Monday, December 22, 2008

Davis sells NASCAR team, engine company

CHARLOTTE, N.C. (AP) -- Just a month removed from his first NASCAR championship, but hampered by the current economic crisis, owner Bill Davis has sold his race team and engine company.

Mike Held, a California businessman, and Marty Gaunt, vice president at Bill Davis Racing, bought out the veteran owner. The duo said Monday they've also taken control of profitable Triad Racing Development, which supplies engines, chassis and bodies to customers from all three of NASCAR's top series.


Davis, who has been in NASCAR for more than 20 years, won his first championship this season with Johnny Benson in the Truck Series. He also won the Daytona 500 with Ward Burton in 2002.

But Davis lost his Sprint Cup Series sponsor and has been unable to secure funding for 2009. Benson also announced before last month's title-clinching finale that he would not return to BDR next season.

"When you've been involved for this long in this sport, and won in all three series, there's definitely a lot of emotion involved," Gaunt said. "But I believe Bill got to a time in his life where he said "There's other opportunities for me.' I think he realized this is the right time for him to move on.

"When we told him this is what we'd like to do, presented it to him at the round-table and went back and forth, he got to a point where he wanted to move on this deal."

Davis was not immediately available for comment.

In addition to an Arkansas cattle farm, Davis owns and operates Bill Davis Trucking, which is separate from the NASCAR operation. The trucking company filed for Chapter 11 bankruptcy protection in October, 2007, and Davis said at the time the filing was "necessitated by an injury accident and an ensuing lawsuit against the company."

Davis entered NASCAR in 1988, teaming with fellow Arkansas native Mark Martin to run 13 Busch Series races. He had Jeff Gordon under contract in the early 1990s before Gordon found a loophole that allowed him to move to Hendrick Motorsports.

BDR first competed in Cup in 1993 and has five wins, including the Daytona 500 and Southern 500 with Burton. He started last season with two cars, but former Formula One world champion Jacques Villeneuve failed to make the season-opener and never secured sponsorship to keep that program afloat.

BDR's flagship No. 22, driven by Dave Blaney, finished 30th in the points and lost sponsor Caterpillar to Richard Childress Racing.

The Truck Series program remained successful, though, as Benson, Mike Skinner and Scott Speed combined to win seven races and Davis' first championship.

The new owners of BDR want to have competition details finalized by late January, but are hoping to have both the Cup program and all the Truck Series teams on track in February in Daytona. Held said much of it is dependent on sponsorship, and they are unlikely to field the Cup team without funding.

"We both made a pact that we would not attempt to do something that is short of funding -- it always ends in disaster," Held said. "If we come out onto the track, it's because it makes good business sense and nothing more."

So the attention for now is on Triad, where the new owners hope to expand the engine leasing program beyond its current Nationwide and Truck Series customers and into the Cup Series. The chassis program already services all three series.

Held, who owns a motorsports marketing firm and has an extensive background in racing sponsorship, said Triad already has a "full book of work" for 2009. He and Gaunt are now hoping that as the economic crisis takes a toll on NASCAR, more teams will start outsourcing their engine and body work to Triad in a cost-saving measure.

"With the constricting economy ... program managers are having to reevaluate their budget," Held said. "They are going to take a real hard look, for example, whether they should have their own chassis program. Our guess is, once they start to look, that process plus their engine department -- two huge line items -- they may say "Hmm, we may need to rethink this.' "

The goal, they said, is to increase Triad's engine business by 20 percent over the next season.

Davis will have nothing to do with Triad moving forward, the duo said, and any participation in the race team will be in a "godfatherly way."


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Friday, December 19, 2008

Speedway officials expecting some job cuts in '09

INDIANAPOLIS (AP) -- Add the Indianapolis Motor Speedway to the list of sports institutions hit by the recession.

Speedway officials have completed their budget review and some positions have already been eliminated, though spokesman Fred Nation did not provide a figure. Speedway officials have also implemented a hiring freeze and acknowledge more jobs could be lost next year if the economy continues to fizzle.


"As time moves forward, there could be more restructuring, depending on the economy," Nation told The Associated Press on Friday.

Earlier this week, the speedway began making changes as it closed its 45-year-old hotel, the Brickyard Crossing Inn, where some drivers used to stay in May and scenes from Paul Newman's movie "Winning" were shot. That decision cost 15 full-time employees their jobs.

Speedway officials join a growing group of sports leagues and teams that have been forced to cut back.

Last week, the well-financed NFL announced it would lay off 10 percent of its staff. The NBA, NASCAR teams and the company that runs Major League Baseball's Internet division also have announced layoffs. The NHL hasn't laid off workers, though it is under a hiring freeze.

But auto racing, whose teams, tracks and races are often funded by major corporate sponsorships, could be especially vulnerable.

