Ferko v. National Ass'n for Stock Car Auto Racing, Inc.

Last updated

Ferko, et al. v. National Association for Stock Car Auto Racing, Inc., et al., commonly known as the Ferko lawsuit, was an American lawsuit between plaintiff Francis Ferko, a resident of Plano, Texas, and a minor shareholder of the then-publicly traded Speedway Motorsports, Inc. (SMI), and defendants NASCAR and International Speedway Corporation (ISC), which are both owned by the France family. Ferko filed a derivative suit that contended NASCAR and ISC violated an implied agreement with SMI to provide a second NEXTEL Cup race per racing season upon completion of Texas Motor Speedway, and violated antitrust laws by preventing SMI from obtaining one. [1]

Contents

The suit was filed in February 2002 and was settled in May 2004. [1] The settlement delivered the desired second Sprint Cup race each season to Texas Motor Speedway and resulted in numerous other changes to the NASCAR schedule of races and racing venues after a series of transactions between SMI and ISC. [2]

Settlement

Ferko was represented by The Cochran Firm, and filed the suit after SMI refused to take legal action against NASCAR and ISC regarding the alleged promise of a second date. SMI, while publicly approving of Ferko's actions, made no attempt to coordinate with him or aid him in the lawsuit. NASCAR publicly labeled Ferko a proxy for SMI, and unsuccessfully moved to have SMI named as the main plaintiff.

As the case was preparing to go to trial in 2004, the parties settled as part of a larger restructuring of NASCAR's schedule. [1] In the settlement, ISC sold the North Carolina Speedway in Rockingham (now known as Rockingham Speedway) to SMI, with Rockingham removed from the NEXTEL Cup schedule, and its remaining (February) race moved to ISC's Auto Club Speedway in Fontana, California. Continuing with NASCAR's schedule realignment, Texas earned its promised second race (the reason for the lawsuit) when a November race, used for the prestigious Southern 500 (renamed the Dickies 500 in Texas), was moved to Texas from ISC's Darlington Raceway. As it happens, the November date had been inherited by Darlington from Rockingham only a year earlier, when Rockingham had been reduced from two Nextel Cup races to one and after the Southern 500 had been moved from its traditional Labor Day weekend date in favor of giving a second race weekend to Auto Club Speedway.

The November date gave Texas a race in the Chase for the Nextel Cup and cost Darlington the more prestigious of its two race dates, which resulted in the track lengthening its spring race to 500 miles and eventually giving it the Southern 500 name. [2] For its part, SMI had to agree that Rockingham would be used only for non-competition NASCAR uses, such as for movie settings about the sport or for testing. [1] As a result of a 2006 NASCAR testing rule change limiting testing on tracks used for NASCAR competition, testing at Rockingham become more commonplace until NASCAR completely banned all testing in 2015. SMI sold off the Rockingham track in 2007, and the track closed when its owner went bankrupt in 2015.

Aftermath

After filing the suit, Ferko claimed he lost his job in food safety as a result of the suit's publicity, and he and his wife moved to Atlanta for his new job. Shortly after moving, their 20-year-old son Anthony, who remained in Texas to be with his own 6-month-old son, committed suicide. [1] After Ferko and his wife failed to win custody of their grandson, they divorced. Following the settlement, SMI maintained its distance from Ferko to help repair its relationship with NASCAR, and in 2005, before the initial running of the Dickies 500, Ferko expressed his disappointment in SMI for not compensating him for his part in the lawsuit, and expressed regret at pursuing it. [1]

As of 2022, the tracks involved in the schedule shuffling that took place as a result of the lawsuit had the following occurrences:

