Bobby Ginn says DEI owes Hendrick 80 percent of $1.5 million termination fee

By Bob Pockrass - Associate Editor
Tuesday, March 17, 2009

Former team owner Bobby Ginn contends that he owes only 20 percent of the $1.5 million that Hendrick Motorsports is seeking from Ginn Racing and Dale Earnhardt Inc. because of the termination of Ginn’s engine contract with Hendrick in 2007, according to court documents.

Hendrick Motorsports is suing DEI and Ginn in North Carolina Superior Court over the termination fee resulting from the merger of DEI and Ginn in July 2007.

DEI claims Ginn Racing and Ginn are responsible for a $1.5 million fee that was due Nov. 15, 2008. Ginn states in a recent filing that because a new entity was created that was 80 percent owned by DEI and 20 percent owned by Ginn, that DEI is responsible for 80 percent of the fee due Hendrick.

In filing his response to Hendrick’s and DEI’s claims, Ginn states that it had been agreed that the $1.5 million fee would be paid from operating revenues of the new entity, which was named “DEI/Ginn – Team #01.” If there were not sufficient revenues to pay the fee, then the responsibility for payment would be split 80/20, Ginn contends.

Although not broken down in the suit, 80 percent of $1.5 million would be $1.2 million, with $300,000 left for Ginn to pay.

The $1.5 million fee was the second of two termination fees. The first payment of $1.754 million was paid by Ginn, with a portion of the proceeds received “as part of the merger and acquisition transaction,” according to Ginn’s filing.

Comments

4 responses to "Bobby Ginn says DEI owes Hendrick 80 percent of $1.5 million termination fee". Post a Comment.
  1. 1
    Anonymous said:
    Mar 17, 2009 at 3:08 PM

    Not that Rick Hendrick needs the money, but you would think a man as smart as Rick would know not to even conduct a business venture with the likes of "mr" Ginn. Then again, there was that small case of fraud with Honda and Rick. Greed begets Greed.

    Report Abuse

    This feature is intended to allow you to report comments that are abusive in terms of foul/vulgar language, harassment, racial/religious prejudice and any words/phrases of a related nature. This feature should not be used to report users who simply make a comment about your favorite driver, with which you do not agree. Commenting is a forum in which we can all express our opinions. Reporting abuse of others should be done with this in mind.

    » Confirm Abuse Report
  2. 2
    fred stephens said:
    Mar 17, 2009 at 3:09 PM

    that first guy is brillant. He should take Brian France's place. Maybe next year.

    Report Abuse

    This feature is intended to allow you to report comments that are abusive in terms of foul/vulgar language, harassment, racial/religious prejudice and any words/phrases of a related nature. This feature should not be used to report users who simply make a comment about your favorite driver, with which you do not agree. Commenting is a forum in which we can all express our opinions. Reporting abuse of others should be done with this in mind.

    » Confirm Abuse Report
  3. 3
    Daniel Turner said:
    Mar 18, 2009 at 10:22 AM

    What a mess I feel sorry for the judge.
    from DEI to Ginn to EGR...who knows who is paying! I think DEI is just using a delay tactic but eventually they will have to cough up the bucks to Mr Hendrick.

    Report Abuse

    This feature is intended to allow you to report comments that are abusive in terms of foul/vulgar language, harassment, racial/religious prejudice and any words/phrases of a related nature. This feature should not be used to report users who simply make a comment about your favorite driver, with which you do not agree. Commenting is a forum in which we can all express our opinions. Reporting abuse of others should be done with this in mind.

    » Confirm Abuse Report
  4. 4
    Willie Fast said:
    Mar 18, 2009 at 10:56 AM

    What would judge Roy Bean do?

    Report Abuse

    This feature is intended to allow you to report comments that are abusive in terms of foul/vulgar language, harassment, racial/religious prejudice and any words/phrases of a related nature. This feature should not be used to report users who simply make a comment about your favorite driver, with which you do not agree. Commenting is a forum in which we can all express our opinions. Reporting abuse of others should be done with this in mind.

    » Confirm Abuse Report

Post a Comment

Disclaimer: All comments are subject to filtering for language, and libelous content. Comments are intended to encourage spirited debate and discussion about the subject matter contained within the articles and ARE NOT intended for personal or demeaning attacks directed at other users. We reserve the right to remove any comments deemed inappropriate. Users who violate this policy may be banned from posting comments on the site.

Comment Preview

Feb 10, 2010 at 12:10 AM
You said:

You must login before you can post comments or rate content.

If you don't have an account you can create a free one here.

NASCAR Schedules

spd

Gatorade Duel 1

Daytona International Speedway
02:00 PM, 02/11/2010

Poll PositionView All

After qualifying and the Budweiser Shootout, who is the favorite to win the Daytona 500?

Promotions

  • Tweet your thoughts about each race and join the conversation with other fans.

  • Drive an authentic NASCAR Sprint Cup car at the NASCAR Racing Experience.

Don't have an account yet?

Insiders Guide to NASCAR

Register with SceneDaily.com and get access to the following features:

  • FREE Insider’s Guide to NASCAR (available as a PDF download)
  • Daily NASCAR news updates delivered directly to your e-mail
  • Pre-race and Post-race emails delivered each race week
  • Ability to comment on blog and news articles
  • Information on new website features and upcoming contests
Create my Account

Login

Forgot Password?
Login or Create an Account