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Home > BizTimes Daily > Archives > November 20, 2009
Guiffres cry foul in Milwaukee Mile negotiations
Published November 20, 2009 - BizTimes Daily
A group of business owners led by Frank and Dominic Guiffre seeking to run The Milwaukee Mile says it is no longer interested in running the racetrack because of contractual changes made by the State Fair Park Board.
According to a letter sent to the board today, the board and the group agreed to terms that would have allowed it to run operations at the track in West Allis. Those terms required the management group to secure a national race within a three-year period. However, the State Fair Park Board, led by chairperson Sue Crane, recently shortened that time frame to two months.
"We now have no intention of going anywhere with Sue Crane and her board, because you quite simply can't be trusted," the letter stated. "Unfortunately, Sue Crane's unsophisticated, country pumpkin approach to contract negotiations is but one more chapter in the frustrating and embarrassing story of the board's mismanagement of the Mile's operation."
Craig Barkelar, interim director of State Fair Park, said the board revised the terms of the contract because it was concerned that the group would not be able to secure NASCAR racing at The Milwaukee Mile for 2010.
"We have a heavy commitment to having it here in 2010 and when it got to the point where we weren't quite positive that was going to happen, we went back to the old language of the contract," he said. "There were comments made by individuals that kind of indirectly made their way back to us. We know it's a really significant change. Honestly, it probably would lead to them paying a little bit more for NASCAR, and the old language gave them a stronger negotiating position, but we wanted to make sure
NASCAR runs next year at the mile."
The Guiffres, in their letter to the State Fair Park Board, say they were not notified about the contractual change. However, according Barkelar, the group was notified by e-mail last Thursday and agreed to the new terms Monday.
"I assumed they didn't like (the new terms) but I also assumed that they were as committed as we were," Barkelar said.
According to their letter written to the State Fair Park Board, the Guiffres do not agree.
"This unilateral change represents a complete lack of good faith on the part of Sue Crane and her board," the letter stated. "All of the work that we and others have done to move forward with rejuvenating the Mile's operations and bringing the vendors back into the fold which would both save and create jobs and to re-energize those involved, including the sponsors, is all for naught."
Earlier this month, Historic Mile LLC, a group that included Tony Machi, Jim Beaudoin and Steve Jones, said it did not have enough financial resources to fulfill the terms of its contract to run The Milwaukee Mile, which was signed in August.
The former promoter, Wisconsin Motorsports LLC, ceased its operation of the racetrack in July and reportedly owes millions of dollars to vendors, NASCAR and the Indy Racing League.
Frank Guiffre said the group still wants to run The Milwaukee Mile, providing the contract is returned to its original terms.
"If they come back, we'll work with them," he said.
However, it seems unlikely that the State Fair Park Board will be willing to re-revise its terms. According to Barkelar, there is a third group, which he declined to identify, that is interested in operating The Milwaukee Mile.
"I never want to say never, but there was a third group that submitted a proposal, and so we are going to give that group an opportunity to look at these exact terms, talk to NASCAR and work out a deal," he said. "They sort of deserve that opportunity now. I wouldn't even say that that third group is our last option. Other people have contacted us too."
