INDIANAPOLIS (WISH) – Karma International, LCC is suing the Indianapolis Motor Speedway for failing to advertise for the “Indy 500 Maxim Party.”
According to court documents, IMS did not meet their advertising agreement causing a loss in revenue for the company.
Court documents state that IMS failed to properly advertise the event as part of the agreement between the company and IMS, causing the company to lose $817,500 in revenue.
Karma International blames the low ticket sales on the lack of advertising on the correct social pages. As part of the agreement the party was to be advertised on the Indianapolis Motor Speedway’s social media accounts. Instead IMS only advertised the event on social media to about 8,000 to 10,000 followers. Court documents said that is a fraction of the IMS reach.
Also as part of the advertising agreement, IMS was to send out promotional e-mails about the party to the 425,000 people who were buying tickets to the 100th running of the Indianapolis 500. An email was only sent to concert buying ticket holders, which was only 15,000 people.
The company expected to sell a total of 1,500 tickets that were valued at $500 per ticket. Only 418 tickets were sold. They were also expected to receive an additional $250,000 for table sales at the event. The company expected to make $1,000,000 in gross revenue from the event. However, the party generated $182,500.