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Dorna Responds to Schwantz COTA Lawsuit

Wednesday, September 12, 2012
Construction on the Circuit of the Americas track near Austin. The COTA has been embroiled in controversy shortly after its inception  with lawsuits surrounding its opening Formula 1 and MotoGP events.
Construction on the Circuit of the Americas near Austin. The COTA project has been embroiled in controversy with lawsuits surrounding its Formula 1 and MotoGP rounds.
The fallout from Kevin Schwantz’s lawsuit against the Circuit of the Americas (COTA) has elicited a response from Dorna. The MotoGP rights holder issued a statement clarifying its position in the matter. Dorna claims that it issued a promoter contract with Schwantz for an event at the COTA venue. It also states the contract was terminated on July 2 after Schwantz’s company, 3four Texas, was unable to meet a June 28th deadline to obtain an agreement with COTA for the 2013 Texas USGP. Dorna concludes the statement by indicating it has offered the promoter agreement directly to COTA. The Dorna statement is posted below. – MCUSA Bart Madson

In response to 1993 500cc world champion Kevin Schwantz and his company 3four Texas MGP LLC filing a lawsuit against the new Circuit of the Americas (COTA), Dorna Sports S.L., a third party in the matter, wishes to release the following statement.

Dorna Sports S.L. entered into a Promoters Contract with 3four Texas MGP LLC in connection with the organization of a FIM MotoGP Grand Prix at The Circuit of the Americas, Austin, Texas, on February 11th 2011 to be effective from the 2013 season. Dorna understood that 3four Texas MGP LLC had an agreement with COTA to run the event.
On the first days of June 2012, Dorna required 3four Texas MGP LLC to provide satisfactory evidence before June 28th about the company having obtained all the necessary rights, licenses and permits related with the availability of the Circuit of the Americas.

This is a standard procedure when the Promoter is not the owner of the Circuit.

3four Texas MGP LLC was not able to provide such evidence to Dorna (apparently no agreement had ever been entered into between 3four Texas MGP LLC and COTA, the owner of the circuit) within the term granted for such purposes, and therefore Dorna had no other alternative than to terminate the February 11th 2011 Promoters Contract due to such Event of Default. The termination was effective from July 2nd 2012.

As Dorna Sports S.L. and the FIM are interested in a FIM MotoGP Grand Prix in Texas, COTA was then offered the opportunity to become the Promoter of such an event through the signing of a Promoters Agreement. Conversations continue at this moment.

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Comments
cggunnersmate   September 13, 2012 05:22 AM
Without knowing the details of 3four's negotiations with COTA it's hard to say for sure but it seems fishy. Unless there's proof that either Schwantz wasn't active enough in pursuing the contract or that COTA deliberately dragged it out to make 3four miss their deadline with DORNA you can't really say for sure if COTA deliberately forced 3four out of the equation (saving more money for themselves).

But it does raise questions, especially considering COTA's other questionable contract tactics.
bradvanhorn   September 12, 2012 04:28 PM
Sounds more to me like Schwantz screwed himself out of this opportunity. Dorna says they gave Schwantz time and opportunity to prove he could legitmately negotiate and promote MotoGP in Texas. When he failed to prove he could accomplish this effort, Dorna directly contacted the people who own the track to negotiate with them. No company that wants to survive is going to sit idle past a deadline under such conditions - they have to pursue other, viable options.
AnthonyD   September 12, 2012 10:51 AM
So basically the two parties with the money pushed out Schwantz. F the 1%.