Business Operations

6 Months Ended

Jun. 30, 2012

Business Operations

Business Operations

NOTE 2 — Business Operations

Dover Motorsports, Inc. is a public holding company that is a leading marketer and promoter of motorsports entertainment in the United States.  Through our subsidiaries, we own and operate Dover International Speedway® in Dover, Delaware and Nashville Superspeedway® near Nashville, Tennessee.  Our Dover facility is scheduled to promote the following six events during 2012, all of which were under the auspices of the premier sanctioning body in motorsports - the National Association for Stock Car Auto Racing (“NASCAR”):

·2 NASCAR Sprint Cup Series events;

·2 NASCAR Nationwide Series events;

·1 NASCAR Camping World Truck Series event; and

·1 NASCAR K&N Pro Series East event.

On August 3, 2011, we announced that our wholly-owned subsidiary Nashville Superspeedway notified NASCAR that it would not seek 2012 sanction agreements for its two Nationwide Series and two Camping World Truck Series events and therefore we no longer promote NASCAR events at this facility.  We continue to use the track for NASCAR team testing and are currently evaluating all of our options for the facility.  We incurred a non-cash impairment charge of $15,687,000 and severance costs of approximately $150,000 in the third quarter of 2011 as a result of this event.  Additionally, we recorded a $2,250,000 provision for contingent obligation reflecting the present value of the estimated portion of the Wilson County bonds debt service that may not be covered by the projected sales and incremental property taxes from the facility (see NOTE 10 — Commitments and Contingencies for further discussion).  Due to a change in interest rates during the first six months of 2012, we reduced the provision for contingent obligation by $249,000 and $284,000, net, in the three and six-month periods ended June 30, 2012.  The provision for contingent obligation is $1,965,000 at June 30, 2012.

We closed our Gateway facility in the fourth quarter of 2010 and terminated all of our leases for the real property underlying the racetrack in 2011.  We continue to own approximately 120 acres of undeveloped land near the Gateway facility (see NOTE 4 — Discontinued Operation).

We closed our Memphis Motorsports Park facility in October 2009 and executed an agreement to sell it in December 2010.  The real estate sale closed on January 31, 2011.  After closing costs and including the proceeds from the separate sale of all personal property at the facility in December 2010, our net proceeds were approximately $2,000,000.