Motorsports Entertainment Company

Company Overview



Motorsports Entertainment Company - This $240 million Motorsports Entertainment Company operates a speedway, a car racing series and a TV sports production company.  The parent company also operates a food ingredient processing business.

Engagement Overview
•  The Company had been generating losses for numerous years with losses being funded by the sale of operating assets and additional borrowings

•  The Company had over $100 million in senior debt and was below 1.0x Debt Service Coverage.

•  The CEO had recently resigned resulting  in turnover within the Company and tension amongst the family board members.

•  Fort Dearborn provided strategic direction to the new CEO and a plan to bring the Company to profitability within three years.

•  Fort Dearborn provided assistance in deleveraging the Company’s balance sheet by $75 million and negotiated a new working capital line of credit with the Company’s lender.

•  Fort Dearborn facilitated the transition of the Board of Directors from family members to non-family professionals.
Results

Fort Dearborn assisted the Company in developing a multi-year strategic plan providing a pathway to profitability.

Fort Dearborn recommended a significant reduction in force, reduction in operating expenses and a reorganization of senior management.

Over a three year period, the Company improved EBITDA by over $30,000,000.