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Steve Waid: This Gillett business is complicated and puzzling
By Steve Waid
Monday, January 05, 2009
George Gillett is the majority owner of Gillett Evernham Motorsports.
Lisa Blumenfeld
Getty Images for NASCAR
COMMENTARY
OK, let’s see if I understand this convoluted situation. If you ask me, it’s more complicated than Chinese arithmetic. Anyone have an abacus?
Let’s begin, shall we?
First, Ray Evernham, the man who founded a team with Dodge support and then acquiesced to George Gillett as majority owner, decides he has pretty much had enough of the NASCAR way of life.
Word is he cleared out all of his personal possessions from the shop and has become the new owner of a dirt track in Lincolnton, N.C. The guy who, as a crew chief, led Jeff Gordon to three of his four NASCAR Cup championships decides he wants to get back to grassroots racing.
But then, he doesn’t want to remove himself from NASCAR entirely.
Huh?
Then we learn that Gillett intends to merge with Petty Enterprises – which effectively means the death of the Petty team’s 60-year existence – with the intent that it will have four teams for the coming season. One of those will race the famous Petty No. 43, or so we assume.
But then comes word that AJ Allmendinger has been selected to replace Elliott Sadler as the driver of the Gillett No. 19 entry.
Admittedly, Allmendinger appears to be a rising force in NASCAR, and Sadler has had his struggles. Under normal circumstances to have Allmendinger come on board would be logical.
Hold on a minute. These are not normal circumstances.
Sadler signed a two-year contract extension last May.
Given that, why does Gillett decide to replace him?
You can just guess what happens next.
Sadler’s lawyer has filed court papers saying he intends to sue Gillett for breach of contract, claiming, essentially, that he has been robbed of his job. The deal is, as I understand it, that he has until Jan. 20 to file an actual complaint if a resolution of the dispute cannot be reached.
Seems Sadler did not know negotiations with Allmendinger had been conducted until he received a phone call about media reports.
The question is, if Gillett had indeed given Sadler a two-year extension as claimed, why the pursuit of Allmendinger amid the risk of a legal situation?
Am I missing something here?
It seems a real possibility – nothing guaranteed, mind you – that in order to resolve this situation Gillett may have to buy out the last two years of Sadler’s contract.
Which will mean money is going to be spent, beyond that which will be forked out to absorb Petty Enterprises.
Huh?
Let’s add this: Reports have surfaced that Gillett is heavily leveraged from his Evernham buyout, his purchase of several automobile dealerships and a major payment due on his Liverpool Football Club, a member of the English Premier League.
Those are reports, mind you, and nothing more. The truth may be something else. So let’s leave it at that.
Even so, what’s curious is that when Gillett is in the process of a merger with Petty Enterprises – which means money will change hands – the team then hires another driver to replace one who has been given a two-year contract extension.
So that invites a buyout – more money spent – or a lawsuit. And given legal fees, a suit, should it come to that, can be far more expensive.
When it comes to business I freely admit I am no expert.
And I also admit we do not have all the facts. We only have what we have been told.
But think of this: Let’s assume Gillett paid Evernham a significant amount for his majority ownership – which is logical. Let’s assume the organization has to pay Petty something substantial for the merger.
And let’s assume – again, assume, because no real facts have been forthcoming – that Gillett has other bills to pay.
Given all of that, does it really make sense to hire a new driver when to do so might mean a contract buyout - yet another expense and one that seems entirely unnecessary?
I’ll confess that Gillett and team officials know far more than I do. I certainly don’t have all the facts.
But based on what we know now, things seem somewhat illogical – and certainly complicated.
Perhaps, in time, it will all make sense.
Mentioned Drivers: Elliott Sadler
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Comments
55 responses to "Steve Waid: This Gillett business is complicated and puzzling". Post a Comment.
