STURGIS, S.D. – The Sturgis City Council will make a decision Monday night on whether or not to cancel this year’s Sturgis TT Race.
Sturgis Mayor Kevin Forrester is recommending cancellation of the second year event for several reasons, among which, is disagreement between American Flat Trackers, or AFT-E, and the city over the co-host agreement.
Mayor Forrester says it was always the city’s belief that last year’s event, which lost money, was a no-risk plan for the city.
Sturgis voters in 2024 turned down an initial request for the city to spend money on the event. AFT returned after that vote with a plan they proclaimed at the time, to be a “win-win” for the city because it did not involve any financial risk.
However, Mayor Forrester said in January, AFT informed city officials the inaugural 2024 race lost nearly $514,000.
Forrester says AFT-E sent the City an invoice demanding payment in the amount of $501,694.04 due and payable January 1, 2025. He says the “expectation was not and is not consistent with the City’s interpretation of the Co-Host Agreement or the representations AFT-E made to the community or the city council when the agreement was being considered.”
Furthermore, Forrester said “my review of the financial information provided by AFT-E raised several questions related to certain expenses.”
AFT has indicated it is interested in moving the Sturgis TT Race to the old fairgrounds track, which will need to be renovated in order to accomplish that goal.
Forrester says he and representatives from AFT and the the Jackpines Gypsies have been discussing that plan.
Forrester says On May 12th, “AFT-E emailed me a proposal whereby:
● The City would provide AFT-E a firm repayment schedule for the $501,694.04 deficit from the 2024 race;
● AFT-E would release the City from the second year of the Co-Host Agreement; and
● AFT-E and the City would pursue a long-term lease agreement for the fairgrounds property, where the Jackpine Gypsies and AFT-E would begin conducting the Sturgis Half-Mile on the Wednesday of Rally Week each year, beginning with this year’s 85th Annual Sturgis Motorcycle Rally.
Forrester says first, as a practical matter, even if AFT-E was to make a firm proposal to lease the fairground property, there is not sufficient time for that to be considered and approved by the city council in time for this year’s race.
Second, AFT-E has represented to the City that conducting the Spirit of Sturgis TT race downtown again in 2025 would likely result in financial losses similar as those accrued from the 2024 race, unless there were significant commitments from new and existing sponsors, which was not expected.
The council will discuss the recommendation to cancel this year’s race to mitigate damages and refer any outstanding contractual claims to the City’s legal counsel for resolution Monday night.
The council meets at 6:30 at council chambers at city hall.
