BK Racing uh oh

aunty dive said:
There's no way for us to know that.

If they use all their tires for a weekend the cost of that is approx. $25,000. If they wanted to finish last every week to collect the 2.9 million, they could develop a handling problem on lap 50 and turn unused tires in. That would reduce their tire bill to about $5,500. Reduce maintenance costs on this week's car by not doing much ... run a higher gear and use the same engine 3 or 4 races in a row ... cheaper accomodation for the at-track people ... no catering ... no rental cars and on and on. Lots of ways to skin that cat.
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I'm sure there are ways to meet minimum speed and still cut costs I suppose, but they are not allowed to just park the car on lap 50 and call it a day like they used to.
 
aunty dive said:
I’m not having any trouble making sense of it.

“According to NASCAR chief operating officer Brent Dewar, per a report at ESPN.com, chartered teams now get a fixed portion of each race purse, plus another portion based on their three-year performance. Non-chartered teams will get 35 percent of what the chartered teams get.

How much a team and driver receives depending on their finish in each race is the same for all teams, but their finish can affect their fixed income.”

http://www.sportingnews.com/nascar/...gs-2016-sprint-cup/1p5aybkl5v29x11f70k6do71sh

In other words, non-chartered teams that qualify for a race earn a guaranteed amount that represents 35% of the guarantee paid to charter holders. In addition to the guarantee, all teams earn based on their finishing position with no distinction made as to charter.

And: https://www.thoughtco.com/how-nascar-splits-the-money-2470773
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That all would be very helpful IF we knew what the purses are.......
 
mack said:
Thanks, I did not know that. I'm guessing the current deal didn't include the old provision of each race starting 43 cars? I seem to recall that was in the last TV contract.
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I don't think that was ever in any contract. I never saw it documented anywhere, just unsupported rumors.
 
This doesn't make much sense: BK breached their contracts long ago and these guys kept letting BK have goods and services.
The hearing in BK Racing’s bankruptcy this morning also will determine whether Race Engines Plus and Champion Tire & Wheel will continue to supply BK Racing with engines and wheel and equipment support. Both companies have asked the bankruptcy court to force BK Racing to accept their contracts (which would guarantee payment) or allow them to terminate their deals. REP’s deal with BK Racing is for $35,000 per race; Champion Tire & Wheel is for about $4,000 per race to mount tires on wheels and transport of a pit box. According to BK’s bankruptcy filing, it owes REP $569,539 and Champion $94,999 from past seasons.
 
StandOnIt said:
This doesn't make much sense: BK breached their contracts long ago and these guys kept letting BK have goods and services.
The hearing in BK Racing’s bankruptcy this morning also will determine whether Race Engines Plus and Champion Tire & Wheel will continue to supply BK Racing with engines and wheel and equipment support. Both companies have asked the bankruptcy court to force BK Racing to accept their contracts (which would guarantee payment) or allow them to terminate their deals. REP’s deal with BK Racing is for $35,000 per race; Champion Tire & Wheel is for about $4,000 per race to mount tires on wheels and transport of a pit box. According to BK’s bankruptcy filing, it owes REP $569,539 and Champion $94,999 from past seasons.
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This is standard practice with F1 backmarker teams as well. Captive suppliers because who else are they going to sell to, you just pay late.
 
BK Racing is asking the bankruptcy court this morning to be allowed to use cash coming in to pay employees and vendors or else it might have to cease operations. According to its request, BK Racing earned $450,000 for Gray Gaulding’s 20th-place finish in the Daytona 500. The filing states that it also owes 12 employees nearly $21,000 in wages from prior to the Daytona 500. It also states that the value of its charter “may have a value in excess of $5 million," and it could lose the charter if it doesn't race. BK Racing, which already is subject to losing the charter because of the bankruptcy filing, sold a charter to Front Row Motorsports after the 2016 season for reportedly $2 million.

i
Bob Pockrass, NASCAR
 
Formerjackman said:
That all would be very helpful IF we knew what the purses are.......
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I believe the purses is another thing that NASCAR has stopped publicizing , I could be mistaken though.
 