Julie Luoma said:
Jan 5, 2009 at 10:04 AMI've wondered why Sadler instead of Sorenson? Is it possible that Sadler's contract had more loophole possibilities than Sorensons? Gillett had to see this coming - I'd think he's got some line of defense prepared.
Buddy Graham said:
Jan 5, 2009 at 10:15 AMI just want to know who is going to race? Who is one first and Who is going to drive the #43? That is the real question now, who is going to drive the #43. And I ain't believing Reed Sorrenson.
Sheldon Miller said:
Jan 5, 2009 at 11:56 AMThis is probably partially driven by performance, and partially driven by money - no secret that times are tough and as a veteran Sadler probably has a richer contract than either Sorenson or Allmendinger. They could have perhaps tried to renegotiate Elliott's contract to cut costs, but then why bother if you have a driver with more 'potential' willing to work for less money?
Howard Englishman said:
Jan 5, 2009 at 12:53 PMWell Reed will be in the #43 Dodge and AJ will drive the #19 Dodge and Kasey will drive the #9 Dodge. AJ and Reed are getting paid less than what Elliott was getting paid. Its just economics. As far as George he is selling his premiere soccer team in England so things cant be that good. I look for them to las a year or two and they will be history along with the Petty name.
Graceann Jackson said:
Jan 5, 2009 at 2:47 PMWho knows what's going on? If there is money in that organization it sure didn't show last season with any of the cars. Sadler is a good tv personality but cup performance he has slumped quite a bit. I really don't blame Gillett for going after Reed & AJ but if it's gonna cost him the whole cup team he needs to slow down and take baby steps. He needed to improve the equipment at GEM first and foremost before swallowing Petty & 2 drivers & spitting out Sadler.
PAUL MACINNIS said:
Jan 5, 2009 at 2:47 PMHey Steve,how many times exactly can continue to tell your readers you don't have all the facts ? Thus what you're writing about is rumor,innuendo and speculation.Now perhaps putting this under the umbrella of "commentary" relieves you of any need to...well...you know work at getting the facts,doing some digging,making phone calls,chasing down leads.You may recall that lesson from your Journalism 101 class.Absent that,please keep your byline clear from what should be an editorial.
Keith Johnson said:
Jan 5, 2009 at 2:50 PMI wonder how long the new rich team owners will hang around NASCAR when the money is gone. None I suspect. NASCAR outpriced it self years ago making sponsors a necessity and catering to the rick while ignoring what the fans wanted. The all mighty dollar is taking it's toll on NASCAR. The rich got richer but how many will survive is yet to be seen. The teams that truly loved NASCAR have been pushed out. I saw this coming three years ago, did NASCAR? Money is the root of all evil and that's the rest of the story.
Ashley said:
Jan 5, 2009 at 3:08 PMElliott Sadler has proven, over and over again, that he is a TOP CLASS Nascar driver... given the proper equipment and a decent crew chief. You'd have to believe a flailing Gillette/Evernham put all their BEST resources into Kasey's Bud car last year. (Wouldn't want to lose THAT sponsor!) But if that is true, then Allmendinger proved to be an even BETTER by outperforming BOTH Kasey and Elliott in the last several races of the '08 Season. What's being lost in all this mess is Elliott's superior appeal to NASCAR FANS and SPONSORS. His popularity is solidly in the Top Three and sponsors just love the guy. There's NO WAY Elliott Sadler will want for a ride for long. I wanted Allmendinger to get a ride because I thought A.J. was-- and is-- really talented. I bet he would much rather have a ride under different circumstances-- and certainly not at the expense of such a popular driver as Sadler.
Bill Rogers said:
Jan 5, 2009 at 3:11 PMThis is starting to look more and more like F-1 every day. No wonder Ray left.
Dan Dugger said:
Jan 5, 2009 at 3:24 PMI just hope there is enough left of Petty Enterprises, even after the Boston Ventures debacle, that the team can be resurrected back in Randleman if need be. I was hoping that AJ would drive the 43 and let them do with Reed what they will, but have more respect for the 43 than to stick a green horn in it!! I have said this many times before, but I would like to see Kyle Petty in that car to end his driving career.
