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| DVD > SEC Filings for DVD > Form 8-K on 16-Jan-2013 | All Recent SEC Filings |
16-Jan-2013
Entry into a Material Definitive Agreement, Financial Statements and Exhibi
The registrant's wholly-owned subsidiary, Dover International Speedway, Inc. ("Speedway"), has entered into two Sanction Agreements with the National Association for Stock Car Auto Racing, Inc. ("NASCAR") pursuant to which Speedway will organize and promote two NASCAR Sprint Cup Series competitions in 2013. These two sanction agreements are attached as exhibits to this Form 8-K as they represent agreements upon which the registrant's business is substantially dependent.
Sanction agreements are entered into with NASCAR on an annual basis. Pursuant to the typical NASCAR sanction agreement, NASCAR grants its sanction to a promoter, such as Speedway, to organize, promote and hold a particular competition. The promoter sells tickets to the competition, sells or arranges for the sale of merchandise and concessions, and sells advertising, sponsorships and hospitality services. NASCAR conducts the competition, arranges for the drivers, and has sole control over the competition, including the right to require alterations to the promoter's facility and the right to approve or disapprove any advertising or sponsorship of the promoter. NASCAR also has exclusive rights to exploit live broadcast and certain broadcast and intellectual property rights related to the competition, and exclusive rights to sponsorship and promotional rights relative to the series to which a particular competition belongs. The promoter must pay the sanction fee and purse monies and receives a share of the live broadcast revenue contracted for by NASCAR. The promoter is responsible for the condition of the facility, for compliance with laws, for control of the public, for fire and medical equipment and personnel, for security, for insurance and for providing facilities and services required by NASCAR officials and the live broadcast personnel.
The economic terms of the two sanction agreements between NASCAR and Speedway relative to its 2013 NASCAR Sprint Cup Series competitions are as follows: Total purse and sanction fee to be paid by Speedway is $6,432,000 for the June event and $5,740,000 for the September event. Estimated live broadcast revenue to be recognized by Speedway is $14,037,000 for the June event and $11,626,000 for the September event. Live broadcast revenue figures are based on the assumption that all events on the 2013 NASCAR Sprint Cup Series schedule take place and that all promoters will be entitled to their respective percentage allocations as set by NASCAR. Speedway has historically been entitled to share, along with other promoters, in income which NASCAR derives from exploiting certain other broadcast and intellectual property rights. Speedway anticipates that this income will not be material in 2013.
Speedway has entered into the following sanction agreements with NASCAR for the 2013 season. As sanction agreements are made in the ordinary course of our business, these agreements are not all publicly filed.
Event Date
NASCAR Sprint Cup Series June 2, 2013
NASCAR Nationwide Series June 1, 2013
NASCAR Camping World Truck Series May 31, 2013
NASCAR Sprint Cup Series September 29, 2013
NASCAR Nationwide Series September 28, 2013
NASCAR K&N Pro Series East September 27, 2013
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(d) Exhibits
10.1 Sanction Agreement between Dover International Speedway, Inc. and National
Association for Stock Car Auto Racing, Inc. ("NASCAR") for the NASCAR
Sprint Cup Series event to be held on June 2, 2013 (delivered January 14,
2013).
10.2 Sanction Agreement between Dover International Speedway, Inc. and National
Association for Stock Car Auto Racing, Inc. ("NASCAR") for the NASCAR
Sprint Cup Series event to be held on September 29, 2013 (delivered
January 14, 2013).
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