Ferko lawsuit
Encyclopedia
The Ferko lawsuit is a common nickname for an American
lawsuit that was challenged between plaintiff Francis Ferko, a resident of Plano, Texas
and a shareholder of Speedway Motorsports, Inc.
's Texas Motor Speedway
, and defendants NASCAR
and International Speedway Corporation
(ISC), which are both owned by the France family
. Ferko contended that the defendants violated antitrust
laws that prevented Texas Motor Speedway
from obtaining two NASCAR
NEXTEL Cup
races per racing season, as many other tracks had.
As the case was preparing to go to trial in 2004, the parties settled the lawsuit as part of a larger restructuring of NASCAR. In the settlement, ISC sold the North Carolina Speedway
in Rockingham
(now known as Rockingham Speedway) to Speedway Motorsports, and Speedway then moved Rockingham's one NEXTEL Cup race (which had been held in February) to Texas. However, as part of NASCAR's date realignment, the February race was actually moved to Auto Club Speedway, and the date given to Texas was the November date previously held by the prestigious Southern 500 at Darlington Raceway
, which gave Texas a race in the Chase for the Nextel Cup and cost Darlington one of its two race dates. For its part, Speedway 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. As a result of a 2006 NASCAR testing rule change limiting testing on tracks used for NASCAR competition, testing at Rockingham has become more commonplace.
However, Ferko had his life fall apart as a direct result of the lawsuit. He lost his job in food safety, because his boss disliked the publicity that Ferko received, and he and his wife were forced to move to Atlanta for his new job. Shortly after moving, their 20-year-old son Anthony, who did not move with them because of his own 6-month-old son, committed suicide. After he and his wife failed to win custody of their grandson, they were divorced. In 2005, prior to the initial running of the Dickies 500, Ferko said that "[k]nowing what I know now, I definitely would not have pursued [the lawsuit].... I never expected those kinds of unintended consequences to occur."
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 even one race, and so the case was filed on antitrust grounds only. The lawsuit was dismissed on January 7, 2008, although the track's owners have appealed the dismissal. On May 22, 2008, Speedway Motorsports, Inc. announced it had purchased Kentucky Speedway from Kentucky Speedway, LLC. The purchase was finalized on January 1, 2009. Bruton Smith, head of Speedway Motorsports Inc. who is buying the racetrack, said he has plans to bring a Sprint Cup race to Kentucky Speedway. That is expected to come in 2011 when Kentucky Speedway is expected to gain a date at the expense of Atlanta Motor Speedway
, its sister track.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
lawsuit that was challenged between plaintiff Francis Ferko, a resident of Plano, Texas
Plano, Texas
Plano is a city in the state of Texas, located mostly within Collin County. The city's population was 259,841 at the 2010 census, making it the ninth-largest city in Texas and the 71st most populous city in the United States. Plano is located within the metropolitan area commonly referred to as...
and a shareholder of Speedway Motorsports, Inc.
Speedway Motorsports, Inc.
Speedway Motorsports, Inc. or SMI is an American corporation that owns and manages racing facilities that host NASCAR, IZOD IndyCar Series, NHRA, WoO other racing series. The company's headquarters are located at Charlotte Motor Speedway, in the suburbs of Charlotte, NC. SMI owns nine racing...
's Texas Motor Speedway
Texas Motor Speedway
Texas Motor Speedway is a speedway located in the northernmost portion of the U.S. city of Fort Worth, Texas – the portion located in Denton County, Texas....
, and defendants NASCAR
NASCAR
The National Association for Stock Car Auto Racing is a family-owned and -operated business venture that sanctions and governs multiple auto racing sports events. It was founded by Bill France Sr. in 1947–48. As of 2009, the CEO for the company is Brian France, grandson of the late Bill France Sr...
and International Speedway Corporation
International Speedway Corporation
International Speedway Corporation is a corporation whose primary business is the ownership and management of NASCAR race tracks. ISC was founded by NASCAR founder Bill France, Sr. in 1953 for the construction of Daytona International Speedway and in 1999 they merged with Penske Motorsports to...
(ISC), which are both owned by the France family
France Family
The France Family is known as the "first family" of NASCAR racing. NASCAR was founded by Bill France, Sr. in 1948 and to this day France family members hold many high-ranking positions within the company...
