Shakedown at E’Town founder and promoter David Hance learned a hard lesson this past weekend—always get it in writing!

Just three weeks prior to his 8th annual Shakedown at Old Bridge Township Raceway Park in Englishtown, NJ, the New Yorker learned that Al-Anabi Racing would not return as the event’s $100,000 title sponsor. And without a signed contract, there’s no legal recourse.

After Al-Anabi’s initial backing of the event in 2008, Hance claims he suggested a binding contract to Al-Anabi leader Sheikh Khalid “KH” Al-Thani, but recalls being asked, ‘Do we need a contract; do we need lawyers?’

“And sure enough the second year he paid and it wasn’t an issue so I kind of got into a comfort zone, I guess,” Hance admits.

Shakedown at E’Town founder and promoter David Hance learned a hard lesson this past weekend—always get it in writing!

Just three weeks prior to his 8th annual Shakedown at Old Bridge Township Raceway Park in Englishtown, NJ, the New Yorker learned that Al-Anabi Racing would not return as the event’s $100,000 title sponsor. And without a signed contract, there’s no legal recourse.

After Al-Anabi’s initial backing of the event in 2008, Hance claims he suggested a binding contract to Al-Anabi leader Sheikh Khalid “KH” Al-Thani, but recalls being asked, ‘Do we need a contract; do we need lawyers?’

“And sure enough the second year he paid and it wasn’t an issue so I kind of got into a comfort zone, I guess,” Hance admits.

With the Shakedown’s Oct. 1-3, date fast approaching this year, Hance says he got in touch with one of Al-Anabi’s New York City-based accountants a couple of weeks ago, who instructed him to resubmit an invoice for the sponsorship amount. Upon doing so, he was asked last Tuesday to attend a meeting Saturday morning at Rockingham, where “the Sheikh is going to take care of all business then," Hance was told.

“So I get there and have to wait around all day, even though it’s a rain delay, and I wasn’t able to meet with him (Sheikh Khalid) and after the rainout the accountant came out and looked at me and just said, ‘I’m afraid that there will be no sponsorship at this time.’ He said Al-Anabi Racing has a contract with the ADRL that prohibits them from doing anything or conducting any races or being involved in any races outside of the ADRL."

ADRL President and CEO Kenny Nowling confirmed the existence of the clause to Attitude’s CompetitionPlus.com and says it’s part of a contract signed late last fall with Al-Anabi.

“This (clause) was put in at their request when we signed our sponsorship agreement. You have to understand, from (Al-Anabi’s) perspective, and it’s the same I’m sure that Lucas Oil goes through and other companies, they literally get bombarded with a hundred sponsorship requests a week from teams, from races, from organizations; they just thought it best that there be a clause in there in our agreement,” Nowling explains. “And I was all for it; I mean, it’s great to be able to protect your interests like that.”

Knowling said the NHRA has approached Al-Anabi in the past about event sponsorship, but the clause took precedence then, too. “Our sponsorship agreement precludes (Al-Anabi) from sponsoring other organizations or events. And I’ve had several sponsorship agreements like that in the past and I would almost assure you that NHRA has something in place with Coca-Cola to protect them in a similar fashion.”

Hance says he sincerely appreciates the Sheikh’s and Al-Anabi's past support of the Shakedown, but wishes what he considers a retraction of this year’s commitment was handled differently, at least with 90-days notice, or more. He also insists there was no misunderstanding on his part and he was blindsided by the deal falling apart.

“I have e-mails from him (Al-Thani) where we’re talking about it; he’s in, there’s no doubt he’s in,” Hance says. “There was a contract for the first year, but then he said he wanted to be in for five years.”

After affirming he respects Hance as a promoter and ADRL Extreme 10.5 entrant, Nowling suggested Al-Anabi’s action regarding the Shakedown is simply an example of a sponsorship running its course.

“At the end of the day it’s really simple; Al-Anabi is a brand, it’s a company for all intents and purposes. They’ve done an incredible job of branding and I think the Shakedown was an integral part of that, but now they’re branded, they’re known, no differently than with (ADRL and) the National Guard,” he states. “We had given the National Guard a huge return on investment, but after three years their sponsorship had run its course and I think that just happens.”

Hance says the Al-Anabi accountant also suggested to him that speaking with Nowling might at least partially salvage the deal if he were interested in staging the Shakedown in conjunction with the ADRL, an option Hance would not consider.

“It didn’t make me feel any better; I don’t want to have to go to Kenny Nowling as my savior,” Hance says. “I don’t want to be put in that position.” Hance also says his race team will not be entering either of the ADRL’s remaining events this year.
 
The sudden loss of Al-Anabi’s support means the Outlaw 1/8-Mile Challenge (the only outlet for Screw-blown cars like the ADRL’s Pro Extreme class features), had to be cut from the Shakedown at E’Town program, Hance says, and purses for the quarter-mile Pro Mod Blown (Roots-type only) and Pro Mod Nitrous classes were reduced to $10,000-to-win from the previously promised $20,000 for each class winner. He stressed, however, that announced purses for all other Shakedown classes remain intact.

Beyond the business implications, Hance says he hurts personally, too, especially since he remained one of Al-Anabi’s staunchest supporters last year after they were widely vilified in the online drag racing community for a now severed association in Qatar with “Crazy Mo” Atat, a fugitive from U.S. justice after participating in a deadly 2001 street-racing accident.

“The sad thing is that now there’s probably about a dozen Pro Mod teams out there that since last year don’t look upon me favorably or might not have a positive feeling about me simply because I took a stand and defended one of our sponsors,” Hance says. “And that was just something I did personally, I took a stand, so I feel like I’m paying the price on both ends.”

Nowling recognizes Al Anabi - and particularly Al-Thani - is in for some criticism regarding their Shakedown decisions, but insists it will be misguided.

“I just want to go on record as saying that no one has done more for the sport of drag racing in the last three years than KH Al-Thani and I challenge anybody to dispute that,” Nowling declares. “There are so many teams that are being financially aided by Al-Anabi that have no Al-Anabi livery on them and KH extended himself to help so many individuals and to do the Shakedown deal and to help it last year.

“I know there’s going to be negative press and I think that’s very unfortunate given the circumstances.”  

In order to better understand the legal parameters of this situation, Attitude’s CompetitionPlus.com referred the situation to our attorney Alan Lazenby.

“Generally speaking, verbal or oral agreements are just as enforceable as written ones, except in cases where the agreement cannot be performed within one year,” explained Lazenby. “So if the parties reached a verbal agreement for a 5-year sponsorship, then the agreement would have to be in writing to be enforceable.  On the other hand, if the parties reached an agreement to sponsor just this one race, then that verbal agreement could be enforced.  

“However, it may not be a good idea for race promoters to bite the hand that feeds them.  Even if this particular sponsor won’t be available for future events, you don’t want other sponsors scared to do business with you.  The lesson in all of this really is to get it writing. Not only does it give you an enforceable agreement, but by putting terms in writing it prevents misunderstandings and fosters a good working relationship by spelling out what is to be expected of the parties.”

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