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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Stewart-Haas Racing sweeps regular-season finale of eNASCAR Heat Pro League

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Stewart-Haas Racing swept both races in the eNASCAR Heat Pro League’s regular-season finale, held Wednesday night on a virtual Daytona International Speedway.

It was the first time one team has swept a round this season.

Jake Morris (SHG Slick 14x) won his third straight race, winning the XBox One event.

Brandyn Gritton (SHG_HotRod_14p) won for SHR in the PlayStation 4 event, earning his second win of the year.

Below are the final overall point standings – combing both consoles – heading into the four-round playoffs, which begin Sept. 11 on a virtual Las Vegas Motor Speedway.

Eliminated from playoff contention are the teams for Richard Childress Racing, Hendrick Motorsports, Richard Petty Motorsports and Chip Ganassi Racing.

 

You can watch both races in the below video.

 

 

Podcast: Life as a gay team member working in the NASCAR community

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As a racing fan growing up in rural Ohio, Ryan Hines heard the generalizations about intolerance in the testosterone-charged world of motorsports.

But his first-hand experience has been the opposite.

“I think NASCAR gets a generalized and stereotypical outlook that it’s homophobic and hypermasculine and there’s not any room for people who are gay to be in it,” Hines said during the latest episode of the NASCAR on NBC Podcast. “From my experience, it’s really a great community. I’ve met nothing but love and respect from everyone I’ve come across in the sport.

“It’s crazy that growing up I never thought I could be gay and work in NASCAR. I feel a lot of people who may be gay and have aspirations probably have that same mindset that I had growing up. I think it’s important there are role models for those people. Being an example of this guy is gay and is working in NASCAR and able to be himself and do what he loves to do, people being able to see that and know they can do it, too, is a step in the right direction. Having that representation is important.”

Hines, 23, is a coordinator of Xfinity brand content at Stewart-Haas Racing, where he works primarily with handling Chase Briscoe’s schedule and also handles media requests, video content and the team’s podcast.

He entered the NASCAR industry a week after graduating from Ohio State in May 2018, starting at Hendrick Motorsports. The Pleasant Hill, Ohio, native has been around racing (also working at Eldora Speedway through high school and college) for longer than he began publicly talking about his sexuality.

Hines has been out as a gay man since his junior year of high school and initially was concerned about how that would be perceived by racing co-workers.

“You’re told the stereotype of what racing is, and that fans and people involved aren’t accepting,” he said. “You hear that it’s a ‘redneck’ sport, and you associate Southern redneck roots with homophobia, whether it’s true or not. Now that I’m working in the sport, I see past those stereotypes and generalizations and have come to realize that most people in the sport are average people. They don’t care. They want you to be you. If you are who are to them, they’ll respect you for that.”

Hines said his sexual orientation comes up in casual conversation with other team members and without “anyone reacting negatively to it.” In sharing his story on the podcast, Hines hopes to help make it easier for other gay members of the NASCAR community who are reticent about being comfortable enough to discuss it.

“People don’t realize how much effort it takes to hide,” he said. “It’s exhausting because you have to worry about what you do and say.”

NASCAR has launched many initiatives (most famously its Drive for Diversity) over the last 15 years aimed at increasing its fan base among minorities and women.

As Major League Baseball, the NBA and other pro sports leagues have held gay pride nights that help build audience inclusion, Hines would like to see the same in NASCAR but said it’s also trickier.

“You have to be careful with that because there’s the stereotype of what the fan base is,” he said. “You don’t want to seem opportunistic. Launching a clothing line or holding an initiative, you want it to be genuine. I think NASCAR definitely needs to show they are welcoming, but they are struggling with how they do that and don’t seem opportunistic.”

Hines isn’t the first to discuss being gay in the NASCAR industry, but there have been no high-profile members (such as drivers or crew chiefs). In auto racing, five-time Rolex 24 champion Hurley Haywood is likely the most famous driver to have come out (discussing it in a documentary this year that he talked about as a NASCAR on NBC Podcast guest in April).

