Working On My Redneck ™ » RPM

The King Is King Again!

Leon — Tue, 30 Nov 2010 17:48:12 +0000

(photo courtesy Jeff Zelevansky)

Richard Petty and a group of financial associates have signed and closed a deal to purchase Richard Petty Motorsports from George Gillett. The investment group of associates are; Richard Petty, Medallion Group, and DGB Investments.

Petty, is a seven-time NASCAR champion who has won 200 races, including 10 Daytona races. Known in the NASCAR world as “The King,” Petty will serve as Chairman and will be actively involved in overseeing day-to-day operations of the company.

The team will operate the legendary #43 car driven by AJ Allmendinger and the #9 car driven by Marcos Ambrose.

“Today is a great day for me, my family, our fans and our wonderful sponsors. Ford, Stanley Tools, Best Buy, Valvoline, Reynolds, Air Force, Super 8, Paralyzed Veterans of America (PVA), WIX Filters and Menards have supported me through thick and thin and I thank them from the bottom of my heart,” Petty said.

Jamie Allison, Director, Ford North America Motorsports, said in a statement: “We’re elated that Richard Petty has been able to complete this very complex task of restructuring Richard Petty Motorsports. Everyone knows that The King is a motorsports icon and to have him part of the Ford Racing family is something we cherish.”

“George and Foster Gillett deserve a great deal of credit for running a successful race team,” commented Petty. “They made a significant investment into the business and helped get back into Victory Lane. Going forward, we have put together an all-star ownership team consisting of myself, Medallion, and VeriFone CEO Doug Bergeron.”

Medallion Financial, a publicly traded investment company, has invested over $3 billion in companies since its IPO in 1996 and its board members include such notables as former New York Governor Mario Cuomo, former Connecticut Governor and Senator Lowell Weicker, and another “King” of his sport, Hank Aaron. The Murstein family is the largest shareholder in Medallion, owning approximately 20 percent.

DGB Investments is an investment vehicle of Canadian-born investor Douglas G. Bergeron, CEO of VeriFone Systems, Inc. (NYSE: PAY), San Jose, Calif. In 2001, Bergeron and DGB participated in the acquisition of VeriFone Systems from Hewlett-Packard in a transaction valued at $50 million. Today, VeriFone’s market value exceeds $3 billion dollars and Bergeron remains CEO and one of the largest individual shareholders.

Richard Petty concluded, “Our partnership with Andy Murstein and Doug Bergeron will help take us to a whole new level and I could not be more excited about our future.”

With this latest transaction it would appear that once again, “King Richard Petty” will be able reign again as King of NASCAR!

What is your view on this latest financial twist of Richard Petty Motorsports?

TIL NEXT TIME, I AM STILL WORKING ON MY REDNECK!

RPM Seeking Financial Assistance

Leon — Tue, 26 Oct 2010 02:17:39 +0000

(photo courtesy Leon Hammack)

This info is from FOX Sports.com.

George Gillett’s financial difficulty following the sale of Liverpool FC has thrown the future of Richard Petty Motorsports into doubt and left the NASCAR team’s owners and lenders searching for investors to keep the team afloat.

The Gilletts and Pettys, which are two of the NASCAR team’s principal owners, began an aggressive search for investors this month. RPM has hired the Gordian Group, a New York-based investment bank, to assist them in their search, while the syndicate of banks that lent Gillett more than $90 million to buy the team have been working with FTI Consulting, a global consultancy specializing in corporate finance, to find investors, sources said.

A spokeswoman for RPM declined to comment.

The search for funding for RPM follows a challenging financial year for Gillett. The team reportedly defaulted on its roughly $90 million loan last February, and Gillett, who owns as much as 70 percent of the team, has been unable to restructure it.

Gillett was counting on the sale of his stake in Liverpool FC to assist him in funding the NASCAR team. But Liverpool sold two weeks ago for $475 million, a sum far less than Gillett and co-owner Tom Hicks, the former Texas Rangers owner, expected and one that has put a heavy strain on Gillett’s liquidity.

Bankers met with Gillett last week regarding RPM. Wachovia and CIT, which lead a syndicate of about a dozen financial institutions that issued the loan, didn’t respond to requests for comment.

