The Shareholder Forum


Dover Motorsports, Inc.

Forum Home Page


DVD Home Page

DVD Reference


For the same newspaper's reports published previously on the same day, including the referenced front page article, see

For the referenced company press release and annual report, see


St. Louis Post-Dispatch, July 29, 2010 article [website]



Gateway track's owner takes $7.96 million writedown

BY DAVID NICKLAUS > 314-340-8213 | Posted: Thursday, July 29, 2010 11:52 am

In a Page One story today, my colleague Kathleen Nelson reports that the absence of Nascar events next year leaves the future of Gateway International Raceway in doubt.  Here's a clue to how much the track's fortunes have declined: In its earnings report this morning, parent company Dover Motorsports announced that it's writing down the value of Gateway by $7.96 million. Here's the exact wording:

The Company concluded in the second quarter that it was necessary to review the carrying value of the long-lived assets of its Gateway facility for impairment. As a result of this review, the Company recorded a non-cash impairment charge of $7,964,000 to write down the carrying value of the Gateway facility to fair value. The Company's wholly-owned subsidiary, Gateway International Raceway, has notified NASCAR that it will not seek 2011 sanctions for its two Nationwide Series and one Camping World Truck Series races. The Company is currently evaluating all options for the facility.

The company doesn't say what value it now places on Gateway, but Post-Dispatch reports in 1997 called it a $25 million development. the Southwestern Illinois Development Authority issued $21.5 million in revenue bonds to finance the track's construction.

UPDATE: Dover's annual report, filed earlier this year, provides some interesting background on the track's finances. Dover also wrote off $7.5 million of Gateway's value in the fourth quarter of 2008, so its accountants now say the property is worth $15.5 million less than it was two years ago.

Also, the track owed a bit less than $3 million on the SWIDA bonds as of Dec. 31, but it also had a debt-service reserve of $5.3 million, which is more than enough to meet its principle and interest obligations. SWIDA holds a first lien on the track's real estate.


Copyright 2010,, 900 N. Tucker Blvd. St. Louis, MO




This Forum project is open to all shareholders of Dover Motorsports, Inc. (NYSE: DVD), or its affiliate, Dover Downs Gaming & Entertainment, Inc. (NYSE: DDE), and to any fiduciaries or professionals concerned with their investment decisions. Participation is free of charge, according to the Forum's standard Conditions of Participation.

The purpose of the Forum is to provide shareholders with access to information and a free exchange of views relating to their consideration of issues described in the Forum Summary. As stated in the Conditions, all Forum participants are expected to make independent use of information obtained through the Forum, subject to the privacy rights of other participants. Forum polices are intended to support anonymous communication, and provide that participants will not be identified or quoted without their explicit permission.

Inquiries and requests to be included in the Forum's distribution list may be addressed to

The information provided to Forum participants is intended for their private reference, and permission has not been granted for the republishing of any copyrighted material. The material presented on this web site is the responsibility of Gary Lutin, as chairman of the Shareholder Forum.