Truth & Rumors > Auto Racing

GEM sues Robby Gordon over deal

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Gillett Evernham Motorsports has filed suit against Robby Gordon saying the owner/driver of Robby Gordon Motorsports violated terms of a tentative agreement that would have sold his team to GEM for $23.5 million earlier this year. The deal, agreed to Jan. 29, was pending an audit and other due diligence from GEM, which could have adjusted the price. If the deal had gone through, Gordon would have had a four-year driving contract with GEM that would have paid him $3 million annually plus 45 percent of race winnings as well as insurance and other provisions customary for NASCAR driver agreements -- a package likely worth at least $5 million annually. Gordon also could have had a spot on the team's board of directors. GEM would have acquired Gordon's shop and property in Charlotte. As part of the agreement, GEM pledged to provide Gordon with all "racing infrastructure" and to support Gordon's car "in substantially the same manner in which GEM supports its most supported car in the NASCAR Sprint Cup" for the 2008 season.

SceneDaily.com

Robby Gordon, AP Robby Gordon, AP
September 5, 2008  07:47 AM ET

Not sure Gordon would do well working for someone else. I wonder if after review, Everham saw that RGM wasn't worth what he first thought, or if Robby just got cold feet. Maybe,,Robby realized he would be in the top 35 at the end of the season?

September 5, 2008  07:54 AM ET

Man am I out of it. This is the first I have heard of this deal. I think it would have been awesome to roll Robby into GEM. Robby could be Kasey's rammer.

September 5, 2008  07:56 AM ET

OUCH!

September 5, 2008  08:16 AM ET

Never heard about this... makes no sense why Robby would have turned them down considering all the financial trouble he was having earlier this year.

September 5, 2008  09:37 AM ET

Further proof that big money will own all of Nascar in the future, just like most sports venues. A little research produced this info; Chartwell Investments is involved with RCR, Fenway Sports Group with Roush, Montreal Canadian owner, Gillett with Gem, Arizona Diamondbacks owners, Moorad and Garfinkel involved with Hall of Fame Racing, Investor Robert Kauffman of Fortress Investment Group with Waltrip Racing. Is there a trend here? Are these people interested in racing or returning money to themselves or investors?

September 5, 2008  09:41 AM ET

Damn, sounds like Gordon messed up a great deal--what happened?

September 5, 2008  09:42 AM ET

"Hey FLOAT...my name's Xtina...wanna chat?"

LOL

September 5, 2008  09:46 AM ET

Can I bring my Handcuffs over? LOL

September 5, 2008  09:47 AM ET

Everyon in the pool!
JK - those investors are in it for return, no doubt. They smell money. They could care less about the heritage.

September 5, 2008  09:48 AM ET

We all know Robby Gordon hasn't won a damn thing and struggles to stay in the top 35, but look at this sweet deal he had. One can only imagine the crap that J Gordon or Jr or JJ get in their private deals...that's why I'm paying $100/ticket to see a damn race!

September 5, 2008  09:49 AM ET

WOW JK, I didn't know that there were that many.

September 5, 2008  09:53 AM ET

The key word is "tentative" which means not yet firm. No signatures were given nor did moneies change hands. The problem is the lawyers are the ones going to blow this up and search for loopholes to somehow make Robby pay. I like Robby, he embodies the spirit of Nascar, bring your car, race your car and hope to win. No multi car conglomerate here, he races for the love racing. He dominates Off-Road, wish he could do better in Nascar, plus I drink ALOT of Jim Beam and would like to back him!! LOL!

September 5, 2008  09:55 AM ET

Getting just like pro: Basketball, Football, Hockey, etc.
I'd rather go to the games, but setting in front of my Big Screen TV, (when I'm at home, which isn't much), is more in my price range considering going to these events cost me + 3 members of my Family!
Outrageous!

September 5, 2008  10:00 AM ET

Three days after the agreement was signed, GEM and Gordon announced a technical, manufacturing and marketing partnership.
RCR Fan; a deal was signed. Gordon will learn that you can't fool with big money people. If nothing else he will be out large legal fees.

September 5, 2008  10:00 AM ET

Not sure Gordon would do well working for someone else. I wonder if after review, Everham saw that RGM wasn't worth what he first thought, or if Robby just got cold feet. Maybe,,Robby realized he would be in the top 35 at the end of the season?
-FLOAT- | 09/05/08, 07:47 AM

The deal had a provision in it that would have allowed GEM to change the purchase price if the audit revealed that the company was worth less than the original agreed upon price. My bet is that the audit revealed that Robby Gordon's team and funds were not as good as expected and Gordon then tried to violate some term of the deal to try and block it from happening.

September 5, 2008  10:01 AM ET

They sure are asking for alot seeing as how a contract wasn't even signed.
But I do think that Robby should sell or merge with GEM, he probably would have more consistent results.

September 5, 2008  10:13 AM ET

Consistent results and paycheck to boot!

September 5, 2008  10:15 AM ET

Scott thanks for the new avatar!!!!!!!!!!!!!! Great way to start the weekend.
I am certified in cpr if she needs mouth to mouth!! LOL

September 5, 2008  10:27 AM ET

"Hey BUCKGUY, c'mon in...the water is soooo fine!!!"

LOL

 
September 5, 2008  10:30 AM ET

I swear, more stuff happens to Robby Gordon than anyone else on the track.

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