Sarah Simoens said:
Jan 5, 2009 at 3:31 PMTo Howard: Reed is supposed to be in the #10, not the #43.
dave ginger said:
Jan 5, 2009 at 3:32 PM#8 "Elliott Sadler has proven, over and over again, that he is a TOP CLASS Nascar driver... " When????? I don't think Eddiot is as popular as you think. Ask Tony Stewart where he ranks him.
teresa beachler said:
Jan 5, 2009 at 3:46 PM#5 Elliott is out, fired so no need to even talk about him anymore.#10 Petty Enterprises is over and done with, there is only a museum in Randleman.#11 Reed is in the #43 car. we already heard that last week.
Belinda Moser said:
Jan 5, 2009 at 3:46 PMActually DAVE, #12, Tony Stewart and Elliott Sadler are very good friends. I think given the proper equipment, Elliott Sadler could be a very good cup driver. Are you not impressed with Elliott's performance in cup? I understand exactly how you feel. I'm not impressed with Ray Evernham as an owner. It amazes me how some people think Ray should be back as crew chief for Jeff Gordon. The 80s were great with Ray at HMS but that was the 80s. I haven't been impressed with Ray ever since. I'm still puzzled as to why they would let Elliott go and not Reed. Although it's mathematics as some pointed out, how mathematically sound is it after Reed hits the wall and destroys every car he has. I have seen Elliott have a top 10 car only to have an equipment failure. Clearly not his fault but rather that of a team and owner who skimps on good quality parts.
teresa beachler said:
Jan 5, 2009 at 3:46 PM#5 Elliott is out, fired so no need to even talk about him anymore.#10 Petty Enterprises is over and done with, there is only a museum in Randleman.#11 Reed is in the #43 car. we already heard that last week.
teresa beachler said:
Jan 5, 2009 at 3:51 PM#14 Ray isnt even involved with Gillett, he sold his share and has been gone for 3 months now. As far as Ray being Jeffs crew chief, what were you watchin in th 80s. Ray and Jeff worked together from 93-99. That was only 10 years ago and he still is the greatest crew chief out there.
DAVID PHILLIPS said:
Jan 5, 2009 at 3:52 PMWho cares where Tony Stewart ranks anybody?????
david kuzma said:
Jan 5, 2009 at 3:52 PMI just hope Kasey Kahne gets out before the ship sinks
will staples said:
Jan 5, 2009 at 3:52 PMAfter reading this story I've developed a headache.I like racing and use it as a diversion to forget about stress in the real world.Now it's followed me.Anyone have a Goody's ??..
Pat Draper said:
Jan 5, 2009 at 4:01 PMThe only thing I have to say about this article is Ray got out when the getting was good, he's no dummy. He probably saw all this coming down and didn't want any part of it so he left. Smart move on his part.
Dan Dugger said:
Jan 5, 2009 at 4:18 PMI can tell you knowing Richard and Kyle Petty and their families along with Dale Inman in the 70's through the 90's were some of the brightest moments in my life. I know that their day may have passed, but at least they had a day or should I say an era. The one thing I know about the Petty gang is never to under estimate them as they usually go about their business very quietly. Until there isn't a Petty at the track and the 43 is connected to that name, I will continue to believe that the 43 can be up front again and it may not even be at GEM or whatever it ends up being called, but someday!! Isn't that part of why we started pulling for drivers because we felt that our drivers or car owners could win? I will try to focus on the positive side of this deal. I wish Richard the very best which ever way it goes. And, by the way #15, if you have ever been to Randleman then you would know that race cars could be run out of that shop pretty easily. That is what a real garage needs to be, it just need some modernizing, anybody can do that. While I'm on this soap box, I would can Robbie Loomis. I have never had any faith in him and still don't even if he got lucky and won a championship with the 24 team that was already in place when he got there. Just my two cents!