The banks reportedly offered Gillett a chance to buy out the loan for $35 million last summer, but he declined to do so, according to sources. It is unclear what the banks would accept from a buyer or investor interested in RPM.

In addition to owing the banks money, Gillett also owes Ray Evernham at least $20 million and Roush Fenway Racing several million dollars, sources said. Evernham founded the team in 2000 and sold it to Gillett in 2007 for more than $100 million. He retained as much as a 16 percent ownership stake in the organization.

The team was renamed Richard Petty Motorsports in 2009 after Gillett formed a partnership with Petty that gave the NASCAR great a roughly 4 percent stake in the team. The partnership followed the closure of Petty Enterprises.

Roush Fenway Racing began building engines for RPM after RPM merged with Yates Racing last year and switched from Dodge to Ford cars this season. Without RPM, Roush Fenway would lose one of the buyers and testers of its engines, and Ford would drop from representing two Sprint Cup teams—Roush Fenway and RPM—to one.

Evernham didn’t return calls seeking comment. Roush Fenway Racing representatives referred inquiries to RPM.

RPM, which employs approximately 240 people, down from about 300 when Gillett bought the team, was current as of last week on all of its obligations to its drivers and employees. The team has managed to stay current despite losing the support of Chrysler, which was one of the team’s major underwriters when it ran Dodge cars.

No drivers for RPM made the Chase for the NASCAR Sprint Cup this year, and its premier driver, Kasey Kahne, left the team last week with five races left in the season. His No. 9 car is sponsored by Budweiser, which is leaving RPM for Richard Childress Racing next year.

RPM plans to run two cars next season after running four this year.

Only one of the 2011 cars, the No. 9 Stanley Tools Ford to be driven by Marcos Ambrose, is sponsored. The team remains in negotiations with Best Buy about extending its sponsorship of the No. 43 car driven by AJ Allmendinger.

Best Buy’s previous sponsorship was worth approximately $6 million a year, which is well below the $15 million to $25 million top teams command for primary car sponsorships, sources said.

RPM is the last sports property Gillett owns. He sold his 80 percent stake in the Montreal Canadiens in the summer of 2009 for a reported $550 million and sold Liverpool FC for $475 million earlier this month.

Gillett’s financial struggles coincide with the recession and the credit crunch that followed. He bought both RPM and Liverpool at the height of the market in 2007 and financed the acquisitions with debt.

As banks became less willing to extend or restructure loans in late 2008, his ownership of the teams was tested. Gillett and Hicks eventually were forced to sell Liverpool FC by the primary lender, Royal Bank of Scotland, and the sale added to the pressure Gillett faced at RPM.

Tripp Mickle is a reporter with SportsBusiness Journal.

What is you take on the whole George Gillett financial woes?

TIL NEXT TIME, I AM STILL WORKING ON MY REDNECK!

RPM Owes Millions

Leon — Fri, 22 Oct 2010 18:48:18 +0000

(photo courtesy Leon Hammack)

The details are starting to slither out of the garage area, revealing that Richard Petty Motorsports may owe approximately $12 million dollars to the team’s chassis and engine builders.

Speaking on the condition of anonymity, a source with knowledge of the situation told Sirius NASCAR Radio’s Sirius Speedway with Dave Moody that RPM had fallen $9-10 million behind in its payments to Roush Fenway Racing and Roush Yates Racing Engines for race cars, engines and rear gear assemblies. That debt prompted Roush to repossess the team’s Talladega cars, engines and gears earlier this week, but the cars were returned to RPM late Thursday morning after a partial payment was made. The engines reportedly remain in the possession of Roush Yates Racing Engines, awaiting an additional payment. (Sirius NASCAR Radio’s Sirius Speedway)

Kahne said RPM has met all its financial responsibilities to him, dismissing rumors that the decision to split early made sense for both sides. Red Bull Racing will pay Kahne’s salary the rest of the season. Kahne said talks about a split began on Monday, two days after the brakes failed on his car for the second time in three races (and third time this season), leaving the driver frustrated. Kahne defended his decision not to return to the race after repairs were made, saying he was sick and unable to continue. He was offended that an RPM official questioned his commitment, saying he needed to do his part to help the team. “Anybody that questions my commitment doesn’t know me very well,” Kahne said. “I don’t know if there is anybody out there that puts as much into it as I do throughout the week. I was sick to my stomach and it was time for me to call it a day. I’m happy I did it and ready to get on with this weekend.” Kahne said the decision to split was not based on speculation that financial difficulties concerning RPM. He said he wished the team well the rest of the season. Kahne said he has agreed to maintain his commitments to sponsor Budweiser for the remainder of the season, including all meet and greets. He added this was not the way he wanted to end his relationship with Budweiser or RPM, but reiterated it was best for all parties.

