Steve Waid: This Gillett business is complicated and puzzling
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.
