General Discussion » Toyota recall includes 3.8 million cars sold in the USA
November 2, 2009 General Motors is recalling all models because of a problem with plastic supply and return ports on the modular reservoir assembly. The ...
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.
2009 Sprint Cup Race for the Chase Standings
Driver Standings after the Checker O'Reilly Auto Parts 500
| 1 | Jimmie Johnson | 6492 |
| 2 | Mark Martin | -108 |
| 3 | Jeff Gordon | -169 |
| 4 | Kurt Busch | -211 |
| 5 | Tony Stewart | -285 |
| 6 | Juan Pablo Montoya | -289 |
| 7 | Greg Biffle | -321 |
| 8 | Denny Hamlin | -352 |
| 9 | Ryan Newman | -411 |
| 10 | Kasey Kahne | -476 |
| 11 | Carl Edwards | -520 |
| 12 | Brian Vickers | -666 |
Popular News
-
Championship battle may not be tight, but Chase still has some intrigue
Comments (79) -
Kyle Busch would consider Nationwide title his biggest achievement in NASCAR
Comments (70) -
Denny Hamlin vows to retaliate against Brad Keselowski
Comments (70) -
Jeff Gluck: Brad Keselowski's aggressive style should be embraced, not criticized
Comments (53) -
Jimmie Johnson's Texas trouble reignites NASCAR Sprint Cup championship battle
Comments (48)
Recent Headlines
-
Jimmie Johnson snags pole for Ford 400 at Homestead
Post Comment -
Dale Earnhardt Jr.: 'Hopefully next year will be better'
Comments (1) -
Denny Hamlin says score with Brad Keselowski must be evened
Comments (2) -
RCR's Jeff Burton leads opening Nationwide practice at Homestead
Post Comment -
Transcript from NASCAR Chairman Brian France press conference
Post Comment
Poll PositionView All
Which has been most detrimental to NASCAR television ratings and attendance this season?
Promotions
-
Play "WIX Filters' Pick 3" stock car fantasy and win prizes. Season 2 is now in session!
-
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.
-
Make weekly pics for the Chase and be entered to win weekly SPEED Merchandise.
Comments
4 responses to "Bobby Ginn says DEI owes Hendrick 80 percent of $1.5 million termination fee". Post a Comment.
Anonymous said:
Mar 17, 2009 at 3:08 PMNot 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 as AbuseReport 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 Reportfred stephens said:
Mar 17, 2009 at 3:09 PMthat first guy is brillant. He should take Brian France's place. Maybe next year.
Report as AbuseReport 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 ReportDaniel Turner said:
Mar 18, 2009 at 10:22 AMWhat a mess I feel sorry for the judge.
Report as Abusefrom 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 ReportWillie Fast said:
Mar 18, 2009 at 10:56 AMWhat would judge Roy Bean do?
Report as AbuseReport 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