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Kurt Busch files multimillion-dollar countersuit vs. former management agency SMN

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Kurt Busch filed a multimillion-dollar countersuit Friday in the U.S. District Court’s Eastern District of Michigan against Sports Management Network, which sued the NASCAR driver for $1.4 million.

Busch, who is demanding a jury trial in the counterclaim lawsuit, alleges that the sports management company and its law firm “improperly advantaged themselves” along with the interests of clients Team Penske and Andretti Autosport. The countersuit states that Busch wasn’t made aware of such conflicts and wasn’t advised to seek independent counsel.

Busch and SMN entered into a representation contract in 2005 that was extended Aug. 11, 2010 while Busch was driving for Penske (he previously was with Roush Fenway Racing). Busch drove for Andretti in the 2014 Indianapolis 500, finishing sixth.

The suit refutes the claims made by SMN last month that Busch was delinquent in his payments to the company since the second quarter of 2016. He terminated the deal in March 2016.

Busch’s suit states that he maintained an attorney client-relationship with John Caponigro of Sports Management Network and the law firm of Frasco Caponigro Wineman & Scheible “at all relevant times,” covering all matters and transactions related to Busch’s career.

Busch’s suit requests the court enter a judgment in his favor against SMN, FCWS and Caponigro for “millions of dollars to be proven at trial plus all such other relief that the Court deems just and appropriate.”

Busch is asking for at least $1.3M from SMN and Caponigro for compensation received from the driver from January 2011 to January 2016.

In a response to the countersuit, Frasco Caponigro Wineman & Scheible, PLLC, which is representing Sports Management Network, released a statement:

“Defendants’ allegations are outrageous and have no factual basis. It is a shame that, in an effort to avoid paying fees that are owed, Defendants instead have chosen to disparage the impeccable reputation of our clients who, for more than a decade, maximized Mr. Busch’s career opportunities, financially and otherwise, often during times when Mr. Busch’s conduct, both on and off the track, threatened his career.  We are confident that the court will see through what is nothing more than a desperate, diversionary tactic.”

The counterclaim states that SMN AND FCWS had “fiduciary, legal, ethical and contractual duties to act in Busch’s best interests” but breached their obligations and caused millions in damages.

SMN also represents NASCAR drivers Brad Keselowski and Ryan Blaney (both of whom are under contract to Penske), according to its website. It has represented other Penske drivers (such as Sam Hornish Jr.) in the past.

The lawsuit also revealed several details about Busch’s contracts.

When it entered into a four-year extension with Busch in 2010, SMN received a 4% fee of Busch’s base salary. That sum was $250,000, meaning Busch’s base salary for 2010 at Penske was $6.25 million.

The lawsuit notes Busch was due to make “considerably less” under future contracts with Phoenix Racing, Furniture Row Racing and Stewart-Haas Racing.

The lawsuit also refers to a two-year deal with Monster Energy for Busch from 2016-17 with an option for 2018, but it’s unclear if that refers to a personal services deal or team sponsorship.

Busch is represented in the counterclaim by the Detroit-based law firm of Barris, Sott, Denn & Driker, P.L.L.C.

Click here to see the counterclaim lawsuit filed on Kurt Busch’s behalf.

Dustin Long contributed to this report.

Bump & Run: Should NASCAR further penalize Johnny Sauter?

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If you were NASCAR, would you give Johnny Sauter and Austin Hill any additional penalties for their incidents at Iowa Speedway? 

Nate Ryan: A points penalty for Sauter that would be on par with what Jeff Gordon received for wrecking Clint Bowyer at Phoenix in November 2012 (because that seems the most analogous situation to this, other than the crash happening under yellow rather than green).

Dustin Long: My initial reaction was to suspend Sauter, but then I went the opposite way and thought no further penalties should be issued because Sauter already had been penalized by being parked and finishing 27th in the 32-truck field. I finally decided upon points and a fine, which is outlined in the rulebook. While NASCAR lists intentionally wrecking someone as an infraction that could result in the loss of 25-50 points and a fine of $12,5000 to $25,000, I’d dock Sauter 40 points and fine him $20,000 because his retaliation happened under caution. Some might suggest NASCAR suspend Sauter but still allow him to compete in the playoffs (even though a prerequisite is attempting to start each regular-season event). That sounds like a waiver and that is not the intent of the waiver. While NASCAR can do whatever it wants, suspending a driver and then altering its rules so the suspension doesn’t prohibit a driver from competing in the playoffs would not be a good look. The requirement on playoff eligibility should be updated. 