In 2005, Kentucky Speedway filed a similar suit against NASCAR and ISC, requesting a NEXTEL Cup race at their venue. However, unlike the promise of a second race at the heart of the Ferko lawsuit, the France family had expressly told Kentucky Speedway that it would not be given a race, and so the case was filed on antitrust grounds only. [3] The lawsuit was dismissed on January 7, 2008, although the track's owners appealed the dismissal. [4] On May 22, 2008, Speedway Motorsports, Inc. announced it had purchased Kentucky Speedway from Kentucky Speedway, LLC and further litigation became moot as a result. The purchase was finalized on January 1, 2009. Bruton Smith, head of Speedway Motorsports Inc. who bought the racetrack, said he had plans to bring a Sprint Cup (as of 2021, NASCAR Cup Series) race to Kentucky Speedway. That came in 2011 when Kentucky Speedway gained a date at the expense of Atlanta Motor Speedway. [5] This change was reversed in 2020, with Kentucky losing the Quaker State 400 back to Atlanta beginning in 2021. [6]

Related Research Articles

<span class="mw-page-title-main">Atlanta Motor Speedway</span> Motorsport track in the United States

Atlanta Motor Speedway is a 1.540 mi (2.478 km) race track and entertainment facility in Hampton, Georgia, 20 mi (32 km) south of Atlanta. It has annually hosted NASCAR Cup Series stock car races since its inauguration in 1960.

<span class="mw-page-title-main">Darlington Raceway</span> Motorsport track in the United States

Darlington Raceway is a race track built for NASCAR racing located in Darlington, South Carolina. It is nicknamed "The Lady in Black" and "The Track Too Tough to Tame" by many NASCAR fans and drivers and advertised as "A NASCAR Tradition." It is of a unique, somewhat egg-shaped design, an oval with the ends of very different configurations, a condition which supposedly arose from the proximity of one end of the track to a minnow pond the owner refused to relocate. This situation makes it very challenging for the crews to set up their cars' handling in a way that will be effective at both ends.

<span class="mw-page-title-main">Kentucky Speedway</span> Motorsport track in the United States

Kentucky Speedway is a now-inactive 1.5-mile (2.4 km) tri-oval speedway in Sparta, Kentucky, which hosted ARCA, NASCAR and Indy Racing League racing from its opening in 2000 until 2011 for IndyCar racing and 2020 for ARCA and NASCAR racing. The track is currently owned and operated by Speedway Motorsports, Inc. Before 2008 Jerry Carroll, along with four other investors, were the majority owners of Kentucky Speedway. Depending on layout and configuration the track facility has a grandstand capacity of 107,000.

<span class="mw-page-title-main">Subway 400</span> Auto race held at Rockingham, North Carolina

The Subway 400 was the second race of the NASCAR Winston Cup Series season until 2004, held a week after the Daytona 500. This 400-mile (644 km) annual race was sponsored by Subway and was held at North Carolina Speedway since 1966. From 1966 to 1995, the race distance was 500 miles (805-km) which was shortened to 400 miles starting from the 1996 season.

"NASCAR realignment" refers to changes in the schedule of the NASCAR Cup Series, NASCAR Xfinity Series and NASCAR Craftsman Truck Series.

International Speedway Corporation (ISC) was a corporation whose primary business was the ownership and management of motorsports race tracks. ISC was founded by NASCAR founder Bill France Sr. in 1953 for the construction of Daytona International Speedway and in 1999 it merged with Penske Motorsports to become one of the largest motorsports companies in North America. The company played an important, though controversial, role in the modernization of the sport. It worked with NASCAR to create new tracks and update older ones in an effort to improve the racing and the experience for spectators and has constructed popular new tracks in regions previously thought uninterested in NASCAR. Because both companies have several members of the France family in top positions, ISC's competitors have filed multiple lawsuits on antitrust grounds

<span class="mw-page-title-main">Speedway Motorsports</span> Motorsport venue owner and operator

Speedway Motorsports, LLC is an American company that owns and manages auto racing facilities that host races sanctioned by NASCAR, NHRA, World of Outlaws and other racing series. The company was founded by Bruton Smith and has its headquarters at Charlotte Motor Speedway, in Concord, North Carolina, just north of Charlotte. Speedway Motorsports owns nine racing facilities with a combined seating capacity of approximately 885,000. In addition to operating racetracks, Speedway Motorsports owns Performance Racing Network (PRN), U.S. Legend Cars International, and co-owns Motorsports Authentics.

