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

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…