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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BJ McLeod, Live Fast team move to Chevrolet

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Driver/owner BJ McLeod and Live Fast Motorsports will race in Chevrolets beginning with the 2023 NASCAR Cup Series season.

Based in Mooresville, North Carolina, Live Fast has been a Ford team.

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Live Fast is owned by McLeod, Matt Tifft and Joe Falk. Jessica McLeod, BJ’s wife, is the team’s chief operating officer.

“Our team is excited to make this transition to Chevrolet,” BJ McLeod said in a statement released by the team. “Chevrolet Camaros have proven great success on the track, and Live Fast Motorsports is looking forward to becoming a part of this advance.”

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The team will use ECR engines.

McLeod had one top-10 finish in 29 starts in the Cup Series last season.

Dr Diandra: Delving deeper into 2022 NASCAR season statistics

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As I discovered earlier this year, cautions don’t capture everything. Sometimes drivers spin, crash, lose wheels or blow tires, but racing continues. Cautions are inaccurate proxies for counting these incidents.

Improving accuracy requires re-visiting each race in detail to find those incidents that didn’t produce cautions.

So that’s what I did.

Non-caution incidents

I use the same categories for non-caution incidents as for cautions. Only incidents significant enough to cost drivers spots count, regardless of where in the field they happen. I don’t claim to have found every incident, but I think I caught most of them.

The table below summarizes my counts for caution and non-caution incidents in the 2022 Cup Series.

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Non-caution incidents comprise 30.1% of total incidents. The percentages, however, vary widely within categories.

For example: While non-caution accidents are just 14% of all accidents, non-caution spins are almost 40% of the total spin count.

Non-caution incidents by race

The graph below shows total incidents — caution and non-caution. I show the races in chronological order from left to right. The totals do not include planned cautions.

The largest number of non-caution incidents happen at road courses. These tracks’ length and sprawling nature allow drivers to recover from a spin or accident without drawing a caution.

  • The Indy road course had the highest overall number of non-caution incidents — nine spins, six accidents and one car on fire. That comes to a total of 16 non-caution incidents and three natural cautions.
  • COTA had the second-highest total of non-caution incidents with 13 — two accidents, nine spins, one tire issue and one wheel issue. Seven natural cautions bring COTA’s incident total to 20.
  • Bristol’s asphalt race came in third in total incidents. Although all of the accidents, spins and stalls recorded there caused cautions, six tire issues and five wheel issues did not. Bristol wins the award for most non-caution incidents at an oval.

Road courses accounted for one-third of all spins in 2022. Capturing total spins is important because spins indicate how easy it is to lose control of the car.

The first third of the season tallied 34 spins. The number rose to 40 in the second third, but fell to 25 in the last 12 races of the year. The numbers from the first two-thirds of the season included 10 spins each at COTA and the Indy Road Course.

The strong dependence of spins on track type makes it hard to draw a conclusion about whether drivers improved their ability to manage the car during the year.

Tires blown

The Next Gen’s symmetry makes the car harder to turn, which demands more from the tires. Crew chiefs also gained the ability to adjust rear camber. Goodyear reported force spikes of 200 to 300 pounds in the tires. Force spikes load a tire quickly, which can lead to blowouts.

I only counted situations in which it was clear that the tire went flat before any other incident, like a spin or accident. If it was possible that another incident caused the tire to blow, I didn’t include it as a tire issue.

I counted a total of 59 blown tires in the 2022 season, which includes those that caused cautions and those that didn’t.

Teams used around 26,600 tires this season. The 59 tire failures represent about 0.2% of all tires run.

Christopher Bell and Austin Cindric had the most blown tires with five each. Bell’s teammate Martin Truex Jr. had four. Tyler Reddick, Ryan Blaney, Chase Briscoe and Daniel Suarez each had three.

Joe Gibbs Racing’s four cars totaled 13 blown tires or 22% of the total number. Hendrick Motorsports, with the same number of cars, had eight blown tires, while Stewart Haas Racing had only six.

The Bristol asphalt race had the most tire issues, with 13. Texas came in second with eight and Kansas third with five. Atlanta, which was repaved and reconfigured, had six tire issues across its two races.

The number of tire issues at Kansas decreased from five in the first race to two in the second. I expect the overall numbers to go down next year as crew chiefs use what they’ve learned this year to refine their setups.

Wheels lost

The Next Gen’s single-lug wheel challenged pit crews, despite built-in indicators that confirm when a wheel is properly tightened. I counted 13 times cars had to back up on pit road to deal with a loose wheel and 19 times cars pitted right after a tire change to re-tighten wheels.

The four-race suspension for crew chief and pit crew members makes teams extra cautious.

I counted 14 wheels coming off cars during the 2022 season. Seven merited cautions. The remaining seven either happened on pit road, or a car that lost a wheel on track was able to make it back to pit road.

Fourteen wheels is 0.05% of all tires used. Again, this number reflects human error more than any design flaw in the wheels. More concerning to me are the handful of stops where teams couldn’t get wheels off cars. For example, debris between the wheel and hub at Darlington ended up costing Ross Chastain four laps.

The good news is that fewer wheels left cars as the season went on.

