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Bankruptcy judge approves sale of BK Racing to Front Row Motorsports

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CHARLOTTE, N.C. — A day after he put his team in Chapter 11 bankruptcy, BK Racing owner Ron Devine alternated between being combative and conciliatory as he spoke to reporters outside his hauler in the Daytona International Speedway garage.

Losses in the millions, a pile of debt and a bank eager to get more than $8 million back in loans and accrued interest led Devine to go to court to protect his team and its charter — the one item that gave his underfunded team its greatest value.

The paperwork was filed, according to court documents, about 30 minutes before a Feb. 15 hearing in Mecklenburg County Superior Court. That hearing was in regards to Union Bank & Trust’s request of a receiver to operate BK Racing and a preliminary injunction to prevent the team from selling or leasing its charter.

“We’ll get it resolved,” Devine said 48 hours before the Daytona 500. “I promise you, we will get it resolved. The bank wants it resolved, and I want it resolved. We will get it resolved. And I’ll see you in Homestead (for the season finale).

“We will be in Homestead.”

Devine was right six months ago. It got resolved.

But left him without a team.

Judge J. Craig Whitley approved the sale of BK Racing — a team Devine helped bring to Cup in 2012 — to Front Row Motorsports for $2.08 million on Thursday.

In announcing his decision, Whitley called the matter “just a bad situation and we’re doing the best we can with it. I don’t expect anybody to be delighted by it, but it is what it is.”

Devine and the team’s engine supplier objected to the sale Thursday. During an early recess, Devine spoke with the attorney for Union Bank & Trust. After the brief discussion, Devine shook his head, walked away and said: “Then that will do it. Jesus Christ.”

Devine and the team’s engine builder urged the judge to let the team continue through the rest of the season and be sold then. Devine stated that he would be an interested buyer then. Devine, it was noted in court, had made an unqualified bid to get the team back.

On the stand, Devine made a last-minute appeal to the judge not to sell the team: “This is wrong to occur during the season. There is the ability to run the team through the end of the season.”

Devine called it a “misconception that this team is on the brink of collapse.”

Trustee Matt Smith, appointed by the court to take over the team from Devine in late March, said Thursday morning on the stand that “cash continues to be very, very tight.”

Smith also said on the stand that “without sponsorship, I run about $30,000 to $50,000 in the hole” per race. Smith expressed concerns that he would be able to run the team through the end of the season.

The charter requires teams to compete each weekend. If the team missed races, it would allow NASCAR to take the charter back and leave BK Racing with little value. While Smith and many others expressed disappointment that the bidding didn’t generate any more money, Smith recommended the sale take place.

When Devine questioned Smith on cross examination about how long it took for him to provide info on the team’s financial status, Smith said: “The business records you had were atrocious.”

After the hearing, Devine said: “That trustee at the very least ought to be embarrassed. He should have stopped it with one bidder. I just think he was in over his head.”

The judge didn’t see it that way and awarded the charter and assets to Front Row Motorsports. The judge also approved the sale of equipment and 19 chassis (primarily in storage and in various stages of readiness) for $265,000 to Obaika Racing and a hauler to Rick Ware Racing for $35,000.

Front Row Motorsports gets BK Racing’s charter, which guarantees a starting spot in every race and a set amount of money per event, and some of its assets, including the cars it is running. Front Row Motorsports was expected to close on the sale as early as Thursday afternoon. All of BK Racing’s employees will be retained as part of the agreement.

Front Row Motorsports now owns both charters that went to BK Racing when the charter system was created before the 2016 season. BK Racing sold a charter to Front Row Motorsports in December 2016 for $2 million, a sale that did not include any other assets.

Front Row Motorsports, a Ford team will run the former BK Racing team, a Toyota team, as a separate entity through the end of the season.

Jerry Freeze, general manager of Front Row Motorsports who attended court Thursday, said the team will not change manufacturers after this season. He also said he did not know who the driver of the BK team will be for next weekend’s Southern 500 at Darlington Raceway. Or if the car number will change from No. 23 to No. 35, a number Front Row Motorsports has used for a third entry at times.

