Court documents filed Thursday show that BK Racing made a net income of $359,619 through the Phoenix Cup race.
The documents are part of BK Racing’s Chapter 11 bankruptcy case. The team filed Chapter bankruptcy Feb. 15.
COURT DOCUMENTS: Click here to view the BK Racing filing
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A hearing is scheduled this afternoon in U.S. Bankruptcy Court, Western District of North Carolina, on a motion by Union Bank & Trust. The bank claims it is owned more than $8 million in loan payments and seeks to have a trustee oversee BK Racing’s finances “to an end to the Debtor’s years of mismanagement,’’ according to court documents from the bank.
In its motion to appoint a trustee, Union Bank filed documents stating that the team lost nearly $30 million from 2014-16.
The updated budget filed Thursday on behalf of BK Racing breaks down income and expense for each of the first four points races and anticipated income and expenses the rest of the season.
The document shows that BK Racing had $50,000 sponsorship for the Daytona 500, $10,000 sponsorship each for the Atlanta and Las Vegas races and $30,000 sponsorship for the Phoenix race.
BK Racing listed prize money as:
$29,946 for its qualifying race at Daytona
$428,794 for finishing 20th in the Daytona 500
$91,528 for finishing 36th at Atlanta
$98,754 for finishing 33rd at Las Vegas
$82,000 for finishing 34th at Phoenix
The high payout for the Daytona 500 has given BK Racing more than $350,000 in net income. For other races, though, the team’s net income has been small.
At Phoenix, the team listed a net income of $790.
The team had $120,250 in revenue for the Phoenix weekend. It was broken down this way:
$82,000 in prize money
$30,000 in sponsorship
$8,250 in other revenue
The team listed $119,460 in expenses that weekend. Among the team’s expenses for Phoenix:
$35,000 for its engine lease
$21,000 for salary and wages
$10,525 for airfare for team personnel
$9,000 for tires
$9,000 for contract payroll
Those expenses alone totaled $84,525, exceeding what the team made in prize money and showing how important sponsorship is in the sport.
BK Racing provided a budget for the remaining races. The team’s budgeted expense was more than $103,000 for every race. That included everything from engine lease and tire bills to hotels, meals, salary and wages, entry fees, insurance, payroll taxes and more.
The most expensive race is the Daytona 500 at $135,502, which included an engine lease of $50,000. Next listed was Auto Club Speedway at $125,606, which included $9,500 in airfare and $10,000 in tires.
BK Racing’s prize money estimates on remaining races is based on a 30th-place finish in each event.
BK Racing lists its sponsorship budget for future races as $50,000 per race, progressing to $100,000 and to $150,000 for the final 13 races. That would give the team a sponsorship budget of $3.505 million.
Court documents filed by Union Bank & Trust show that BK Racing collected $1.5 million in sponsorship in 2016 and $1.05 million in sponsorship in 2015.
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