A case in U.S. District Court in Michigan provides an inside look at NASCAR contracts between teams and drivers. Ford has sued Kasey Kahne for breach of contract for leaving a Ford-backed team to drive Dodges for Evernham Motorsports in 2004. Kahne had a five-year contract with car owner Robert Yates and a supplemental contract with Ford before joining Evernham. Kahne’s lawyers argue that Ford could not provide a suitable ride for him, allowing him to seek a ride elsewhere. Kahne’s contract with Yates was submitted May 12 by Kahne’s attorneys, who seek a summary judgment. The case is scheduled to go to trial in August. Kahne’s contract with Yates shows it was signed Feb. 4, 2002, and was for the 2002-04 seasons. Yates’ team had the option to extend the contract through 2006. According to the contract, Kahne was to be paid a $100,000 salary in 2002 while in the Busch series. His salary was to increase to $150,000 the next year and go to $225,000 in 2004. The contract states if Yates moved Kahne to Cup in 2004, Kahne’s salary would be $700,000 for his rookie season. The salary was scheduled to increase to $850,000 the following year and go to $1 million in his third year in Cup. The contract stated Kahne would receive 35 percent of the race purse minus bonuses designated for the team. He would receive 50 percent of the race purse for a top-three finish. He would receive 35 percent of the season-ending money based on his placement in the driver standings. If he finished in the top three, he would receive 50 percent of the money. The final clause in the contract dealt with confidentiality. “All parties hereto acknowledge that the terms and contents of this agreement are confidential in nature and that neither will divulge any of the terms herein to anyone, except as may be required by law or for tax accounting or other reporting obligations.”(News and Record)(5-22-2005)
