Nashville Fairgrounds promoters respond to claims of contract breach

Fairgrounds Speedway Nashville
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Last week Claire Formosa, the VP of Fairgrounds Speedway Nashville, and a lawyer representing Formosa Productions pushed back against allegations made by the Nashville Board of Fair Commissioners that the company had breached its contract to run the track.

On April 8, the Fair Board commission sent a letter to the Formosas informing them that it was exercising a breach clause in their contract over two items: the track breaking its designated curfew of 7 p.m. on a school night and unpaid concessions commission of $31,930 from last year.

A third issue had been resolved regarding late office rent payments for the first three months of the year.

The claims by the commission come as the Formosas and Speedway Motorsports, Inc. face obstacles in their attempts to bring NASCAR back to the short track.

“To suggest that Formosa Productions breached its contract … that’s a serious allegation and I don’t believe that’s well-founded,” said Jim Roberts, the Formosa’s attorney, during the monthly Fair Board meeting on April 16.

Roberts observed that the language of the contract does not state when the concession payments are due.

“So I would submit that it’s impossible to be in breach of a contract when there are no payment schedules to find,” Roberts said.

Roberts argued concession payments would not be due until the end of the contract on March 23, 2023.

“That’s not how things are normally done, but let’s just be honest, that’s what the contract as drafted says,” Roberts said. Roberts also claimed the Formosas were not aware the concessions payments were part of the contract and that they’d never received an invoice.

“There’s been no invoicing, I think the board needs to be aware of that, no invoicing of these concessions until last week,” Roberts said, who added the Formosas asked for the invoices and received them on April 9, but that the provided invoices totaled $28,430 and not the $31,930 referenced in the April 8 letter.

The Fair Board’s letter alleged that the track broke its 7 p.m. curfew on March 27 when Kyle Busch took part in a test session for the All-America 400.

The Board claimed this violation came after a verbal warning for curfew violation on May 10 of last year. Roberts said the Formosas have no idea what event was held on that date to warrant the warning.

Regarding Busch’s test date, Roberts claimed the Formosas understood that if they received permission from the principal of a nearby school and the neighborhood association, there would be “no objection or problem” with a late track running time.

Roberts said they have a letter from the principal and the permission from the neighborhood association allowing the test.

Formosa said she had gone to the March neighborhood association meeting and was told she was cleared to go ahead with a late track rental, as long as she had the support of the school principal in the area.

Board member Jason Bergeron mentioned a series of emails from before March 27 where Formosa was told by Executive Director Laura Womack that they’d still be limited by the curfew and he noted that the principal’s permission was not part of the contract.

“She let me know and I told her ‘OK’,” Formosa said. “It was a complete miscommunication between myself and my office staff.”

With the test going beyond 8 p.m., Formosa, who was not on site, traveled to the track and shut it down by 8:17. p.m.

Bergeron said he’s heard from people in the neighborhood “that they don’t feel like they can count on that 7 o’clock curfew” when it comes to track rentals.

Formosa objected to this assertion.

“We have these monthly neighborhood meetings for this very reason,” Formosa said. “I can tell you that I never heard an issue raised by either one of the neighborhood associations. If there were issues raised, this is certainty the first time I’m hearing about them.”