The Indy Racing League replaced its fuel provider with a Brazilian-based Ethanol company last month. The new company, APEX-Brasil, has agreed to pay an undisclosed sponsorship fee and purchase TV time.

One sign of trouble came Thursday when race promoters announced that the IRL's September event in Detroit would be canceled, in part because of the economic crisis. They hope to put the race back on the schedule in 2010.

Plus, after a strong season in which Danica Patrick became the first woman to win an IndyCar race, Graham Rahal became the youngest driver to win a major open-wheel race and the re-unification of the former Champ Car and the IRL series reinvigorated interest in the series, the number of cars racing next season could drop.

"I expect that it will be down some, it will probably be similar to pre-unification levels," Nation said. "A lot of these deals don't get done until early in the year."

All of it could make the year more competitive off the track for series and speedway officials.

"We are as challenged, I will assure you, as most other industries," said Terry Angstadt, president of the IRL's commercial division. "When our job, all day, every day, is to make sure our business is well-supported financially, that's part of our responsibility."

Other concerns include ticket sales.

The speedway has already seen a decline in advance ticket sales for NASCAR's Allstate 400 at the Brickyard and is now offering a discounted rate for tickets purchased by Dec. 26. Nation attributes the decline, partly, to the tire problems that turned last year's race into a series of 10- to 12-lap shootouts.

Tickets for the Indianapolis 500, the track's signature race, have been selling at a better pace, Nation said.

"We depend on discretionary spending," he said. "We're not immune from some of the pressure that has been seen in NASCAR, the NFL and all kinds of other sports."

It's not entirely bad news for IndyCar racing.

Nation said some sponsors looking for better value from their money have started taking another look at the IRL. No deals have yet been announced.

"There has been interest from a number of sponsors, some are from NASCAR and some are from other motorsports," Nation said. "There certainly has been more interest than in other years."

As for the hotel, the track hopes a new tenant will rebuild a hotel with more modern amenities, something speedway officials deemed too expensive for it to do in these challenging times, which expedited their decision.

"Our motel is an example of the decisions we have put off for several years," Nation said. "I think the economic situation is what moved us to make that decision now. In a perfect world, we would have made the decision to close it at the same time we had a decision to make a new venture and kept the other one working until then."

------

AP Sports Writer Luke Meredith in Iowa City, Iowa, contributed to this report.


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Former official pleased with NASCAR settlement

CHARLOTTE, N.C. (AP) -- The former official who filed a $225 million racial discrimination and sexual harassment lawsuit against NASCAR is very pleased with her settlement and looking forward to moving on, her attorney said Friday.

Mauricia Grant reached a confidential settlement with NASCAR following 12 hours of mediation earlier this month in New York. The session was suggested by U.S. District Court Judge Deborah A. Batts after the first court appearance in what was expected to be a yearslong battle between the two sides.


"She'd been out of work a long time. We thought it was in the best interest of our client not to drag this out two to three years," said Benedict P. Morelli of New York-based Morelli Ratner PC.

"She needed closure. She's a young woman, and when you make the sort of allegations she did, it's difficult to move forward and get on with your life."

Settlement terms were confidential, and neither side admitted liability or wrongdoing.

"She's very, very happy with the resolution," Morelli said. "And I don't think NASCAR wanted to leave it out there. They wanted to put this behind them, as well."

Grant, who is black, worked as a technical inspector responsible for certifying cars in NASCAR's second-tier Nationwide Series from January 2005 until her October 2007 termination. In the lawsuit filed in June in the U.S. District Court for the Southern District of New York, Grant alleged 23 specific incidents of alleged sexual harassment and 34 specific incidents of alleged racial and gender discrimination during her employment.

Among Grant's claims, she said she was referred to as "Nappy Headed Mo" and "Queen Sheba," by co-workers, was often told she worked on "colored people time," and was frightened by one official who routinely made Ku Klux Klan references.

Grant also said she was subjected to sexual advances from male co-workers, two of whom allegedly exposed themselves to her, and graphic and lewd jokes.

NASCAR chairman Brian France denied Grant ever complained to her supervisors about anything listed in her lawsuit. But an internal investigation into her claims ultimately resulted in the firing of two of the 17 officials named in her suit.

NASCAR has not disclosed why the two officials, who Grant said exposed themselves to her, were fired.

A third official was fired in April of this year, but NASCAR said it was unrelated to the suit.

NASCAR also has refused to say why Grant was fired. In its response to her suit, though, it claimed Grant was reprimanded with a warning of termination for an altercation with a track security guard at Michigan International Speedway who had asked to see Grant's credentials as she passed through a gate.

The response also claimed a pattern of tardiness for which she was routinely reprimanded.

Morelli said his team was prepared to go to trial if a settlement could not be reached, but it would take several years to even get to a courtroom. He added the mediation session, which Grant attended, went about five hours longer than average negotiations.

