GEM, RGM Settle Lawsuit, Terminate Plans To Merge Companies
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GEM, Gordon Settle Lawsuit,
Terminate Plans To Merge |
Gillett Evernham Motorsports (GEM) and Robby Gordon Motorsports (RGM) Friday "agreed to a settlement in their lawsuit and announced that they have terminated their merger plan," according to Bob Pockrass of NASCAR SCENE. Management personnel for the two teams "acknowledge that there were misunderstandings, but both sides acted in good faith throughout, and in the end it was circumstances beyond their control that caused the merger not to proceed." RGM though "still faces a lawsuit as part of the deal" -- McLaren Capital Advisors (MCA), "which helped broker the deal for Gordon and also put together the purchase of Evernham Motorsports for the Gillett family, claims that Gordon owes at least $350,000 for its work on the GEM-Gordon deal." MCA filed the complaint September 4 in North Carolina Superior Court (SCENEDAILY.com, 9/19). Meanwhile, ESPN.com's David Newton reported RGM "will lease engines from Penske Racing for the remainder of the Sprint Cup season beginning next weekend" at Kansas Speedway. Gordon has used GEM engines all year, the two sides "dissolved their engine agreement" as part of the lawsuit settlement (ESPN.com, 9/21).
EXTINGUISHING THE FIRES: Chip Ganassi Racing (CGR) Owner Chip Ganassi said that he "has no plans to merge with any organization at this moment -- with plans to run his two cars full-time in 2009." SI.com's Tom Bowles reported the fact Ganassi "has to go public to put out these fires shows the depth of his current problem." These days in NASCAR, it is "clear a slump just doesn't come with poor finishes, but concerns about your future survival -- and when your team is busy worrying about job security, it's nearly impossible for them to 100[%] focus on their tasks at hand" (SI.com, 9/19).
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