Belinda Moser said:
Jan 5, 2009 at 4:28 PM#16 - Ray may no longer be with Gillette NOW persay however, it was called RAY EVERNHAM MOTORSPORTS prior to that, was it not? Prior to Gillette buying Ray out, Ray WAS in charge and had signed Elliott Sadler. As I said, in my opinion, Ray was a much better crew chief than he was an owner, jmo. As far as the 90s.... my finger slipped and I typed 80s instead of 90s...so... sue me.
Belinda Moser said:
Jan 5, 2009 at 4:29 PMAnd Ray won't drop Kasey Kahne because he is such a heartthrob apparently. As much as I like Kasey, (he is a nice guy) but I don't see how his performance is any better than Elliott's was last season.
keith schonberger said:
Jan 5, 2009 at 4:41 PMThey were better off with Elliot. Give him equipment that will last an entire race and he'll have top 10 finishes. Kasey has had the best equipment they could provide and he still couldn't finish consistantly. Petty racing should have left years ago when they fell out of the future.
Belinda Moser said:
Jan 5, 2009 at 4:43 PMI agree with you, Keith. I think it would have been to let Kasey and AJ go and give Elliott better equipment and let him run. Elliott was much better at RP tracks too.
Werner Boehmert said:
Jan 5, 2009 at 4:46 PMsounds like a soap opera to me...let's make it into a made for NASCAR TV movie...
William Aldridge said:
Jan 5, 2009 at 5:06 PMBoston Ventures and Gillett deserve each other. Both saw headlines about $20 million dollar sponsorships and thought they could skim a few mil off the top in profits. I look for GEM to be history by the end of the year. The #43 will become NASCARs to do with what they want, which hopefully will be to give it back to a revived Petty Enterprises if the economy improves and sponsorship drops back to a reasonable level. With replacing Elliott Gillett must believe there's an escape clause, but I doubt it. The sad thing is Elliott will have to spend a lot of money to pursue his lawsuit.
Howard Englishman said:
Jan 5, 2009 at 5:09 PMBelinda, Ray has no say in anything at GEM,And why would Gillett get rid of Kasey, he would be digging his own grave. without Kasey and Budweiser there wouldnt even be a race team. The reason that Dodge fell behind was because everyone else had new motor packages and DODGE did not get there motor onto the track until the end of the season and by then it was too late but next season they should have all the wringles ironed out.
Howard Englishman said:
Jan 5, 2009 at 5:14 PMWilliam, this is another Bobby Ginn deal. Elliott will be paid a good settlement just like Sterling and Joe. It never will see a courtroom.
Anonymous said:
Jan 5, 2009 at 6:42 PMLET ME GET THIS STRAIGHT--GILLETT WILL HAVE 4 CARS--#9-KAHNE-#19-A.J.-#10-SORRENSON- SO WHY NOT PUT SADLER IN THE #43-THAT WOULD BE A PERFECT FIT. ALSO THEY COULD RETAIN THE #45 FOR PART TIME USE
Marion Gainey 111 said:
Jan 5, 2009 at 6:42 PM9-Kahne = Awesome 19-AJ minus Sadler = Lawsuit Petty + GEM = Still 3 cars 10 car =43 car + Reed Sorenson ????
Andrew Hutson said:
Jan 5, 2009 at 6:56 PM#23 Belinda - I'm not a fan of Kahne or Sadler, but I don't see how you can think Elliott is even close to Kahne as far as performance goes. In the 36 races last season, Elliott managed 8 top-10 finishes, 2 top-5s, and the same number of wins as Michael Waltrip. Kasey Kahne had 14 top-10s, 4 top-5s, and 2 wins (not including the All Star Race). Choosing between Kahne and Sadler, I think it's a no-brainer. Not to mention that Kahne is more popular and brought in the big money Budweiser sponsorship.
