Dover Motorsports to sell Memphis Motorsports Park

Dover Motorsports Inc. on Friday announced it has agreed to sell Memphis Motorsports Park to Gulf Coast Entertainment, LLC. Under the terms of the agreement, Dover Motorsports will sell all of the stock of its subsidiary Memphis International Motorsports Corp., the owner of Memphis Motorsports Park, to Gulf Coast Entertainment for $10 million in cash.

Gulf Coast is currently building a "multiuse entertainment complex" near Mobile, Ala., with plans to include a 0.7-mile oval track. Alabama Motorsports Park has been branded a "Dale Earnhardt Jr." Speedway, as Earnhardt Jr., sister Kelley Earnhardt and brother Kerry Earnhardt all were part of the original investment group.

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Alabama Motorsports Park is scheduled to open in 2011.

As additional consideration for the purchase, Dover Motorsports will receive a 2 percent non-dilutable interest in Gulf Coast Entertainment and will have an agreement to provide motorsports management services to Alabama Motorsports Park when the facilities become operational.

Closing is expected to take place on or about April 30 and is subject to financing and customary closing conditions.

"Gulf Coast Entertainment anticipates hosting an array of motorsports events at Alabama Motorsports Park including stock car, open wheel and other professional and club races," said Denis McGlynn, president and CEO of Dover Motorsports.

"There are also extensive plans for multiple commercial enterprises on the 2,400 acre site. We are truly excited to be involved with this entertainment complex and to work with the exceptional group of investors that they have assembled."

Memphis Motorsports Park does not contemplate any schedule changes in 2009 and will continue to host events including the Nationwide and Camping World Truck series races. It will continue operations under the ownership of Gulf Coast Entertainment, but will operate under a management agreement with Dover Motorsports.

In connection with securing NASCAR's approval of the transaction, Dover Motorsports is expected to guarantee the obligations of Memphis Motorsports Park under its sanction agreements with NASCAR for the 2009 season.

"Our investors are excited about the synergies that can exist between the Memphis and Mobile facilities," said Bill Futterer of PSE-3 of Raleigh, N.C., which has managed relationships within the motorsports industry for Gulf Coast Entertainment.

"Moreover, incorporating Dover Motorsports in our program will mean that Memphis ownership can transfer with no noticeable change in operations and that our operations in Alabama can flourish with no learning curve. It's simply an ideal scenario for both parties."