I'm going to go out on a limb here and say they are having a major cash flow problems. The L&MC Supercross team whose title sponsor is Chaparall closed yesterday after Chaparall failed to meet their contract terms. L&MC was ran by Larry Brooks and Jeremy Mcgrath and sponsored Andrew Short as a Rider.
Before you claim the closing of L&MC was due to Chaparral failing to meet contract terms. Pleas share where you read that?
The closing of L&MC (Team Chaparral) started at the beginning of 2012. When this team was formed they had San Manuel Casino as their main sponsor, and were assured this was going to be a long term sponsorship. Then at the beginning of 2012 San Manuel's tribal counsel went through management changes and the new management did not want to continue racing sponsorships and pulled out.
It was Chaparral stepping up that kept the team alive for 2012. The Chaparral sponsorship was much less then what San Manuel's sponsorship was, but L&MC hopped they could find additional funding to cover the difference. When they could not find that addition funding Larry & Jeramey were going to be forced to spend their own money to cover that lost sponsorship.
Coming into 2013 they hopped they would find more sponsorship and with our economy not improving and sponsorships not found the team chose to close the doors. It had nothing to do with Chaparral not paying their bills. At least from what I have read and heard. If you know something different, please post up where you have found that.
Also L&MC is not the only team struggling. Just last week J-Star/JDR KTM team has said they too are shutting down. They are trying to finish out the 2013 Supercross season, and will fore sure close prior to the outdoor season opener. The father / son owned team have been funding the team out of their pockets as sponsorship has not materialized.
RacerX online has also said rumors of another team struggling could be forced to shut down before the Supercross season is over. Rumor was some employees had not been getting paid.