Troy-based Sports Management Network alleges NASCAR driver Kurt Busch owes more than $1 million in contractual obligations after he abruptly ended his contract.
A lawsuit filed in U.S. District Court this month claims Busch, a former NASCAR champion, agreed in or around July 2012 to compensate 10 percent of all revenue paid from personal services agreements to the network under a representation agreement beginning in January 2013.
The move took place after “it became apparent that the money Defendants would receive in 2012 from KB’s professional driving activities would be a fraction of what they previously receive,” reads the lawsuit.
SMN offered to modify Busch’s payment obligation from $250,000 to $125,000 in 2012, which was accepted by the driver and Kurt Busch Inc. with the 10 percent stipulation through 2018, according to the lawsuit.
The lawsuit claims payments were made under the new terms through the first quarter of 2016 without any issues until Busch terminated his relationship with SMN and “ceased paying SMN altogether from that point forward.”
A list of payments included in the lawsuit claims SMN is due $930,450 dating back to March 2016 that has gone unpaid. It also claims SMN is entitled to an additional $540,000 that has not yet been invoiced for the 2018 race season.
Alan Miller, a Birmingham, Michigan-based attorney representing Busch said they will fight against the lawsuit, which includes nine counts such as breach of contract and fraudulent misrepresentation..
“We believe the lawsuit is without merit, and we plan to vigorously defend the lawsuit,” he said. He declined any further comment at this time.
They have not yet filed a response to the lawsuit.
Busch, 38, drives for Stewart-Haas Racing, has 28 career NASCAR wins dating back to 2000. He won the 2004 NASCAR Nextel Cup Series championship and had been represented by SMN dating back to 2005 before parting ways.
SMN was founded in 1989 as “an additional service branch of the thriving sports and entertainment legal practice of Frasco and Caponigro, PC,” according to the network’s website.
The website provides a link to a client list that includes NASCAR driver Brad Keselowski, motorsports legends Mario Andretti and Al Unser Sr. and former Detroit Pistons star Joe Dumars.
TIL NEXT TIME, I AM STILL WORKING ON MY REDNECK!