IRONIC:

As SPEED opened Friday’s NASCAR TV coverage, it showed the #9 Richard Petty Motorpsorts and #83 Red Bull Racing team haulers parked next to each other and the #83 is parked next to the #19 RPM team in the garage at Martinsville. Kahne was shown talking to a crewman at RPM, with Kahne in his Red Bull Racing driver suit.

It appears that the CEO of Richard Petty Motorsports, George Gillett and company’s house of “smoke and mirrors”, are beginning to crumple. “The house of Gillett” resembles the old card shark’s bait and switch game that we are all accustomed top seeing in the shadier sides of town!

No doubt there will be more details that will emerge on the financial news surrounding George Gillett and RPM.

TIL NEXT TIME, I AM STILL WORKING ON MY REDNECK!

It’s An All RPM Starting Front Row At Kansas

Leon — Sat, 02 Oct 2010 16:20:39 +0000

(photo courtesy Jed Jacobsohn/Getty Images)

There have been many questions about the future of Richard Petty Motorsports during the 2010 season. However, there were no questions about who ended up winning the pole for the Price Chopper 400 at Kansas Speeedway Friday. Kasey Kahne turned a lap of 174.644 on the Kansas Speedway mile and a half race track, securing the pole position.

Probably one of the biggest surprises of the day was having Kahne’s RPM team mate, Paul Menard, turn in the second fastest lap of the day resulting in an all Richard Petty Motorsports starting front row!

The RPM #9 Budweiser Ford is on the pole for the third time this season, however, Kahne is still looking for his first victory of the year. In spite of their great qualifying performances, both Kahne and Menard will be leaving Richard Petty Motorsports for other race teams at the end of the 2010 race year.

“To me it (the good showings Friday) shows that myself and Paul and our teams are still really interested in running strong and not backing down at all just because we have other things we are going to do in the future,” Kahne said. “At the same time it shows that RPM is giving us great race cars. Roush Yates is giving us great engines. We have the package, we just need to put it all together.

“We have struggled. We had that deal in Atlanta that maybe made us miss the Chase and we haven’t run well since. It feels got to get on the pole today and hopefully it gives us some momentum for Sunday’s race. Hopefully we can carry that.”

So Sunday will be a very interesting race, the Chase climate will show a definite change. By the end of the race Sunday, there will definitely a growing division between “the contenders” and “the pretenders”! The Sun will be shining brightly on those contenders still firmly in “The Chase”, however for the bottom four race teams, this weekend’s performance will be very critical for them!

Here is the race line up for the Price Chopper 400 at the Kansas Speedway.

There are twelve drivers, eight races, and one championship, who will be the last man standing?

TIL NEXT TIME, I AM STILL WORKING ON MY REDNECK!

Ambrose Moves To Richard Petty Motorsports

Leon — Tue, 17 Aug 2010 20:39:38 +0000

(photo courtesy Elsa/Getty Images)

Richard Petty Motorosports announced today that Marcos Ambrose will be replacing Kasey Kahne in the #9 Stanley Tools Ford in 2011. Ambrose, a native of Australia, has been piloting the #47 JTG/Daugherty Toyota for the last few years. Ambrose said that his desire to leave JTG/Daugherty Racing team was his desire to win races and championships.

“It was time for a change,” Ambrose, 33, said. “I felt I had to (move on) if I was going to survive in the sport.

“I believe I’m as good as anybody out there and can win four championships, just like Jimmie Johnson can,” he said.

Ambrose said he feels he now has “all the ingredients I need” at RPM.

At RPM, Ambrose will be teammed with A.J. Allmendinger and drive a Ford. Both Ambrose and Allmendinger got their starts on road courses.

Ambrose has started 70 races in his Cup Career. He has not won a race but has six top-five finishes.

