s ISM Connect 300 at New Hampshire Motor Speedway.

It’s also his second consecutive pole, having won the pole for last weekend’s playoff-opening race at Chicagoland Speedway.

Kyle Larson was next and will join Busch on the front row Sunday.

As for the other 14 NASCAR Cup playoff contenders: Denny Hamlin (134.763) was third, followed by Ryan Blaney (134.720), Chicagoland winner Martin Truex Jr. (134.188), Kevin Harvick (134.108), Kurt Busch (133.985), Kasey Kahne (133.966), Matt Kenseth (133.589), Jamie McMurray (133.680) and Jimmie Johnson (131.989).

Of the top 12 qualifiers, 11 are playoff drivers. The only non-playoff driver was Erik Jones (eighth, 133.971).

As for the other five playoff contenders, Brad Keselowski was 13th (133.422), Chase Elliott (133.357) was 14th, Austin Dillon was 17th (133.133), Ryan Newman was 18th (133.007) and Ricky Stenhouse Jr. qualified 24th (131.628).

Click here for the starting lineup.

 

Kyle Busch gets past Kyle Larson to take Cup pole at Loudon

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In a battle between Kyle and Kyle, it was Kyle Busch who emerged with the pole for Sunday’s ISM Connect 300 Friday afternoon at New Hampshire Motor Speedway.

The younger Busch brother was the only driver over 135 mph, taking his 27th career Cup pole with a speed of 135.049 mph.

“Just went out there and gave it what she had,” Busch told NBCSN. “It certainly would be great to finish this out in victory lane on Sunday.

“We knew we were going to have a shot for the pole, just didn’t know if we were going to get it. For as ugly as that session looked or felt from my vantage point, it certainly worked out.”

Busch has now won the pole for the first two playoff races, having won the pole last week at Chicagoland.

What’s more, this is the most prolific season of qualifying for Busch in his career: this is his eighth pole in 2017, most of all drivers in the Cup series and his most in a single season. His previous mark for most poles in a single season was three in both 2013 and 2014.

As for the other Kyle, Kyle Larson, he qualified on the outside of the front row with an effort of 134.911 mph.

“I feel overall that my lap was pretty good,” said Larson, who finished second in the July race at New Hampshire. “The 18 has been real fast, especially in qualifying all year. For us to be second to him is not bad.”

Denny Hamlin (134.763) was third, followed by Ryan Blaney (134.720), Martin Truex Jr. (134.188), Kevin Harvick (134.108), Kurt Busch (133.985), Erik Jones (133.971), Kasey Kahne (133.966), Matt Kenseth (133.589), Jamie McMurray (133.680) and Jimmie Johnson (131.989).

Of the top 12, 11 are in the NASCAR Cup playoffs. The only non-playoff driver was Jones.

As for the other five playoff contenders, Brad Keselowski was 13th (133.422), Chase Elliott (133.357) was 14th, Austin Dillon was 17th (133.133), Ryan Newman was 18th (133.007) and Ricky Stenhouse Jr. qualified 24th (131.628).

Elliott and Johnson both wrecked their primary cars in the Cup practice session earlier in the day.

While Johnson was able to get back on-track for that practice session with his back-up car, Elliott qualified cold with his back-up, unable to get back on-track during the morning practice.

Joey Logano did not take a qualifying lap after failing pre-qualifying inspection four times. Logano will start last (40th position) in Sunday’s race at NHMS, which he considers his “home track.”

Click here for the full qualifying grid.

Matt Tifft fastest in first of 2 Xfinity practices at Kentucky Speedway

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Matt Tifft ran 25 laps during Friday afternoon’s first of two NASCAR Xfinity Series practice sessions at Kentucky Speedway.

But it was just one lap that mattered the most, as Tifft (180.427 mph) emerged from the 55-minute practice as the fastest in the 36 cars that took to the track.

Brian Scott was second (179.253 mph), followed by Ryan Preece (178.465), Brandon Jones (178.288), Justin Allgaier (178.271), Ben Kennedy (178.136), Elliott Sadler (177.573), Tyler Reddick (177.544), Spencer Gallagher Jr. (177.503) and Brennan Poole (177.381).

Interestingly enough, only four of the top-10 were playoff contenders. The seven-race Xfinity playoffs begin with Saturday night’s VisitMyrtleBeach.com 300.

There will be one more practice session today from 6:30-7:25 p.m. ET.

Qualifying and the race are Saturday.

Click here for the full practice speed grid.