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cars, “it was clear in the racing circles that * * * [the primary
sponsor] was Team Menard.”67
Ultimately, Mr. Caponigro concluded that the range of
reasonable sponsorship fee values for the sponsorship benefits
Menards received in each of the 1997 and 1998 IRL seasons was
between $5 million and $7 million. Mr. Caponigro decided that
this range of values was reasonable based on the sponsorship
benefits Menards received, the general price structure of
comparable arrangements in the industry, the exposure value
Menards derived, and the business advantages available to Menards
through the racing program.
Petitioners’ second expert on sponsorship valuation was Cary
J.C. Agajanian of Motorsports Management International. Over the
last 70 years or more, Mr. Agajanian’s family has been involved
in the ownership of race cars, including Indy cars. Mr.
Agajanian has experience in race promotion, race officiation,
sponsorship contracts, and contracts between drivers and primary
and secondary sponsors. He has “negotiated hundreds of
sponsorship contracts with major corporations for name title
sponsorships, trackside signage, television programming, and
racing vehicles.” During 1997 and 1998, Mr. Agajanian was Tony
67We assume that, when he made this remark at trial, Mr.
Caponigro meant that Menards, rather than TMI, was the primary
sponsor of TMI.
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