Hines believes it would be difficult for a driver to come out, but “I think they could come forward and find a lot of acceptance. You’re always going to have people who will say negative things. You’ll have that in any aspect of life. I’d love to see a driver, crew chief or an engineer come forward and embrace who you are and being truthful and honest. You’ll find a lot more acceptance and respect than you’d ever think you could.

“By and large, most large companies in NASCAR sponsoring in some capacity, they wouldn’t bat an eye as long as you aren’t bringing negative publicity and being authentic to who you are. They won’t have an issue with it. As long as you’re performing and a good ambassador to the brand, I don’t think the sexuality really matters.”

Hines said it is a delicate issue to discuss because he doesn’t want to be viewed as “a huge agent of change.

“I don’t want to be this huge trailblazer and try to take on a huge campaign,” he said. “But it’s important to be open and honest about it. The more people who see it as everyday life, the easier it can be.”

To listen to the podcast, you can click on the embed above or via Apple Podcasts, Spotify, Stitcher, Google Play or wherever you download podcasts.

Kyle Larson sweeps midget, sprint car races at Placerville Speedway

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The Cup Series is taking the week off, but apparently Kyle Larson didn’t get the memo.

The Chip Ganassi Racing driver is still racing this week, albeit on dirt. Wednesday night Larson swept two dirt feature races he competed in at Placerville Speedway in Northern California.

He won in both a midget and a sprint car.

The midget win came in the Lucas Oil BCRA Midget Series and was his first win in his own midget car. The sprint car win was part of the King of the West-NARC Sprint Car Racing Series.

 

Weekend schedule for Xfinity at Road America, Truck in Canada

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If you like road course racing in NASCAR, then this is the weekend for you.

While the Cup Series is off before it visits Darlington Raceway next week, the Xfinity and Gander Outdoors Truck Series are in action on two different road courses in two different countries.

The Xfinity Series is in Wisconsin to turn left and right at Road America, while the Truck Series heads up to Bowmanville, Ontario, Canada, to race at the Canadian Tire Motorsport Park.

For the Xfinity race, wunderground.com forecasts partly cloudy skies with a high of 71 degrees and no chance of rain at the start time on Saturday.

At Bowmanville, the forecast is for sunny skies, a high of 71 degrees and no rain for the start time of the Truck race on Sunday.

Here is the weekend schedule for both series.

(All times are Eastern)

 

Road America

Friday, Aug. 23

10:30 a.m. – 7 p.m. – Xfinity garage open

1:35 – 2:25 p.m. – Xfinity practice (NBC Sports App)

3:35 – 4:55 – Final Xfinity practice (NBC Sports App)

Saturday, Aug. 24

8 a.m. – Xfinity garage opens

11:40 a.m. – Xfinity qualifying; multi-car/two rounds (NBC Sports App live, NBCSN to air it at 1:30 p.m.)

1:35 p.m. – Driver-crew chief meeting

2:30 p.m. – Driver introductions

3 p.m. – CTECH Manufacturing 180; 45 laps/182.16 miles (NBCSN, Motor Racing Network, SiriusXM NASCAR Radio)

 

Canadian Tire Motorsports Park

Saturday, Aug. 24

7 a.m. – 5:30 p.m. – Truck garage open

9:35 – 10:25 a.m. ET – Truck practice (No TV)

11:35 – 12:55 p.m. – Final Truck practice (No TV)

Sunday, Aug. 25 

8:30 a.m. – Truck garage opens

9:35 a.m – Truck qualifying; multi-truck/two rounds (FS2)

10:40 a.m.- Driver-crew chief meeting

2 p.m.- Driver introductions

2:30 p.m. – Chevrolet Silverado 250; 64 laps/157.37 miles (FS1, MRN, SiriusXM NASCAR Radio)