An event organizer is suing Indianapolis Motor Speedway in federal court for breach of contract after an Indianapolis 500 party that was supposed to raise $1 million in revenue fell far short.
According to reports by Indianapolis TV station WRTV and the Indianapolis Business Journal, California-based Karma International staged a pre-race party for Maxim magazine a few days before the milestone 100th running of the Indianapolis 500.
According to the WRTV report, Karma International expected the party to raise $1 million in revenue, but apparently only raised just $182,500. The company expected 1,500 people – at $500 per ticket – to attend. Other revenue was to be raised by selling tables.
Instead, just 418 people attended the event, according to the report, with some tickets reportedly being discounted.
As a result, the company is suing IMS to collect the remaining $817,500, according to the court filing, for reportedly “fail(ing) to perform the advertising for the Indy 500 Maxim party.”
IMS is preparing a statement to respond to the lawsuit.