Daniel McFadin: Sauter should be suspended for a race; he used his truck as a weapon on a defenseless truck under caution. But the suspension shouldn’t count against his playoff eligibility. He’s already made the playoffs. I support a provision that prevents taking that spot away. That should only be done if a winning vehicle fails inspection in the same race you clinched the playoff spot. If Hill receives any penalties it should just be a fine at the most. NASCAR will use their run-in for marketing for years to come, so no need to overdo it.

Jerry Bonkowski: There is precedent here: Sauter’s ramming Hill is a virtual carbon copy of Kyle Busch slamming into Ron Hornaday Jr. at Texas back in 2011. The penalty Busch received should be what Sauter receives: a $50,000 fine, probation until the end of the year, and if Sauter is involved in any other incidents this season, he should be suspended and become ineligible for the playoffs.

It’s Tuesday and there is still some question as to who won Sunday’s Truck race with Ross Chastain’s team appealing the NASCAR decision to take the win away after Chastain’s truck failed inspection. The issue is expected to be resolved by this week. Is this still the best way for NASCAR to address such issues with inspection after a race? 

Nate Ryan: Yes. There is no confusion: Brett Moffitt’s team was awarded the win, and Ross Chastain’s team has an opportunity to challenge it. Similar to the courts system, a ruling already has been made. Prior to NASCAR’s change in philosophy this year, the ruling on a win’s validity (even if it wasn’t stripped) was withheld for a few days. This is a better system.

Dustin Long: This is still way better than the old system where you might not know there was a different winner because of an infraction until Tuesday. At least this way everyone knew on Sunday. Got to let the appeal process take its course but at least everything will be resolved this week instead weeks later as could happen previously.

Daniel McFadin: Yes, it is the best way. No one wants a winner disqualification to first be announced mid-week. This accelerates the appeals process to where a final judgement can be settled upon before the race weekend begins. The fact that this is the first winner disqualification or disqualification in general through five months means the new system is having some sort of impact. This might not be something that happens often.

Jerry Bonkowski: NASCAR may have painted itself into a corner with taking the win away from Chastain. The reason is simple: how did his Truck pass pre-race inspection, yet failed post-race inspection? Did something break on his truck, which caused its ride height in the front end to fall below standards? Did it happen because of contact in the race? Is that Chastain’s fault? And what happens if Chastain wins his appeal? Then what? Unless NASCAR has iron-clad evidence that Chastain’s team cheated, if officials jumped the gun, Chastain’s win should be reinstated and policies and procedures should be reviewed and changed.

They ran both the Truck and Xfinity race on the same day at Iowa Speedway after the Truck race was postponed to Sunday because of rain Saturday night. Atlanta already hosts a Truck/Xfinity doubleheader. Should there be more of these doubleheaders with these two series or keep them limited so they remain unique?

Nate Ryan: It’s an idea worthy of merit; the quantity won’t affect their appeal. It mostly should depend on whether it makes sense for NASCAR, the tracks and the TV networks.

Dustin Long: Originally Iowa was to be a one-day show for the Trucks and they got held over because of rain and spent two days at Iowa. I think there are some cases for one-day shows for Trucks to save costs. Doubleheaders are fine but should be done when it makes sense not only for fans but for teams.

Daniel McFadin: Bring on more doubleheaders. It shortens the weekend and gives more bang for a fan’s buck with one full day of racing. Also, the Truck Series primarily competes on Friday nights, when most people are not staying in to watch TV. Putting them on a Saturday before or after an Xfinity race or on a Sunday before a Cup race (like at Martinsville in 2018 after a rain and snow delay) provides a better opportunity for fans at the track and at home to see the Truck Series. We’ll get to see a version of this next year with the Cup Series doubleheader weekend at Pocono. 

Jerry Bonkowski: Yes, yes, yes. This is the perfect example of why NASCAR should add more doubleheaders to its schedule. Not only do fans get more bang for their buck, the Truck and Xfinity Series will get more appreciation from race fans of one series who typically may not pay attention to the other series. The excitement we saw in both races is definitely a precursor of even more to come if NASCAR elects to add more twinbills.

Preliminary entry lists for Cup at Sonoma, Trucks at Gateway

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After a week off, the NASCAR Cup Series is back in action this weekend at Sonoma Raceway, just north of San Francisco.

Meanwhile, the Gander Outdoors Truck Series will compete at World Wide Technology Raceway near St. Louis.

