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Barry- This is a real bummer!
I have read the Warranty and believe the knuckle defect should be covered. There is no mention in the Warranty of excluding anything because of track use. I have attached the relevant pages of the Warranty as well as the complete Warranty Book for your reference.
Certainly BMW NA could deny your claim, but I would guess this determination was done by the Dealer and not NA.
The Warranty Book also mentions that disputes can be resolved in California through BBB Auto Line. Lord knows how long that will take, but I believe you will have to notify BMW NA first about the dispute.
Keep us informed. It's a concern, because many of us track ours as well.
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