Although several NASCAR representatives were present, Morelli said France was not at the mediation. "But the key principals were reachable by telephone," he said.


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Thursday, December 18, 2008

NASCAR settles $225 million suit with ex-official

CHARLOTTE, N.C. (AP) -- NASCAR has settled a $225 million lawsuit filed by a former official who said she was subjected to racial discrimination and sexual harassment during her two-plus years working for the stock-car organization.

The suit was settled during a Dec. 3 mediation held in New York between Mauricia Grant and NASCAR. Settlement terms were confidential. Neither side admitted liability or wrongdoing, according to NASCAR.


"We're glad to have the case settled on mutually acceptable terms," NASCAR spokesman Ramsey Poston said Thursday. "NASCAR remains dedicated to maintaining a professional work environment for all employees at all times, and we wish Ms. Grant well in her future endeavors."

Grant's attorney, Benedict P. Morelli of New York-based Morelli Ratner PC, did not immediately return a call from the AP for comment.

Grant, who is black, worked as a technical inspector responsible for certifying cars in NASCAR's second-tier Nationwide Series from January 2005 until her October 2007 termination. In the lawsuit filed in June in the U.S. District Court for the Southern District of New York, Grant alleged 23 specific incidents of alleged sexual harassment and 34 specific incidents of alleged racial and gender discrimination during her employment.

Among Grant's claims, she said she was referred to as "Nappy Headed Mo" and "Queen Sheba," by co-workers, was often told she worked on "colored people time," and was frightened by one official who routinely made Ku Klux Klan references.

Grant also said she was subjected to sexual advances from male co-workers, two of whom allegedly exposed themselves to her, and graphic and lewd jokes.

NASCAR investigated her claims and ultimately fired Tim Knox and Bud Moore, the two officials accused in the lawsuit of exposing themselves. NASCAR has declined to discuss the reasons for their dismissal. A third official, David Duke, was fired in April for reasons NASCAR said were unrelated to the suit.

NASCAR chairman Brian France vigorously defended his family business after Grant filed suit, saying she never complained to her supervisors about any of the actions she claimed after her firing.

She denied France's account, saying she followed the chain of command but stopped short of taking it to human resources when series director Joe Balash failed to address her concerns.

Grant said that two weeks after her complaint to Balash, she received a call from the human resources director reprimanding her for her behavior. She said she was fired shortly after.

In NASCAR's response to the suit, the sanctioning body claimed Grant acknowledged an understanding of NASCAR's "zero tolerance policy against discrimination and harassment in the workplace," attended mandatory training seminars on the topics in 2006 and 2007 and acknowledged her obligation to immediately report any offensive acts in accordance with written policies.

Grant claimed she ultimately was fired for that complaint to Balash. But in NASCAR's response, it claims Grant was reprimanded with a warning of termination for an altercation with a track security guard at Michigan International Speedway who had asked to see Grant's credentials as she passed through a gate.

NASCAR officials have refused to disclose why Grant was fired. But the response claimed a pattern of tardiness for which she was routinely reprimanded.

Mike Wilford, one official named in the suit, previously told The Associated Press that Grant never once complained about how she was treated in time the two spent together away from the track. Wilford also said she was a willing participant in graphic and lewd jokes and has "twisted" events to benefit her suit.


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Iowa Speedway lands Truck Series race

DES MOINES, Iowa (AP) -- It's taken the Iowa Speedway just three years to position itself as a leading track in the Midwest.

The speedway announced Thursday its third major event for the 2009 season. The track will host a NASCAR Camping World Truck Series race -- formerly known as the Craftsman Truck Series -- on Sept. 5.


The race was originally planned for Mansfield Motorsports Park in Mansfield, Ohio, but was canceled because of the struggling economy.

In swooped the fledgling Iowa Speedway, which also landed a Nationwide Series race for 2009 earlier this year. The track's 2009 schedule includes the third annual Iowa Corn Indy 250. The two new events are part of NASCAR's top two circuits below the Sprint Cup Series.

"We could not feel better and be prouder, and we just feel honored with the fact that NASCAR chose and felt that we'd put on a heck of a truck race for them next September," said Jerry Jauron, Iowa Speedway's president and chief financial officer.

Much of the credit, Jauron said, goes to track designer and co-owner Rusty Wallace. The former NASCAR champion has used his close ties with the circuit to quickly turn what he's dubbed his "second child" into a well-respected track among the national racing community.

NASCAR drivers such as Kyle Busch and Dale Earnhardt Jr. have tested at the 7/8-mile oval since it opened in late 2006, and the reviews have been positive.

"He had his influence in every piece of this venue, and it's showed in the results," Jauron said of Wallace. "Everyone says it is one of the nicest, if not the nicest race tracks in the country right now."

