Kurt Busch sued over contract dispute

NASCAR star Kurt Busch is being sued in excess of $1 million by Sports Management Network for what the company alleges are fees Busch has not paid since terminating his contract.

SMN filed the lawsuit on Feb. 8 in U.S. District Court's Eastern District of Michigan. Busch and Kurt Busch Inc. are named as defendants in the lawsuit with SMN alleging Busch has been delinquent in his payments.

In addition to SMN claiming Busch owes at least $930,450, SMN is also asking Busch to cover interest, costs and attorney's fees. The requested judgment in the lawsuit is $1,470,450.

As detailed in the lawsuit, SMN and Busch entered into an agreement for Busch to be represented by the company in 2005. The deal was then extended on Aug. 11, 2010. By 2012 as Busch moved from Team Penske to Phoenix Racing, the lawsuit says the agreement was modified to help Busch's financial responsibility because "it became apparent that the money that Defendants would receive in 2012 from KB's professional driving activities would be a fraction of what they previously received."

An additional agreement was that Busch would owe the retainer plus 10 percent of all revenue from personal services agreement beginning in 2013.

The lawsuit continues, "Subsequently, SMN negotiated and finalized multiple agreements for Defendants including, but not limited to, driver agreements, sponsor agreements, and personal services agreements, pursuant to the terms of which Defendants will be paid compensation through 2018, amounts of which Defendants are obligated to pay SMN under the RA (Representation Agreement)."

Payments were made without issue through the first part of 2016. However, Busch then terminated their relationship in March of that year and SMN says he ceased making payments. SMN continued to invoice Busch and Kurt Busch Inc., but those have yet to be paid.

According to the suit, SMN is not only looking to collect the "Outstanding Amount" of $930,450 but states the company is entitled to an addition $540,000 that has not yet been invoiced but is owed for the 2018 season.

SMN states it was formed in 1989 and is an organization that has specialized knowledge, experience, as well as contacts in the area of sports, media, and entertainment. The company focuses on professional motorsports where it represents drivers and race teams.

The clients page of the SMN website shows others in NASCAR represented by the company include Brad Keselowski, Team Penske, Ryan Blaney, and Brad Keselowski Racing.

In response to the suit, Alan Miller – a Michigan-based attorney who represents Busch – told MLive.com, "We believe the lawsuit is without merit, and we plan to vigorously defend the lawsuit."