In an SEC filing, posted today, Motorsport Games have stated that IndyCar has moved to terminate their agreement with the company in a notice sent on November 8, 2023. According to the text Motorsport Games have not yet confirmed the loss of the license and are “evaluating the validity” of the termination.
The actual date of this shows IndyCar acted immediately after the recent news that the entire development team of their IndyCar game, the same studio who had developed KartKraft, had been laid off and development halted.
If this moves forwards then at least we can finally get back to not having an IndyCar game for another 20 years, like it’s supposed to be.
Item 1.02 Termination of a Material Definitive Agreement.
On November 8, 2023, INDYCAR, LLC (“INDYCAR LLC”) delivered a notice to Motorsport Games Inc. (the “Company”) to terminate the two license agreements, each dated July 13, 2021, by and between INDYCAR LLC and the Company (collectively, the “INDYCAR License Agreements”), effective immediately. Pursuant to the INDYCAR License Agreements, INDYCAR LLC had granted the Company licenses to use certain licensed intellectual property for motorsports and/or racing video gaming products and esports events related to, themed as, or containing the INDYCAR racing series. INDYCAR LLC stated that its decision to terminate the INDYCAR License Agreements was due to the Company’s alleged failure to satisfy certain of its obligations under the INDYCAR License Agreements, including making INDYCAR racing series video gaming products available in the United States and facilitating a minimum number of INDYCAR racing series esports events, in each case, as specified in the applicable INDYCAR License Agreement. The Company is evaluating the validity of INDYCAR LLC’s notice of termination, including demands for certain payments under the INDYCAR License Agreements, as well as the Company’s options under the INDYCAR License Agreements.