As a result of landing both a Nationwide and a Camping World Truck Series race, the track's next order of business will be to increase its capacity.

Iowa Speedway has drawn roughly 35,000 for each of its first two Iowa 250 races, and Jauron said the track will monitor ticket sales before moving forward with plans for additional seating.

According to Jauron, the speedway will use temporary seating to accommodate up to 60,000 fans for 2009 events, adding that it's "highly likely" that permanent seating will be added in 2010.


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NASCAR testing drivers for doping next month

CHARLOTTE, N.C. (AP) -- NASCAR will test drivers for performance-enhancing drugs next month under a tougher policy that also bans using illegal drugs and abusing prescription medications.

NASCAR likely will test drivers the third week of January, and crew members must submit results from an approved lab by Jan. 16, according to documents obtained Thursday by The Associated Press.


A NASCAR memo sent to teams lists specific banned substances for which crew members must be screened. No similar guidelines were issued for drivers, as NASCAR reserves the right to test competitors for anything.

Under the old policy, NASCAR had the right to randomly test based on suspicion of abuse. Under the tougher guidelines first announced in September, everyone will be tested before the season begins, and random testing will continue throughout the year. NASCAR expects to randomly test 12 to 14 individuals per series each weekend in 2009.

The guidelines were strengthened in part because of former Truck Series driver Aaron Fike's admission that he had used heroin -- even on days he raced. That led Tony Stewart, Kevin Harvick and other veteran drivers to call on NASCAR to add random drug testing to its policy.

The memo, dated Dec. 8, is the first time the new policy has been laid out in writing and specifies who falls under the guidelines. Those who must be tested before Jan. 16 include: pit crew members, including "over-the-wall" crew members, the crew chief, car chief, team members responsible for tires, fuel and pit crew operation, spotters and race-day support personnel that includes engineers, engine tuners, shock specialists, chassis specialists and tire specialists.

Among the substances those participants must be tested for are:

-- Seven different amphetamines, including methamphetamine and PMA, a synthetic psychostimulant and hallucinogen.

-- Three drugs classified under ephedrine.

-- 13 different narcotics, including codeine and morphine.

-- Ten different benzodiazepines and barbituates.

-- Marijuana, cocaine, zolpidem, nitrites, chromates and drugs that can increase specific gravity.

No such list exists for the drivers, but spokesman Ramsey Poston confirmed NASCAR will test for performance-enhancing drugs.

The driver testing, which will be administered by NASCAR, had been scheduled for preseason testing at Daytona next month. But because testing has been suspended for 2009, NASCAR likely will screen drivers when most are in Charlotte next month for the annual media tour of race shops.

The gap in the drug policy was exposed last September when Truck Series driver Ron Hornaday Jr. admitted he used a testosterone cream during 2004 and 2005 to treat a medical issue.

Hornaday has Grave's disease, a condition he's treating with Synthroid, which replaces a hormone normally produced by the thyroid gland to regulate the body's energy and metabolism.

NASCAR did not punish him for the testosterone admission, saying the cream did not enhance his performance or impair his judgment.


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Wednesday, December 17, 2008

Kenseth gets new crew chief for 2009

CONCORD, N.C. (AP) -- Matt Kenseth will have a new crew chief in 2009, as Drew Blickensderfer will try to return the 2003 NASCAR champion to Victory Lane.

Kenseth's 2008 crew chief, Chip Bolin, will return to his role as team engineer after one winless season atop the pit box. Bolin took over when Robbie Reiser was moved to team manager at Roush Fenway Racing, but the team failed to match its standard for performance.


Kenseth, who signed a multiyear contract extension last month, failed to win a race for the first time since 2001 and was 11th in the final standings -- his lowest finish since that winless season.

"We are really looking forward to Drew coming on board," Kenseth said in a statement Wednesday. "Drew brings a great work ethic and high level of enthusiasm to our team. He has been waiting for the opportunity to become a crew chief in the Sprint Cup Series and I know he'll make the most of it."

Blickensderfer was a crew chief the past three seasons in Roush's Nationwide Series program. He and Kenseth earned three wins in that series before Blickensderfer was paired with Carl Edwards.

With Edwards won seven of the last 19 races and finished second in the Nationwide standings with Blickensderfer as crew chief.


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Gillett Evernham scales back Nationwide team

STATESVILLE, N.C. (AP) -- Gillett Evernham Motorsports will lay off about 65 employees in several departments as part of scaling back its Nationwide Series program next season.

The No. 9 Dodge will run a partial schedule in the second-tier NASCAR series in 2009. The team will continue to field at least three Sprint Cup Series teams -- for Kasey Kahne, Elliott Sadler and Reed Sorenson -- and is in talks with Petty Enterprises to merge with that organization and house its famed No. 43.


