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SMI receives offer from Sonic Financial Corp. to acquire all outstanding shares of common stock

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Speedway Motorsports Inc. announced Wednesday that it has received a non-binding proposal from Sonic Financial Corp. to acquire all outstanding shares of common stock other than those already held by Sonic.

Bruton Smith and his family own and control Sonic Financial Corp. Smith is the founder and majority stakeholder in Speedway Motorsports Inc. SMI operates eight tracks that host Cup races, including Charlotte Motor Speedway, Las Vegas Motor Speedway and Texas Motor Speedway.

This action follows NASCAR’s non-binding offer Nov. 9 to acquire all of the outstanding shares of Class A and B common stock of International Speedway Corp. not already owned by the controlling shareholders of NASCAR.  That offer has not been completed. There is a class-action suit in a Florida court on behalf of the Firemen’s Retirement System of St. Louis regarding the purchase price for the outstanding stock.

The separate offers to ISC and SMI would make both companies private. That could allow both companies to be more receptive to future schedule changes without the pressure of trying to appease outside investors.

When asked about future agreements with tracks, NASCAR President Steve Phelps said earlier this month on the Dale Jr. Download: “We have to do some things differently. Fans want us to do things differently, and I think we need to do it as quickly as we can within reason, understanding that there are three legs to that stool and one of those legs are the tracks.”

The Sonic Financial Corp. offer for the outstanding SMI stock is for $18 per share. The stock closed at $13.94 on Tuesday. The stock was up to $18.46 by 11 a.m. Wednesday and finished the day at $18.55. The 52-week high for the stock was $18.36. SMI’s board has formed a special committee to consider the offer. Mark M. Gambill, James P. Holden and Tom E. Smith, each of whom is an independent director of the Company, to act on behalf of the Company to consider the proposal by Sonic Financial. Tom E. Smith is not related to Bruton Smith or his family.

Here is the letter from Sonic Financial Corp. to the Board of Directors for SMI:

Sonic Financial Corporation (“SFC”) is pleased to submit this non-binding proposal to acquire all of the outstanding shares of stock of Speedway Motorsports, Inc. (the “Company” or “TRK”) that are not owned by SFC, O. Bruton Smith, his family and entities controlled by Mr. Smith and his family (collectively with SFC, the “Smith  Group”),  for  cash  consideration  of  $18.00  per  share  (our  “Proposal”).  As  you  know,  the  Smith  Group  beneficially  owns,  directly  or  indirectly, approximately 29 million shares of TRK, and controls over 70% of the voting power of TRK.

We believe that our Proposal reflects an extremely attractive value to the Company’s public stockholders. Specifically, $18.00 per share represents a significant premium of 31% to yesterday’s closing price and 26% to the 30-day volume-weighted average price per share of $14.27 as of April 22, 2019.

As you know, NASCAR racing has faced several challenges in recent years, and the Company has been impacted by these challenges. NASCAR has indicated the sport would benefit from structural change. We believe TRK would be more able to compete in this challenging and changing environment as a private company.

SFC and members of the Smith Group are best-positioned to continue to manage and oversee the Company as a private company. Mr. Bruton Smith, Executive Chairman and founder of the Company, has been a pioneer in the motorsports business since the sport’s beginning. His ingenuity and vision for the sport have been highly instrumental in the motorsports business for decades, and the sport has recognized his contributions by inducting him into the NASCAR Hall of Fame.

Additionally, Mr. Marcus Smith, the current Chief Executive Officer of the Company, has played a key role in the motorsports industry and has also been an important figure in the evolution of the sport and the Company over the past several years. Given the Smith Group’s role in the sport and involvement in the Company, we believe we are the best party to lead the Company through the challenges ahead.

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Chase Elliott wins Cup Most Popular Driver award

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NASHVILLE, Tenn. — Chase Elliott was selected as the NMPA Most Popular Driver in a fan vote announced during Thursday’s NASCAR Awards show.

It is the second consecutive victory for Elliott in the category.

It is the 29th consecutive year that either an Elliott or Earnhardt has won the award.

The last driver not named Elliott or Earnhardt to win this award was Darrell Waltrip in 1990.

Other award winners included:

The Bill France Award of Excellence, an award that is not given every year, was presented to car owner Joe Gibbs for his signifiant contribution to the sport.

The NMPA Myers Brothers Award for outstanding contribution to the sport was presented to Darrell Waltrip.

