lawsuit

LOUDON, NH - SEPTEMBER 23:  Kurt Busch, driver of the #41 Monster Energy/Haas Automation Chevrolet, sits in his car during practice for the NASCAR Sprint Cup Series Bad Boy Off Road 300 at New Hampshire Motor Speedway on September 23, 2016 in Loudon, New Hampshire.  (Photo by Jeff Zelevansky/Getty Images)
Jeff Zelevansky/Getty Images

Kurt Busch sued by former management company for $1.4 million

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DAYTONA BEACH, Fla. – Kurt Busch has been sued for $1.4 million by Sports Management Network, which contests the NASCAR driver hasn’t paid its fees since terminating his deal with the company.

The lawsuit, which initially was reported by MLive.com, was filed Feb. 8 in U.S. District Court’s Eastern District of Michigan. It names Busch and Kurt Busch Inc. as defendants. SMN alleges that Busch has been delinquent in his payments since the second quarter of 2016 and owes at least $930,450.

The company also is asking Busch to cover interest, costs and attorney’s fees, bringing the requested judgment from the court to $1,470,450.

According to SMN, the last payment by the Stewart-Haas Racing driver was $117,167 for the first quarter of 2016.

A representative for Busch referred requests for comment to Alan Miller, a lawyer from Birmingham, Mich., who counts several auto racing drivers among his client list (including seven-time champion Jimmie Johnson).

Miller told NBC Sports that the SMN lawsuit was without merit and would be defended “vigorously” by Busch.

John P. Caponigro of SMN stated in an affidavit that Busch hadn’t paid “despite SMN’s repeated demands for payment on the account.”

According to the lawsuit, Busch terminated his contract with SMN in March 2016. The driver and company had entered into a representation contract in 2005 that was extended Aug. 11, 2010.

The contract was reworked in May 2012 to reduce Busch’s annual financial burden to SMN from $250,000 to $125,000 after he moved from Team Penske to Phoenix Racing because “it became apparent that the money that Defendants would receive in 2012 from KB’s professional driving activities would be a fraction of what they previously received.”

In July 2012, Busch and SMN agreed that starting in January 2013, Busch would owe the retainer plus 10 percent of all revenue from personal services agreements.

The lawsuit states “Subsequently, SMN negotiated and finalized multiple agreements for Defendants, including, but not limited to, driver appearances, sponsor agreements, personal services agreements, pursuant to the terms of which Defendants will be paid compensation through 2018.”

According to the suit, Busch has been invoiced for $930,450.07 pursuant to the 2017 season that has gone unpaid.

SMN claims being entitled to another $540,000 (which hasn’t been invoiced) based on Busch’s earnings for the 2018 season.

Click here to view a copy of the lawsuit.

 

Kyle Busch Motorsports suing Justin Boston, sponsor company Zloop

Justin Boston
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Kyle Busch Motorsports is suing former driver Justin Boston and Zloop, a company owned by Boston’ father, Bob, according to a report by ESPN.

The lawsuit concerns the failure by Boston and Zloop to provide $650,000 in payments of a $3.2 million annual agreement that allowed Boston to drive in the Camping World Truck Series for KBM. Boston has competed in 10 series races the last two years. All nine of his KBM starts in the No. 54 Toyota were in 2015, with his last being the June race at Iowa Speedway.

ESPN says the lawsuit was filed Friday in North Carolina Superior Court in Iredell County and that KBM claims it is owed $4.025 million for the alleged default on the contract.

The contract was for two years at $6.4 million. With 23 races on the Truck schedule, 46 races over two seasons would equal Boston paying KBM $139,130 a race.

The report also indicated it might be difficult for the KBM to receive the payments from Zloop, a computer recycling company co-founded by Bob Boston. The company filed for Chapter 11 bankruptcy in early August. The elder Boston is embroiled in another lawsuit – for $28 million – by a former Zloop investor claiming Boston “lied to him about the value of Zloop and did not use his investment as intended, including spending money on Justin’s racing career as part of a Zloop marketing program.”

KBM’s claims against Zloop will be processed in Delware bankruptcy court and those against Justin Boston will play out in North Carolina.

ESPN reports Zloop also owes money to Bristol Motor Speedway ($131,250), Kentucky Speedway ($75,000), Pocono Raceway ($36,601) and the NFL’s Carolina Panthers ($87,000).