Freeze said the team wants to expand to three full-time cars but admits it will be challenging to find the sponsorship at this point to do so for next year. An option for the team would be to lease two of its charters to other teams — it already leases a charter to TriStar Motorsports and could continue that relationship. Charters can be leased once every five years.

“You’ve got to imagine we’ve been assessing the market for who would need to lease a charter next year and who might be interested in buying one of the other charters that we have,” Freeze said after the hearing. “So we think there’s a market out there for sure. It was worth taking the chance and opportunity to see if we could get this one.”

Front Row Motorsports’ bid topped a bid from Mike Beam, president of GMS Racing.

That a Cup team’s fate was settled in a U.S. Bankruptcy courtroom showed how far BK Racing had fallen. Six weeks after Devine filed Chapter 11 bankruptcy, he lost control of the team when Smith was assigned as trustee. Devine called the judge’s action then “a sad day for BK.’’

It wouldn’t have to come to that had the team been more fiscally responsible. Court documents show that team lost $29.5 million from 2014-16. Court documents show that the team “budgeted” for a loss of $1.358 million in 2017 in what was described as a “skeletal budget.”

Then, there was the millions owed Union Bank & Trust for the numerous loans (now up to more than $9 million). The IRS filed court documents on March 12 that stated it had a secured claim of $2.5 million and a priority claim of $328,792.47 owed. A former employee and current employee at the time testified in March about having paychecks bounce last year. A former employee said he had a paycheck bounce in September 2017, November 2017 and December 2017 before leaving the team.

In May, court documents listed secured claims against the team at $31.6 million. That included $15 million to the Virginia Racers Group, which included Devine and started the team. Court documents also listed unsecured claims at $773,569.17 and non-priority unsecured claims at more than $5 million.

Smith decided this summer that it was in the best interest to sell the team.

“One of the reasons, and I know that Mr. Devine is in the room and probably doesn’t want to hear this, but I think one of the reasons this team is in trouble is it had the wrong owner,” Smith said in court on July 26. “So I believe the right owner, transition of ownership, would be the best thing for this team.”

Smith stated that day that “the cash flow (for the team) is exceptionally tight” and questioned then about going beyond the end of the season.

With all the money spent, BK Racing rarely ran anywhere close to the front. The organization, which fielded up to four cars at times, had three top-10 finishes in its history.

Sunday, in its last race as BK Racing, Blake Jones finished 27th, 15 laps behind the leaders. Only three other cars that made it to the finish ran fewer laps than Jones.

“It’s a tough business,” Devine said in February at Daytona when asked why he didn’t align with another team to help defray costs. “I think it’s an expensive learning curve. I also think … you’ve got to decide where you are taking the company and I took it down a very independent route, which probably wasn’t the smartest (thing).”

But Devine was not deterred Thursday. As he stood outside the federal courthouse awaiting an Uber ride to the airport, he said he still wanted to be in NASCAR as an owner.

“I’ve got other options,” he said.

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Joey and Caitlin Gase welcome twin sons

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Xfinity Series driver Joey Gase and his wife Caitlin are now parents to twin boys

The babies were born on Wednesday. Their names are Jace and Carson.

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Silly Season Scorecard: Front Row Motorsports adds John Hunter Nemechek

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Front Row Motorsports filled one of the last major vacancies in the NASCAR Cup Series when it announced Thursday John Hunter Nemechek will compete for the team full-time in the No. 38 Ford.

With the announcement also came the news the team is retracting to two cars after fielding three in 2019.

As a rookie, Nemechek will have Michael McDowell as a teammate.

Here’s how the rest of NASCAR’s Silly Season has played out so far.

ANNOUNCED CUP RIDES FOR 2020

No. 00: Quin Houff will race for Star Com Racing full-time. Announced Nov. 27.

