Kyle Busch Motorsports Suing Justin Boston and Zloop

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Kyle Busch Motorsports is suing its former driver Justin Boston and Zloop, the computer-recycling company co-founded by Justin’s father, Bob, alleging they missed $650,000 in payments as part of their $3.2 million annual deal that had Boston driving a KBM truck.

Boston and Zloop made their first five payments on time for a total of $1.55 million but are alleged to have missed payments due in May and June, according to the lawsuit filed Friday in North Carolina Superior Court in Iredell County. KBM claims it is owed $4.025 million for the alleged default on the contract, a two-year deal originally worth $6.4 million. The contract was based on a 23-race schedule, so the 46 races work out to Boston paying KBM $139,130 per race.

While he was bringing the sponsorship, Justin Boston was getting paid $3,000 per race plus 40 percent of the purse (not including the television portion of the purse, which all went to KBM).  As per the contract Boston would also get $50,000 if he won the truck title, $7,500 for a race win, $1,000 for a pole and $15,000 if he finished second through fifth in the points for the season.

Since Bob Boston is mired in a $28 million lawsuit from a former Zloop investor who claims that Boston lied to him about the value of Zloop.  Additionally it is alledged that Boston did not use his investment as intended, including spending money for Justin’s racing career as a part of Zloop’s marketing program.  As a result of that lawsuit Zloop filed for Chapter 11 bankruptcy.  So it may be quite a long while before KBM ever get adjudication on the lawsuit with Zloop.

Because Zloop is in bankruptcy, all of Kyle Busch Motorsport’s claims against Zloop will be determined in Delaware bankruptcy court. However, the claims against Justin Boston could continue in the North Carolina courst.

KBM isn’t the only company affiliated with racing that is looking for money out of Zloop. According to its bankruptcy filing, Zloop owes Bristol Motor Speedway $131,250, Kentucky Speedway $75,000 and Pocono Raceway $36,601.  Additionally, Zloop also owes the Carolina Panthers $87,000 for its annual suite, a contract that Zloop is trying to get out of for this upcoming football season.

So if you add up all the figures that KBM asserts in it’s lawsuit against Boston and Zloop, you can see that it takes somewhere between $3-4 million dollars a year to provide a competitive Camping World Truck Series vehicle at the race track each week!


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