Can we not all recognize that the Raikkonen to NASCAR story with Frat Boy Gillett is an April Fool’s joke?
Welcome back to NASCAR Foster … if you couldn’t tell, we didn’t miss you.
This marriage wasn’t completely surprising – in the midst of his team going up in flames at the end of last season Gillett was seen at Homestead parading Raikkonen around the RPM haulers and the garage. The ego and lack of self-awareness that apparently accompany Gillett is galling.
Remember this is the guy who, with his father, almost cost hundreds of people their job and almost forced Richard Petty out of the sport – all just a few short months ago. Turns out it’s not such a good idea to leverage a less than profitable sports team to the hilt (let us not forget Gillett did this same thing with Liverpool FC). In the annals of NASCAR history, the Gillett’s are just below Bobby Ginn. Needless to say their reputation is less than spectacular.
Disgruntled former Gillett partner Ray Evernham agrees. He told Sirius Speedway’s Dave Moody:
“I honestly can’t believe it will happen… I can’t see how (the team) will be able to get parts and pieces. I can’t imagine anyone doing business with (Gillett), considering the past history… That’s just my opinion, but the facts are there. There are a lot of people out there who are still owed a lot of money. It’s a joke.”
Money up front perhaps? I figure if Kevin Conway can keep finding rides, someone will sell Foster Gillett equipment. As unfortunate as it is, I suspect we’ll see a Kimi Raikkonen driven, Foster Gillett owned truck in the not too distant future.
Don’t get me wrong, I’ve got no beef with Kimi Raikkonen coming to NASCAR – the more the merrier. Unfortunately, with the memory of last season all too fresh, it’s a different story with Foster Gillett. As the old adage goes, fool me once, shame on you; fool me twice, shame on me.
All I can say is, truly, absolutely, stunningly, unbelievable. An April Fools joke indeed.
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If you need proof of that recount the last 48 hours.
On Monday and Tuesday we were talking about Kasey Kahne, Richard Petty Motorsports and the frustration that permeated that relationship. Then Wednesday night Kahne was unexpectedly released from the team and Thursday, as Lee Spencer wrote, “the house of cards is finally falling for George Gillett’s Richard Petty Motorsports.”
So, how did this happen? This is an organization with four fully (or mostly) funded Cup cars with ties to one of the biggest organizations in the sport. I suspect George Gillett’s other forays into sports ownership can provide some clarity.
Whatever the case, this is yet another glaring example of the lack of stability and job security in this sport (though I suppose job security is lacking elsewhere too). Nothing is certain here. And unfortunately, more often than not it’s those who can least afford it who pay the price.
In the midst of all the chaos today, you had to feel for those who are now wondering if they’re going to have a job next week. I suspect seldom few knew what they were getting into when they got in their cars that morning to drive to work. I guess in these situations though that’s how it goes.
In this bad economy, there are plenty living on the edge of survival. Just look to the Nationwide and Truck Series and the slate of teams who have complained about money or a lack of sponsorship. Many are just one short step away from oblivion.
Despite that and the issues George Gillett has had with money, and even with the $90 million loan default, it was still surprising to see a team like RPM in a situation like this.
In NASCAR your job is only as good as the team you work for and the money behind it – and even then there are a lot of other factors that come into play. Here’s hoping the employees (including the drivers) at RPM have a good outcome.
Two weeks ago New England Sports Ventures (NESV) agreed to purchase the Premier League Football club, Liverpool. The deal was facilitated through a vote by the team’s board which ousted the team’s current ownership in a forced sale. The soccer club, one of the most successful in league history, has been mired in recent years under crushing debt and abysmal performance. The fans, the banks, and the board had had enough.
So you’re probably asking what soccer, and more specifically Liverpool, have to do with NASCAR? Well, not a whole lot, except the two share past and present owners – George Gillett and John Henry.
NESV, if you’re unfamiliar, is a sports investment company principally owned by billionaire John Henry. Among the company’s assets are the Boston Red Sox, Fenway Park and half of Roush Fenway Racing.
The guys unceremoniously booted out of Anfield are Tom Hicks, the former owner of the Texas Rangers and current owner of the Dallas Stars, and George Gillett, the former owner of the Montreal Canadiens and current owner of Richard Petty Motorsports.
Hicks (who by the way has been in the news this year because of the bankruptcy and subsequent takeover and sale of his Texas Rangers) and Gillett sought an injunction in the sale of Liverpool. The High Court in London turned down the pair and a Texas judge, after briefly granting an injunction, allowed the sale to move forward. Hicks and Gillett have threatened a billion dollar lawsuit – they have backed off this some though.
What makes this particularly uncomfortable in NASCAR is the close partnership Gillett’s Richard Petty Motorsports has with Henry’s Roush Fenway Racing. The two share equipment, drivers, and a compound in Concord, NC. Now John Henry isn’t exactly a fixture in North Carolina, but you can imagine, with Gillett and Hicks likely to lose A LOT of money, where this might be less than ideal.
You can amp up the uncomfortableness should Gillett and Hicks decide to do file a lawsuit against those involved in the sale, including Henry’s NESV.
In all honesty, I don’t think the business relationship of RPM and RFR is any worse for the wear, but it’s still an interesting story. Just think, if you’re Foster Gillett, George Gillett’s son and the managing partner of RPM, what happens if you have to deal with the Fenway Sports Group, NESV or John Henry himself?
If you watched the Sprint Cup race at Dover two weeks ago, you caught a glimpse of what might be the future for AJ Allmendinger. And if he continues to run like he did, that future looks very bright.
It’s been an up and down ride for Allmendinger through his short career. From getting the opportunity to come to NASCAR with Red Bull Racing, to getting booted for another unproven open wheeler (Scott Speed), and then getting a rare second shot in the Cup Series with Richard Petty Motorsports. And now this season, Allmendinger appears that he has made strides and could be right on the edge of becoming a contender on a weekly basis.