No. 1: Chip Ganassi Racing announced on Nov. 1 a multi-year extension with Kurt Busch.

No. 6: Roush Fenway Racing announced Oct. 30 that Ryan Newman would return to the car as part of the news that Oscar Mayer would sponsor the No. 6 through 2021.

No. 8: Richard Childress Racing made it official Oct. 2 that Tyler Reddick will move to Cup in 2020 and drive the No. 8 car.

No. 10: Aric Almirola confirmed Oct. 11 he signed an extension to race for Stewart-Haas Racing.

No. 13: Ty Dillon posted a video Sept. 6 on Instagram refuting rumors that he would retire after this season. He has a contract with Germain Racing through 2020.

No. 14: Clint Bowyer was announced Oct. 17 as returning to Stewart-Haas Racing for a fourth season.

No. 15: Brennan Poole will make his Cup debut and will drive for Premium Motorsports full-time. Announced Dec 11.

No. 17: Chris Buescher will take over the Roush Fenway Racing No. 17 ride in 2020 after the team announced Sept. 25 that it would part ways with Ricky Stenhouse Jr. after this season.

No. 20: Joe Gibbs Racing announced Sept. 6 that it had signed Erik Jones to an extension. It is a one-year extension for the 2020 season.

No. 21: Matt DiBenedetto replaces Paul Menard at Wood Brothers Racing (announcement made Sept. 10). DiBenedetto’s deal is for 2020 only.

No. 32: Corey LaJoie will return for a second straight full season with Go Fas Racing and the No. 32 Ford. The team announced on Nov. 1 it would enter a technical alliance with Stewart-Haas Racing next year.

No. 37: Ryan Preece moves over from the No. 47 to the No. 37. He will have a new crew chief, Trent Owens, who has been crew chief on the No. 37 for the past three seasons.

No. 38: John Hunter Nemechek replaces the now retired David Ragan for Front Row Motorsports. Announced Dec. 12.

No. 41: Stewart-Haas Racing announced Nov. 15 Cole Custer will replace Daniel Suarez.

No. 47: JTG Daugherty Racing announced Oct. 16 Ricky Stenhouse Jr. will join Ryan Preece at the two-car team, essentially swapping seats with Chris Buescher. On Dec. 2, the team announced Stenhouse will drive the No. 47, with Brian Pattie serving as his crew chief.

No. 95: Christopher Bell moves to Cup in 2020 and will drive for Leavine Family Racing (announcement made Sept. 24).

Rick Ware Racing: JJ Yeley will drive one of the team’s three full-time rides.

 

YET TO ANNOUNCE DEALS FOR 2020

Daniel Suarez — The driver revealed Nov. 14  he would not return to Stewart-Haas Racing in 2020 after one season driving the No. 41.

 

ANNOUNCED PLANS IN OTHER NASCAR SERIES

Xfinity Series 

Ross Chastain – Kaulig Racing announced Oct. 15 he would compete full-time for the team in 2020 driving the No. 10 Chevrolet, joining Justin Haley.

Joe Gibbs Racing — Announced Oct. 17 Harrison Burton will drive its No. 20 Toyota full-time in 2020. Announced Oct. 31 Brandon Jones would return for a third year in the No. 19. Revealed Nov. 5 it would field a third full-time entry with Riley Herbst in the No. 18.

JR MotorsportsJustin Allgaier will return to the team for a fifth year in the No. 7 Chevrolet. The No. 8 car will be driven by Daniel Hemric for 21 races, Jeb Burton 11 races and Dale Earnhardt Jr. for one race. Noah Gragson will also return for a second season in the No. 9 car, while Michael Annett returns for a fourth year with the team in the No. 1 car.

Richard Childress Racing — Will field a part-time car in the No. 21, which will be shared by Myatt Snider and Anthony Alfredo.

Stewart-Haas Racing – The team has not announced plans for the No. 00 Ford with Cole Custer moving to Cup or whether Chase Briscoe will return to the No. 98.