Adding to the tweet
BK Racing can continue to compete through the three-race West Coast swing as long as it shows proof of workers compensation and commercial liability of insurance, a U.S. Bankruptcy Court judge ruled Tuesday. The team earned $450,000 for finishing 20th at Daytona and $92,000 for finishing 36th at Atlanta. Among the March financial estimates of according to attorney statements in court: Assuming a finish of 30th, $385,000 in purse for four races; potential overall revenues of $500,000-$900,000; and payroll expenses and taxes of at least $92,000. A wreck would cost the team $5,000 to $25,000 in extra weekend costs.
 
jws926 said:
BK Racing is asking the bankruptcy court this morning to be allowed to use cash coming in to pay employees and vendors or else it might have to cease operations. According to its request, BK Racing earned $450,000 for Gray Gaulding’s 20th-place finish in the Daytona 500. The filing states that it also owes 12 employees nearly $21,000 in wages from prior to the Daytona 500. It also states that the value of its charter “may have a value in excess of $5 million," and it could lose the charter if it doesn't race. BK Racing, which already is subject to losing the charter because of the bankruptcy filing, sold a charter to Front Row Motorsports after the 2016 season for reportedly $2 million.

i
Bob Pockrass, NASCAR
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5 million for a charter? LMAO
 
Don't know how this team is still running, but why is a hot prospect like Gaulding putting in race time for this organization? He should be a TRD driver or something. Kid has talent
 
MIracingfan said:
Don't know how this team is still running, but why is a hot prospect like Gaulding putting in race time for this organization? He should be a TRD driver or something. Kid has talent
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might be because he is a race car driver, very young that is getting paid to learn. Unlike many paying out the nose for an education.
 
StandOnIt said:
might be because he is a race car driver, very young that is getting paid to learn. Unlike many paying out the nose for an education.
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Are you sure Gray Gaulding is getting paid to drive the BK Racing #23? Last year there were stories about his family paying BK a few million for the ride. Link. Another link. It is just a guess, but my guess is if BK were going to pay a driver, it would not be Gaulding.
 
LewTheShoe said:
Are you sure Gray Gaulding is getting paid to drive the BK Racing #23? Last year there were stories about his family paying BK a few million for the ride. Link. Another link. It is just a guess, but my guess is if BK were going to pay a driver, it would not be Gaulding.
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yeah it looks like a mess, I guess they got it straightened out somehow.
 
LewTheShoe said:
Are you sure Gray Gaulding is getting paid to drive the BK Racing #23? Last year there were stories about his family paying BK a few million for the ride. Link. Another link. It is just a guess, but my guess is if BK were going to pay a driver, it would not be Gaulding.
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Oh geesh calling that a mess is an understatement, when pay 2 play goes bad.
 
Back in 2008 when Kenny Wallace ran the Daytona 500 for Barney Visser he finished dead last and the prize winnings were over $250,000. IDK what would have netted the actual team but it would have been handsome.
 
I had not heard the idea floated that the Grey Goose's ride was bought and paid for but it is not surprising.
 
Geebus, and the hits keep coming



As BK Racing works to reorganize under Chapter 11 bankruptcy, the Internal Revenue Service submitted paperwork claiming it is owed more than $2.53 million from the team. It claims BK Racing has not paid nearly $1.54 million in taxes, mostly payroll taxes, and owes $829K in penalties and $172K in interest. The IRS also has an unsecured claim for an additional $348K from recent tax periods. The taxes are not from profits – according to an attorney representing Union Bank & Trust at a hearing last week, the team lost approximately $28.5 million from 2014-2016.

i
Bob Pockrass, NASCAR
 
almost a million in interest and penalties on a 1.54 million debt? Uncle sugar is going to send "Vinny" to collect. Good gawd.
 
AuzGrams said:
I'm sure there are ways to meet minimum speed and still cut costs I suppose, but they are not allowed to just park the car on lap 50 and call it a day like they used to.
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BK has never actually start-and-parked their main entries (there was a part-time entry in 2014 that did this, but it ran less than 10 races).
 
I acknowledge they would have won far less than $8 million in prize money, but a team with $1.5 million in sponsorship should be running an Xfinity or Truck team. When you can't get reliable access to 10% of what you need to even play, much less compete, you need to swallow your pride and look for a different game.
 
Charlie Spencer said:
I acknowledge they would have won far less than $8 million in prize money, but a team with $1.5 million in sponsorship should be running an Xfinity or Truck team. When you can't get reliable access to 10% of what you need to even play, much less compete, you need to swallow your pride and look for a different game.
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Yeah, they were very obviously on the wrong step on the ladder here. Competing on a 20/80 split of sponsorship revenue to prize winnings while everyone else is running on close to 80/20 is insane.
 
StandOnIt said:
There are a lot of unscrupulous business men that run up a bill and then file bankruptcy and screw their creditors. But good luck trying to screw Uncle Sugar. He blew that part.
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That's one of the things I notice. The bank ain't getting their ... $8 million? What ever the figure was. The IRS is getting their $2.8 mill slice, guaran-damn-teed.
 
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