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Verdict Against Clear Channel Could Pose Future Problems for AMA

The jury returned a 90 million dollar verdict against Clear Channel Communications, Inc. yesterday in the action brought by JamSports and Entertainment, LLC over the rights to promote AMA supercross beginning with the 2003 series. Follow this link to read a recent article in MD regarding this litigation, which, in turn, contains links to prior articles that provide background on the dispute. For a full report on the jury verdict, take a look at the Chicago Tribune article (an Illinios jury ruled in the case) here.

At least one news report contains a quote from a Clear Channel representative indicating Clear Channel relied on a representation by the AMA that it was legal to proceed with a new supercross contract despite the JamSports agreement. This could indicate Clear Channel will seek indemnity from the AMA for damages owed JamSports. In other words, Clear Channel might try to pass on its indebtedness to JamSports to the AMA.

Clear Channel has stated it will appeal the jury verdict. We will try to keep an eye on further developments. At the very least, if the jury verdict is upheld supercross ticket prices could increase dramatically.