Kevin Schwantz files lawsuit against Circuit of Americas

As we mentioned is our previous post Kevin Schwantz has began legal action against the Circuit of Americas (COTA).
As everyone knows the former World Champion has been involved since day one in trying to bring MotoGP to the Austin circuit and has worked as a consultant on the design of the circuit and was also a member of the board with his 3fourTexasMGP company.

When the circuit began having financial problems completing construction following a controversial taxpayer subsidy failing come to through – Tavo Hellmund who was behind the project – was ousted and he tried to sue his ex-partners (there was an out of court settlement this year) but the rights in hosting the MotoGP race seem to still belong to Hellmumd and his Full Throttle Productions company and it was he and Schwantz that closed the 10-year deal with Dorna, not COTA.

Now it seems that COTA has began negotiating directly with Dorna and trying to cut out the middle man, in this case Schwantz’s 3fourTexasMGP company in order to avoid paying him as the promotor and thus reduce sanctioning fees, hence the fraud lawsuit that Schwantz filed the other day against COTA and COTA President Steve Sexton.

Schwantz issued the following statement: “I have devoted over 25 years of my life to MotoGP, the premier motorcycle road racing world championship.

I spent four of those years bringing MotoGP to Texas, my home state.
As a result, MotoGP agreed in 2011 to host an annual race at Austin’s Circuit of the Americas (COTA) track.
I’m sorry to say that COTA is now attempting to unlawfully force me out of this project.
I believe COTA has committed fraud in doing so.
Earlier today, I took legal action against COTA.
I was forced to file this lawsuit in order to protect my rights, my reputation, and MotoGP itself.
I want to see MotoGP come to Texas, but I cannot allow COTA to take advantage of me.
More important, I will not sit idly by while a newcomer to racing discredits the sport I love.
”–Kevin Schwantz, President of 3fourTexasMGP, LLCWhile the Circuit of The Americas™ retorted with this:AUSTIN, Texas (Sept.
8, 2012) – Circuit of The Americas today released the following statement regarding the recent lawsuit filed by Kevin Schwantz related to promotional rights he claims to possess for a MotoGP race in Texas.
“It makes no sense for Mr.
Schwantz to pursue legal action in this matter.
We were informed by DORNA, the organization that holds the rights for the MotoGP racing series, that Mr.
Schwantz has no contract to promote a MotoGP race in Texas,” Circuit spokesperson Julie Loignon said.
“To be clear, Mr.
Schwantz never had an agreement to conduct a MotoGP race at Circuit of The Americas, and to our knowledge, he has no agreement to conduct an event at any Texas racetrack.
Perhaps, that is why he is reacting this way, out of embarrassment, and is making false claims to the court and media.
“We know race fans would love to see a MotoGP event at the Circuit, and it is good to know that the door is open to make that happen at our new world-class venue in Austin.
”When Schwantz arrives at Misano after his 1600km Cycle of Wishes charity bicycle ride from Donington to Misano he’ll probably be asked more about the situation and Dorna’s CEO Carmelo Ezpeleta will be getting an earful from the Texan.