His best finishes this year have been on the Infineon and Watkins Glen road courses where he was sixth and third respectively.

“We are very happy to have Marcos Ambrose join our team,” said NASCAR Hall of Famer and team owner Richard Petty. “He’s a very talented and passionate driver and will be a great addition to our team.”

Ambrose’s car will carry Stanley tools as primary sponsor.

“We knew once Marcos became available that we wanted him to be a part of the RPM family,” said Foster Gillett, managing partner and team owner. “He’s a fan favorite and he’s proven to be a tough competitor on track. We’re thrilled to have Stanley continue their partnership with our team and believe that Marcos is a great fit for the Stanley Racing program.”

This wasn’t a well kept secret in the garage. What is your thoughts of the new driver in the RPM stables?

TIL NEXT TIME, I AM STILL WORKING ON MY REDNECK!

“The Petty Blue/Day-Glo Red” Re-Emerges

Leon — Mon, 10 May 2010 20:31:56 +0000

As a tribute to team owner and NASCAR legend Richard Petty, the No. 43 Richard Petty Motorsports Ford will adorn old familiar colors for the NASCAR Sprint Cup Series event at Dover (Del.) International Speedway. The Ford driven by AJ Allmendinger will bring back the “Petty Blue” and “Day-Glo Red” colors in honor of “The King,” who will be inducted into the NASCAR Hall of Fame as part of the inaugural class on Sunday, May 23.

The throwback paint scheme will resemble the No. 43 machine Petty drove in 1984. That season, the driver collected his 199th career win at Dover. Petty holds the record for the most wins in NASCAR with 200.

“Obviously the No. 43 and Richard Petty are synonymous with NASCAR,” said Allmendinger. “To run this special throwback paint scheme at Dover as he’s being inducted into the NASCAR Hall of Fame in the first class is really a pleasure. The people that are being inducted into the Hall of Fame this year, they are the ones who made NASCAR what it is. Just to be a part of it is awesome. To be Richard’s driver, it’s an honor.”

Petty will serve as the Grand Marshal for the Autism Speaks 400 at Dover International Speedway on Sunday, May 16. The seven-time NASCAR Sprint Cup Series champion won the inaugural race at Dover in 1969. He is also tied with Bobby Allison for the most wins at the one-mile track with seven.

It is only fitting that NASCAR honor one of its living legends! “The King” has done more for NASCAR than anyone one else who has ever been a part of this sport. When one thinks of NASCAR, the next thought is the “Petty Blue”#43 Plymouth of the 60′s and 70′s that showed the rest of the boys the fast way around the track!

For NASCAR, history is a very important! In just a few days NASCAR will open up their very own “Hall of Fame” in downtown Charlotte. To keep the sport growing NASCAR has learned that you must keep one eye on the future, all the while celebrating the past!

What do yo think?

TIL NEXT TIME, I AM STILL WORKING ON MY REDNECK!

RPM: Life Without Kasey Kahne

Leon — Sat, 17 Apr 2010 14:26:32 +0000

(photo courtesy Jason Smith/Getty Images)

Foster Gillette, co-owner of Richard Petty Motorsports, fully expects Kasey Kahne to fulfil his commitment to RPM and The Ford Motor Company for 2010.

Not only do I expect that, the one thing that I do know well is what a gentleman Kasey Kahne is,” Foster Gillett, son of team principal George N. Gillett Jr., said Friday morning at Texas Motor Speedway. “I really, really believe that not only will he fulfill his contract and his commitment to us, but he’ll do it to  the best of his ability. He’ll uphold all of the commitments that he has.”

“I think a lot of people explain him as kind of a racer’s racer,” Gillett said. “If you give him great equipment, he’ll go and win and I think that’s our focus. I really believe we have a championship-caliber team in the No. 9 team as a whole, with the driver and the sponsor and all the people that are a part of it. Our goals haven’t changed. We show up here to win with that car. We show up to win with all of our cars and we look forward to trying to get him into the Chase and compete for a championship.”

I think many different owners or teams in this sport would take a 30-race contract with Kasey Kahne to try and do the best they can,” Gillett said. “He’s probably one of the nicest people in this sport. He’s one of the greatest racers and we’re pleased to have had him for as long as we have, and we’re focused on our next 30 races with him to see what we can do. We want to win races. Obviously, when there’s a change like this it opens opportunities for others. I think we’re trying to focus more on what opportunities we have than what we might potentially lose.”

