Nashville Superspeedway could reopen after $46M deal

The Nashville Superspeedway could be transformed into a "52-week-a-year venue" featuring a wide array of events beyond just auto racing, according to a plan introduced by the park's new buyer, Nashville-based NeXovation Inc.

Under the terms of the deal announced Thursday, Dover Motorsports and its wholly-owned subsidiary, Nashville Speedway U.S.A., Inc., will sell the track and some related equipment and assets for $27 million in cash and the assumption of Dover's bond obligations to Wilson County, which totals about $18.8 million.

"This is a great deal for all concerned ... as we can transfer an underutilized, high-quality asset to NeXovation, who will create and implement a new business model and reactivate Nashville Superspeedway for the benefit of everyone in the area," said Dover Motorsports CEO Denis McGlynn.

Dover, a longtime racetrack operator, had long pitched the Superspeedway, which opened in 2001, as a potential stopping ground for a high-level Sprint Cup NASCAR race, but could never seal the deal because of the track's limited seating capacity.

While the new owners have a vision, they have no track record in running this type of facility. The NeXovation team made a run at buying the historic Nürburgring racetrack in Germany, but the bid was ultimately rejected earlier this year and a competing bid was accepted by auction organizers. NeXovation has challenged the sale with European Union authorities, but a final decision has not been reached.

Now, the company's attention will now shift to redeveloping the Lebanon racetrack, which has been largely dormant since the 2011 racing season. NeXovation CEO Robert Sexton said his company plans to invest heavily in the facility, beyond just the purchase price. However, he would not reveal any further investment amounts beyond the sale price. He said his team has been exploring a purchase of the track for nearly two years.

"What we intend to do is take the speedway and turn it into a 52-week-a-year venue dedicated not only to motorsports, but other experiential events," Sexton said. "We're not just taking the existing facility; we're going to be adding a lot more infrastructure on the property and a lot of different opportunities for events."

Specifics of how the Superspeedway will be used are still being finalized and further announcements are expected by midsummer, Sexton said. The deal is expected to close sometime this fall, officials said.

Sexton said the facility could open for new events by the end of the year.

Sexton's current company, NeXovation Inc., was founded in 2012 to provide a platform for several product lines, including the patented FlatWire technology, a high-performance, surface-mounted wiring technology designed for the automotive, building, aerospace and military industries. Sexton developed the technology more than two decades ago.

Local reaction

After the construction of the park, Dover Motorsports had supplied a letter of credit that the county holds to keep the county from risk in case of a company failure.

Wilson County Mayor Randall Hutto said he would expect NeXovation to back credit on the Superspeedway the same way.

"There is nothing going on there, so something going on is positive for Wilson County," Hutto said. "We'll have to see how positive this becomes."

Sexton, who said the company is working on funding the expansion through a Denver investment bank, was also adamant that the NeXovation team will not ask for incentives to help fund the expansion.

"We're going to do all of this, we're not going to ask for any public money," Sexton said. "If businesses are designed to make a profit and we believe in our business model, then the public has no business being on the hook for any of that investment."

Nashville Superspeedway first opened in 2001 and is situated on almost 1,400 acres of land near Lebanon. The 1.33-mile concrete track has a permanent seating capacity of 25,000 as well as lighting for nighttime events. Sexton said the facility could be expanded out to 150,000 based on the facility's current configuration.

Roshan Patel, owner of Lebanon's La Quinta Inn, said area hotels had an initial impact from the Superspeedway, but then had a steady decline in business even before it closed.

"As for a new company purchasing the track, it's great and hopefully it can attract some car shows and other attractions as well," Patel said.

G.C. Hixson, executive director of the Joint Economic & Community Development Board of Wilson County, said NeXovation's presence can lead to further development along Interstate 840.

"It's an opportunity to utilize a great asset and we welcome that," Hixson said. "I don't have a lot of details, but it's not an exposure to the county for the debt on the project. Financially, it was a good deal then for the county and it's a good deal now."

State Rep. Mark Pody, who lives near Nashville Superspeedway, agreed: "If it brings some sales tax, revenue and some jobs and helps bring in tourists, that is going to help Wilson County. The infrastructure is there and it's not being used, so being used will be a benefit."

About the track

The track held NASCAR Nationwide Series races between 2001 and 2011, NASCAR truck series races between 2001 and 2011 and Indy Racing League IndyCar races from 2001 to 2008.

Capacity: 25,000

Length: 1.33 miles

Opened: 2001

Closed: 2011