Marion Gainey 111 said:
Jan 5, 2009 at 6:57 PMJust read on ESPN Sadler is suing to stay in the 19 car.Says he has a contract and he intends on going through with it.What the hell is this organization doing???
Howard Englishman said:
Jan 5, 2009 at 7:01 PMBECAUSE REED IS DRIVIN THE #43 and KASEY IS IN THE #9 and AJ is in the #19, WAKE UP!!!
Howard Englishman said:
Jan 5, 2009 at 7:02 PMBECAUSE REED IS DRIVIN THE #43 and KASEY IS IN THE #9 and AJ is in the #19, WAKE UP!!!
BOYD BRIGMAN said:
Jan 5, 2009 at 7:10 PMI think this gem/petty deal is going to end up like the petty/bv deal richard is going to get screwed a 2nd time, richard needs to go back to level cross bury boston ventures and the dodge, contact RCR OR HMS about getting engines and chasis from them , talk to Kyle get him to come to thwe 43 part time for 2009 until they see how is going, let kyle drive the 43 on commission, if he does good he makes money, there is enough of the old crew around the level cross area to get some workers , some work is better than no work, call the new team PETTY BROTHERS RACING, that way no infringment on bv
BOYD BRIGMAN said:
Jan 5, 2009 at 7:11 PMI think this gem/petty deal is going to end up like the petty/bv deal richard is going to get screwed a 2nd time, richard needs to go back to level cross bury boston ventures and the dodge, contact RCR OR HMS about getting engines and chasis from them , talk to Kyle get him to come to thwe 43 part time for 2009 until they see how is going, let kyle drive the 43 on commission, if he does good he makes money, there is enough of the old crew around the level cross area to get some workers , some work is better than no work, call the new team PETTY BROTHERS RACING, that way no infringment on bv
Richard Clower said:
Jan 5, 2009 at 7:18 PMYou guys need to lay off Sorenson. He's a 22 yr old kid that has major upside while Sadler is proven to be a career mid pack racer. Give Reed the equipment and watch him run up front and win races. Until signing with Ganassi he had always been a winner. Stop hating on Sorenson and look at the bigger picture, Sadler is too expensive and AJ and Reed are a much better bargain that we can look at as at least having a chance at being great. Sadler is already a has been. The truth hurts ya'll, but it needs to be told!!
Anita Bell said:
Jan 5, 2009 at 7:35 PM#30 Gillett will have 4 cars but will only have limited sponsors for the 10 and 43 car. They may have to scrap for sponsors for the 19 car. Rumors keep circulating that some of the sponsors may be pulling out if Sadler is not in the car. Personally I hope that they do pull out. I have send e-mails out to all the sponsors and I would hope all Sadler fans would withdraw their support of the sponsors that don't pull out.
Mike Burns said:
Jan 5, 2009 at 8:20 PMMemo to Mr. Gillett: You must have not have done your homework before you started throwing money around in Nascar, otherwise, you would have kept Ray E. around to guide you through...let's see,the holidays have been marred by the news that Ray Evernham is out of Nascar, the Petty shop is dark and the Petty drivers are gone [Kyle and Bobby]. Now the news is that Elliot Sadler has been kicked to the curb, while possessing a 3 year contract. [Nice to know that you are a man of your word...]Now all you have to do is retain some great sponsorship to support your teams, because I can't see many fans doing it...
Jan Bose said:
Jan 5, 2009 at 10:25 PMWord to Mr Gillett: Cut down on your shipments of Budweiser, sober up & realize the obvious....you've screwed yourself & your ship's sinking.
TODD BURLOCK said:
Jan 5, 2009 at 11:05 PMWell Steve , look what you started . You got a lot of hits on this one , job well done .
