Activist Calls Dover Motorsports ‘Lackadaisical Or Arrogant’

Sep 25 2008 | 2:21pm ET

New York-based activist hedge fund Marathon Partners is driving Dover Motorsports’ management to do the only thing that it deems to make sense: sell.

In a letter to Dover management, Marathon manager Mario Cibelli said he was concerned with the direction of company because its board of directors and management team hasn’t “shown a desire to deal with the troubled Midwest assets in a sensible manner.”

Cibelli argues that the company’s Midwest tracks are acting as an anchor on its share price and its ability to negotiate an attractive offer for the company.

“Continuing to fund the sizable losses of a business unit that has no hope of a turnaround strikes us as either lackadaisical or arrogant given the current environment,” he wrote.  “How much weaker will market conditions need to be in order for directors to stop plowing the Monster Mile's free cash flow into the Midwest money pit?”

And as he has pointed out in the past, Cibelli says Dover Motorsports' lack of scale and terrible track record of value creation over the years makes it clear that selling is the best option available for the company.


In Depth

OmniQuest Capital: Why Funds of Hedge Funds Work

Aug 11 2016 | 4:47pm ET

There have been few sectors of the alternative investment universe under as much...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...