"We are a Sprint Cup team first and foremost, and winning in that series needs to be our primary focus," CEO Tom Reddin said in a statement Wednesday. "The Nationwide Series is a fantastic series ... (but) we will remained focused on putting all of our effort behind the Cup program in 2009."

GEM lost sponsor Unilever to JR Motorsports at the end of the season and doesn't have enough sponsorship in place to run the full Nationwide schedule.

Some of the layoffs came from the engine department, which is being reorganized to align with the number of customers who lease motors from GEM.

The engine department supplied Petty Enterprises and Robby Gordon Motorsports last season, but Gordon is moving to Toyota in 2009.

GEM joins other NASCAR teams, the NFL, the NBA and the company that runs Major League Baseball's Internet division in announcing layoffs because of the economic crisis. The NHL hasn't laid off workers, but has a hiring freeze.

In NASCAR, Petty Enterprises has released at least 70 employees since last month's season-ending race, and Wood Brothers Racing and Bill Davis Racing have dramatically scaled back their programs as teams continue to scour the market for sponsorship.

Dale Earnhardt Inc. let go more than 100 employees when it partnered with Chip Ganassi Racing last month, and Ganassi released 71 in the summer when he shuttered Dario Franchitti's team.

The layoffs have not been exclusive to the second-tier teams, either. Hendrick Motorsports, Roush Fenway Racing and Joe Gibbs Racing all released employees as the teams cut back on spending and adjusted their staffs in preparation for 2009's suspension of testing programs.


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Tuesday, December 16, 2008

R. Gordon switching to Toyota in 2009

CHARLOTTE, N.C. (AP) -- Robby Gordon will switch to Toyota in 2009, his fourth manufacturer change in four years.

Gordon was with General Motors in 2006, switched to Ford the next year to receive greater support, then abruptly moved to Dodge at the start of this season in a technical alliance with Gillett Evernham Motorsports.


That partnership was dissolved late this season, freeing Gordon to align with Toyota.

"After watching their progress last season, we decided that a switch to Toyota was the right package for our team," Gordon said in a statement Tuesday.

He won a Grand National Sport Truck championship in 1989 for the manufacturer.

Toyota had a successful second season in the Sprint Cup Series, placing all three drivers from Joe Gibbs Racing in the Chase for the championship.


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Labonte looking for work after Petty split

ARCHDALE, N.C. (AP) -- Former NASCAR champion Bobby Labonte said Tuesday he's disappointed equity firm Boston Ventures couldn't do more for Petty Enterprises.

Labonte, who voided his four-year contract extension last week, will explore the free-agent market instead of waiting to see if Petty can complete a merger with Gillett Evernham Motorsports. It wasn't the outcome he anticipated when Boston Ventures purchased controlling interest in the team in June.


"It sounded great, and I signed a contract for a lengthy period of time, and it was going forward from there," Labonte said in a conference call. "Unfortunately, (Boston Ventures') crystal ball got kind of cloudy, too. They weren't able to do the things that they had wanted to do, and trust me, I know they feel bad about that.

"It was going to be tough for them to go on like they had planned on, and the scenarios that were set out in front of me and the contract that I had, there was a lot of implications, a lot of stuff happening that it was probably best to agree to shake hands and part ways."

Petty officials said last week they will field the famed No. 43 as a one-car team next season if the GEM merger doesn't happen.

Labonte said he's had some discussions about the No. 41 at newly formed Earnhardt Ganassi Racing -- the only available seat with full sponsorship.

"It's like Daytona can't come soon enough this winter, where sometimes you wish the offseason would last longer," he said. "I am working hard every day to make sure that I'm ready for February when it comes, no matter what happens."

Labonte, who won the 2000 championship with Joe Gibbs Racing, won 21 races with that team before moving to Petty Enterprises three years ago. He was winless in the No. 43, finishing 21st, 18th and 21st in the standings.


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Saturday, December 13, 2008

Watkins Glen seeks Cup race sponsor

WATKINS GLEN, N.Y. (AP) -- Watkins Glen International needs a title sponsor for its NASCAR Sprint Cup race after Centurion Boats opted out of the final year of its contract.

Company officials said the decision was based on the downturn in the national economy. Centurion spokesman Les Clark said the company has cut production 50 percent and laid off half its work force at its North Carolina manufacturing facility.


"The economy is not going to make this easy. It is having an effect on our sport; it's going to have an effect on our year. These are tough times," Watkins Glen International president Craig Rust said Friday. "I don't think we ever expected it to get this bad. I haven't seen it this bad in sports from a sponsorship standpoint in a long time."

The value of a Cup title sponsorship can exceed a million dollars, but Rust would not put a figure on the Watkins Glen race.

"A title sponsor is important, because it gives us a marketing partner to promote the race," Rust said. "We're working hard on it, but no matter what, it's important for fans to know we'll have a Sprint Cup race in 2009."