Belinda Moser said:
Jan 6, 2009 at 8:40 AMHoward, I don't buy into that whole Dodge got the wrong end of the bargain thing. The Toyota engines didn't seem to be that great at first and then they were better than expected, probably b/c they had more HP. I think Ray's cars, (when it was REM) didn't run that well b/c they didn't have good equipment. Just as Petty Enterprises has struggled b/c they too didn't have good equipment. How many times have we seen Bobby Labonte run well only to blow an engine or have a mechanical, just as Elliott and Kasey have. So, imo, the Dodge engines didn't have that much to do with their performance last season.
Belinda Moser said:
Jan 6, 2009 at 8:45 AMAndrew, statistically speaking you are correct that Kasey has been consistently better than Kasey, however, alot of ppl felt Kasey was getting better equipment and better cars. However, they expected Kasey to perform better. As my previous posts stated, I am still baffled they would keep Sorenson or Allmendinger. I think Elliott would perform better than both of those drivers if given the proper equipment, crew chief and crew.
Belinda Moser said:
Jan 6, 2009 at 8:47 AMAnd Andrew, Kasey is popular with the young teenage crowd. Thus that's why imo he was voted in for the All Star race. There are alot of big sponsors out there besides Budweiser. Yes, Budweiser could have dictated which driver they want to drive their car. But imo, ultimately it should be the car owner's decision. In this case, I question Gillette's decision.
Belinda Moser said:
Jan 6, 2009 at 8:49 AMIn #44, make that Kasey has been consistently better than Elliott.. I need more coffee... LOL
Graceann Jackson said:
Jan 6, 2009 at 10:24 AM#13, I beleive the writer mentioned Sadler in the article as well as many posters have on here. Sadler's termination is a big part of the article. The Petty's are NASCAR they were there when it started, it's shame some fans could careless.
david goerger said:
Jan 6, 2009 at 2:24 PMI think outside corporate people buying into NASCAR teams and then getting 50% or more and then winding up with total ownership and forceing out will be the down fall of stockcar racing because making money will become more important than competion
Howard Englishman said:
Jan 6, 2009 at 2:26 PMBelinda, If you read my posts there is a reason the Dodges didnt run good and that was because NASCAR held DODGE back approving the new engine package. That is why Penske,Petty,Gannassi,Evernham all struggled against the new Toyota package that was approved in 2008.Ray does not have bad equipment. You think a guy that gave Jeff 4 Championships and did most of the engineering on those cars has bad equipment?
Howard Englishman said:
Jan 6, 2009 at 2:28 PMThe car owner does not tell the sponsor who will drive there car. The sponsor tells the car owner.
Ashley said:
Jan 6, 2009 at 3:37 PM#12 Dave: Why would I care WHERE Tony Stewart ranks Elliott Sadler as a driver? And like #14 Belinda-- I KNOW they are good friends too. Dave, asking that question would be as silly as asking, "Gee, I wonder where Jack Roush ranks Rick Hendrick? WHO CARES?!? What is with you guys desperate to interject Tony Stewart into every topic? I am sure "Smoke" would be happy to be left out of this. He'll need all the friends he can find in the next several months! And Elliott Sadler CAN drive when he has the equipment-- just like Keith #24 reiterated... Anybody who thinks otherwise doesn't know-- or care about-- history.
dave ginger said:
Jan 6, 2009 at 3:43 PMWell one thing for sure, Elliot is history! My wife and I are good friends too, and she can't drive either!
Darrel Jenner said:
Jan 6, 2009 at 6:14 PMI know elliot didn't win no races in 2008. I cant remember him ever winning one. I think someone should ask dale jr what he thinks about elliot.
Dan Dugger said:
Jan 7, 2009 at 11:45 AM#37, I like your plan. It may pie in the sky, but I like and would dearly love to see that happen. I think drivers should be on commission anyway!!
teresa beachler said:
Jan 7, 2009 at 7:58 PMActually Darrel, Elliott has won at California, Bristol and Texas.