NeXovation, Inc. Secures ECJ Win And A New Investigation From The European Commission Into The Bidding Process For The Nürburgring, Confirms Its Commitment To Pursue The Nürburgring
September 2, 2021
NeXovation, Inc. has secured a crucial victory in its battle to prove that the bidding process for the Nürburgring was illegitimate. Today, the European Court of Justice ruled that the European Commission erred in its 2014 ruling that the sale of the Nürburgring assets to the Capricorn Group was legal.
As a result, the European Commission must now re-examine whether the 2014 sale of the Nürburgring was below market price and thus involved the granting of State Aid.
After attempts at private financing failed, the state government of Rhineland-Palatinate made intensive efforts to turn the state-owned racetrack into a modern leisure park. This drew the attention of the European Commission. Following complaints in 2012, the EC initiated a formal investigation. In October 2014, it ruled that illegal State Aid had been granted and demanded the repayment of this aid. At the same time, however, it concluded that the meanwhile sale of the Nürburgring assets to the private Capricorn Group had been in line with State Aid law principles. It could not find that the bidding process had been flawed. Since the bidding process had been compliant, the European Commission concluded that the sale had taken place at the market price and therefore did not contain any aid in favor of the purchaser.
NeXovation, which had participated in the bidding process as the highest bidder and which was one of the three bidders admitted to a second round of bidding by KPMG and the trustees, had a different perspective. In June 2015, the company filed an action against the European Commission's decision before the General Court of the European Union.
Proceedings were also brought by the “Ja zum Nürburgring” (Yes to Nürburgring) initiative, which now publicly admits it did so to seek to block NeXovation, Inc.’s receipt of the bid award by default by litigating in a parallel action. Sexton says NeXovation has reached out to Ja zum Nürburgring and is confident that their interests are ultimately parallel, in that both parties seek to save the ‘Ring.
The proceedings lasted four years, making them one of the longest of such actions in recent times. The General Court confirmed the Commission's decision in June 2019. NeXovation, which was determined to prove the merits of its arguments, then appealed, and the decision issued today by the Court of Justice (C-665/19 P) marks the successful satisfaction of that appeal.
The European Commission must now investigate the sales process in the new light of a finding of fact in the highest court in the European Union that the financing of Capricorn was not binding and therefore, that the bidding process, and possibly the subsequent sale of the assets of the Nürburgring was inappropriate.
NeXovation CEO, Caroline Sexton, who leads the company after the death of her late husband, Robert J. Sexton in 2018, remains steadfast in her commitment to securing the Nürburgring. In her own words, which were embedded into NeXovation’s final offer during the bidding process, she stated:
“We are especially committed to maintaining public access to the race tracks and all facilities of Nürburgring, from the tourist tours on the Nordschleife and the Grand Prix Track, the traditional racing events such as the 24 Hours Race and the DTM, to concerts and several restaurants and hotels. We know that the (then, 2014) current users and partners of Nürburgring are also key for the future success of Nürburgring so that they are a substantial part of our planning.”
During the bidding process, NeXovation submitted a detailed and robust business plan vetted by Ernst & Young and spent significant sums on due diligence during the bidding process, indicating that the Americans took the business and future of the Nürburgring seriously. Despite binding financial commitments and an actual plan for what to do with the Nürburgring that would allow for a satisfactory outcome for all public and private stakeholders, employees, and the community, the bid was called early in favor of Capricorn, whom the EU Court of Justice found did not have binding financing from Deutsche Bank, as was claimed during the bidding process.
"The European Commission must now revisit the lack of fairness, the lack of openness and the discriminatory nature of the bidding process with new eyes”, Sexton added.
Says Sexton, “We will not quit - the fight for the ‘Ring is only beginning” and maintains that NeXovation remains steadfast in its pursuit to attain and protect the Nürburgring.
The new paradigm in Digital Out-of-Home Media Comes to the Atlantic City Boardwalk. The network, a subsidiary of NeXovation’s NeXomedia division, comprises ten locations, starting at Boardwalk Hall, and is expected to expand over the coming months to include 110 locations that will cover more than three miles of Atlantic City’s Boardwalk.
Uferpromenade wird zum Schauplatz eines Paradigmenwechsels für digitale Out-of-Home-Medien: Impactivate Networks, das von einer Tochtergesellschaft des zum NeXovation gehörenden Unternehmensbereichs NeXomedia betrieben wird. In den kommenden Monaten soll das Projekt auf 110 Standorte ausgeweitet werden, die dann nahezu fünf Kilometer der Uferpromenade von Atlantic City abdecken.
NeXovation, Inc. Announces Agreement to Acquire Nashville Superspeedway from Dover Motorsports, Inc.
Nearly three years after reducing its public access and closing to competitive racing, the Nashville Superspeedway motor racing complex will have a new owner. U.S.- based NeXovation Inc., a global innovation company and active pursuant (highest bidder) for the iconic Nürburgring motor sports facility in Germany, announced today that it has entered into a definitive agreement to acquire the Nashville Superspeedway in Lebanon, Tenn., from Dover Motorsports, Inc. (NYSE-Symbol: DVD).
NeXovation, Inc. kündigt Vertrag zum Kauf des Nashville Superspeedway von Dover Motorsports, Inc. an
Fast drei Jahre lang hatte die Öffentlichkeit nur eingeschränkten Zugang zum Nashville Superspeedway Motor Racing Complex. Auch fanden in diesem Zeitraum auf der Anlage keine Rennen statt. Nun bekommt die Rennstrecke mit NeXovation, Inc. einen neuen Eigentümer. NeXovation Inc., ein globales Innovationsunternehmen mit Sitz in den USA und aktueller Bieter (mit höchstem Gebot) für die bedeutende Motorsportanlage Nürburgring, gab heute bekannt, dass es einen verbindlichen Vertrag zum Kauf des Nashville Superspeedway in Lebanon (Tennessee, USA) von der Dover Motorsports, Inc. (NYSE-Symbol: DVD) eingegangen ist.
NeXovation Inc., a U.S.-based global innovation company, announced today it has filed a complaint with the Directorate-General for Competition of the European Commission regarding the sales process of the Nürburgring. Although NeXovation submitted a financially attractive binding offer of EUR 150 million (EUR 110 million in cash) to acquire all assets of the iconic Nürburgring motor sports facility in Germany, the company believes its offer was not properly considered. Thus, it cannot be assumed that the sales process is in accordance with European Union (EU) law.
NeXovation Inc., ein globales Innovationsunternehmen mit Sitz in den USA, hat heute eine Beschwerde bezüglich des Verkaufsprozesses für den Nürburgring bei der Generaldirektion Wettbewerb der Europäischen Kommission eingereicht. NeXovation ist der Auffassung, dass ihr finanziell attraktives und bindendes Gebot über 150 Millionen Euro (davon Barmittel in Höhe von 110 Millionen Euro) für sämtliche Vermögensgegenstände des Nürburgrings im Rahmen des Bieterverfahrens nicht ordnungsgemäß berücksichtigt wurde. Von einem rechtsgültigen Verkaufsprozess auf Basis der EU-Gesetzgebung kann demzufolge nicht ausgegangen werden.