The Kyle Busch Motorsports company claims it did not receive sponsorship payments from its former driver Justin Boston. Along with the racer, KBM is suing the Zloop company, co-founded by Justin Boston’s dad Bob Boston. Both defendants, Justin Boston and Zloop owe KBM $650,000. But according to the suit, the total sum of Bostons’ debt is about $4.025 million.
The Bostons family debts
According to the deal between KBM and the Bostons, the company was due to get $3.2 million per year as a sponsorship from Justin Boston and Zloop. The original contract was signed for 2 years with 23-race schedule. So, Boston was due to pay KBM more than $139,000 per race.
The former KBM’s driver and Zloop have made only five payments this year. They still have to pay KBM their payments for May and June.
But not only KBM wants to get money from Zloop. The company owes thousands of dollars to Bristol Motor Speedway, Kentucky Speedway and Pocono Raceway. Zloop also has a contract with the Carolina Panthers, according to which the company owes the club $87,000.
Zloop is in bankruptcy
Since Zloop has so many unfulfilled commitments, it is no surprise that the company started a bankruptcy process. The company filed for the Chapter 11 bankruptcy protection to end its court battles. The company is going to reorganize its finances in order to salvage its existing market value. Because of the bankruptcy protection, all claims against the company will be determined in a bankruptcy court in Delaware. It means that not KBM nor different speedways will not get any payments from Zloop in the nearest future.
Meanwhile, KBM Motorsports still can demand a part of its money from Justin Boston. Moreover, there is a separate lawsuit for Zloop co-founder Bob Boston from the company’s former investor. According to the suit, Bob Boston used the investor’s money to encourage his son’s car racing career. At the same time, Boston lied to the investor about his real purposes, saying that he spent the money on the company’s marketing program. The total sum of this lawsuit is $28 million.