Dover Motorsports Sells Nashville Superspeedway

DOVER, Del. -- Dover Motorsports, Inc. (NYSE-Symbol: DVD) announced that it has entered into a definitive agreement to sell its Nashville Superspeedway facility to NeXovation, Inc.

Under the terms of the agreement, Dover Motorsports and its wholly-owned subsidiary, Nashville Speedway U.S.A., Inc., will sell the Nashville Superspeedway facility along with some related equipment and assets for $27 million in cash and the assumption by NeXovation of obligations of Dover Motorsports under certain Variable Rate Tax Exempt Infrastructure Revenue Bonds.

“This is a great deal for all concerned insofar as we can transfer an under-utilized, high quality asset to NeXovation, who will create and implement a new business model and re-activate Nashville Superspeedway for the benefit of everyone in the area," said Dover Motorsports CEO Denis McGlynn. "We wish them the best and we thank all those in middle Tennessee who made us feel welcome during our time there.”

The Bonds are the obligation of the Sports Authority of the County of Wilson, Tennessee and were issued by the Sports Authority in 1999 in order to build certain infrastructure improvements benefiting the speedway. Debt service on the Bonds, which have a remaining principal balance of $18,800,000, is payable from property and sales taxes generated by the facility. Principal and interest on the Bonds are secured by a letter of credit provided by Dover Motorsports which will be replaced by a letter of credit provided by NeXovation.

The facility was shuttered in 2011 and is currently being used as a test facility by various teams in NASCAR and other series.

“With our unique business model, passion for automotive technology and motor sports, and a tremendous market right in our own backyard, the Nashville Superspeedway is the perfect complement to our innovative and technological focus,” said Robert Sexton, CEO of NeXovation. “After creating and developing this opportunity within NeXovation for nearly two years, we are excited about implementing a completely new business model that we believe will transform this complex into a fully immersive experience in the world of high performance motor sport, automotive technology, and experiential venues.”

NeXovation, Inc. was the highest bidder for the iconic Nurburgring course in Germany, but lost out when a smaller bid was accepted before the deadline the company was given for financing. The company has since filed suit in European Union courts protesting the bid process.

Closing on the Nashville property is expected in the third quarter and is subject to customary closing conditions.