Centurion Boats will continue to have a presence at Watkins Glen but in a reduced role, Rust said.

Rust said sponsors for the IRL's Camping World Grand Prix in July, and the Grand-Am Rolex Sports Car Series Sahlen's Six Hours of The Glen in June were intact.


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Thursday, December 11, 2008

Labonte leaves cash-strapped Petty Enterprises

CHARLOTTE, N.C. (AP) -- Bobby Labonte has been released from his contract with Petty Enterprises, which is trying to negotiate a deal with Gillett Evernham Motorsports that would solidify the future of its famed No. 43 Dodge.

Petty Enterprises has been unable to find sponsorship for Labonte, a former NASCAR champion, and is in danger of eventually closing its storied organization if it can't work out a merger with GEM.


David Zucker, who took over as CEO of Petty Enterprises when Boston Ventures purchased majority interest of the organization in June, said Petty would run the No. 43 as a single-car team in 2009 if a merger with GEM is not completed.

"Gillett Evernham Motorsports is a first class team with great drivers, sponsors and management," Zucker said in a statement Thursday. "We look forward to improved performance and maintaining the Richard Petty legacy, with the King front and center."

The organization has been anything but for the last two decades, as the 60-year-old team fell far behind the competition. It took steps over the past few years to strengthen the organization, signing Labonte, creating a testing team and moving its shop from its longtime home in Randelman to Mooresville to be closer to the NASCAR hub.

But sponsorship woes still hindered the team, which lost General Mills to Richard Childress Racing. Needing an infusion of cash, Richard Petty sold controlling interest to Boston Ventures in hopes the private equity firm could shore up his family business.

Labonte, also believing Boston Ventures could bring the organization back to prominence, signed a four-year contract extension to remain behind the wheel of Richard Petty's legendary car.

Only nothing has materialized in the six months since the sale, and Petty Enterprises has had two rounds of layoffs, letting go at least 70 employees since last month's season finale.

After "serious and sincere discussions" with Petty Enterprises, Labonte said he reached the difficult decision to leave the team.

"In over 15 years of racing in the Sprint Cup Series, I can't remember a time when the sport's landscape looks as it does today," said Labonte, the 2000 Cup champion. "I am, and will always be, very appreciative of what Richard Petty and the Petty family, every employee of Petty Enterprises and members of Boston Ventures did to invest in bettering my career the past three seasons."

Labonte said he does not have a job lined up for next season, and Chip Ganassi's No. 41 is the only open ride with full-time sponsorship already secured. Ganassi recently partnered with Dale Earnhardt Inc., and has taken his time filling his vacant seat.

Labonte, who has 21 Cup victories, was winless in his three years with Petty Enterprises. He had just 13 top-10 finishes and finished no higher than 18th in the final season standings. But Petty praised his work.

"Bobby is a true champion who never failed to give everything he had when he was behind the wheel of one of our race cars," Petty said.


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Monday, December 8, 2008

Petty Enterprises releases at least 35 employees

CHARLOTTE, N.C. (AP) -- Petty Enterprises released at least three dozen employees Monday as the team continues to search for either a merger or a miracle that would keep the famed organization operating in 2009.

The latest round of layoffs pushed the total to almost 70 employees. Petty Enterprises released 30 employees the day after the Nov. 18 season finale.


Petty Enterprises, which lacks full sponsorship for either of its cars next season, is in talks to merge with Gillett-Evernham Motorsports in an effort to keep its flagship No. 43 on the track. The car was made famous by seven-time champion Richard Petty, and currently piloted by Bobby Labonte.

Labonte, the 2000 series champion, signed a four-year contract extension in June when Petty Enterprises sold majority interest of its operation to Boston Ventures. The private equity firm assumed day-to-day control of the 60-year-old operation, but has yet to put Petty Enterprises on solid footing -- largely because the economic crisis has made sponsorship difficult to secure.

Petty officials have talked to several teams in the garage about a merger, but Dale Earnhardt Inc. and Chip Ganassi Racing were crossed off the board when those two teams partnered with each other the week of the season finale.

Gillett-Evernham, meanwhile, has been looking for a partner to help it expand to a four-car operation. That team currently fields cars for Kasey Kahne, Elliott Sadler and is scheduled to bring Reed Sorenson into its third Dodge next season.


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Sunday, December 7, 2008

France asks Congress to help U.S. automakers

NEW YORK (AP) -- NASCAR chairman Brian France has lobbied Congress to support a financial rescue plan for the struggling Big Three automakers.

Chrysler, Ford and General Motors -- three of the four manufacturers that participate in NASCAR -- are pleading with Congress for a bailout to prevent their companies from going bankrupt.


"I'm writing you as a concerned American who wants what is best for our general country," France wrote. "Of course, the domestic automobile manufacturers play a very important part of the heritage of NASCAR, but more importantly, it is vital for all of America."

