Kevin Schwantz Issues Further Statement On COTA Lawsuit

Kevin Schwantz has issued another statement in response to the press releases put out by both the Circuit of the Americas and Dorna, concerning his legal proceedings over the case. In the press release, Schwantz lays the blame for the situation at the feet of the Circuit of the Americas, and claims they attempted to obtain the contract to organize the MotoGP race in Texas by forcing him out of the deal with Dorna.

Below is the full statement issued by Kevin Schwantz:


Further Statement from Kevin Schwantz

"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

Back to top

Comments

Boycott, anyone?

I could care less if the event goes off as planned, or explodes in a great ball of fire. In either case I won't be attending ANY future events held at the COTA facility.

I am supportive of Kevin and what he was doing to get MotoGP in Texas and it seems like COTA is showing their rear. COTA also seem like they are being very shady and manipulative about this situation however, if Kevin does not have a signed contract from COTA then whatever COTA said in public doesn't really mean much as COTA can just say 'over zealous PR manager blah blah whatever'. unfortunately, if you don't cover your bum with a notarized signature you really have no legal basis to take them to court. The only hope is a judge who looks at the intent COTA had and can somehow say they entered an enforceable verbal contract but I don't think that avenue has ever really worked in past legal history.

With that said, It's companies like the people who run COTA that feed the perception of 'big evil businesses' and make it difficult to defend legitimate businesses who stand by their word and won't stab people in the back for a dollar.

If this is indeed the way this whole situation went down then shame on you COTA...

and hopefully Kevin gets the signatures next time. =)

Kevin has an excellent case of constructive fraud. Constructive fraud is where someone takes advantage of their superior power and decides they aren't going to honor an agreement. The agreement doesn't have to be written, but it can be.
This is a textbook case. Swantz uses his connections to get the motogp on board at a totally unknown track, they use his name and rep to get financing, then they do an end run, bust the contract and say tough.
I've seen it once where a guy brought some rich guys the idea to buy a struggling golf course, and make it a golf community. They cut him out at the end because he couldn't pony up the $, and he sued. And won. Big.
It's usually a treble damages case with punatives. He'll do just fine.

For sure it seems COTA is being very shady about this. I don't believe Schwantz would be taking the action he is taking if he had no basis for it. He obviously has immense love for his sport, and although doubtful, I hope his lawsuit can stand up in court. I would love to see motogp in Texas but if it turns out COTA backstabbed him then I don't care to give them my money. This, compounded with all the issues they had with funding and all that crap, makes them look worse and worse.

...and if it turns out that he truly was cut from the COTA deal that his name helped to create, I think a show of camaraderie from the riders would be in order. Not to the extent of of boycotts as the riders have no say in that but tributes to number 34 in the same way they have done for deceased riders in the past. A simple 34 on the chest / shoulder or helmet would be a constant needle in the side of COTA. Riders could also publicly thank KS34 for "making this event possible" and when the mainstream media ask what this is all about, the dirty laundry could be aired more publicly and just maybe KS34 would receive the accreditation, moral or otherwise, he is due from COTA.
Is anybody old enough to remember Turk182 ?

I think it is risky to assume certain assertions are actual facts, and take sides, and skewer COTA as the bad guy in all this. I for one plan to observe and keep an open mind as this plays out. While I agree 100% that Kevin Schwantz is a legend, that does not make him right in this dispute. I would love for KS34 to be involved in this event, and I hope that he will be involved. But I'm pretty sure his signed contract is with Full Throttle Productions, not with COTA. And Full Throttle is defunct, I believe, and has no standing contractually with COTA, I believe. I just think it is premature to brand COTA and DORNA as evil conspirators at this point.

Unlses this is settled out of court, and this results in "KS admitting he was wrong", as many will see it in that light, this will be in the court system for years before it's resloved. This is so sad for the the sport and for all involved. I plan to observe closly and see how justice is played out.

At least Kevin and his people with money have the money to sue the other people with money who are trying to screw him out of his money. Welcome to the U.S., with the finest legal system money can buy.

OTOH, if Texas law enforcement gets it through their heads that some furriners - especially some yoo-rope-eens - are trying to screw a good 'ol Texan like Schwantz over, then the entire paddock may well end up in the hoosegow until they sort things out. And I'm not kidding; Texan law enforcement was known to shutter the gates of a race event and inspect every bike in the paddock for stolen parts. Some guys with GP bikes had to do some fast talking to get the deputies to understand that a pure race bike didn't have a street-legal VIN. Wild West indeed.

Dorna and Ezpeleta to show a bit of solidarity with Schwantz against COTA I suppose?

If Carmelo were to "have a word" with COTA management saying KS34 is well respected in our world, he's been instrumental, this is not the way we want to do business and if you don't sort it with him on board..forget it.

But hey!..who am I kidding. Money always talks louder than words innit?