Two months prior to the start of the inaugural Baltimore Grand Prix, race organizers "entered into a $1.1 million loan they believed was necessary to save the event" as they were "desperate for cash," according to a front-page piece by Broadwater & Scharper of the Baltimore SUN. However, former Baltimore Racing Development CEO Jay Davidson said the two-month loan -- which "allowed the lender to collect more than $500,000 in interest and other charges -- ended up draining funds needed to pay city taxes." Now, with BRD "facing large debts, some are complaining about the loan's terms and asking why the lender was paid while taxes ... and other debts were owed." The lender, Virginia-based Thermopylae Sciences & Technology, also "received perks such as race-day executive suites and free food and drink for dozens of guests." Race execs said that they "needed the money to pay sanctioning fees to IndyCar and other racing groups." Without those fees, which "totaled $2.2 million, racing teams would not have participated in the event held over the Labor Day weekend." BRD Manager Kenneth Banks said that "after taking a hard look at company finances in June, he learned that $900,000 was still owed on the sanctioning fee -- and the company had only two weeks to pay it." Banks: "We didn't have anywhere near the $900,000. IndyCar was ready to pull the plug. Tens of thousands of people had purchased tickets. People had spent money on airfare and hotels. If the race didn't happen, it would have been catastrophic for Baltimore. I called many of my banking friends. Nobody would touch it. Finally, I called [Thermopylae President] AJ Clark. We agreed to pay whatever we had to pay. Really, AJ and I saved the race" (Baltimore SUN, 12/15).