Gillett declined to say if Kahne has a non-compete contract that prevents the driver from taking Bud with him to another team. “That’s a contractual, private matter and we’re going to keep it there,” said Gillett, whose current lineup also includes Elliott Sadler, A.J. Allmendinger and Paul Menard. Of that group, only Sadler (three wins) has visited Victory Lane in NASCAR’s premier series.

Through all of this massive upheaval, Gillette talked very positively about the driver that is bolting from his stable.

However, one of the biggest fall-outs from all this upheaval at RPM is the possibility of loosing Budweiser as the big dollar sponsor for RPM. That could be a catastophic for RPM and possibly add to the already financial difficulties that they have had to endure.

Stay tuned gang, the Hendrick-Kahne saga still has a few more chapters to be written!

TIL NEXT TIME, I AM STILL WORKING ON MY REDNECK!

RPM Drivers Like Their Chances In 2010

Leon — Tue, 02 Feb 2010 05:02:38 +0000

(photo courtesy Chuck Burton)

In the last two years this organization has merged three times and been housed in four different shops and changed their name from Petty Enterprises to Richard Petty Motorsports. It has gone from basically a one car team to a four car team and from Dodge to Ford.

The irony of all these mergers of Petty Enterprises/Richard Petty Motorsports is that the newly merged organization has a shot of being as strong as ” The King” was in the heyday of Petty Enterprises. The merger will quash the question of equipment, it will now come from the Roush-

Fenway Racing. RPM will pick up a wealth of technical support from beefed-up Ford, something that it never got from Dodge. It will share information not only among the four RPM drivers, but also among the four Roush-Fenway drivers as well!

The “big dog” at RPM, Kasey Kahne, is excited about the possibilities there, enough so that publicly he willing to state that RPM has a chance to re-sign at years end. But many say that will not happen. Some already have Kahne penciled in as the third driver at Stewart-Haas Racing, or some other high powered race team.

“I’m definitely going to give them a shot here”, Kahne said. That is a far cry from his words in November! Maybe it is a negotiating ploy. Maybe he honestly believes that!

All four of the RPM drivers, Kasey Kahne, Elliott Sadler, Paul Menard, and A.J. Almendinger, contracts are up at the end of the 2010 season. That might [prove to be a very interesting contract time for the organization!

King Richard and Prince Faisal

Leon — Sat, 03 Oct 2009 15:51:09 +0000

(Photo by Marc Serota/Getty Images)

Most probably because of these tough financial times Richard Petty folded his racing team, Petty Enterprises, into Gillette-Evernham Racing prior to the start of the 2009 season. Even though Petty remains the face, and quite often the voice of Richard Petty Motorsports, most think he is little more than a figurehead for the organization.

Having this knowledge, then just what does the King of NASCAR and the Prince of Saudi Arabia have in common? Read on and you might be enlightened.

Earlier in the week it was announced that George Gillett, Jr., the largest shareholder of Richard Petty Motorsports, had signed a “commercial collaboration agreement” with Prince Faisal bin Fahd bin Abdullahal-Saud , a member of the Royal Saudi Family. Although this agreement is a little murky, nobody really knows what this really means, but RPM surely could use the financial help!

Now there are some whispers and rumors that Gillett, who sold his NHL team the Montreal Canandians, wants out of NASCAR and his co-ownership of the Liverpool football ( soccer) team. Prince Faisal has the interest, as well as all the money needed to bail Gillett out of all of his sports holdings!!

These questions beg to be asked about Richard Petty Motorsports.

1. What role will Prince Faisal have in this organization?

2. What role will Richard Petty have with the race team?

3. Will there be prayer rugs in the RPM haulers?

4. Will the engine be measured in Camel-power versus horsepower?

5. Who will fill the void left when V.P and managing director of racing competition, Mark McArdle, parted ways in September?

6. Will the race team headquarters be moved to Jeddah or Riyadh in Saudi Arabia?

What are your thoughts about this Middle East foray into NASCAR?

TIL NEXT TIME, I AM STILL WORKING ON MY REDNECK!