The Betty Jane France Humanitarian Award is Joe Vaughn, who has volunteered for nearly two decades, raising both awareness and funds on behalf of the Project HOPE Foundation, based in Greenville, South Carolina. The foundation’s mission is to provide a lifespan of services to the autism community to help families, open minds, promote inclusion and expand potential.

Watch NASCAR Cup Awards Show at 8 p.m. ET on NBCSN

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Get settled into your favorite easy chair, make sure you have plenty of snacks and beverages on hand and get ready for the last big event of 2019 on the NASCAR schedule: tonight’s NASCAR Awards Show.

The show will be broadcast on NBCSN from 8-10:30 p.m. ET from Nashville, Tennessee, for the first time. And if you miss some of the show, don’t worry, there’ll be a replay immediately afterward, also on NBCSN.

Kyle Busch will be the main attraction for tonight’s show, being celebrated for winning his second NASCAR Cup championship this past season.

Also, the 2019 NASCAR Cup Most Popular Driver award winner will be revealed. Will it be defending winner Chase Elliott, reigning champion Kyle Busch, Ryan Blaney, Martin Truex Jr., Matt DiBenedetto … or someone else? You definitely need to tune in to find out.

And to get you in the mood, we’ll replay Wednesday’s Burnouts on Broadway at 7 p.m. ET, also on NBCSN.

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Will Daniel Suarez race for Richard Childress Racing in 2020?

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NASHVILLE, Tenn. — The president of Richard Childress Racing said it is a “longshot” that Daniel Suarez will drive a third Cup entry for the organization in 2020 but said RCR would like to have Suarez drive its No. 2 Xfinity car next year.

Suarez has not decided where he’ll race in 2020 after losing his ride with Stewart-Haas Racing this year.

Suarez has been linked with RCR. A third Cup entry would require RCR to acquire another charter for that car. It also could mean that the organization would need to hire additional people if they expanded to three full-time cars.

“I think that would be a long shot in a Cup program,” Torrey Galida told NBC Sports about Suarez in a third RCR Cup entry. “We’ve talked to him about an Xfinity program. We’d love to have him in an Xfinity car, and we think we could win another championship next year with Daniel. He’s a very talented young man.”

Richard Childress Racing’s No. 21 Xfinity car will run the full season with multiple drivers in 2020. Myatt Snider and Anthony Alfredo have been announced to drive that car. Galida said the team is looking at Kaz Grala, Austin Dillon and possibly two-time series champ Tyler Reddick driving that car in select races.

RCR ran the No. 21 car in nine of 33 Xfinity races this past season. It ran the No. 2 car in every race.

If Suarez, the 2016 Xfinity champion, drove for RCR in the Xfinity Series next year, it would be with the organization’s No. 2 car.

“We could still do that and we would do that,” Galida said of a full-time Xfinity effort for Suarez. “That’s the kind of opportunity we would be interested in.”

Galida said it just is a matter of hearing what Suarez decides.

“I think he knows what we’ve got to offer, and I think he’s just weighing his alternatives and trying to determine what is best for him,” Galida told NBC Sports. “I’m sure that going back to the Xfinity Series is not his first choice. I think in the right equipment it could be a really good move for him.”

Galida said they could go into January before hearing from Suarez but noted that “the sooner the better. People are your biggest issue. You want to put the right people around him.”

Next April’s Xfinity race at Bristol to have new sponsor

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Bristol Motor Speedway announced Thursday that partner Alsco, along with Darden Restaurants and its Cheddar’s Scratch Kitchen brand, will sponsor next April’s Xfinity Series race there.

The Cheddar’s 300 presented by Alsco will take place on Saturday, April 4, 2020.

Alsco is a global leader in uniform and linen rental services. In addition to its entitlement at Bristol Motor Speedway, Alsco will take part in Xfinity Series entitlements at three other Speedway Motorsports Inc. racetracks: Kentucky Speedway, Charlotte Motor Speedway and Las Vegas Motor Speedway.

Alsco’s initial entitlement at BMS came this past April with the Alsco 300 Xfinity Series race, won by Christopher Bell, who earned a $100,000 bonus through Xfinity’s Dash 4 Cash program.

Alsco is also a sponsor for Richard Childress Racing, Richard Petty Motorsports and JR Motorsports.

“Bristol is the place for historic finishes and close, hard-knock racing action,” said Jerry Caldwell, executive vice president and general manager at Bristol Motor Speedway. “Alsco and our new friends at Cheddar’s Scratch Kitchen understand the reputation of racing at The Last Great Colosseum and we’re ready to show them an incredible experience. The Cheddar’s 300 presented by Alsco is a must-see event on the NASCAR Xfinity Series schedule.”

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