New SCRAMP deal settles old Laguna Seca disputes

The recent signing of a three-year property and event management contract between the Sports Car Racing Association of the Monterey Peninsula (SCRAMP) and Monterey County has included a widespread deal to settle any and all financial disputes between both sides. A transfer of assets from SCRAMP to the county also took place in the reconciliation.

According to the Monterey Herald, "the county agreed to pay [SCRAMP] $1 million and forgave a payment of $93,978 in exchange for assets and assignment of contract rights. The assets passing from SCRAMP to the county include intellectual property rights including the name 'Laguna Seca,' internet domain names, naming rights and sponsorship rights to events such as Classic Car Week, buildings, vehicles and furniture."

Although the county's payment of $1 million would appear to be a significant expenditure, the new deal also included a sizable payment from the non-profit SCRAMP organization to the county. A total of $687,956 is to be paid to Monterey, with most of the amount taken from the circuit sponsorship fees paid by Mazda to SCRAMP to be controlled and distributed by the county for facility upgrades. The rest of the payment will settle a lingering debt that drove a wedge between SCRAMP and the county prior to the new management agreement.

"Of the money going to the county, $500,000 comes from the Mazda sponsorship payment," the Herald wrote. "The money goes into an escrow account that will be used only for capital improvement projects at the raceway that are agreed upon by both sides. SCRAMP is paying the county $187,956 to resolve the concession fees dispute."

With the county now in charge of Laguna Seca's finances and future business developments, the likelihood of monetary disagreements with SCRAMP would appear to be greatly reduced. Exploring a new title sponsor agreement was also cited as a point of immediate interest as the partners move forward.

Per the Herald, "the settlement resolves all disputes, including past audits, between the county and SCRAMP. Monterey County will partner with SCRAMP on the future naming rights of the raceway, which became Mazda Raceway Laguna Seca in 2001."