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Kevin Schwantz Responds to COTA

Friday, September 14, 2012
World 500cc Champion Kevin Scwantz is excited to be in the 2012 Isle of Man TT Parade Lap
Kevin Schwantz, pictured above, is the 1993 FIM MotoGP World Champion. In 1995, FIM retired his #34 and in 2000 he was declared a Legend, FIM's highest honor.
The controversy swirling around Dorna, MotoGP, the Circuit of the Americas (COTA) and Kevin Schwantz continues to intensify. COTA weighed in soon after Schwantz filed suit, alleging that he “never had an agreement to conduct a MotoGP race at Circuit of the Americas, and to our knowledge, he has no agreement to conduct an event at any Texas racetrack.” Later, Dorna issued a statement alleging that Schwantz and his company, 3four Texas MGP LLC, failed to meet a June 28th 2012 deadline to provide all “necessary rights, licenses and permits related with the availability of the Circuit of Americas.” Since Schwantz’s ouster from the agreement to promote MotoGP in Texas, Dorna has offered COTA the opportunity to step in and sign the Promoters Agreement. Schwantz recently released a response to these allegations, provided in full below. – MCUSA Byron Wilson

"In response to the legal action I filed last week, Circuit of the Americas (COTA) has issued a statement claiming I never had an agreement to conduct a MotoGP race at its facility.

COTA’s claim is false. In April 2011, COTA issued a press release with the headline “Texas Lands MotoGP for 2013; 10-year Deal Signed for Austin’s Circuit of the Americas.” This press release names my company, 3fourTexasMGP, as a party to the MotoGP agreement. It also claims COTA’s track “is the U.S. home to both the Formula 1 and MotoGP Grand Prix World Championships.”

COTA presumably used this agreement with me to entice ticket sales and to persuade elected officials to commit $250 million from the State of Texas’s Major Events Trust Fund. Once it had gotten all the mileage it could out of the agreement, as alleged in my lawsuit, COTA cut me out of the deal and attempted to get a cheaper contract with Dorna.
Following COTA’s lead, Dorna has now publicly claimed that it has terminated my MotoGP contract. I’m not surprised that Dorna is now acting as a mouthpiece for COTA. As stated in my lawsuit, COTA has misled Dorna and encouraged it to terminate my contract. This unlawful conduct resulted in an announcement in June that they were finalizing details on the Texas race.

I am tremendously disappointed in my friends at Dorna, who appear to be forced into their current position by COTA. Hopefully, COTA won’t do to them what it did to me.

To cut through all the spin, here is what has happened. I had an agreement to conduct MotoGP races at COTA. COTA used the agreement to sell tickets and raise money. When the time came for COTA to honor its end of the bargain, it refused. COTA thought it could get a better deal by going around me and directly to Dorna. And that is exactly what it did."

Kevin Schwantz, President of 3fourTexasMGP, LLC

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Comments
AnthonyD   September 15, 2012 09:05 AM
All about the $$$$
jng1226   September 14, 2012 11:12 AM
*Yawn* Airing dirty laundry and using the press as the medium is never pretty, nor classy. If you have a legitimate suit, let the court decide. If not, take your lumps and consider it a lesson learned in business dealings, that perhaps you should have had attorneys involved with in the first place. Another lesson kids: stay in school, even if you're destined to be a sports superstar. You never know when those basic education lessons will be helpful down the road...
Lee1200   September 14, 2012 10:58 AM
Why would you enter into this without a written agreement? It sounds like you had more of a verbal agreement then written, much harder to prove.
spokes   September 14, 2012 10:34 AM
I don't doubt it a bit, it's all about the money...

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