The letter, a copy of which was obtained Saturday by The Associated Press, was addressed to Senate Majority Leader Harry Reid, Senate Minority Leader Mitch McConnell, Sen. Chris Dodd, chairman of the Senate Banking, Housing and Urban Affairs Committee, and Sen. Richard Shelby, the senior Republican on the Banking Committee. It was dated Tuesday.

France's letter warned that if the auto industry fails, 3 million people would lose their jobs in the first year, and another 2.5 million over the following two years. He said personal income in the U.S. would drop by $150 billion in the first year and domestic automobile production -- even by foreign manufacturers -- would likely drop to zero.

"For these manufacturers to survive, your assistance is urgently needed," France wrote. "By immediately supporting America's automobile industry, you can help our nation avoid a devastating economic blow.

"We urge the Administration and Congress to support the bridge loan package under deliberation. As unattractive as the idea of corporate federal bailouts can be to many Americans, including me, there appears to be no alternative. Federal aid is in the best interest of the entire country."

Although France said last month that NASCAR could survive a manufacturer pullback or pullout, teams throughout the industry are deeply concerned about the stability of the Big Three. Toyota, the only foreign manufacturer that participates in NASCAR, has also seen slumping sales but is on more solid financial footing than the American automakers.

Any sort of pullback by the manufacturers would cripple many race teams, particularly because sponsorship is extremely difficult to find during the economic crisis. Many teams have been forced to release employees, and some are reconsidering their 2009 plans.

On Saturday, the storied Wood Brothers organization said it will scale its program back to just 12 races for next season. Petty Enterprises is in talks to merge with Gillett-Evernham Motorsports, and Chip Ganassi Racing and Dale Earnhardt Inc. announced a partnership late last month.

The plight was front and center during Friday night's season-ending awards ceremony, where several drivers and championship-winning car owner Rick Hendrick asked for support of the automakers. Even Tony Stewart, who drove a Toyota this season but is moving back to Chevrolet next year, touched on it during his speech.

"I hope some of our elected officials are listening tonight," Hendrick said. "Our domestic automakers support more than five million jobs and represent the backbone of our country. So, let's make sure we do the same thing for Main Street what we've done for Wall Street."

Ed Peper, president of General Motors' racing program, accepted the manufacturer's 32nd championship and used his time to ask those in attendance to speak to their local politicians about the automotive industry problems.

"This is the toughest fight of our lives," Peper said. "In difficult times, you find out who your friends are. I hope you'll let your legislators know how vital their support of the domestic auto industry truly is."


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Yarborough surprises Johnson at awards ceremony

NEW YORK (AP) -- In the two weeks since Jimmie Johnson wrapped up his record-tying third straight NASCAR championship, he tried, but failed to reach Cale Yarborough.

Johnson wanted Yarborough, the only other driver in NASCAR history to win three consecutive titles, to be his personal guest at the season-ending awards ceremony to help celebrate their remarkable feats.


"I tried to get up with him, and just never could," Johnson said of the 69-year-old Yarborough.

But NASCAR had a surprise in store for its reigning champion.

When chairman Brian France took to the stage at the Waldorf-Astoria to present Johnson with his championship ring, he turned the task over to a surprise guest: Yarborough himself, who had quietly sat through Friday night's ceremony near the back of the ballroom and only made his way to the stage when the lights dimmed before the presentation.

Johnson looked genuinely shocked.

"You dog!" he said to Yarborough after the ceremony. "They said you had plans and couldn't come."

Very few did.

Yarborough, who tends to his business ventures in South Carolina, has stayed out of the spotlight since his 1988 retirement. He works two days a week at an office in one of his car dealerships, but spends most of his time building -- by himself -- a 35-acre lake on his 4,000-acre plantation.

"I got plenty to do," he said. "I dig and haul the dirt and make a mountain out of it."

Johnson's pursuit of his 30-year record brought Yarborough back into the spotlight, but he seemed a reluctant participant down the final stretch and turned down an offer to attend the Nov. 18 season finale at Homestead-Miami Speedway.

The awards ceremony, which Yarborough had not attended in years, was a different story.

"I wanted to be part of Jimmie's celebration," said Yarborough, who won his titles from 1976-78. "Only two of us in 60 years had done this. I needed to be a part of it. I enjoyed it very much."

Did he ever.

Yarborough was the star of the four-hour affair, drawing a standing ovation during his introduction then bringing down the house with a humorous speech.

He quipped that being back among old friends had given him back his racing spirit, and told winning car owner Rick Hendrick he'd be interested in driving again if Hendrick had a good ride available for an old man.

And he graciously welcomed Johnson into the record book, but warned he'll root against his pursuit of a fourth straight title.