Allmendinger, currently in his fourth year in the Cup Series, has had his best season to date. He’s improved in every statistical category including points position (19th), laps led (176), and average finish (17.8). He’s picked up one top five and seven top ten finishes this season, and earned his first career pole at the spring Phoenix race. And in his last four starts, Allmendinger has four top 12 finishes.
At Dover, Allmendinger qualified second, and led 143 laps before a cut tire killed his chances to win. Before the tire problem though, Allmendinger had built up a several second lead and appeared to be the class of the field. Even with having to pit under green, and losing a lap, ‘Dinger still fought back to finish 10th.
If the proverbial light has come on for Allmendinger, it couldn’t be coming at a better time. It was announced only a matter of weeks ago that he would be returning to RPM for the 2011 season as the driver of the famous #43. And with the departure of Kasey Kahne, ‘Dinger now becomes the main guy for Petty and the Gilletts. He will be tasked with helping to not only revive RPM, but also bring the #43 back to prominence.
Allmendinger has proven over the course of his career that he can win, and I believe it’s only a matter of time before he and his team break through. A strong run to the finish of the 2010 season could well give this team the momentum they need to propel them to contending for wins regularly in 2011. I wouldn’t even be surprised if this team was in the Chase discussion come next summer.
For all intents and purposes Kasey Kahne is (or was) Richard Petty Motorsports. He’s, young, he’s attractive, and he’s attached, in one way or another, to just about every sponsorship deal the organization has. Kahne’s marketability and talent on the track made him an outstanding asset for an organization struggling to survive. Now that Kahne is soon to leave the organization, we’ll have a chance to see just how able RPM is to continue in a post-Kahne world.
Kahne’s exit from the team hardly came as a surprise to anyone. While I don’t think too many people thought Hendrick would be the place he’d go in 2011, it was widely believed Kahne wouldn’t return to RPM for another season. Though things appeared to be improving as of late, his discontent with the team became apparent last September when he very publicly questioned the team’s leadership.
Unfortunately for Richard Petty Motorsports, their relationship with Kasey Kahne couldn’t be repaired.
What’s left of RPM is AJ Allmendinger, Elliott Sadler, and Paul Menard. Each of these drivers have contracts that will end at the conclusion of 2010. While prospects may not be too great for Allmendinger and Sadler (as there aren’t many open, funded spots), with improved performance and a billion dollar fortune behind him, Paul Menard could likely go any number of places. The team also faces the prospect of losing major sponsor Budweiser. So the question is, where do they go from here?
Every move the team makes from this point until the end of the season will determine their viability in 2011 and beyond. On top of losing Kahne, Sports Business Journal reported last Monday that the team was in default on a $90 million loan. George Gillett later said the debt was actually closer to $70 million and was in the process of being restructured. Unfortunately for RPM, George Gillett has a bad track record with sports teams and debt. See Liverpool FC; See Montreal Canadiens.
Foster Gillett told the media this weekend though his family was working to improve their liquidity position.
In a sport where your team is only as valuable as the sponsorships and drivers you bring to the table, RPM has lost it’s biggest asset. Without Kahne it’s likely sponsorships will be harder to come by and maintaining their profile as a competitive four car team will be harder to do. It will be interesting to see how the team advances down the rough road ahead.
I’ve got to say NASCAR fans, I’m a little disappointed. I was looking around at unnamed Web sites and I came across a story about George Gillett and his partnership with Prince Faisal bin Fahd bin Abdullah al-Saud of Saudi Arabia (if his last name didn’t tip you off). What I found was a very prominent site that didn’t moderate comments and as a result allowed a lot of hateful, racist stuff to be said. I won’t repeat any of it here.
Although I know none of our readers were saying any of that stuff (and those comments don’t reflect the views of most fans) it still really bothered me. NASCAR fans bemoan being tied to some really negative stereotypes and I don’t blame them. But then there is a segment of fans that goes on to write stuff like this. A few bad apples spoil the whole bunch.
Now I suspect Prince Faisal is far more interested in George Gillett’s stake in the Liverpool Football Club in England (which Gillett owns with Texas Rangers owner Tom Hicks), than he is in Gillett’s interest in Richard Petty Motorsports. For the sake of argument though, let’s say it is RPM that Faisal wants. Whats so bad about that?
The beauty of this sport is that literally anyone can enter it if they have the resources. This means the owners in the sport are financially a pretty eclectic bunch; from auto magnates to sports stars to working joes. Is Prince Faisal’s money not just as good?
In the NHRA, the money of a middle eastern royal was good enough for Alan Johnson, Larry Dixon and Del Worsham. HH Sheikh Khalid Bin Hamad Al Thani, a member of the ruling family of Qatar, partnered with Johnson this season to form Alan Johnson Al-Anabi Racing. According to the Wall Street Journal Sheikh Khalid is pouring $10 million into the team just this year. In this case the Sheikh is a man of wealth who loves drag racing and sees value in the NHRA. I say welcome.
In an era when money is increasingly tight and the future of a lot of organizations is in question why not look outside our own borders to attract investors?
All of what we’re seeing right now is very preliminary stuff, and from NASCAR’s and Richard Petty’s comments they haven’t even been consulted. That being said Prince Faisal and his sports investment firm F6 have a lot of resources. That shouldn’t be turned away or discouraged. Nor should we attach offensive stereotypes to someone just because of their national origin.
At the end of the day if Prince Faisal wants to buy a NASCAR team, or start one, or even wants to go NASCAR racing himself, I say go for it.
In the words of Rodney King, “Can’t we all just get along?”