In the never ending mess of a saga that is Indy Car Boston, Boston Grand Prix filed for bankruptcy on Tuesday. So what does that mean? Well, according to an article in the Boston Globe, ticket buyers waiting for refunds may be waiting for a really, really long time – meaning they’re gonna have a hard time getting their money back. On Thursday, Attorney General Maura Healey announced that IndyCar has agreed to pay $925,000 for tickets that were purchased for the cancelled race. It was also announced that Healey will file suit against Grand Prix Boston and CEO John Casey.
To bring you up to speed, Back in April it was announced that IndyCar Boston would be canceled. Race organizers also announced that refunds would begin on May 1st. A month later, people began complaining, “hey, where’s my money?”
In June, Healey gave the organizers of IndyCar Boston one week to reimburse ticket buyers for the canceled event or else! Healey also subpoenaed documents from Grand Prix of Boston – the local organization that sold thousands of tickets for the event. The reason for the records? To help figure out who bought tickets and where the heck all that money went!
The Globe article also reports that Grand Prix Boston claims almost $9 million in liabilities, including $1.67 million owed to ticket holders who haven’t received reimbursements – which is a list of over 4,000 names.
But wait there’s more! Corporate creditors include failed events sponsors like “Bridgestone Americas Tire Operations, owed $223,500; Jennings Road Management Corp., owed $100,000; LogMeIn, Inc., a prominent sponsor that was in for $390,000; and MillerCoors, owed $105,000, according to the filings.”
And then there’s the “salary and consulting” fees that Grand Prix Boston paid which is sort of outrageous. Last year, Boston Grand Prix paid $423,000 fees to Casey Summit LLC, a company managed by John Casey. $130,624 to Mark Perrone – former chief executive of the Boston race; $166,000 to NZR Consulting Inc., an Indiana motorsport expert; and $123,000 to CK Strategies – the consulting firm run by Chris Keohan – who worked as a campaign adviser for Mayor Marty Walsh.
What a big fat mess! Our question is, if the race was not a done deal, how was Boston Grand Prix allowed to sell tickets in advance? Hmm….more to follow!
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