Bankruptcy judge appoints trustee to manage BK Racing

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CHARLOTTE, North Carolina – A U.S. Bankruptcy Judge assigned a trustee to take over BK Racing and replace car owner Ron Devine as the team’s financial decision maker Wednesday evening.

“It’s a sad day for BK,” Devine said after leaving the federal courthouse.

Said NASCAR in a statement: “We have a clear process around charter member governance. It is incumbent upon charter members to be ready to race and compete at the highest level.”

The judge’s decision allows the team to continue to race. One of the roles of the trustee will be to determine if the team remains a viable business and can make money. If not, an option would be to sell the team’s assets, including its charter.

“I think it’s in everyone’s best interests that this business continue in the short run,” Judge J. Craig Whitley said in making his ruling.

The team ranks 35th in car owner points after Gray Gaulding‘s 36th-place finish Monday at Martinsville Speedway.

Matthew Smith, managing director of The Finley Group, will oversee the BK Racing’s finances.

“The goal is to find a way to race as long as we can,” Smith said on the stand Wednesday.

Smith, a member of the North Carolina Motorsports Advisory Council for three years, noted that it was not clear how much cash BK Racing has, citing incomplete records and documents not filed in court.

Union Bank & Trust claims it is owed more $8 million. The IRS states that the team owes more than $2 million. Creditors have until April 26 to file claims.

BK Racing filed for Chapter 11 bankruptcy on Feb. 15. Devine said on Feb. 16 that he filed for bankruptcy “because the bank wouldn’t stop trying to get a receiver (to oversee the team’s collateral). The only reason they wanted to get a receiver was to push the charter off to their third-party offer. That’s where the problem was.’’

BK Racing has not shown a profit since debuting in 2012. Court documents show that the team lost nearly $30 million from 2014-16.

A former employee and a current employee of the team both testified Wednesday of paychecks that bounced last year. Former tire specialist Jason Postma testified he had a BK payroll check bounce in September 2017 and had BK payroll checks bounce in November 2017 and December 2017 before leaving the team.

“We need someone to step in temporarily and stop this from snowballing,’’ testified Jeff Lemons, who runs the machine shop at BK Racing, on having a trustee appointed.

The team sold one of its charters before the 2017 season to Front Row Motorsports for $2 million. Devine, who spent five hours on the stand over two days, stated in court and he thought the bank’s goal is to sell the charter to recoup some of money owed.

“I’m disappointed, obviously,” Devine said of Wednesday’s decision. “We’ll see. The judge made his ruling. I respect that. We’ll talk about if there’s a next step, an appeal or anything like that.”

Devine said he planned to talk to sponsor EarthWater, which had signed an agreement last week to sponsor the team for the rest of year. The contract is valued at $3.6 million and can be paid in cash, EarthWater stock and product. There is a clause in the contract that the contract is null and void if Devine is not operating the team.

The judge encouraged Devine and BK Racing’s employees to work with Smith, the trustee, to help the team recover from its financial debt. Devine said he was unsure if he would do so.

“My sense is that he probably just wants me to get out of his way,” Devine said.

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NASCAR America: Matt Kenseth and Roush Fenway Racing fit perfectly

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Matt Kenseth assuming the driver duties of the No. 6 may be only a part of his future with Roush Fenway Racing.

“Obviously my driving is not the long-term answer for the 6 car,” Kenseth said to NBC’s Marty Snider during Wednesday’s edition of NASCAR America. “Probably will be for the foreseeable future, but not a long-term answer. So I’m looking forward to seeing who the next guys are. Seeing if I can help Trevor, if I can help Ricky – and see if I can be a part of the company, making it better.”

And it was that last comment that raised the eyebrows of the panelists.

“We’ve heard Jack talk recently in the press about how he’s on a transition out of the company,” Dale Earnhardt Jr. said. “He’s looking for somebody or some kind of group of people to come in and carry this company forward. And this could be the first domino, I guess, in that transition.”

Jeff Burton, who raced for Roush from 1996 through August 2004 knows the passion former drivers for the organization still have.

“I wasn’t surprised that Matt said ‘I’m still a part of Roush Racing,’ because of the way Jack runs that program,” Burton said. “When you’re one of his drivers, you’re one of his drivers. He gives you a lot of rope and it makes you take ownership in that company.”

Kenseth’s value to the organization does not only come from the results he will give them on the track, but rather in how he helps them identify potential issues that need to be fixed. As an 18-year veteran, he is the franchise driver they have been looking for – basically since he left Roush after the 2012 season.

