Organizers want to launch another Boston race to help pay refunds for failed Grand Prix

Here we go again

More than a month after the event was canceled, organizers behind the Boston Grand Prix IndyCar race that never took off are running low on money and are struggling to refund ticket holders.

And their strategy to pay customers back, at least in part, is to go back to the well writes Adam Vaccaro of the Boston Globe. Organizers say they want to hold another car race and use the revenue to pay back ticket holders for the collapsed Grand Prix.

"Boston Grand Prix CEO John Casey is in discussions about holding another race for Boston that could help pay the refunds," Michael Goldberg, an attorney with Casner & Edwards who is representing race organizers, said in a statement.

Goldberg declined to offer any details about this new race plan, saying "although we are hopeful about its prospects, it is too soon to provide specifics."

City officials are not interested, however, and think organizers should find other ways to pay customers back.

"The city will not be entertaining any other race proposals from John Casey," city spokeswoman Laura Oggeri said. "The city was assured by Boston Grand Prix that any money collected from advance ticket sales would be held in a separate account until the race was finalized, however it is clear this was not the case. Boston Grand Prix should focus on honoring their refund policy and returning any money they received from ticket sales."

WCVB reported Wednesday that organizers had run out of money to pay refunds for the race, once planned for Labor Day weekend in the Seaport. About $400,000 has been refunded so far, out of ticket sales that WCVB estimated could be as high as $2 million. That report also mentioned Casey’s strategy to use another race’s revenues to refund tickets.

Goldberg confirmed the Boston Grand Prix money issues to Boston.com.

"Cash resources are limited at this time, due to the upfront costs of preparing for the race that were incurred prior to cancellation, but Boston Grand Prix (BGP) is working on a solution," he said in the statement. "BGP regrets any inconvenience to its ticket holders due to the cancellation of the 2016 race, which resulted from circumstances beyond the company’s control."

Aside from the new race idea, Goldberg told WCVB that ticket refunds could come if organizers recouped money deposited with IndyCar’s national body. The national organization is currently suing Boston Grand Prix, as well as Casey and his predecessor as CEO, Mark Perrone, for breach of contract.

"Refunding ticket holders is a first priority for BGP, and the company is working diligently with all parties involved to provide refunds," Goldberg told Boston.com. "As funds become available, they will be forwarded … for processing of refunds."

The race was called off due to permitting and other issues in late April, and organizers promised refunds. In May, organizers said the process could take two months.

Casey’s relationship with the city soured as the event capitulated.

In the days after the race was canceled, Boston Mayor Marty Walsh put out a joint statement with Mark Miles, the head of the national IndyCar organization. The statement said that a Boston Grand Prix could be a great success with "a strong local promoter" — all but pointing the finger at Casey and his team.

That statement came as The Boston Herald reported that Casey was working to bring a race to Suffolk Downs after the Seaport race fell through. According to the Herald, Miles shot down the idea.

Goldberg said race organizers do not intend to file for bankruptcy.

"BGP has no plans to file for Chapter 11 bankruptcy. Instead, BGP’s focus is on working with all parties involved to maximize refunds for ticket holders," he said. Adam Vaccaro/Boston.com