NASCAR Sprint-Cup Series
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CUP: Richard Petty Motorsports Employees In Limbo
The NASCAR Sprint Cup team faces possible shutdown...
Bob Pockrass  | http://www.scenedaily.com  |  Posted October 21, 2010   Charlotte, NC
The four Richard Petty Motorsports haulers were still at Texas Motor Speedway as of Wednesday morning. (Photo: LAT Photographic)
Richard Petty Motorsports employees have been told that they’re going to be paid through this weekend’s race at Martinsville Speedway but it is unclear if the four-car organization will be able to finish out the year, according to two sources familiar with the situation.

No Richard Petty Motorsports officials could be reached for comment, but it appears the team is trying to reorganize its operations in order to continue.

The team has a contract with Roush Fenway Racing to supply cars and Roush Yates Engines for motors. Although there was some question whether the team has possession of its cars for Talladega, sources indicated that those cars were in the RPM shop Thursday morning.

The team has faced financial crisis before but has been able to persevere through mergers with Petty Enterprises and Yates Racing in the last two years.

Team managing partner George Gillett told the SportsBusiness Journal in April that a default of a $90 million loan earlier this year was technical in nature, meaning that he did not miss a payment but, rather, failed to meet terms of at least one covenant.

“We’re not afraid to say that we’ve been through a lot and look forward to what the future has,” Gillett’s son, Foster, said in April.

Sources indicated that George Gillett, who sold the Montreal Canadiens hockey team last year, needed to sell the Liverpool soccer team he co-owned in order to meet his RPM obligations.

That sale happened last week – but at a much lower price than Gillett had expected – to Roush Fenway Racing co-owner John Henry and his New England Sports Ventures.

According to The Guardian newspaper, the Liverpool deal was valued at $477 million – $318 million to repay debt owed to the Royal Bank of Scotland, $64 million to cover non-banking liabilities and $95 million in debts for a new stadium. It did not include repayment of $229 million in loans that Hicks and Gillett have made to Liverpool.

Hicks and Gillett lost a legal battle in England over the sale but have vowed to sue for as much as $1.6 billion in damages.

RPM currently fields three Sprint Cup cars for AJ Allmendinger, Paul Menard, Elliott Sadler and a fourth car that is being driven by Aric Almirola this weekend. Almirola replaced Kasey Kahne, who was released from his contract on Wednesday.

Only two drivers – Allmendinger and Marcos Ambrose – are signed for next season. Primary sponsorship from Stanley Tools is the only major sponsorship that has been announced so far for 2011.

Kahne has left the team for Red Bull Racing next year and Hendrick Motorsports in 2012, while Menard will leave after this year for Richard Childress Racing. Sadler has not announced any 2011 plans but has said he would like to drive for Kevin Harvick Inc. next year.

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