Conservatively Speaking

UPDATE: State Fair Park Audit

Posted by Mary Lazich on July 3, 2009

Audits

In my blog about the Legislative Audit Bureau (LAB) review of State Fair Park,  I wrote:

“One of the key areas of financial concern is State Fair Park’s racetrack, the Milwaukee Mile.

During February 2009, State Fair Park ended its license agreement with Milwaukee Mile Holdings that it had since January 2006. A new agreement was entered into with Wisconsin Motorsports. The state Department of Justice intends to file a lawsuit on behalf of State Fair Park to recover at least $2.7 million in license fees, as required by the terms of the license agreement with Milwaukee Mile Holdings. 

State Fair Park entered into a new agreement with Wisconsin Motorsports in order to continue racing during 2009. The agreement stipulates a fixed license fee of $15,000 per month, or $180,000 per year. The fee is far less than the annual license fee of $1.0 million that was required under the most recent agreement with Milwaukee Mile Holdings.

The LAB writes, ‘State Fair Park will continue to incur significant costs. We estimate State Fair Park will be responsible for $1.8 million in Milwaukee Mile costs in 2009, less license fees it collects from the new promoter. Past promoters have had difficulty in operating the racetrack profitably. State Fair Park anticipates the new promoter will incur an operating loss in 2009, raising questions about the viability of racing at the Milwaukee Mile racetrack’.”

There are rumblings that one race is already in jeopardy for 2010. The Indianapolis Star is reporting the Indy Racing League (IRL) is still attempting to recoup money from its races held at State Fair Park May 30 and May 31, 2009. The promoter of the IRL races also owes money to NASCAR for races held June 20, 2009 at the Milwaukee Mile.

The newspaper reports there is a possibility Milwaukee will be taken off the IRL schedule next year.

Here is the story.

The Milwaukee Journal Sentinel has an update.