Appeals Court Takes On Kentucky Speedway Suit

((HT: WXIX/Fox 19))

The former owners of the Kentucky Speedway are asking a federal appeals court for a green flag to pursue their antitrust claim against NASCAR.

"They were squeezed out," attorney Stan Chesley, who helped file the lawsuit in 2005, said after arguments Thursday in front of a three-judge panel of the 6th U.S. Circuit Court of Appeals.

A lower-court judge last year rejected the speedway's claim that the racing body and a sister company that operates tracks and promotes races have conspired to monopolize control over who gets the top stock car events. The Kentucky track, some 40 miles south of Cincinnati, has new ownership that wants the case ended to help its chances of gaining a coveted NASCAR Sprint Cup race. But Chesley said there are important issues for a trial, and that the former owners also want hundreds of millions in damages.

"People have the right to have their case heard in court," Chesley said. NASCAR attorney David Boies said the lawsuit against the racing body and its International Speedway Corp. represented impatience by the Kentucky Speedway to get a Sprint Cup race. "They want one. Everyone wants one," Boies told the judges.

Boies noted that the speedway has hosted other NASCAR series races since opening in 2000 and was in effect saying: "We want it all and we want it now."

Plaintiffs' attorney Charles Rule, who headed the Justice Department's antitrust division during the Reagan administration, said the alleged conspiracy is meant to keep independent tracks from gaining top-tier races. "This is a classic case of anti-competitive illegal conduct," Rule told the judges.

Rule said the new Kentucky Speedway owners, Speedway Motorsports Inc., were co-conspirators. Boies told the judges there was no evidence of that claim.

Kentucky became the eighth NASCAR-sanctioned track in SMI's portfolio, but the only one without a Cup date. NASCAR has said the lawsuit must end before Kentucky Speedway could get a Sprint Cup race. "We're not a party to it, and we'd like to see it resolved," Mark Simendinger, general manager for the Kentucky Speedway, said in a telephone interview.

Appeals judges typically take months to decide and prepare their opinions. They repeatedly questioned Rule on his contentions they should overturn the January 2008 ruling by U.S. District Court Judge William O. Bertelsman.

Judge Ronald Lee Gilman asked whether a premium race was "in the eye of the beholder." Rule replied that NASCAR's top-tier races draw the most television revenue, fan interest and other benefits to tracks, and are the "major league" of racing.

NASCAR officials say there are limits to how many premium races they can run in a year - the Sprint Cup series currently has 36 points competition races and two "All-Star" races. "Like other sports - the NFL, Major League Baseball, the NBA - NASCAR has the right to create its schedule and host events where it wants to," said NASCAR spokesman Ramsey Poston

Chitwood Second To Leave IMS

((HT: IndyStar/Cavin))

Joie Chitwood ((pictured, second from left, thanks daylife.com)) resigned today as president of Indianapolis Motor Speedway to become vice president of business operations of International Speedway Corp., the parent company of NASCAR.

Chitwood was elevated to the Speedway's position in December 2004 after serving various roles with the Indy Racing League, Chicagoland Speedway and the Speedway. He was one of the IRL's first employees.

Chitwood's last day will be Aug. 6. He said he began considering new challenges after last year's inaugural MotoGP race at the Speedway and the start of the Centennial Era, a celebration of the first 100 years of the facility.

In a statement, Chitwood said he plans to return to his native Florida.

Jeff Belskus, who became chief executive officer of Indianapolis Motor Speedway Corp. on July 1, will assume daily responsibilities at the Speedway. The statement released by track officials said it was unclear if Chitwood's position will be filled.

"With his history in the sport combined with his business acumen, Joie was well-suited for the role of president of the Indianapolis Motor Speedway, and we appreciate how he has represented IMS. We wish him all the best,'' Belskus said.

Chitwood was one of the Indy Racing League's first staff members and his family has connections to the Speedway dating to the late 1930s, when his grandfather began competing in the Indianapolis 500.

"I had a lifetime of memories for this place before joining the company in 1996,'' Chitwood said in a statement.