<span class="mw-page-title-main">Texas Motor Speedway</span> Motorsport track in the United States

Texas Motor Speedway is a 1.500-mile (2.414 km) quad-oval intermediate speedway in Fort Worth, Texas. The track has hosted both NASCAR and IndyCar events annually since its inaugural season of racing in 1997. The track is owned by the city of Fort Worth's sports authority and is leased out by Speedway Motorsports, Inc. (SMI) for racing, with Mark Faber currently serving as the track's general manager. The speedway is served by the nearby Interstate 35W and Texas State Highway 114.

<span class="mw-page-title-main">Rockingham Speedway</span> Motorsport track in the United States

Rockingham Speedway, formerly North Carolina Motor Speedway and later North Carolina Speedway is a racetrack located near Rockingham, North Carolina. It is also known as The Rock and previously hosted NASCAR Cup Series, NASCAR Xfinity Series, NASCAR Craftsman Truck Series, ARCA Menards Series, CARS Tour, and UARA-Stars races.

<span class="mw-page-title-main">Pepsi Max 400</span> Former NASCAR race in Fontana, California, United States

The Pepsi Max 400 was a NASCAR Sprint Cup Series stock car race held annually at the Auto Club Speedway in Fontana, California. It was the second of two Sprint Cup Series races held at the Auto Club Speedway and in 2009 and 2010 it was run in October as part of the Chase for the Sprint Cup.

The Performance Racing Network (PRN) is a radio syndication network controlled by Speedway Motorsports (SMI) founded in 1981. PRN airs NASCAR Cup Series and Xfinity Series events held at Speedway Motorsports and Penske Corporation-owned and managed tracks.

<span class="mw-page-title-main">E-Z-GO 200 (fall)</span> Truck race at Atlanta Motor Speedway

The E-Z-Go 200 was a NASCAR Craftsman Truck Series race that took place at Atlanta Motor Speedway. AMS obtained a fall race when Darlington Raceway lost its truck race as a byproduct of the Ferko lawsuit, when NASCAR was forced to relinquish Darlington's Southern 500 tripleheader to Texas Motor Speedway. However, since Texas was already running a second Truck Series race, the race was awarded to sister track Atlanta giving them two Truck Series races. This race was replaced by a Truck Series race at Chicagoland Speedway in 2009.

<span class="mw-page-title-main">NASCAR Xfinity Series at Darlington</span> NASCAR Xfinity Series races at Darlington

Stock car racing events in the NASCAR Xfinity Series has been held at Darlington Raceway in Darlington, South Carolina since the series' inaugural season in 1982. Currently, the track hosts two races for the series: the Crown Royal Purple Bag Project 200 in the spring and the Sport Clips Haircuts VFW 200 in the fall. Both races are 200 miles (320 km) in distance.

<span class="mw-page-title-main">Andy's Frozen Custard 300</span> NASCAR Xfinity Series race at Texas Motor Speedway

The Andy's Frozen Custard 300 is a NASCAR Xfinity Series stock car race that takes place at Texas Motor Speedway in Fort Worth, Texas.

<span class="mw-page-title-main">2007 NASCAR Nextel Cup Series</span> 59th season of NASCAR stock-car racing

The 2007 NASCAR Nextel Cup Series was the 59th season of professional stock car racing in the United States and the 36th modern-era Cup series. Beginning on February 10 at Daytona International Speedway with the Budweiser Shootout, the season ended on November 18 at Homestead-Miami Speedway with the Ford 400. The Chase for the Nextel Cup started with the Sylvania 300 at New Hampshire International Speedway and was contested over the final ten races.

