Super GP official statement 2009-08-17

OFFICIAL STATEMENT: 2009 SUPERGP

Please find below a transcript of an official letter from Greg Hooton - General Manager of the SuperGP - to the Honourable Phil Reeves - the Minister for Child Safety and Minister for Sport - which was read by the Minister during this morning's session of Queensland Parliament.

Please direct all enquiries to Amanda Cobb of BAM Media -

"Dear Minister,

I am writing to inform you that on 14 August 2009 the Partnership Committee of the Gold Coast Motor Events Company ("GCMEC") resolved to terminate the Naming Rights Agreement for the 2009 SuperGP event with Nitro Distribution Pty Ltd (Nitro) as a result of Nitro's failure to make payments to GCMEC that were due under the naming rights sponsorship agreement.

GCMEC has been in contact with Nitro regarding its failure to make the payments under the sponsorship agreement. GCMEC has been advised by Nitro that irreconcilable differences between the shareholders of Nitro have resulted in Nitro being unable to meet the full financial requirements of the sponsorship agreement, and that these issues are unlikely to be resolved in the foreseeable future. Rather than continue speculation on the matter the Partnership Committee has decided to take swift action to remove Nitro as the naming rights sponsor for the 2009 SuperGP event. The matter has now been placed in the hands of GCMEC's legal representatives.

As you are aware, International Management Group of America Pty Ltd (IMG) as the commercial partner was responsible for sourcing Nitro as the naming rights sponsor for the SuperGP event. Appropriate due diligence checks were carried out. At the time of the Partnership accepting Nitro as the naming rights sponsor of the Event there was no evidence in the company and financial background searches undertaken that indicated Nitro would have difficulty in meeting their full financial commitments to the event.

It is important to note that the naming rights sponsorship with Nitro represents a very small percentage of the overall revenue generated by the event. Consequently the loss of Nitro as the naming rights sponsor for the event will have absolutely no impact on the overall presentation of the 2009 event. Additionally, you should note that under the terms of the Partnership IMG are responsible for underwriting the event.

IMG will immediately proceed to the market with the aim of identifying and recommending a new naming rights sponsor prior to the 2009 event.

Let me assure you the 2009 SuperGP event will continue to deliver an exciting program for fans both on and off the track. The enhanced racing program for both A1GP and the V8 Supercars will provide non stop action from Thursday 22 October through to Sunday 25 October 2009, while the off track events will continue to provide entertainment for fans of all ages.

Yours sincerely

Greg Hooton
General Manager
Gold Coast Motor Events Company"

-credit: supergp