Suit questions Andretti racing team's use of company funds

Indianapolis-based motor sports companies owned by Michael Andretti have a legal battle ahead of them, a fight centered on control of a sports marketing company.

Andretti Sports Marketing, which has promoted such activities as IndyCar Series races in Milwaukee, Baltimore and New Orleans, has filed a civil suit in Marion County Superior Court against Andretti Autosport, a race team.

The complaint centers on John Lopes being removed as the head of Andretti Sports Marketing -- Michael Andretti recently appointed himself to the position -- and whether the race team improperly used funds intended for the sports marketing company to cover its own expenses.

The suit originating July 30 says Andretti owns 60 percent of Andretti Sports Marketing with Lopes and Starke Taylor, the vice chairman and treasurer, each owning 20 percent. Andretti Autosport currently fields four IndyCar Series entries.

The suit alleges Andretti Autosport has "less than $2 million in unencumbered assets and at least $7 million in debt, plus additional liabilities that may be in excess of $10 million" and that the company has borrowed $6-8 million "from various sources to operate." The deficit is alleged to stem from sponsor commitments not materializing in 2014.

The suit seeks to have Lopes reinstated as Andretti Sports Marketing manager, plus damages.

Michael Andretti, who is Andretti Sports Marketing's CEO and board chair, released the following statement Tuesday:

"This lawsuit is a disingenuous and self-serving attempt to benefit John Lopes and Starke Taylor at the expense of Andretti Autosport and its 120 employees. The allegations by Lopes and Taylor will not be supported by the evidence and we will aggressively respond with the truth.

"My family has strived to earn an exemplary reputation in all facets of our personal and professional lives. We will not allow this reckless attempt at grabbing leverage to impact our family name."

Barnes & Thornburg is representing ASM; Jim Voyles is representing the race team.

A spokesperson for Andretti said Andretti Sports Marketing has made "some cutbacks but is still operational and is working to rebuild."

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