Cycle News is a weekly magazine that covers all aspects of motorcycling including Supercross, Motocross and MotoGP as well as new motorcycles
Issue link: https://magazine.cyclenews.com/i/126948
the court. According-to SMC's Jeanne Sleeper, the funds will be released following a 10-12 day waiting period and will be used to pay secured bank loans obtained by SMC to promote the race. Thompson filed a lien on the monies wiLh the Los Angeles Memorial Coliseum Commission in May 1986, followi ng a 1985 court decision that awarded Mickey Thompson Entertainment Group approximately 400,000 in damages from the dissolution of a brief partnership between MTEG and SMC. Thompson contended that the Superbow I box office receipts should be used to pay the previous judgement awarded to him, while SMC President Mike Goodwin argued that . Lhe monies were earmarked for the banks. The Coliseum commission placed the money in trust and awaited a coun decision. After eight months of legal maneuvering, Ryan ruled that MTEG had no right to tlie monies because Thompson's auorneys [ailed to file with the auditor o[ the Coliseum commission a certified copy of the judgment, as required under state law. According LO Ryan's ruling, the law mandates such filing with any public agency, other than a state agency. JR. White, chief accountant for the commission, testified that he was not served such papers. During proceedings, MTEG lawyers argued that the law was designed LO protect the commi sion - not SMC - and requested that the filing requirement be waived. . Ryan disagreed. Thejudge said the fact that the law was designed LO relieve governmental agencies from potential liability for wrongful payment did not excuse Thompson for failing LO file Lhe proper documents. "Thornpson's levies were not made in accordance with (the law), there[ore, I find that the levies are invalid," said Ryan. "Accordingly, Thompson does not have a security interest in the net proceeds." The federal ruling capped Lh.e la test battle in a two-year legal war between the two California-based race promoters. The $400,000 judgement was awarded to MTEG in 1985, following the breakup of the MTEG/SMC pannership in 1984. Goodwin immediately filed an appeal of that judgement, which should be heard late this year. Goodwin alleges Thompson [iled the levies against Lhe Superbowl of Motocross box office receipts to force SMC into bankruptcy. SMC filed a bankruptcy petition under Chapter LI on September 19 of last year to protect assets from MTEG when Thompson attempted to collect on the judgement. In December, Ryan ordered the sale of SMC's assets, the most important of which was the right to promote specified AMA-sanctioned Supercro s races under an "lnspon" agreement between SMC and PACE Management of Houston, Texas. (The Insport agreement carved the nation into two separate Supercross markets. It gave SMC Lhe right LO promote all AMA-sanctioned Supercross races in certain geographical areas; in the rest of the nation that right went LO Pace Management, now known as PACEI SRO). During Lhe sale of assets, Thompson teamed wi th PACE Management in a takeover bid of SMC's Supercross rights, but was outgunned by Goodwin, who was backed by the finances of southern California businessman Charles Clayton (no relation LO Cycle News President Charles C. ClaYLOn). Clayton bought the rights for 125,000 in cash and $500,000 in securities, leaving control of SMC in the hands of Goodwin. • START RUNNIN' AROUND TOGETHER ONAVAMAHA. ANY DAY CAN BE AFAMILY VACATION when }OO share the advenb.n"e ofVcm1ahaS new WaveRunner. Here!; the firstjet~ two-5eater designed for families who enjoy freestyling, fishing, water skiing or zipping from ~re. Super4able and a blast to ride, the versatile WaveRwmer is a cinch for novices, yet a challenge for masters. Get the gang into WaveRunnin'-and watch the good times multipl)z Call 1-800-447-2882 for the )M}aha Wlter ~e Dealer nearest: you. water ~hicles byWMHA B R A K E S OFFICIAL BRAKES OF SXI SUPERCROSS SERIES Top Riders Using EBC Brakes To "Stop Quicker, Go Faster" Are: CARLO COEN #59; SHANE DREW #87 ROBERT NAUGHTON #54; DENNIS HAWTHORNE #35 Ask For EBC At Your Local Dealer Disc pads available in semi·metallic or full metallic for longer wear. Brake shoes come with high·frietion grooved linings or NEW woven race linings for recenl models only. Hy-Tech Motorcycle Components • 12860 8radley Ave., Sylmar, CA 91342 • (818) 362-5534