“I will raise my hand as one of the people that were very concerned we wouldn’t see a Roush Fenway in four or five years,” Steve Letarte said. “Because, I know they have been trying to get better, but going about it in a way that didn’t excite me. I heard a lot of the same names, a lot of the same people.”

“I was concerned the ingredients were already in the bowl at some point and it didn’t work. When you look at Matt Kenseth, I think he can come in there on a Tuesday and say ‘guys, it’s not motor, it’s aero. Guys, it’s not aero, it’s pit stops.’ He has nothing to prove in his career like the two young drivers do.”

When Kenseth announced his retirement last year, he said he would only return if the opportunity was the right one.

“It’s not just about driving,” Kenseth said. “If it was just about driving, I probably would have been at Daytona. But there’s a lot of other things in the organization. I feel they are definitely on the upswing from where they were two years ago. Even last year, to now. I feel like the cars are running better. I think we’re going to run OK, and I think I can help the organization keep getting stronger.”

Watch the above video for more commentary.

NASCAR America: Dale Earnhardt Jr. explores concussion recovery in new book

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A year to the day after announcing he would retire from full-time NASCAR competition, Dale Earnhardt Jr. revealed an upcoming book about his experiences with concussions, notably the one in 2016 that nearly ended his career.

“Racing to the Finish: My Story” is co-written by ESPN’s Ryan McGee and is scheduled to be published Oct. 16. You can pre-order it now.

Earnhardt revealed the book Wednesday on NASCAR America and explained the inspiration behind it.

The 15-time most popular driver missed the final 18 races of the 2016 season after he began experiencing concussion-like symptoms during the July race weekend at Kentucky Speedway. The symptoms stemmed from a wreck at Michigan International Speedway three races earlier.

Many of the details in the book come from a journal Earnhardt began keeping during his first concussion experience in 2012.

“I don’t think nobody outside (wife) Amy and my doctor knows exactly everything that went on, and how bad it was” Earnhardt said. “There’s a couple of reasons I wanted to write this book. My fans ask me all the time about why I retired early from driving when I probably had a couple of more years. I think this will answer all those questions.”

Earnhardt hopes the book will also help those who have gone through similar situations and felt “helpless.”

“There’s some really, really bad moments, very dark moments,” Earnhardt said of his recovery. “There’s some helpless moments. You want to give up. Luckily, I had a really good doctor that I could call at any hour of the night and talk me off this ledge and help me understand that this is going to get better and tell me that you’ve fixed this in someone else.”

Earnhardt was open during his recovery process, posting videos of himself taking part in exercises to show what he was doing to get back to full strength.

“When I was writing all those notes, I didn’t know why I was writing them other than I was scared of what I was feeling and what I was going through,” Earnhardt said. “If something were to happen to me where I couldn’t articulate these experiences, there they would be.”

Even before his 2016 concussion, Earnhardt revealed he would donate his brain to CTE research.

Watch the above video for more.

 

Long: Can Matt Kenseth return Roush Fenway to its glory days?

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CHARLOTTE, N.C. — Blue skies poked through the gray clouds that had hung over the city for most of two days, delivering rain, wind and gloom.

Inside the NASCAR Hall of Fame on Wednesday morning, the forecast also was about to change for one Cup team.

Matt Kenseth is back in NASCAR to help turnaround Roush Fenway Racing.

It’s an interesting challenge for me and not just being a driver,’’ said Kenseth, who has 39 career Cup victories to rank 20th on the all-time list. “I hope I can be much more to the organization, and I’m hoping that there are a lot of different ways I can help in.’’

An organization that once dominated — Roush won 15 races and placed five cars in the top 10 in points in 2005 — has struggled to be competitive and retain drivers.

Kenseth left after the 2012 season. Carl Edwards departed after 2014. Greg Biffle left after 2016 because there wasn’t enough sponsorship to fund a car.

While Wednesday was a day for Roush Fenway Racing to celebrate and look toward the future, there is much work to do for an organization that has one top-10 finish between Stenhouse and Trevor Bayne.

“We have enough resources to fix any number of things but what is very difficult to discern with a young driver lineup like we have is what is most important,’’ Tommy Wheeler, operations director at Roush Fenway Racing, told NBC Sports. “What is going to be the most impactful today to make the car faster?’’