The Xfinity Series enjoys this weekend off before it returns at Chicagoland Speedway on June 29.

Here are the preliminary entry lists for this weekend’s Cup and Truck races:

Cup – Toyota/Save Mart 350 (3 p.m. ET Sunday on FS1)

There are 38 cars entered for the race around the twisting road course in Napa Valley’s wine country.

JJ Yeley will make his second Cup start of the season, driving the No. 51 Petty Ware Racing Ford.

Cody Ware will be back in the No. 52 Ford for Rick Ware Racing.

Justin Haley will make his second career Cup start, piloting the No. 77 Chevrolet for Spire Motorsports.

NASCAR on NBC analyst Parker Kligerman will make his seventh start of the Cup season in the No. 96 Gaunt Brothers Racing Toyota.

Click here for the preliminary entry list.

 

Trucks – Gateway 200 (10 p.m. ET Saturday on FS1)

A total of 31 trucks are entered in this race.

There is no driver listed yet for the No. 0 Jennifer Jo Cobb Racing Chevrolet.

Camden Murphy makes his second start of the season, driving the No. 8 Nemco Motorsports Chevrolet.

Daniel Sasnett makes his second start of the season, piloting the No. 32 Reaume Brothers Racing Chevrolet.

Bryant Barnhill makes his first start of the season and second of his Truck career in the No. 34 Reaume Brothers Racing Chevrolet.

Kyle Benjamin makes his third start of the season, driving the No. 45 Niece Motorsports Chevrolet.

Following his Truck Series debut at Iowa, Chandler Smith will drive the No. 46 Kyle Busch Motorsports Toyota.

Christian Eckes makes his second Truck start of the season, piloting the No. 51 Kyle Busch Motorsports Toyota.

Click here for the preliminary entry list.

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Five Cup or Xfinity drivers to compete in Saturday’s K&N West race at Sonoma

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Drivers in the NASCAR K&N Pro Series West will have some extra company in Saturday’s Procore 200 race (4:30 p.m. ET) at Sonoma Raceway.

Five drivers from either the Cup or Xfinity series will take part in the event:

* Driving for road course powerhouse Jefferson Pitts Racing, Austin Dillon will make his 20th career K&N Pro Series start, his third at Sonoma (first since 2015). In prior races at the road course, he’s finished 22nd and sixth.

* Also driving for JPR will be current Cup rookie Ryan Preece, who will be making his first career K&N West start and first race start at Sonoma.

* Daniel Hemric will make his first K&N West start and fourth overall series start (first since 2015 at Watkins Glen). He has also never raced at Sonoma.

* Xfinity Series driver Cole Custer will be making third series start at Sonoma (previous finishes were ninth and 12th).

* Lastly, Noah Gragson will be teammates with Dillon and Preece at JPR and will be making his third appearance at Sonoma, finishing second in 2016 and seventh in 2015.

The K&N Series has long had a history of having Cup or Xfinity drivers take part at Sonoma. Over the last five seasons, that has included Kyle Larson, Chase Elliott, Kevin Harvick, Ryan Blaney, Aric Almirola, William Byron, Daniel Suarez, Erik Jones and Alex Bowman.

Appeal hearing for Niece Motorsports set for Wednesday morning

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NASCAR announced that the appeal for Niece Motorsports will be heard at 9 a.m. ET Wednesday.

The Gander Outdoors Truck Series team took the checkered flag first with driver Ross Chastain on Sunday at Iowa Speedway only to have the victory taken away when the truck failed inspection after the race.

Brad Moran, managing director of the Gander Outdoors Truck Series said after the race: “We have a procedures and rules in place, trucks are restricted on their ride heights at the front and rear of the vehicles. Unfortunately, the 44 (Chastain’s truck) was low on the front, extremely low.

“We have a process of what happens at that point. They do get an opportunity to roll around. They put fuel in the vehicle, they air the tires. Give them at least five to 10 minutes. Check them a second time. Unfortunately, the 44 did not rise on the front at all.”

The team stated it would appeal and blamed “minor damage during the event” for the truck being too low.

When NASCAR announced before this season that winning vehicles that didn’t pass inspection would have the win taken away, series officials also announced an expedited appeals process.

That will allow the appeal to be completed this week before the Truck Series races this weekend at World Wide Technology Raceway at Gateway. Unlike other appeals, where a team or individual can appeal a penalty and then appeal again if they lose the first appeal, there is just one appeal hearing in an expedited matter.