"Somebody finally did it. I hope Jimmie realizes that NASCAR is 60 years old and there's only two of us who have done it in 60 years. That's a rare champion," Yarborough said. "All good records are meant to be broken. But tied. Tied, really, is all he's done.

"If anybody was to tie my record, I'm glad Jimmie did it. Just skip one year and we'll be good."

Johnson, who grew up a Yarborough fan, accepted the championship ring and then recalled a childhood story about visiting a Hardee's and thinking Yarborough, who was sponsored by the fast-food restaurant, would be inside.

"I was devastated," Johnson said about only getting a hamburger that day.

He eventually got his meeting, several years ago at Talladega Superspeedway, when he and Yarborough chatted at length about the size of Johnson's feet, of all things.

"He was giving me a hard time about the length of my shoe," Johnson recalled. "And he made me pull my shoe off so he could see my foot. It was really funny and odd and weird. It was Cale and Darrell Waltrip, and a bunch of guys, just harassing me about my shoe size."

There was no talk of feet Friday night. Instead, two champions took a moment to toast one another.

"I wanted to see him and hoped at some point I would see him," Johnson said. "He's done something that no one else has been able to do, so I'm sure that he was bummed in some ways that somebody else tied it.

"But at the same time I'm sure he's proud and it's helped him reflect back on his career and how special his championships are."


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NASCAR scales back its year-end celebration

NEW YORK (AP) -- Jimmie Johnson coolly entered an Irish bar jammed with NASCAR fans and promptly ordered a round of beer for everyone.

Pint glass raised, he toasted the rowdy crowd.


Johnson clearly came to New York this year ready to party.

And why not? His third consecutive NASCAR championship this season tied Cale Yarborough's 30-year-old record, and the laid-back but focused Californian doesn't appear ready to slow down anytime soon.

"Yes, I want to win a fourth," Johnson said. "Right now, I'm a part of history, I'd love to make history. Not pulling the Babe Ruth and pointing over to the outfield and saying I'm going to hit it over here, but hell yeah, I want to win a fourth. We'll see."

His festive mood is part of the territory during NASCAR's weeklong celebration to the champion, which wraps up with Friday night's season-ending awards ceremony at the Waldorf-Astoria hotel.

The driver who has spent all of his career putting forth a buttoned-up, professional persona is finally comfortable showcasing his playful side.

His whirlwind tour of New York has been one big party, at a time when NASCAR could really use one.

The sport is trudging forward during this economic crisis, which has quickly rocked the entire industry. Teams are struggling to find sponsorship, and the lack of funds led to hundreds of layoffs following the Nov. 18 season finale.

The Big Three automakers had a second round of meetings before Congress this week to plead for a financial rescue plan, and there's genuine concern General Motors might not make it to the end of the year.

"Please, don't forget to support our domestic auto manufacturers," Chad Knaus said in his acceptance speech as championship-winning crew chief. "Those guys are having a hard time, and they need our support right now."

So, yes, the party has roared on this week, but there's a definite feel that its been scaled back a bit. The annual champions lunch at famed 21 Club was scaled down to Foley's NY Pub & Restaurant, where Johnson bought the pints for the grateful crowd.

"We wanted to really get back to a grassroots level," said NASCAR spokesman Ramsey Poston.

But the cutbacks are everywhere. Ford and Chevrolet both canceled their annual Friday night parties, NASCAR scaled back on the employees it brings to the awards show and several other organizations cut down their attendees -- or aren't coming at all.

"It's kind of hard to have a party in the midst of a lot of misery," said championship-winning car owner Rick Hendrick.

A car dealer as well as a NASCAR team owner, Hendrick is nervous about the state of the automobile industry but believes Chrysler, Ford and GM will continue their involvement in the sport.

But Hendrick is also worried about the NASCAR industry as a whole.

"I think the Big Three, that's important to all of us, but the bigger picture is overall sponsorship," Hendrick said. "I think the folks that entertain at the track, have hospitality and sponsors, they're looking to reduce expenses everywhere. We'll feel it all the way around. Anything we can do to help all sides of it is going to be important."

Two-time series champion Tony Stewart has seen the difficulties firsthand as he readies for his first year as a NASCAR team owner. He needed split sponsorship from Office Depot and Old Spice to cover his car, and is still seeking money for 13 races on Ryan Newman's car.

And Dale Earnhardt Jr., who just wrapped up his sixth season as NASCAR's most popular driver, has yet to announce his sponsorship plans for his JR Motorsports-owned Nationwide Series team.

"We're still working on it," Stewart said of his sponsorship search. "Obviously, the economy is not helping us out. But the good thing is that companies are still in discussions. We're pushing forward anyway, that's not going to keep us from running Ryan's car. But the good news is we're still having meetings and that's encouraging because their are companies still willing to spend money in NASCAR."


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