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 2017, all of which will be under the auspices of the premier sanctioning body in motorsports - the National Association for Stock Car Auto Racing (“NASCAR”):

2 NASCAR Cup Series events;

2 NASCAR XFINITY Series events;

1 NASCAR Camping World Truck Series event; and

1 NASCAR K&N Pro Series East event.

A NASCAR Cup Series event, a NASCAR XFINITY Series event and a NASCAR Camping World Truck series event were held at Dover International Speedway during the second quarter of 2017 and 2016.

We have hosted the Firefly Music Festival (“Firefly”) on our property in Dover, Delaware for six consecutive years. The inaugural three day festival with 40 musical acts was held in July 2012 and the 2017 event was held on June 15-18, 2017 with over 140 musical acts. In September 2014, Red Frog Events LLC formed RFGV Festivals LLC - a joint venture with Goldenvoice that promotes Firefly. Goldenvoice is owned by AEG Live, one of the world’s largest presenters of live music and entertainment events. We entered into an amended agreement with RFGV Festivals granting them two 5 year options to extend our facility rental agreement through 2032 (from its original expiration date of 2022) in exchange for a rental commitment to secure our property for up to two festivals per year. Rent is at differing rates depending on how many events are actually held. In addition to the facility rental fee, we also receive a percentage of the concession sales we manage at the events.

Nashville Superspeedway no longer promotes motorsports events and has not entered into sanction agreements with NASCAR since 2011. We lease the facility on a short term basis to third parties from time to time. On August 25, 2016, we entered into a definitive agreement to sell our Nashville facility to an entity owned by Panattoni Development Company for $27.5 million in cash and the assumption by the buyer of obligations of ours under certain Variable Rate Tax Exempt Infrastructure Revenue Bonds. On July 21, 2017, we extended the agreement for thirty (30) days to allow the parties to finalize new agreements relative to a restructured transaction involving the sale of a portion of the property and an option for an additional portion of the property. The amendment contemplates that the parties will negotiate in good faith relative to new agreements for (1) the sale of 150 acres of property for a purchase price of $35,000 per acre, and (2) an option for three (3) years for the sale of an additional 150 acres for a purchase price of $55,000 per acre. Earnest Money in the amount of $750,000 that was previously deposited will be applied against the purchase price of the first 150 acres described above or refunded to the purchaser if agreements acceptable to both parties are not executed within thirty (30) days from the date of the amendment. The Company will continue with its effort to sell the remaining Nashville Superspeedway property. The assets of Nashville Superspeedway are reported as assets held for sale in our consolidated balance sheets at June 30, 2017 and December 31, 2016.