JD MotorsportsJesse Little will compete full-time for the team.

 

Truck Series

GMS RacingDriver lineup will include Brett Moffitt, Sam Mayer, Sheldon Creed and Tyler Ankrum

Kyle Busch MotorsportsRaphael Lessard will drive the No. 4 full-time while Christian Eckes will drive the No. 18 full-time.

Halmar Friesen Racing — Stewart Friesen will return for a third full-time season in the No. 52 Truck. The team will also switch from Chevrolet to Toyota Trucks in 2020.

Hattori Racing EnterprisesAustin Hill will return to the No. 16 Toyota for a second year.

Niece Motorsports: Ty Majeski will drive the No. 45 truck full-time, taking the place of Ross Chastain. Announced Dec. 10.

DGR-Crosley: Has not made any driver announcements, but will switch from Toyota to Ford. Announced Dec. 11.

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Felix Sabates to end tenure as NASCAR owner

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Felix Sabates, who has been a NASCAR owner in some form since his team SABCO Racing began competing in the Cup Series in 1989, will retire from ownership in 2020, Chip Ganassi Racing announced Thursday.

The Associated Press first reported the news.

Sabates, 74, is leaving his role as a co-owner of Chip Ganassi Racing, which he sold controlling interest of SABCO Racing to in 2001.

Together they have earned 43 total wins in NASCAR’s top two series, including the Daytona 500 and Brickyard 400.

In addition to NASCAR, Sabates and Ganassi fielded entries in IMSA, where they won seven championships, 64 races, including a record eight Rolex 24 At Daytona races, the 24 Hours of Le Mans and the 12 Hours of Sebring.

The Cuba-native has experienced health problems in recent years. In 2016, he suffered from an illness that put him in intensive care for 73 days and in a coma for 29 days.

“I look back to the 1980s when I first started in this sport, and I can tell you that the landscape has really changed,” Sabates said in a press release. “It’s been challenging at times, and tremendously rewarding watching the sport grow. When I started the NASCAR team, it was just a different time —a smaller regional sport. Then NASCAR grew and grew into a big business and continued to grow after my partnership with Chip. I’m proud of what I’ve done over the last 30 years. I have friendships that will last a lifetime.

“I hope that what I have tried to give back to the sport — whether it be bringing NASCAR to Mexico or being instrumental in starting the sports car program with Chip — will be equal to what the sport has taught and given me. I’ve always said that I never wanted to be an old man walking around at the track; this is my way of honoring that commitment I made to myself years ago. I wish Chip and his teams all the success in the world and will be keeping a close eye on the sport from afar and maybe even make an appearance from time to time.”

Said Ganassi: “Where do you even begin to describe Felix Sabates? He’s done so much for the sport of racing. I teamed up with him almost 20 years ago, and he’s been a great business partner and an even better friend. In that time, the only thing we’ve had an argument over was who was picking up the tab at dinner. Felix helped me develop as an owner as well as an individual. His track record in this sport certainly sets the bar high for anyone that follows. I’m proud to call him a friend and wish him all the best.”

 

 

Natalie Decker recovering from gallbladder surgery

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Natalie Decker, a Gander RV & Outdoors Truck Series driver, is recovering after undergoing surgery to have her gallbladder removed.

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Decker, who raced for DGR-Crosley in 2019, posted on Instagram Wednesday about what led to the surgery, including problems with her gallbladder the kept her from taking arthritis medication.

“Hi everyone now that I have had the surgery to remove my gallbladder I will share the whole story!” Decker said. “I have been not being able to eat much food and have been in so much pain every time I eat we went through lots of testing like upper endoscopy and gallbladder function test! They finally figured it out and my gallbladder wasn’t functioning right! I had to get my gallbladder removed before I could go back on my Arthritis medication. I’m so thankful everything went very well!”

Decker, 22, made 19 starts in 2019. Her best finish was 13th in the spring Las Vegas race.