. Ferko contended that the defendants violated antitrust
Antitrust
The United States antitrust law is a body of laws that prohibits anti-competitive behavior and unfair business practices. Antitrust laws are intended to encourage competition in the marketplace. These competition laws make illegal certain practices deemed to hurt businesses or consumers or both,...
laws that prevented Texas Motor Speedway
Texas Motor Speedway
Texas Motor Speedway is a speedway located in the northernmost portion of the U.S. city of Fort Worth, Texas – the portion located in Denton County, Texas....
from obtaining two NASCAR
NASCAR
The National Association for Stock Car Auto Racing is a family-owned and -operated business venture that sanctions and governs multiple auto racing sports events. It was founded by Bill France Sr. in 1947–48. As of 2009, the CEO for the company is Brian France, grandson of the late Bill France Sr...
NEXTEL Cup
NEXTEL Cup
The NASCAR Sprint Cup Series is the top racing series of the National Association for Stock Car Auto Racing . The series was originally known as the Strictly Stock Series and Grand National Series . While leasing its naming rights to R. J...
races per racing season, as many other tracks had.
As the case was preparing to go to trial in 2004, the parties settled the lawsuit as part of a larger restructuring of NASCAR. In the settlement, ISC sold the North Carolina Speedway
North Carolina Speedway
Rockingham Speedway, formerly North Carolina Motor Speedway and later North Carolina Speedway is a racetrack located near Rockingham, North Carolina...
in Rockingham
Rockingham, North Carolina
Rockingham is a city in Richmond County, North Carolina, United States named after the Marquis of Rockingham. The population was 9,672 at the 2000 census. It is the county seat of Richmond County...
(now known as Rockingham Speedway) to Speedway Motorsports, and Speedway then moved Rockingham's one NEXTEL Cup race (which had been held in February) to Texas. However, as part of NASCAR's date realignment, the February race was actually moved to Auto Club Speedway, and the date given to Texas was the November date previously held by the prestigious Southern 500 at Darlington Raceway
Darlington Raceway
Darlington Raceway is a race track built for NASCAR racing located near 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"...
, which gave Texas a race in the Chase for the Nextel Cup and cost Darlington one of its two race dates. For its part, Speedway 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. As a result of a 2006 NASCAR testing rule change limiting testing on tracks used for NASCAR competition, testing at Rockingham has become more commonplace.
However, Ferko had his life fall apart as a direct result of the lawsuit. He lost his job in food safety, because his boss disliked the publicity that Ferko received, and he and his wife were forced to move to Atlanta for his new job. Shortly after moving, their 20-year-old son Anthony, who did not move with them because of his own 6-month-old son, committed suicide. After he and his wife failed to win custody of their grandson, they were divorced. In 2005, prior to the initial running of the Dickies 500, Ferko said that "[k]nowing what I know now, I definitely would not have pursued [the lawsuit].... I never expected those kinds of unintended consequences to occur."
In 2005, Kentucky Speedway
Kentucky Speedway
Kentucky Speedway is a tri-oval speedway in Sparta, Kentucky, which has hosted ARCA, NASCAR and Indy Racing League racing annually since it opened in 2000. The track is currently owned and operated by Speedway Motorsports, Inc. and Jerry Carroll, who, along with four other investors, owned...
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 even one race, and so the case was filed on antitrust grounds only. The lawsuit was dismissed on January 7, 2008, although the track's owners have appealed the dismissal. On May 22, 2008, Speedway Motorsports, Inc. announced it had purchased Kentucky Speedway from Kentucky Speedway, LLC. The purchase was finalized on January 1, 2009. Bruton Smith, head of Speedway Motorsports Inc. who is buying the racetrack, said he has plans to bring a Sprint Cup race to Kentucky Speedway. That is expected to come in 2011 when Kentucky Speedway is expected to gain a date at the expense of Atlanta Motor Speedway
Atlanta Motor Speedway
Atlanta Motor Speedway is a track just outside Hampton, Georgia, twenty miles south of Atlanta. It is a quad-oval track with a seating capacity of over 125,000. It opened in 1960 as a standard oval. In 1994, 46 condominiums were built over the northeastern side of the track...
, its sister track.