  • Eight wheels came off cars in the first third of the season.
  • Four wheels were lost in the second third of the season.
  • Only two wheels failed to stay on in the final third of the season.

As is the case for most statistics in the first year of a new car, these numbers will become more meaningful next year, when they’ll serve as benchmarks.

Goodyear renews agreement to remain NASCAR tire supplier

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NASCAR and Goodyear have entered into a new multi-year agreement maintaining Goodyear’s role as the exclusive tire for NASCAR’s top three national series. 

Goodyear also will be the title sponsor for the Cup race at Darlington Raceway in May 2023. Goodyear and NASCAR’s relationship dates back nearly 70 years and is one of the longest-running affiliations in any sport.

“From our manufacturing plants to offices around the world, racing is ingrained in our culture, and the importance of our relationship with NASCAR is reflected in the quality, performance and engineering we put into every Goodyear Eagle race tire,” said Richard J. Kramer, chairman, chief executive officer and president at Goodyear, in a statement. “Our performance on the racetrack plays an active role in the success of the sport and inspires the development of our consumer tires, fueling our commitment to take performance and innovation to the next level.”

Goodyear produces more than 100,000 tires for NASCAR’s top three series each year at Goodyear’s global headquarters in Akron, Ohio.

“Goodyear has been a trusted partner to the NASCAR industry since 1954, playing a critical role in our shared pursuit to deliver the best racing in the world,” said Steve Phelps, president of NASCAR, in a statement. “For more than 25 years, Goodyear Eagle tires have been the only component that connects the stock car to the racetrack. Our continued partnership will allow us to push boundaries and innovate our racing product for generations to come.”  

Jes Ferreira selected as Comcast Community Champion of the Year

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Comcast announced Jes Ferreira as the 2022 Comcast Community Champion of the Year Award, the eighth to receive the annual award. Among all the turmoil of the pandemic, Ferreira looked for an opportunity to give back. Despite her heavy workload, she decided to take on an even heavier challenge, becoming a foster parent to two young girls. 

“I am overwhelmed, humbled, and blown away to be recognized as the Comcast Community Champion of the Year,” said Jes Ferreira, 2022 Comcast Community Champion, “the amount of support this will provide for the Charlotte foster families ensures the best services for these children. I hope this sheds light on the foster community and encourages everyone to support in many different ways.” 

Ferreira, originally earned a foster license to become a foster parent for one child, but a few months later, the child’s younger sibling needed a new foster home. Although Ferreira, Senior Director of Live Shows for CSM Production, already had a crazy work schedule which included traveling to the race track most weekends on top of fostering one child as a single parent, she knew without a doubt these two siblings deserved to be together while in foster care. Now two young siblings who are going through the most trying time in their lives have been reunited thanks to Ferreira. 

On any given day, there are nearly 424,000 children in foster care in the United States. In 2019, over 672,000 children spent time in U.S. foster care. On average, children remain in state care for over a year and a half, and five percent of children in foster care have languished there for five or more years.  

Ferreira’s affiliated charity is Foster Village Charlotte (FVC), an organization that allows foster parents to connect with and support each other. FVC collaborates with 16 private foster parent licensing agencies, local government, child welfare organizations and the community to serve families holistically and represent the foster family voice to Mecklenburg County Department of Social Services (DSS). 

To further honor Jes’ incredible dedication, Comcast will donate $60,000 to Foster Village Charlotte (FVC).

“Jes encompasses everything the Comcast Community Champion of the Year stands for. Anyone that is at the track knows how dedicated Jes is to the sport of NASCAR and, we are so glad we expanded the eligibility for this award so we can uncover and honor the compassion, selflessness and generosity Jes provides off the track, and that is what makes this honor so special, ” said Matt Lederer, Comcast’s Vice President, Brand Partnerships and Amplification.  

 Ferreira, was chosen by a panel comprised of Comcast and NASCAR executives, as well as Curtis Francois, the 2021 Comcast Community Champion, who received the award for his work with the Raceway Gives Foundation 

For the first time, Comcast opened the eligibility for anyone in the NASCAR community with a 2022 annual credential or NASCAR full season license, and with this expansion, Comcast is now able to share these exceptional stories.   

Josh Williams, driver of the #92 DGM Racing car for the NASCAR Xfinity Series and Sherry Pollex, founder of Sherry Strong, were selected as finalists and will be awarded $30,000 each towards their respective selected charities – the Ryan Seacrest Foundation and Sherry Strong. 

Comcast has a long track record of community service, aiding in the advancement of local organizations, developing programs and partnerships, mobilizing resources to connect people and inspiring positive and substantive change. To learn more about these efforts, visit the Comcast Community Impact site. 

About Comcast Corporation’s Partnership with NASCAR 

Comcast’s Xfinity brand entered NASCAR as entitlement partner of the NASCAR Xfinity Series in 2015 and is now Premier Partner of the NASCAR Cup Series. Since then, the company has donated $840,000 to more than 20 different NASCAR-affiliated organizations to honor their efforts and to help further the impact of their worthy causes. Fans can visit ComcastCommunityChampion.com to learn more about past and present finalists and their acts of selflessness.