Kurt Busch claims agent cost him 'millions'

FONTANA, Calif. – Attorneys for Kurt Busch assert in a counterclaim that former agent John Caponigro failed to represent the 2004 NASCAR champion’s best interests during key contract negotiations, costing the 2017 Daytona 500 winner “millions of dollars.”

Sports Management Network, Inc., filed a suit seeking $1.4 million in unpaid fees in February.

In the counterclaim, filed in United States District Court, Busch claims SMN and Frasco Caponigro Wineman & Scheible “at times improperly advantaged” former Busch employers Team Penske and Andretti Autosport, for which Busch raced in the 2014 Indianapolis 500. Both are SMN clients. Busch is asking for $1.3 million and a jury trial.

“When SMN … had conflicts of interest, they did not disclose or identify these conflicts to Busch, seek or obtain Busch’s informed consent to their conflicts, nor advise Busch to seek the advice of independent counsel,” according to the response.

Kurt Busch being sued by former agent for more than $1.4 million

Also according to the counterclaim, “it took Andretti Autosport far longer to pay Busch than what was required under the Driver Services Agreement. Despite Andretti Autosport’s failure to timely pay Busch, SMN … made little or no effort to collect payment on behalf of Busch or to enforce Busch’s rights under that Driver Services Agreement.”

Busch ceased paying fees to SMN in March 2016 and claims SMN terminated the contract at that time.

According to the SMN filing, Busch had agreed to compensate the agency 10 percent of revenue derived from personal services agreements beginning in January 2013. Busch and by extension, Kurt Busch, Inc., renegotiated the initial deal in 2012 so that SMN would receive $125,000 — down from $250,000 and the 10 percent cut through 2018.

Eric Scheible of Frasco Caponigro Wineman & Scheible, PLLC provided the following statement to USA TODAY Sports:

“[The] defendants’ allegations are outrageous and have no factual basis. It is a shame that, in an effort to avoid paying fees that are owed, Defendants instead have chosen to disparage the impeccable reputation of our clients who, for more than a decade, maximized Mr. Busch’s career opportunities, financially and otherwise, often during times when Mr. Busch’s conduct, both on and off the track, threatened his career. We are confident that the court will see through what is nothing more than a desperate, diversionary tactic.”

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