White Bear Lake, MN (5/1/2008) -
PowerSports Entertainment, Inc. announced
today that it is has suspended corporate operations
and as a result the WPSA 2008 PowerSports
ATV Tour race schedule is now canceled.
"All of us here at the WPSA regret that
we have no choice but to suspend operations
and cancel the ATV tour at this time,"
said Rick Murphy, CEO of PowerSports Entertainment
Inc. "We have been working diligently
for many months to fundamentally improve our
business model and acquire financing that
would allow us to move forward, but we were
not able to consummate the contemplated transactions
and we foresee no significant increases in
sponsorship or event revenue that would gap
the projected deficits" added Murphy.
"While the company is considering a
variety of options, none of these options
would happen quickly enough to justify running
the WPSA Championship ATV Tour according to
our established standards and we believe that
it is best to cancel the 2008 ATV season rather
than attempt a watered down version,"
said Scott O'Malley, President of PEI. Adding,
"We are attempting to find remedies that
would allow us to resume operations, but at
this time we have no firm solutions. Hopefully
we will be successful in our endeavors."
"On behalf of Rick, Scott, Tes, myself,
the WPSA staff, our volunteers and everyone
else who worked their tails off to make the
last two seasons happen, we offer our heartfelt
thank you to the sponsors, our TV production
company, the track owners & their local
crews, the team owners, and all of our racers,
parents and families who supported us so strongly,"
said Kent Lungstrom, EVP of PEI. "It
deeply saddens all of us that we are not in
a position to continue at this time and we
regret that we have to shutter such a great
series after much too short a run."
PEI may issue public announcements from time
to time in the future as conditions warrant.