Bayne likely wouldn’t be sharing the No. 6 the rest of the year with Kenseth if his team’s performance hadn’t dipped.

Bayne has run in the top 15 in 10.5 percent of the laps run this season (Stenhouse is at 39.9 percent). Bayne’s average finish is 23.9 — compared to 19.5 last year — and he ranks 25th in the series in average running position (23.0).

“Really, when we look at last year, (Bayne’s team) and (Stenhouse’s team) were fairly close in overall performance, the 17 (of Stenhouse) was certainly better and certainly that split got greater this year and that’s just … not the direction we’re wanting to continue down,’’ Wheeler told NBC Sports.

Kenseth understands the challenge he’ll face. After winning races in six of the past seven seasons, the focus is different.

“I don’t think any of us expect to come out and win races,’’ Kenseth said. “That would be great if you could, and I think we expect to eventually. I don’t think that the summer and a part-time schedule that we expect to win, but I do feel like the cars are much more competitive, I feel like they’re on the right track.’’

Wheeler said the work starts now. The team will integrate Kenseth in all that it is doing. Kenseth noted that he’s been watching races more closely and studying notes “the last few weeks” as the deal was put together.

As for why this wasn’t done at the start of the year when Kenseth was available, car owner Jack Roush had a simple answer.

“I still had a little bit of a rawness over the fact that he left me when he did,’’ Roush said. “We had another championship out there, I thought, that we could have had in short order. I missed that, so it took me a little while to get over it.”

With the performance down this year, Roush needed to act quickly.

Mark Martin, who has served in a consultant-type role since the playoffs last year, said what Kenseth can help the team with could make a significant impact for Stenhouse — who had three sponsors extend deals with the team last week.

“I have hopes (of the team winning) because I know the tools are there at the organization, I know the people are there at the organization,’’ Martin said. “Really, what’s preventing them right now is a little bit of enthusiasm and direction to be able to use those tools and spend that time on the part that bears fruit.

“You do that and put that in Ricky Stenhouse’s hands, he’ll get it done. Right now, Ricky is just trying too freaking hard. I think if we could get him in a little faster race car, I would hope that maybe he could tune it down. He’s just driving so hard right now, it’s hard to watch for me. I just feel like we have all the tools, we just still don’t have the cars fast enough inherently.’’

Stenhouse has had to go to a backup car in three of the first nine races because of accidents during practice.

Stenhouse, who made the playoffs last year, will be the team’s only driver eligible for the playoffs since it seems unlikely NASCAR would grant a waiver for Bayne or Kenseth if they’re not running the full season because of a team decision.

For Stenhouse to make the playoffs and be a factor, the organization must be better at the 1.5-mile tracks that play a key role in the Cup season. It’s no coincidence that Kenseth will make his debut May 12 at Kansas Speedway, a 1.5-mile speedway and be back in the car for the May 19 All-Star Race at Charlotte Motor Speedway, another 1.5-mile track.

“We’ve got to perform on the mile-and-a half tracks or we’re going to be disappointed with our end-of-the year results,’’ Wheeler told NBC Sports. “Making the playoffs was really our goal last year. Well, now it’s about making the playoffs and making a strong run, validating that we deserve to be there and that we’re going to be competitive on these mile-and-a-half tracks that eat up so much of the schedule.’’

The rest of the driver schedule for the No. 6 car is to be worked out between Bayne, Kenseth and sponsor obligations.

That’s just a small part of the work ahead for Kenseth.

His biggest task is if he can help change Roush Fenway Racing’s fortunes and return the team to sunnier days?

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Ryan Blaney honors father with Southern 500 paint scheme

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Ryan Blaney‘s throwback paint scheme for this season’s Southern 500 is personal.

The Team Penske driver will pay tribute to the NASCAR career of his father, former Cup driver Dave Blaney, in the Sept. 2 race at Darlington Raceway.

The No. 12 Ford will look like the No. 77 Jasper sponsored Ford the elder Blaney drove in the 2003 Cup season.

The car was revealed on NASCAR’s Facebook Live page. 

That year, Dave Blaney earned his first of two career Cup poles and his first of four top fives. The top five came in the spring race at Darlington.

Dave Blaney made 473 Cup starts from 1992 through 2014.

His son, in his first full-time season with Penske, will make his fourth Southern 500 start. His best finish is 13th in 2016.

Ryan Blaney is eighth in the Cup points standings through nine races.

MORE: Matt DiBenedetto pays tribute to Jeff Burton with Darlington scheme