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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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Sunday Cup race at Las Vegas: Start time, TV channel

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The second round of the Cup playoffs begins with the Sunday Cup race at Las Vegas Motor Speedway.

The 1.5-mile track kicks off the Round of 12. Winning the race and stage points are a premium for playoff drivers before the races at Talladega and the Charlotte Roval.

Kevin Harvick, who won at Bristol, starts from the pole.

Here is all the info for the Sunday Cup race at Las Vegas:

(All times are Eastern)

START: The command to start engines will be given by Las Vegas Raiders owner Mark Davis at 7:07 p.m. The green flag waves at 7:17 p.m.

PRERACE: Cup garage opens at Noon. Drivers report to their cars at 6:50 p.m. The invocation will be given at 7 p.m. by Motor Racing Outreach Chaplain, Billy Mauldin. The national anthem will be performed by Sierra Black at 7:01 p.m.

DISTANCE: The race is 267 laps (400.5 miles) around the 1.5-mile track.

COMPETITION CAUTION: Lap 25

STAGES: Stage 1 ends on Lap 80. Stage 2 ends on Lap 160

TV/RADIO: NBCSN will televise the race. Coverage begins at 6 p.m with NASCAR America, followed by Countdown to Green at 6:30 p.m. Race coverage begins at 7 p.m. Performance Racing Network’s radio coverage will begin at 6 p.m. and also can be heard at goprn.com. SiriusXM NASCAR Radio will carry the broadcast.

STREAMING: Watch the race on the NBC Sports App

FORECAST: The wunderground.com forecast calls for sunny skies with a high of 96 degrees and no chance of rain at the start of the race.

LAST RACE: Kevin Harvick beat Kyle Busch to win at Bristol and claim his ninth win of the season.

LAST POINTS RACE AT LAS VEGAS: Joey Logano beat Matt DiBenedetto and Ricky Stenhouse Jr. in February.

STARTING LINEUP: Click here for the lineup.

CATCH UP ON NBC SPORTS’ COVERAGE:

Kurt Busch seeks first Las Vegas win but without hometown fans

Michael Jordan excited for NASCAR future with Denny Hamlin

Carolina Blue: Brad Daugherty and Michael Jordan bonded by NASCAR

Germain Racing sells charter, will exit sport at end of season

Charlotte Roval to host limited number of fans

Friday 5: Team’s departure adds to ‘extremely stressful’ time

NASCAR fines Hendrick Motorsports $100,000

NTSB releases final report on Dale Jr. plane crash

Bubba Wallace to receive Stan Musial award for extraordinary character

Long: 100 days left in 2020, what else can happen?

Kurt Busch seeks first Las Vegas win, but without hometown fans

Kurt Busch
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A win by Kurt Busch in tonight’s Cup race at Las Vegas Motor Speedway (7 p.m. ET on NBCSN) couldn’t come under more bittersweet circumstances for the Chip Ganassi Racing driver.

Should Busch claim the victory on the 1.5-mile track, he’d go from being the last driver on the playoff grid (3,001 points entering the race) to the first driver to advance to the Round of 8.

While it would be his first victory of the year, it would also be his first NASCAR win at his home track in 23 starts across the Cup and Xfinity Series.

More: Stage points critical at Vegas

“The Vegas track has definitely been one of the tough ones for me over the years with results and finishes not where I would have expected them to be,” Busch said this week. “And the teams that I’ve raced for just have never quite found that right magic set-up or combination. And then for me, it’s a track that I just have that trouble with.

“There are a few tracks like Indianapolis and Martinsville; those are a few places where I struggle. And so with Vegas, I always put that little extra hometown pressure on myself and I would love to win there.”

The 42-year-old Las Vegas-native rolls off ninth on the 1.5-mile track. It’s his fourth while driving for Ganassi.

In his 21 Cup starts in Las Vegas, Busch’s best result is third in 2005 when he competed for Roush Fenway Racing. He has just one other top five. That came in last year’s spring race when he drove a throwback paint scheme to his 1999 NASCAR Southwest Series championship.

That day he led 23 laps. It was only the seventh time he’d led laps there and just the third time he’d totaled more than six laps led.

In February, Busch finished 25th.

If Busch were to finally make it to Vegas’ Victory Lane, the celebration would be somewhat muted.

It was announced last weekend that fans would not be allowed to attend the races at Las Vegas due to the COVID-19 pandemic.

“I would love to win through the spirit of the camera and everything on NBC Sports; and I know the fans there, local, will be watching and cheering on the Busch brothers,” Busch said. “So, that’s where I would connect. And hopefully do it through the TV side of it. We’ll get fans back one day and we’ll come back and race.”

Busch enters the Round of 12 having earned just one top 10 in the first round, an eighth-place finish at Darlington. He finished 13th at Richmond and 15th at Bristol.

“What I like is we have had better lap times at all three races so far compared to maybe the five or six races leading into the playoffs,” Busch said. “We know that our cushion is gone. We ended Bristol with 33 points to the good. And now we start Vegas minus four (points behind Austin Dillon in the cutoff spot). So that’s just part of the system and now we have to be perfect. We have to get every point possible that we’re able to get on our own at Vegas, Talladega, and the Roval. And, that should help us advance.”

Carolina Blue: Brad Daugherty and Michael Jordan bonded by NASCAR

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Brad Daugherty and Michael Jordan were teammates from 1982-84 at the University of North Carolina and Eastern Conference rivals throughout the 1980s and ’90s in the NBA.

But their friendship was about more than just hoops. While growing up on opposite ends of the Tar Heel State, Daugherty and Jordan both developed a passion for following NASCAR.

Tobacco Road meant fast cars and hard-driving heroes for these two North Carolina natives.

LIFELONG FAN: Michael Jordan explains why he’s partnering with Denny Hamlin

In a NASCAR on NBC feature, Daugherty recalls how NASCAR impacted his life and Jordan’s and led both into team ownership. Michael Jordan and Denny Hamlin announced they will form a team to field cars for Bubba Wallace next season.

Daughterty notes in the feature that Wallace “has led a dynamic transformation as NASCAR banned Confederate flags and recommitted to inclusion amidst times of great unrest. This is a huge moment for NASCAR, a cultural momentum shift. This is people of all colors coming together to create an all-American race team already with championship lineage.

“With proper funding, equipment and crewmembers, this will be the best chance ever for a Black driver to win – and while driving for a Black owner. An opportunity to shock the world like Muhammad Ali once did.”

Watch the feature above on Brad Daugherty and Michael Jordan or by clicking this link.

Las Vegas Xfinity results, driver points

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Chase Briscoe‘s victory Saturday night at Las Vegas Motor Speedway sends him into the next round of the Xfinity playoffs.

Noah Gragson led a 2-3-4 finish for JR Motorsports. Gragson was second and followed by Daniel Hemric and Justin Allgaier. Ryan Sieg finished fifth.

Briscoe dominated the race, leading 164 of the 200 laps.

Click here for Xfinity race results

POINTS

Ross Chastain finished 16th, last among the playoff drivers, and fell out of a transfer spot to the second round. He’s two points behind Harrison Burton for the final transfer spot. Michael Annett is 10 points behind Burton. Riley Herbst is 14 points behind Burton. Brandon Brown is 20 points behind Burton.

Click here for driver points report