<span class="mw-page-title-main">Southern 500</span> Auto race held in September in Darlington, United States

The Southern 500, officially known as the Cook Out Southern 500 for sponsorship reasons, is a NASCAR Cup Series stock car race at Darlington Raceway in Darlington, South Carolina, United States. The race distance is 501 miles (806 km) and consists of 367 laps. From 1950 to 2003, and again since 2015, the race has been held on Labor Day weekend. The Southern 500 is largely considered one of the Crown Jewels of the NASCAR calendar, and has been nicknamed NASCAR's "oldest superspeedway race." For decades, the race has been considered by competitors and media as one of the more difficult and challenging races on the NASCAR schedule, owing much to the track's unusual, asymmetrical egg-shape, rough pavement, and overall unforgiving nature. Darlington Raceway itself has a long and storied reputation as the "Track Too Tough to Tame."

<span class="mw-page-title-main">2005 Dickies 500</span> Motor car race

The 2005 Dickies 500 was a NASCAR Nextel Cup Series stock car race, which was held on November 6, 2005, at Texas Motor Speedway (TMS) in Fort Worth, Texas. It was the inaugural running of the Dickies 500 after being created for the 2005 season.

<span class="mw-page-title-main">2005 Dodge Charger 500</span> Motor car race

The 2005 Dodge Charger 500, the 49th running of the event, was a NASCAR Nextel Cup Series race held on May 7, 2005 at Darlington Raceway in Darlington County, South Carolina. Contested over 367 laps on the 1.366 mile (2.198 km) speedway, it was the tenth race of the 2005 NASCAR Nextel Cup season. The race was extended to 370 laps because of a green-white-checker finish. Greg Biffle of Roush Racing won the race.

<span class="mw-page-title-main">2004 Mountain Dew Southern 500</span> Motor car race

The 2004 Mountain Dew Southern 500, the 55th running of the event was a NASCAR Nextel Cup Series race held on November 14, 2004, at Darlington Raceway in Darlington, South Carolina. Contested at 367 laps on the 1.366 miles speedway, it was the thirty-fifth race of the 2004 NASCAR Nextel Cup Series season.

<span class="mw-page-title-main">2004 Carolina Dodge Dealers 400</span> Motor car race

The 2004 Carolina Dodge Dealers 400 was the 5th stock car race of the 2004 NASCAR Nextel Cup Series season and the 49th iteration of the event. The race was held before a crowd of 56,000 on March 21, 2004 at Darlington Raceway in Darlington, South Carolina. Jimmie Johnson of Hendrick Motorsports would win the race, leading 69 laps. Bobby Labonte of Joe Gibbs Racing and Ryan Newman of Penske-Jasper Racing would take 2nd and 3rd, respectively.

References

  1. 1 2 3 4 5 6 Wilson, Jeff. "Fan wishes he hadn't filed suit". Dallas-Fort Worth Star-Telegram. Archived from the original on July 8, 2006. Retrieved December 28, 2006.
  2. 1 2 "Ferko Lawsuit Settled As Texas And Phoenix Gain Cup Races". Street and Smith's SportsBusiness Daily. May 14, 2004. Retrieved June 1, 2009.
  3. ↑ Jeff Wolf (March 12, 2006). "Litigation on track causes caution flag". Las Vegas Review-Journal . Retrieved June 1, 2009.
  4. ↑ "Kentucky Speedway to Appeal Antitrust Lawsuit Decision". Kentucky Speedway. January 7, 2008. Retrieved June 1, 2009.[ dead link ]
  5. ↑ Graves, Will (August 2, 2010). "Report: Kentucky Speedway getting Sprint Cup race". Lexington Herald-Leader . Retrieved November 8, 2013.
  6. ↑ Hoffman, Jason (September 29, 2020). "Kentucky Speedway losing its NASCAR races in 2021, will be 'multi-use rental complex'". USA Today. Retrieved October 1, 2020.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.