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Gillett Evernham files lawsuit against Robby Gordon over $23.5M deal

By Bob Pockrass - Associate Editor

Thursday, September 04, 2008

Article Rating: 5.0
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David Griffin / NASCAR Scene

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Gillett Evernham Motorsports has filed suit against Robby Gordon saying the owner/driver of Robby Gordon Motorsports violated terms of a tentative agreement that would have sold his team to GEM for $23.5 million earlier this year.

The deal, agreed to Jan. 29, was pending an audit and other due diligence from GEM, which could have adjusted the price.
 
If the deal had gone through, Gordon would have had a four-year driving contract with GEM that would have paid him $3 million annually plus 45 percent of race winnings as well as insurance and other provisions customary for NASCAR driver agreements – a package likely worth at least $5 million annually. Gordon also could have had a spot on the team’s board of directors. GEM would have acquired Gordon’s shop and property in Charlotte.

As part of the agreement, GEM pledged to provide Gordon with all “racing infrastructure” and to support Gordon’s car “in substantially the same manner in which GEM supports its most supported car in the NASCAR Sprint Cup” for the 2008 season.
 
Three days after the agreement was signed, GEM and Gordon announced a technical, manufacturing and marketing partnership. At that time, GEM owner George Gillett, in an interview with NASCAR Scene, stated that he did not buy Gordon’s operation and was more likely to add a fourth car to his stable and hoped Gordon would add a second or third car to his.

According to the lawsuit, GEM was pursuing efforts to close the deal. The contract includes an exclusivity clause, which GEM claims would not allow Gordon to entertain talks with other teams about possible mergers. In May, Gordon asked out of the deal, according to the lawsuit, in exchange for an engine deal for the remainder of the season.

The exclusivity clause is the primary basis for the lawsuit, filed Aug. 25 in North Carolina Superior Court in Charlotte. GEM claims in court documents that Gordon has talked to other teams about merging. It also claims that Gordon made disparaging remarks that he wasn’t getting comparable engines to the other GEM drivers during a DirecTV telecast last month at Watkins Glen.

The lawsuit also claims that Gordon ignored the advice of GEM and terminated his previous deal with Ford prematurely, before GEM could get a sponsorship deal from Dodge for Gordon’s car. Dodge and GEM couldn’t agree on a manufacturer’s deal for Gordon’s car.
 
GEM, which has supplied engines and other services for Gordon throughout the season, is asking for unspecified damages for Gordon’s breach of the agreement and for the agreement to be declared null and void, according to the complaint.

“We categorically reject the allegations that are contained in the complaint, and the truth will come out if the case proceeds,” Gordon said in a statement released through his race team. “In the meantime, we think it is best to allow that to happen in the court proceedings rather than in the media.

“Therefore, although we have much to say, we won’t be making a further statement about it at this time.”
 
Other highlights of the purchase agreement:

• Gordon would have been allowed to compete in other motorsports events as long as they did not conflict with NASCAR or any sponsors of GEM.

• Gordon and GEM agreed to do their best to retain the employees Gordon wanted.
 
GEM spokesman Drew Brown said the team would not comment on the lawsuit.

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Comments

7 responses to "Gillett Evernham files lawsuit against Robby Gordon over $23.5M deal"
  1. 1
    Derek Sleeper said:
    Sep 4, 2008 at 11:57 AM

    Isn't this a surprise? First off, not even a bit of scuttlebutt around about the purchase of the team though, according to documents a purchase was indeed going to happen. It is also interesting that I assume in the filings, GEM listed the driver compensation package for Gordon - you typically NEVER hear about the contract specifics for drivers. They kind of let the cat out of the bag on this one. This could be interesting to watch.

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  2. 2
    Ryan Marcyes said:
    Sep 4, 2008 at 2:26 PM

    I think Robby has a valid argument and should be upset about the engine program given to him. GEM is most likely upset with Robby's current performance, but look at through Robby's eyes and see what he goes through. GEM should be happy to be to be associated with such a Man, Driver, and Owner. Every time he goes to the track he is 100% going for the best possible finish if not win he can. Personally once he finishes with "GEM" he should go back and try and go and try and merge with RCR. Richard first stated when Robby left that if he needed anything he would support him as much as he could. A merger with a great team like that and some more Cali. Boys would put his team back on track. Not only that but possibly pick up Scott Wimmer as a second driver, since he did drive for RCR and now is going to be let go. All in All Robby needs to push through this mess and get set up to(next year) turn heads and and remind people what type of driver he truly is.

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  3. 3
    Jay said:
    Sep 4, 2008 at 3:35 PM

    Dodge is struggling enough as it is, they don't need to be fighting amongst themselves. There is a reason that Toyota is kicking everybody's butts. They as a manufacturer work as a team and provide their teams with top notch equipment.

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  4. 4
    john LePage said:
    Sep 4, 2008 at 5:09 PM

    I may have missed something here. George Gillett nixed the deal because he was not included. Sounds like a void to me. Then to really show the deal is off he said no to Gordon then added he is going to add a 4th car. Further he encourages Gordon to expand his operation away from GEM. What for, to get Gordon to over extend and then buy him out cheap? So we come to a backhanded deal for engines. Except Gordon gets lesser equipment in the deal rather than what was promised. Now GEM is going to sue for breach. Breach of what? They tell Robbie to take a hike and then yell 'Kings X'. Sounds like Gillett did not do his homework and is bleeding money all over on his failed gambit into NASCAR. Oh yea I know what I missed, Common Sense!!

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  5. 5
    Frank Alford said:
    Sep 5, 2008 at 6:07 AM

    GEM as much as said they did not buy Gordon Motorsports. Gordon can beat this and when he does there are 2 teams he can help. He can merge with RCR or RYR. Either one would be better than GEM anyway.

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  6. 6
    Lori Parker said:
    Sep 6, 2008 at 3:31 PM

    I find it hard to believe that a man who is as successful as George Gillett would file a lawsuit without loads of evidence in his favor. You don't get to be where he is by being stupid. Robby Gordon is a whiner.

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  7. 7
    emily bagwell said:
    Sep 9, 2008 at 5:05 PM

    I agree with you, Lori. When you talk about millions, I would not think it is something fabricated for no reason. GEM may be struggling, but it appears that Robby Gordon is holding on by a thread. He's sure not in a position to negotiate. I was happy when some rumblings of this merge was talked about at the beginning of the season and thought Robby was doing better for awhile but obviously not. I would like to see Robby stay around but I also want the Dodges to succeed and I am a Junior fan. Just think racing is taking a beating---i like the oldies---hate Toyota!

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